Here is a timeline of events in Q4. CEO states that backlog will have a "significant impact on operating results beginning in Q4". Then 3 weeks later (with less than 4 weeks left in the quarter) he went out and bought 200k shares for a total of $434k.
If something bad happened in Q4 Sottile didn't know about it in early December.
Appears to me as though they have paid down about $7.8 million between 9/30/14 and 3/6/15. The 8-k from last week stated that TOTAL all loans was $15.2 million. Taking the notes payable plus short term portion they were at ~$23.0 million as of 9/30/14. So on an apples to apples basis it appears as though they have paid debt down by $7.8 million in 5 months. If they have any off-balance sheet debt it wouldn't be included in either of these figures.
If they paid down $7.8 million in 5 months Q4 and Q1 are going to be better than I thought.