No, the Russians paid for all of the guns they ordered. Smith later issued a license for copies to be made by Loewe in germany, and later at Tula arsenal in Russia.
You also have to remember that at the same time Smith was making, and selling, huge numbers of smaller frame revolvers, which alone would have kept the company afloat.
The Light Rifle fiasco almost finished Smith off, but that was in 1940.
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"The gift which I am sending you is called a dog, and is in fact the most precious and valuable possession of mankind" -Theodorus Gaza
Baby Jesus cries when the fat redneck doesn't have military-grade firepower.
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