Hello Erich,
Below is the information you asked for. I suspect that this could be happening because the debugger thinks the function is associated with real program op codes in memory. But it seems that for some reason this function has been left out of the binary. It is called on place in the code and I think the compiler may have marked the function as unreachable.
Here is the code where it is called:
void sysTick_OnInterrupt(LDD_TUserData *UserDataPtr)
{
// For now only need to increment system time here
sysData.systime++;
// Get the count
if (sysData.systime & 0x01FF == 1) // Count for 512 msecs
{
upateCndCount();
}
}

Here are my logs:
717,869 2-environment-cd "P:/CS KDS Workspace/CSLillyPad"
717,885 2^done
717,885 (gdb)
717,885 3-gdb-set breakpoint pending on
717,900 3^done
717,900 (gdb)
717,900 4-enable-pretty-printing
717,900 4^done
717,900 (gdb)
717,900 5-gdb-set python print-stack none
717,900 5^done
717,900 (gdb)
717,900 6-gdb-set print object on
717,900 6^done
717,900 (gdb)
717,900 7-gdb-set print sevenbit-strings on
717,916 7^done
717,916 (gdb)
717,916 8-gdb-set charset ISO-8859-1
717,931 8^done
717,931 (gdb)
717,931 9set mem inaccessible-by-default off
set tcp auto-retry on
set tcp connect-timeout 30
717,931 10source .gdbinit
717,947 &"set mem inaccessible-by-default off\n"
717,947 =cmd-param-changed,param="mem inaccessible-by-default",value="off"
717,947 9^done
717,947 (gdb)
717,947 &"set tcp auto-retry on\n"
717,947 ^done
717,947 (gdb)
717,947 11-gdb-set auto-solib-add on
717,947 &"set tcp connect-timeout 30\n"
717,947 ^done
717,947 (gdb)
717,947 &"source .gdbinit\n"
717,947 &".gdbinit: No such file or directory.\n"
717,947 10^error,msg=".gdbinit: No such file or directory."
717,947 (gdb)
717,947 11^done
717,947 (gdb)
717,947 12-target-select remote 127.0.0.1:7224
717,978 13-list-thread-groups
718,477 =thread-group-started,id="i1",pid="42000"
718,477 =thread-created,id="1",group-id="i1"
718,477 14-list-thread-groups --available
718,493 *stopped,frame={addr="0x000029c0",func="??",args=[]},thread-id="1",stopped-threads="all"
718,493 12^connected
718,493 (gdb)
718,493 &"\n"
718,493 ^done
718,493 (gdb)
718,493 15flushreg
718,493 13^done,groups=[{id="i1",type="process",pid="42000"}]
718,493 (gdb)
718,493 14^error,msg="Can not fetch data now."
718,493 (gdb)
718,493 &"flushreg\n"
718,493 ~"Register cache flushed.\n"
718,524 15^done
718,524 (gdb)
718,540 16monitor semihosting 0,51794
718,555 &"monitor semihosting 0,51794\n"
718,555 @"Command Executed successfully: semihosting 0,51794\r\n"
718,555 16^done
718,555 (gdb)
718,555 17symbol-file "P:\\CS KDS Workspace\\CSLillyPad\\Debug\\CSLillyPad.elf"
718,555 18load "P:\\CS KDS Workspace\\CSLillyPad\\Debug\\CSLillyPad.elf"
718,555 19-list-thread-groups i1
718,571 &"symbol-file \"P:\\\\CS KDS Workspace\\\\CSLillyPad\\\\Debug\\\\CSLillyPad.elf\"\n"
718,571 ~"Reading symbols from P:\\CS KDS Workspace\\CSLillyPad\\Debug\\CSLillyPad.elf..."
718,649 ~"done.\n"
718,665 17^done
718,665 (gdb)
718,665 &"load \"P:\\\\CS KDS Workspace\\\\CSLillyPad\\\\Debug\\\\CSLillyPad.elf\"\n"
718,665 20-gdb-show --thread-group i1 language
718,665 ~"Loading section .interrupts, size 0x1e0 lma 0x0\n"
718,665 18+download,{section=".interrupts",section-size="480",total-size="906415"}
718,665 18+download,{section=".interrupts",section-sent="480",section-size="480",total-sent="480",to\
tal-size="906415"}
718,665 ~"Loading section .cfmprotect, size 0x10 lma 0x400\n"
718,665 18+download,{section=".cfmprotect",section-size="16",total-size="906415"}
718,665 ~"Loading section .text, size 0x7540 lma 0x410\n"
718,665 18+download,{section=".text",section-size="30016",total-size="906415"}
718,696 ~"Loading section .init_array, size 0x4 lma 0x7950\n"
718,696 18+download,{section=".init_array",section-size="4",total-size="906415"}
718,696 ~"Loading section .fini_array, size 0x4 lma 0x7954\n"
718,696 18+download,{section=".fini_array",section-size="4",total-size="906415"}
718,696 ~"Loading section .data, size 0xe8 lma 0x7958\n"
718,696 18+download,{section=".data",section-size="232",total-size="906415"}
718,696 ~"Loading section .romp, size 0x24 lma 0x7a40\n"
718,696 18+download,{section=".romp",section-size="36",total-size="906415"}
721,350 ~"Start address 0x2988, load size 30788\n"
721,350 ~"Transfer rate: 11 KB/sec, 905 bytes/write.\n"
721,350 18^done
721,350 (gdb)
721,365 19^done,threads=[{id="1",target-id="Thread <main>",frame={level="0",addr="0x00002988",func="\
__thumb_startup",args=[],file="../Project_Settings/Startup_Code/startup.c",fullname="P:\\CS KDS Work\
space\\CSLillyPad\\Project_Settings\\Startup_Code\\startup.c",line="211"},state="stopped"}]
721,365 (gdb)
721,365 20^done,value="auto"
721,365 (gdb)
721,365 21-gdb-set --thread-group i1 language c
721,365 21^done
721,365 (gdb)
721,365 22-data-evaluate-expression --thread-group i1 "sizeof (void*)"
721,365 23-stack-info-depth --thread 1 11
721,365 22^done,value="4"
721,365 (gdb)
721,365 24-gdb-set --thread-group i1 language auto
721,365 23^done,depth="1"
721,365 (gdb)
721,365 24^done
721,365 (gdb)
721,365 25-interpreter-exec --thread-group i1 console "show endian"
721,365 ~"The target endianness is set automatically (currently little endian)\n"
721,365 25^done
721,365 (gdb)
721,381 26-break-insert --thread-group i1 -f "\"P:\\CS KDS Workspace\\CSLillyPad\\Sources\\sensor.c\\
":27"
Second one:
P&E GDB Server, Version 5.07.00.00
Copyright 2014, P&E Microcomputer Systems Inc, All rights reserved
Loading library C:\Freescale\KDS_1.1.1\eclipse\plugins\com.pemicro.debug.gdbjtag.pne_1.1.2.201408071632\win32\gdi\unit_ngs_arm_internal.dll ... Done.
Command line arguments: -device=K60DN512Z -startserver -serverport=7224 -interface=USBMULTILINK -speed=5000 -port=USB1 -USE_CYCLONEPRO_RELAYS=0 -FORCE_MASS_ERASE=0
Device selected is k60dn512z
User Specified Hardware Selection : Interface=USBMULTILINK and Port=USB1
Connecting to target.
P&E Interface detected - Flash Version 6.10
Device is K60DN512Z.
Mode is In-Circuit Debug.
'Kinetis' is a registered trademark of Freescale.
(C)opyright 2012, P&E Microcomputer Systems, Inc. (www.pemicro.com)
API version is 101
Server running on 127.0.0.1:7224
Connection from "127.0.0.1" via 127.0.0.1
Copyright 2012 P&E Microcomputer Systems,Inc.
Command Line :C:\Freescale\KDS_1.1.1\eclipse\plugins\com.pemicro.debug.gdbjtag.pne_1.1.2.201408071632\win32\pegdbserver_console -device=K60DN512Z -startserver -serverport=7224 -interface=USBMULTILINK -speed=5000 -port=USB1 -USE_CYCLONEPRO_RELAYS=0 -FORCE
CMD>RE
Initializing.
Target has been RESET and is active.
CMD>CM C:\Freescale\KDS_1.1.1\eclipse\plugins\com.pemicro.debug.gdbjtag.pne_1.1.2.201408071632\win32\gdi\P&E\k60dn512z_pflash_pipeline.arp
Initializing.
Initialized.
;version 1.12, 07/17/2013, Copyright P&E Microcomputer Systems, www.pemicro.com [mk_512k_n_pflash0_pflash1]
;device freescale, k60dn512z, 1x32x128k, desc=pflash_pipeline
;begin_cs device=$00000000, length=$00080000, ram=$20000000
Loading programming algorithm ...
Done.
CMD>EM
Erasing.
Module has been erased.
Initializing.
Initialized.
;version 1.12, 07/17/2013, Copyright P&E Microcomputer Systems, www.pemicro.com [mk_512k_n_pflash0_pflash1]
;device freescale, k60dn512z, 1x32x128k, desc=pflash_pipeline
;begin_cs device=$00000000, length=$00080000, ram=$20000000
Loading programming algorithm ...
Done.
CMD>PM
Programming.
Processing Object File Data ...
.
Programmed.
CMD>VC
Verifying object file CRC-16 to device ranges ...
block 00000000-000001DF ...
Ok.
block 00000400-00007A63 ...
Ok.
Checksum Verification Successful. (Cumulative CRC-16=$92B0)
CMD>RE
Initializing.
Target has been RESET and is active.
Disconnected from "127.0.0.1" via 127.0.0.1
Terminating Gracefully...
Target Disconnected.
Third one:
The target endianness is set automatically (currently little endian)