Bruce made personal guarantees on loans, and as you previously illustrated, there is a lien against the PP&E, therefore the need to issue collateral in the form of shares, thereby adding to the convertible debt and liabilities. Not a great form of financing, but the possession, value, and OPPORTUNITY are all the same. Why would anyone (i.e. "reputable investor") back the title if there wasn't any REAL VALUE?
Claims of broken-this, or props-that mean nothing without the proof. It's idling. Lots of plants do this in preparation of what's to come. IT'S CALLED PHASING TO SCALE, SCALE-UP, PHASING, SCALING UP... lots of manufacturers and start-ups do just that - it's SOP across every industry. Timing obviously plays a role, as does gov't regulation.
The FLOODGATES burst, then the machines turn on, with truckloads lined up, and debts are paid and profits are made, happily ever after. The end.