As the fallout continues from the implosion of Europe’s largest Kickstarter-funded project, Torquing Group has staunchly denied that it cheated or stole from its Zano-drone customers.

"We strongly refute any allegations made that may suggest that the board of directors have misappropriated any funds," it wrote.

In an update posted to Kickstarter on Wednesday, the company published a pie chart showing that 46 percent of company spending went to "stock and manufacturing," followed by 14 percent at "gross wages." However, Torquing noted that these financial figures were unaudited.

Earlier this month, cofounder and CEO Ivan Reedman abruptly left Torquing Group, citing “personal health issues and irreconcilable differences.”

In January 2015, Torquing Group concluded its Kickstarter campaign to fund production of its handheld Zano drone. The company raised more than £2.3 million ($3.4 million) in under two months.

This week's statement marks Torquing Group Limited’s first public comment since announcing that its Zano-producing subsidiary, Torquing Robotics Limited, was dissolving. As the company wrote:

Significant investment was made during the later development stages to provide improvements to the ZANO’s performance. The initial prototypes of the ZANO weighed approximately 55 grams whilst the production models including the upgrades mentioned earlier weighed 70 grams, an issue that had a repercussive effect upon the flight time of the ZANO. In order to combat the issue, lighter plastics and larger propellers were therefore procured to improve the flight time and overall performance. Basic calibration between software and hardware was found to be successful during all prototype phases, however once the project moved forward into volume production, tolerances between these two vital aspects of the ZANO product has led to some unforeseen discrepancies and this resulted in difficulties calibrating the product in large volumes. This affected the basic performance of a high proportion of production units. This, coupled with the delays to the shipping dates and the extra costs incurred left the board with no option other than to wind up the project.

Gary Stones, the Welsh liquidator assigned to oversee the formal legal dissolution of the company, e-mailed Ars that a "Statement of Affairs" will be made available following the creditors’ meeting on December 4.