Considering the precision parts, high-tech magnets, assembly, etc it is a low funding goal for a product of this complexity. It covers our minimum tooling cost and the production costs for the quantity that would be required to produce the number of units assumed to meet the goal.
In other words...If the tooling costs are $15,000. And our goal was $20,000, then we have to assume that about 500 people are going to be expecting products. We couldn't build 500 units for $5000! So, we have to have a higher funding goal to make sure we can deliver.
In addition, it covers Kickstarter fees (with credit card processing fees). It does not cover design, prototyping, IP, or marketing.
A marketing guy told us that the funding goal was too high and that we needed to lower it. If we decreased the funding goal and then barely achieved it, we would not be able to fulfill the rewards. We take this all very seriously. Even though a lot has already happened and been worked-on, the real beginning is when the backers get the product. That's our REAL goal.