Stag Arms lost its FFL due to pleadin guilty to violating federal law regarding manufacturing problems.
In July 2014, ATF found,
Out of 3000 samples, 300 could not be reconciled.
136 unserialized lowers
200 lost or missing firearms
62 machine guns(AR lowers with the third hole) unregistered or registered to wrong entity.
By pleading guilty, owner Mark Malkowski will agree to never operate or manage firearms company, as well as personally paying $100,000 fine, while Stag Arms will pay $500,000
Stag Arms is in talks to sell the company.
From: The Firearm Blog, Guns.com