H1B extension pending..applied for dependent's H1 ..she is currently on H4

I have a situation here…I am on H1 and my wife is here on H4.

My i-94 expired on 03-Sep and my wife’s i-94 also expired.

I filed for extension in June and still waiting for the decision from USCIS and did not apply for H4 extension .She applied for H1B and is waiting for the decision as its a new H1B.At the time of filing her H4 was valid and i-94 was also valid.

As her i-94 expired and we havnt filed for her H4 extension and we dont have H1B approved yet. Does this mean she is out of status? Should we apply for H4 now or wait for H1B decision?

Please suggest.