I'm sure some of it is still in the bank, but of the part that's been spent, a big share is people's salaries. They've been around over a year, and have 12 salaries to pay, including a management team full of former Microsoft and Expedia execs.
Having 12 people working on this full time is just as ridiculous as sitting on 3 mil...
If this service requires 3 million marketing dollars to take off, maybe indeed it's not that great of a product to begin with...