It is simply a timing issue
There is insufficient funds for the next quarter and while they have lines of credit - credit is credit which will snowball the cash shortfall.
The shareprice is languishing and unless they have good background info (re: the sales and some investors already lined up) i'd expect the issue to be around a $1.00.
Hope i'm wrong and its closer to $1.20
I'd be buying at that price - if i was "Sophisticated"
Bear