Just guessing, but:
I'd hope the thing was thoroughly audited by someone else before shipping - finding that someone will cost something.
Getting set up to manufacture, even with limited runs can be an expensive proposition. You might be able to design and build a rough prototype for 50, but good luck getting any manufacturing plants interested without
a) a high cost small run
b) a lower cost, guaranteed run of a given quantity
It's not like they're planning on building these hsms in their garage, is it?
The other option is to not raise so much upfront, and hold orders until the manufacturers minimum run size is achieved. IME that's insanely frustrating when you're wanting to get your hands on the thing.