That was a bit too detailed and rambling, so I skimmed it. Some missing info:
1) Will all the backers receive the products they paid for?
2) Losing $100K seems large in comparison to their kickstarter revenue of $650K. Are new customers safe to order?
I also don't get this logic: "On the other hand, Kaia pointed out to Jesse the other night that this actually makes her more confident about our ability to manufacture products in China in the future."
Nevertheless, running a small business is hard. I don't judge them too harshly. When you are small potatoes, you also deal with other small potatoes who could be incompetent (the factory owner is also blame here). You also don't have the resources to micro-manage (ie. have someone in China all the time).
I also don't get this logic: "On the other hand, Kaia pointed out to Jesse the other night that this actually makes her more confident about our ability to manufacture products in China in the future."
Nevertheless, running a small business is hard. I don't judge them too harshly. When you are small potatoes, you also deal with other small potatoes who could be incompetent (the factory owner is also blame here). You also don't have the resources to micro-manage (ie. have someone in China all the time).