I'm still working on it (I've actually resumed working on it a few weeks ago). The app is fully functional (both the Android controlling app and the JavaCard secure part that runs on the microSD secure element). I am now working on eliminating the last centralized part of the system (the authority that signs Bitcoin balances) and replacing it with a SPV-style proof. This would allow semi-offline situations where the clients download just the block headers (thus maintaining their privacy - they don't indicate what transactions they're interested in), then the payer proves the balance of a private key by giving the payee the transaction data and a Merkle branch indicating how the transaction connects to a particular block (that the payee is supposed to already know about).

I've managed to port the smartcard side of the app to Infineon chips as well (this used to be an NXP-only affair given that I only had access to their proprietary APIs - now I have access to Infineon's as well).

I'm also looking for additional funding (that was my reason for stopping work on the project a few months ago - ran out of funds and had to go back to my consulting gig for a few months to support myself and my family). I haven't solved this yet, it's frustrating to not be able to focus on this 100% (given that I really love the project and it's what I want to do in the long run), if anyone has any suggestions or business proposals, feel free to message me.

Finally, I plan to enter the Coinbase Hackathon ( https://developers.coinbase.com/bithack ) - I'm trying to finish the SPV proof mechanism before I submit my entry (not sure if it will be ready by then though). This means I will also put together a new demo video showing the current state of the app.

Thanks everyone for your patience and support.
Razvan