During appeal period, your hu*****and and your status are gray. If appeal is successed, there is no problem with your status. If fail, the clock of your overstay starts from the date that your H1/H4 were denied. The appeal process can easily drag a year.
Get the notice first, then work with company lawyer to decide what to do next. If the denial is a mistake, a motion to reopen is enough. If the reason is difficult to overcome, just file another H1. You and your hu*****and go back to China to grab the new H1 and H4 (coming back on H1/H4 visa). Your 140 should be no problem at this time. Remember never trigger the 3 year ban. Once you trigger the ban, it is very difficult for you to get GC.