"i think it means in laymans terms they on the verge of...

"i think it means in laymans terms they on the verge of bankruptcy"

On the contrary, an "unqualified" report is a good thing. It means there are no qualifications to be made and that the report is transparent and thorough and has not hidden important facts.

Definition of Unqualified Company ReportIng 
In an unqualified report, the auditors conclude that the financial statements of your business present fairly its affairs in all material aspects. The opinion embodies the assumptions that your business observed compliance with generally accepted accounting principles and statutory requirements. Also known as a clean report, such a report implies that any changes in the accounting policies, their application and effects, are adequately determined and divulged. This opinion does not tell that your business is in good economic health. It merely states that your financial report is transparent and thorough and has not hidden important facts.