3.7 mill is right around 15k or in laymans terms, enough to cover their salaries for 2 weeks.
You are not going to bring in a partner or start-up production of a product for 15k.
It may have been used to pay utilities, I dont know. But I heavily doubt that it went to production costs or buying into a partner company. Rememeber none of the new 3.7 are restricted, so I seriously doubt they were for compensation to someone other than the folks already at FPFI.