For me, if I got a "reward" for funding a project on Kickstarter and then found out the project itself was in dire straits because the rewards were unexpectedly more expensive, I'd be pretty tweaked at you. if I fund a kickstarter project, it's because I want the PROJECT to succeed. The reward is the icing on the cake. This goes doubly so in a project where the end result of the project is something that's available in seemingly limitless quantities like software. (edit: As opposed to a project for a physical item, where the "reward" for funding is some flavor of the item being produced.)<p>Fund the project. Apologize for shirts and posters if they can't happen, and offer a more reasonable alternative for rewards if you can and when you can. Most people, I think, would understand that, especially if you deliver on the project as a whole. But I'd rather have the software and no t-shirt advertising it than a t-shirt advertising a piece of software I might never see.<p>Also, using your kickstarter funds to go to PAX was the biggest waste of all the project money you got. Yes, I know the visibility you'd get at PAX, but no, don't do it with your project funding unless somewhere in your project plan you stated you were going to spend some of those funds going to PAX and advertising vaporware. Your project funders were funding the project, not the advertising and the free ride to PAX.<p>Remember what you were asking for funding for - the game. Not the rewards, not the business setup costs, not going to PAX, not anything but the software. I'd even excuse the use for taxes because you didn't understand how LLCs work, but that'd only be in the realm of making sure your project stayed in good graces with the IRS so you could... deliver the project.