I couldn't care less what testing they've done, fact is they need another $2M to have anything ready for anybody to test, and they didn't commit to doing it in the use of proceeds section of the S-1/A. It's on page 29, btw, great read for the first time ever.
Only thing they committed funds to was repayment of that loan. The rest of it was just "estimates," and it added up to more than they'd have if the offering went through.