...or pehaps they simply forgot to pay the CA annual registration fee. No big deal. They pay the fee and their CA status is reactivated.
I know this from experience, as I am a retired CPA who in a past life helped many clients catch up on their delinquent filings. Kenco, you should know that businesses that are growing fast tend to focus all of their attention on sales, sales, sales. Why? Because its sales and cash flow that pays their bills. Being in compliance with state requirements is an after thought. As a result, accounting and tax filings suffer.