So the game did get created though right? It's $9.99 on Steam: http://store.steampowered.com/app/281940/ It sounds like while the game got made, they aren't profitable and can't afford to make good on the kickstarter rewards.
This was an episodic game they've released Vol 1 which was met with some quite poor reviews due to gameplay issues.
They could not push out Vol 2 nor the Kickstarter rewards as they pretty much ran out of money.
I actually wonder if in such cases Kickstarter shouldn't back the shipping or demand getting the a hold of the rewards and try to some how compensate the backers.
Heck with the amount of projects which fail they can pretty much have a monthly loot crate going on with the crap received from failed kickstartups...
Tho if they file for bankruptcy i wonder if giving the rewards away will not count against them as they devalued their fixed assets value just before or after filing for bankruptcy.