Development for Episode 4 is indeed in progress. I won't give a release date or even an approximate one because it's too much weight but yeah, I'm working on it actively now.
Also side note, I am aware that there are spriters on this site I could approach for help, but I feel that it would be unfair to force myself upon them especially if they're not really keen to work on the game as sometimes it can be quite awkward saying no. If a spriter is passionate about the project and would like to help with the game then I'm happy to talk in PM's.