Update 21, or, how we don’t give a fuck about you—nor do we plan to deliver anything

They even say how they thought it would be much smaller and they pretty much got in over their heads:

Our initial funding target was CAD 20K, aimed at producing a limited number of early prototypes. That version was more difficult to assemble and operate, and primarily suited a niche audience. As the campaign gained traction and a much broader group of backers joined, it became clear that the project needed to evolve…

The right thing to do would have been to give back the money when they realized they couldn’t deliver.

This is grounds for legal action.