This dose seem like your device is resetting but I don't see anything in the code that would cause that. Could you try a new battery? It could potentially be that your battery is actually low and the device resets every once in a while.
I am running the example and also added the LED change just to be safe and the out put on my MQTT borker is showing the reports coming in every 10s.
1468257840: Received PUBLISH from Gateway (d0, q0, r0, m0, 'losant/577144f8af5318010042c29b/state', ... (72 bytes))
1468257845: Received PINGREQ from Gateway
1468257845: Sending PINGRESP to Gateway
1468257850: Received PUBLISH from Gateway (d0, q0, r0, m0, 'losant/577144f8af5318010042c29b/state', ... (72 bytes))
1468257855: Received PINGREQ from Gateway
1468257855: Sending PINGRESP to Gateway
1468257859: Received PUBLISH from Gateway (d0, q0, r0, m0, 'mcThings/beacon/00010B51/00010005', ... (17 bytes))
1468257860: Received PUBLISH from Gateway (d0, q0, r0, m0, 'losant/577144f8af5318010042c29b/state', ... (72 bytes))
1468257865: Received PINGREQ from Gateway
1468257865: Sending PINGRESP to Gateway
1468257870: Received PUBLISH from Gateway (d0, q0, r0, m0, 'losant/577144f8af5318010042c29b/state', ... (72 bytes))
1468257875: Received PINGREQ from Gateway
1468257875: Sending PINGRESP to Gateway
1468257880: Received PINGREQ from Gateway
1468257880: Sending PINGRESP to Gateway
1468257880: Received PUBLISH from Gateway (d0, q0, r0, m0, 'losant/577144f8af5318010042c29b/state', ... (72 bytes))
1468257885: Received PINGREQ from Gateway
1468257885: Sending PINGRESP to Gateway
1468257890: Received PUBLISH from Gateway (d0, q0, r0, m0, 'losant/577144f8af5318010042c29b/state', ... (72 bytes))
1468257895: Received PINGREQ from Gateway
1468257895: Sending PINGRESP to Gateway
1468257900: Received PUBLISH from Gateway (d0, q0, r0, m0, 'losant/577144f8af5318010042c29b/state', ... (72 bytes))