The dev listed it as "On Hold", but really, I'm almost positive he abandoned it. Before placing it on hold, he talked about how he hated NTR and the dark story, and he wanted to change the story to a happy one with 0 NTR. Basically, he wanted to make Episode 1 pointless since it would pretty much erase what happened in it. There wasn't a big back lash from it. In fact, I think I may have been one of the only people who stated how I didn't like that.
So, he ended up putting it on hold, and made what would have been "Episode 2" into another game called Path of Love. I don't think he ever had any intention of coming back to this game to finish it. In fact, after Path of Love, he started working on another game called IDNL. So, yea, I think that pretty much confirms that he abandoned this game, even if he didn't list it as abandoned.
Personally, I think that's fine. I'd rather he just abandon this game and make a game he enjoys, instead of drastically changing this game after giving us a full episode.