I don't believe the story at all. It looks like a K2 that has been modified. The mods are just simple bolt ons. The serial number,
although somewhat early, indicates it was well into the K2 production. Why would the factory revert back to K1 bolt on parts for R&D work
??
The exhaust looks to be after market. I see nothing that indicates any kind of "factory R&D work"
The serial number indicates it is the early K2 that shares all major parts with the K1. Same front forks, front fender, caliper mount, headlight ears (just chromed) and rhino clamp gauges. At Serial num 2093731 all that changed to the K3 parts.
Its easy to spot the early vs late K2's by where the front turn signals are mounted. Early, before 2093731 has the turn signals
mounted like the K1 at the same spot the headlight shell is mounted. Late K2, 209731 forward, have them mounted farther back on the headlight ears, same as a K3. I think the K2 is the only year that has such a varied build.
With that said, it appears to be in great condition and would be a easy resto or just leave it like it is and ride. Also, if all those parts are included, well that only adds to the value. If it runs good, I would say the 3,000 to 5,000 dollar range.
KC