Well, I go on vacation for a week and it seems we run amok.
A misconception should be corrected. The fact something can be sold to the public does not mean it contains nothing that requires licensing to buy in its raw form. Double-base smokeless powder, for example, contains both nitrocellulose and nitroglycerin, either one of which takes proper licensing to purchase. It's just that the final form of the manufactured powder is safe to handle and does not present the kinds of explosive hazards of its raw materials do.
That also means if one does not know how to make a dragon's breath shell in the first place (and I do not), it cannot be guaranteed it doesn't contain raw materials that are hazardous or require a license of some sort to acquire and store. I just don't know. What I do know is that people developing products like this take special precautions that amateurs may fail to anticipate, such as confining the work to a small separate outbuilding to prevent an accident spreading fire. It can be more dangerous than you might at first suspect; but it also may not be. I just don't know.
Since this is not a standard reloading activity of any kind, absent someone on the board knowing someone involved in the commercial manufacture of these devices, we may never know the exact truth about this particular item. Since nobody with that information has come forward and since the thread is leading mainly to acrimony and various violations of the board policy against personal attacks and uncomplimentary characterizations, I will close it, asking anyone with specific knowledge about these devices and necessary safety and licensing precautions regarding their manufacture to contact the poster by P.M. with that information.
I will add that in general, we discourage discussions of potentially dangerous practices. In this case we don't really know if the manufacture is a dangerous practice, but have reason to be cautious. We do know any pyrotechnic items, including perfectly legal surplus tracer ammunition and even steel jacketed ammo striking sparks on stones, much less Tannerite, can present fire or other hazards under some circumstances, so there is no doubt cautions about use of such things are always legitimate to mention as a matter of fact, though it is not acceptable to do so as a comment on anybody's native intelligence.