RoyaLand Co Ltd.

Final RoyaLand Co Ltd. Annual Review for Investors

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1. What RoyaLand Actually Does

Not real estate! RoyaLand is building a mobile fantasy game called TheRoyal.Land where players create kingdoms and trade digital assets. Think Game of Thrones meets Pokémon Go.

New for 2023: They’re developing an AR treasure hunt app (find virtual historical artifacts in your city) to build hype before the main game launches. Money would come from selling in-game items like crowns or castle decor.

Why this matters: Past reports wrongly labeled them as real estate developers. Their financial struggles make sense now—gaming is riskier than building apartments.

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2. Financial Health: Burning Cash Fast

• Revenue: $0 (game isn’t out yet)
• Cash left: $226,782 (down 13% from last year) – like having $227 in your bank account.
• Losses: Total losses hit $2.86M. Shareholders’ deficit jumped to $(319,015) from $(13,360) last year – they owe more than they own.
• Who they owe:
  • $305,594 to lawyers/accountants (down 5%)
  • $230,169 to consultants (up 346% – leaning hard on outside help)
• Plan to survive: Selling "virtual land" NFTs to raise cash.

Red flag: Classified as an "emerging growth company," so they share less financial detail than established firms. It’s like judging a blurry photo.

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3. Progress vs. Problems

Good news 🎉:

• Core game design finished.
• AR app 40% done (could launch in 4-5 months).

Bad news 😓:

• No income yet – like a bakery still buying ovens.
• Gaming trends: Royalty-themed games only grew 2% last year.
• Tech risks: Using 11 outside tools – one fails, everything stalls.
• Consulting costs exploded: Up from $51k to $230k yearly.

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4. New Risks to Watch

• Loot box regulations: In-game purchases might face gambling laws.
• AR fatigue: 62% of AR apps lose users in 30 days.
• Privacy laws: Must follow 14+ global rules (e.g., GDPR). Fines up to 4% of revenue if they slip up.
• Leadership power: 3 execs control 97.8% of voting rights (CEO: 62.4%). They can make big decisions without shareholders.
• Penny stock risk: If shares drop below $5, brokers may avoid trading them.
• Stock option dilution: Execs can grant themselves/employees shares at fixed prices. If the stock rises, your slice of the pie shrinks.

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5. Leadership Concerns

• Part-time executives (unusual for a tech startup).
• New 2023 Stock Plan lets leadership award shares to employees. Risks:
  • Execs decide who gets valuable stock.
  • Employees can cash out options up to 7 years later.
  • Too many shares awarded = your investment gets diluted.

The company didn’t clarify how many shares could be awarded, making it hard to assess the risk.

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6. What’s Next?

• 4 months: Launch AR app beta (no revenue projections provided).
• 9 months: Aim for $4M in NFT pre-sales (plan still vague).
• 12-18 months: Finish the full game.

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Should You Invest?

Only consider if you’re comfortable with:

• Extreme risk: Gaming startups have a <10% success rate.
• No safety net: Cash reserves are critically low.
• Leadership red flags: Concentrated power, part-time execs, and vague stock plans.
• Hype-dependent success: Needs perfect execution for 2+ years.

Reality check: This is a "swing for the fences" investment. If the game flops or the AR app fizzles, shareholders could lose everything.

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Key Takeaways

1. High risk, high reward: Success depends on nailing the AR app launch and converting users to paying gamers.
2. Financial pressure: Burning cash fast with no income. NFT sales are a make-or-break gamble.
3. Transparency issues: Limited details on revenue plans and stock dilution risks.
4. Leadership concerns: Small group holds all power, with incentives that might not align with shareholders.

Bottom line: Only for investors who can afford to lose their entire stake. Even then, tread carefully – this is more lottery ticket than blue-chip stock.