They did replace their CFO, but the prior CFO re-started the technology and was activist in a number of areas, as many long-termers here know.
I honestly don't know why enough machines weren't sold to keep the filings current, but my opinion was they were simply short-handed following the death of the prior CFO.
I don't know the answer to your second question. The biomass industry itself has suffered from financing issues for a number of years as it has attempted to grow worldwide, and most likely has affected KDS sales.
Over the last 6 months or so, I have noticed an apparent break in that issue, and projects seem to be moving forward with more frequency. I base this mostly on my reviews of several biomass magazines and other industry sources.