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Well, that says it all. No free work.
Always be wary of any place that wants you to do some work before you actually work there. Talking about ideas or approaches is one thing, but an actual assignment goes beyond what should be happening. If they're wanting free work now, they're probably not the kind of people you want to throw in with.
Just want to qualify that I’m on board with the free work comments. What I understand from what was explained to me is that it was more of a quickie assignment, something that took around 6 minutes, 15 minutes max. Not saying it’s not possible but I don’t know how much they could “borrow” from something like that.
Avoid them at all costs.