Categories with subcatogories can receive listings.
I'm getting pretty angry at the oversights that appthemes developers have made here. If a category has a subcategory, then the category is just a grouping title - not a place webmasters want their users to list. If this isn't the most obvious thing in the world to you, then please shut down your business immediately. This is still a beta theme. it is not ready to sell. Only in this corrupt industry can developers get away with it.