First... freebies or not, they are prototypes, as in samples, as in no guarantees of sales. Freebies would be nice, I think, in that they would allow more potential customers to sample the material, but of course an expense is incurred.
Two... having enough cash to see you through the end of the year with no idea of where you will get the money to run in 2014 is a major problem. Let me say it again, loud and clear: If they do not sign a major contract (sales or licensing) in the next 6 weeks their hands will be forced. A company sale takes time and you had better allow more than a couple quarters headstart to get the process completed.
Third... more prototypes. What was the result of the first raft of prototypes with the company? Nobody knows. What we do know, however, is that no sale has yet to be announced.
If you fear a company sale, then that "increased prototype activity" had better pay off in the next six weeks.