My explanation -i think the stock was shorted a while back when it was in the around the $2 range. In my opinion it may have been shorted by those involved in the $2M financing that closed recently. They knew they would get their shares at $1.1...why not short at the top and make money on the way down as well....
I personally think that we have seen the bottom....i think the shorted shares are almost covered....it may dip below $1 momentarily...but will soon see it go up. I think it will be in around the $3 range before the financing close...and then go up to $5 after the announcement....unless of course a buyout comes along and then all bets are off.