But they're reported to have ~$1 million in debt right now (plus perhaps that much or more cash still in the bank). And it's possible they had another $1 million or more in debt around the time of the financing, in vendor AP or bridge loans, which the financing paid-down. And there are other expenses beyond employee overhead in growing an ecommerce brand.
They were apparently burning cash too fast but a simple ($4.7M / 28 people / 0.5 year) isn't going to give a fair estimate ("paying $300K/year") of what they were burning it on.
http://pandodaily.com/2012/08/14/a-4-7-million-injection-in-...
They would have had to pay their 28 employees an average of about $300k a year to burn through all that by now.