Quarterly reports cover a 3 month period. They do not contain audited financial statements. They are a snapshot of a quarter of the year.
The Company has not complied with SEC disclosure rules and no matter what its sales may (or may not) be, they failed to disclose material information which puts them at risk for shareholder suits, DTC Chills, FINRA halts and an SEC action. It is irrelevant what their sales are if the Company violated securities laws.
Give me one example where the SEC, FINRA or DTC stated that they would forego anytime of action because the company had increased sales.
The suggestion is ridicules.