As you say, Pagnano wasn't, and isn't, obliged to file anything with anyone. Of course, since he doesn't, no sane person ought to buy the stock.
And yes, all of the company's stock is unregistered. BUT new stock cannot be registered unless it IS registered, or qualifies from a legitimate exemption from registration. The latter is the problem.
And simply having a product doesn't make a company legitimate. Some of the biggest scams have products. It's good cover.