That seems most likely.
The only other scenario is that they are running some type of Pinkie shell game. However, they'd be utter idiots to do so. The potential cost-benefit balance of a Pinkie scam operation vs. a legit business seem vastly imbalanced here.
On the one hand, a Pinkie scam would offer potentially a couple mln (at best) in diluted shares one day. Oh... and then there's the potential of severe fines and jail.
Whereas, a legit company offers the high likelihood of either 10s of millions (or more) in a buyout, or much more in a sustainable, booming business into the future.
The math seems rather obvious. This is a steal at this pps for a company that will likely be trading in the multiple $s this time next year after uplisting and after institutional investors are able to get in.