Their backup plan was already executed: they switched from their testing methodology to acting as a service provider for somebody else's testing methodology (http://www.businessinsider.com/bill-maris-explains-why-gv-di... """So, we just had someone from our life-science investment team go into Walgreens and take the test. And it wasn't that difficult for anyone to determine that things may not be what they seem here."

That employee found that when he went to get a test done, Theranos wanted more than just a drop of blood in one of its "nanotainers." He denied a full venous blood draw, and ended up getting called back a week later because they wanted him to give more blood.""")

Were they even able to get their Edison device into a functional state?

it was approved for a single test. http://fortune.com/2015/07/02/theranos-fda-approval/ dunno if they ever got the device in a functional state, outside of extremely controlled conditions in a lab.