It seems natural to me that the money he gets from the IH case money award will be used to bring the QuarkX to the production stage.
As Jed has pointed out the $10.5M from IH was available anyway, but used for real estate.
In any case why did he not just sell the previous e-cat or hot-cat, both of which, Rossi claimed, were sellable. He could have got so much money, so easily, doing that?
Unless none of this stuff works, of course.