The clock has run out on Central Standard Timing, which filed for bankruptcy on Monday after its Kickstarter campaign ran out of funding to produce e-ink watches, resulting in a frustrating process for backers.
The Chicago-based company behind the CST-01 first unveiled the device back in 2013, raising more than $1 million on Kickstarter to help mass-produce several of its "world's thinnest watch" models.
Central Standard Timing posted what appeared to be its final update, saying that electronics manufacturing services company Flextronics decided to step away from the project.
The company took to Kickstarter, where the campaign exceeded its goal and raised $1,026,293 from more than 7,600 backers.
However, Central Standard Timing faced some manufacturing problems in 2015, and told backers last June that it was having trouble finding a way to ship the product.
The latest update is backers-only, but does not include any statements from the company, according to Slash Gear. There are only a few legal documents declaring Central Standard Timing's bankruptcy, and notifying backers that they may not see their money ever again.
One document declares the company's assets of only $30,000, and its liabilities totaling up to $891,563.
Slash Gear points out that there's no explanation of where the rest of the contribution funds ended up, and how Central Standard Timing spent its money.
A letter given to backers states that the assets will be liquidated to pay creditors. However, secured debts are on top of the list, followed by "administration claims," then taxes and finally, unsecured creditors — that is, if there's any money left.
If backers of CST-01 want their funds returned, they must fill out an Affidavit of Claim by June 5, along with providing their Social Security number.
"The Trustee/Assignee has not determined whether a Kickstarter or other crowdfunding contributor is entitled to participate in a distribution, if any," the letter says.
Some backers of the project were ready to file lawsuits against CST in July, when the first delay was announced by the company, but no one has followed through, the Chicago Tribune reported.
Lawyers say that this defeats the purpose of donating to product-based crowdfunding campaigns because people spend their hard-earned money on a product that may not get delivered.
