Direct-to-video implies that the movie literally went to video without a theatrical release. Even if you don't count them, a movie released in a theatre, no matter if the run was poor, is still a theatrical release.
There's no such thing as a test release...there is something called a platform release which is what was intended for TAIB. Distributor's normally do this with indie films which don't have a lot of money for promotion (and this movie virtually had no promotion). The plan was to get a "platform release", open it in a small number of theatres then the following week, expand it to more theatres if there was a good theatre average. The first week it was released wasn't a test release, but it's actual release in theatres. If it had done better, the distributor would have expanded it to more theatres.
Studio movies typically get wide releases and if they fail, the distributor still keeps it in theatres for a certain amount of time, due to contractual obligations. This is why some movies are still in theatres for a certain time (say at the least, one month) after they bomb, because that is what the contract stipulates.