They sold enough to drive the sp to no bid. Many of those "debts" were paid off with .00005 shares. Companies don't sell directly into the market. They give shares for services or sell them to private parties who in turn sell them.
As far as why they brought the filings current: take your pick. Positive spin is that they needed a clean slate to obtain this $20M financing package. Negative spin is they no longer had a market to sell shares into, making it impossible for them to operate and had to do the rs and start over again.
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