MECH: Riot Mechs

SL's first real battle begins!

Total shares: 20,000,000

Prospectus

Company Tagline

SL's first real battle begins!

CEO's Real Life Name

Ryan Gordon

CEO's Real Life Location

Tulare, California, US

Board of Directors

TasteMy Shams - CEO of CLI Currency & Land Investment Group
Job: Will handle any advertising, renting, and usage of land

Joshua Pilote - Used to manage & own several full sim casinos, clubs, and malls.
Job: Will assist in any hiring or job training needed.

Perfect Price -
Job: Player Recruitment Director. – will recruit first waves of Mechs to get sims started

More to come during or after IPO as we meet our larger investors.

Cash on hand

600000

Monthly Income

130000

Monthly Expenses

70000

Ima Janitor (Ryan)

Hello Investors,

This project will be one of the largest themed / detailed builds that this game has seen yet! It will both revolutionize combat games and change the way some items (AV's Cars, Guns, ETC) are sold.

I have already paid YEP! to design prototypes of the Mechs out of my own pocket, and if you haven’t seen them yet visit YEP!s new showroom on Luxe Island! Also walk along the east side of their sim behind the buildings. Walk into the prefabs they sell and see what a true 3d lighted hand textures prim by prim build looks like. That is how everything (every single prim) on this sim will be textured! You have to see it to believe it! I will also be around in the exchange with a prototype AV on during the IPO to get interest!

While it is a big project, taking numerous amounts time and money to implement correctly ("correctly" is the key word), the results will not only generate solid income as long as SL exists, but also give SL a word of mouth and traffic boost that it needs after the recent problems and Gambling bans that dropped its appeal to many people.

I have talked to the developers and the SLCapEx management and decided to do the project in two phases. The final vision for this plan is to have 5 total sims. A central staging area with Mech shops and tourney sign up areas etc, and then 4 interactive combat sims, one on each side of the staging sim. Overall this will take up to 10 million shares to accomplish the full scope of the project and several months of developing.

In order to get the project started and running, we are launching the IPO with 6 million shares being sold on the initial IPO and calling it stage 1. This will allow us to develop all the mechs, the combat system, web pages to track stats, buy and build the staging sim, buying and building the first combat sim and more!

After stage 1 is complete and fully running, we will start phase two. Phase 2 will be buying and building the remaining 3 combat sims on the other 3 sides of the staging sim. In my opinion, doing a secondary ipo later for stage #2 would only have diluted the stockholder value of the initial investors. After talking to the SLCapEx management, we felt the best way to accomplish both goals without later diluting the shareholder value for investors is to launch with all the shares outstanding, but only IPO the first stage. We will put the shares for the second stage in separated account (so that I will not sell them or use them for personal use), and they will be sold at a later time to pay for stage 2. That way all original share holders will own the same % of MECH now as in the future.

Now, for those worried we will kill our market price selling shares later for the second stage, we have came up with a solid decision. We will have my-self, and the top 10 shareholders (for 11 total votes) vote on starting the second phase BEFORE we sell any of the secondary shares. If they feel we have already built up enough assets and do not want to build any more sims, then we will not sell the secondary shares or release them to the market. If they feel the second phase is worth it at that time then we can and will launch phase 2 and sell the second wave of shares. This option will be voted on once a month. This will allow us to fully reach our goal, and to also protect you as the shareholders.

Hopefully after reading all of the exciting ideas below you will be as intrigued and excited by this as I am!

Best Regards,

ImA (you can also call me Ryan. RL)

Business Overview

We will have 4 Distinct Areas to our Operation. (Read the "Business Strategy" below for more details on each)

Layer 1) Combat Sims
Layer 2) Sales & Rentals of Mechs and Accessories
Layer 3) Entry & Tourney Fees
Layer 4) Optional Web Service

Each of these compliments each other and adds to both the overall profit to RiotMechs, and the overall value and fun factor for our customers.

___ Profit Summary ___

Layer 1) Combat Sims: Figure their are 720 1 hr time blocks in a month for each arena!. If we rent out even just 28 1 hr blocks per sim / arena @ 3K(4% of total time blocks) We will break even! You can do the math on profit potential!!! It should make us about $100K L a month in the first open month and grow from there!

Layer 2) Sales & Rentals of Mechs: Prices will vary once we see final Mechs, but we’ve already had people offering to pay 10-20K after seeing the prototypes. So assuming we can sell 10 a month (we hope 50!) and rent 10-20 a day to start, that’s 250-500K L month for first few months until we grow it higher!

Layer 3) Tourney Fees: Basically players will buy in to the tourneys, and we will rake a % from entrees before paying out prizes. The profits on this are hard to predict until we see interest level, but with lack of any other gambling in SL this should be HUGE!

Layer 4) Optional Web Service: This is more of a name builder then profit maker. It might make $100,000 month for first few months.

___ Profit Overview ___

For first few months that the arenas are open we expect profits after expenses of 400,000-700,000L not including advertising income, so if we land some of the corporate sponsors we are working on it could jump 300-600K month to 700,000-1,300,000L month for the first few months. And keep growing from there!

Business Strategy

We will have several layers to our business to maximize both profit and exposure. To see how certain areas we describe below can make us money while others have lost money, read the strengths and weakness listed under "Business Strengths" also.



Layer 1) Combat Sims: We will have several sims that have a few unique features not seen in other areas, including:

a) 100% Interactive Environments. The sims will have everything react to the Mechs fighting in the area. From street lamps that get knocked over, to grass being trampled, to buildings that actually show signs of damage then explode or crumble!

b) Normal open free play time in the combat arenas to get interest and a larger customer base, and then on top of that we will have set times that are for private rentals only. So a group of friends can pay (as example) 3000L and have entire combat sim to their selves for an hour. This will add an additional revenue source as well as capture several markets.

c) Real Life Advertising! We are already in talks with some RL companies who want to advertise in SL. They will advertise on things like billboards that fit the themes, and you will be able to blow them up as well! RL companies have been spending 10-50K $US to build their sims and wonder why they have no traffic in their own sims. Well we already started talking to them about how traffic in the game works, and our combat sims should have the most traffic of any of the sims for the ages they are looking to target, males 18-35. We also have several of the larger SL companies wanting to advertise.



Layer 2) Sales & Rentals:


a) Mechs will be both rented and sold! That’s right, there will be a version that can be rented for hours for people looking for one time fights or wanting to try them out! And then of course we will sell them for those that want to either play a lot or show it off!

b) Add-Ons! Each Mech will have tons of add-ons, from larger rocket launchers, to better shields. Theirs no better way to keep people spending money then to dangle upgrades in front of them :)



Layer 3) Tourney Fees:

We will have both free for all Tourneys and player Vs. Player tourneys where players will pay entry fees, and then we will collect a % before paying out the rest of the profits to the winners.



Layer 4) Optional Web Service:

We will have a website (www.RiotMechs.com) where people can check out all their PvP stats and more! Overall leader boards and basic individual player will be free to visit, and people can pay small monthly fee to see detailed stats!

Business Strengths

We have several strengths over other projects in our category.



1) Uniqueness!

a) We are the first and only dedicated Mech Combat Arenas

b) Upgradeable Mechs and Interactive Sim / Buildings have not been done to this degree in SL, ever!

c) Mechs and buildings show damage! Yes, mechs will show damage as they take hits!


2) Quality!

a) All our mechs are using the sculptie technology and are 100% texture backed in a RL lighting program. Nothing has been built in this detail for combat. Nothing.

b) Not only will our sims and buildings be built in the detail listed above like the mechs, but everything will be scripted to be interactive. Street lamps will be knocked over, Buildings will show some damage then blow up or fall, and grass will be trampled.



3) Web Site!

Customers will be able to track rankings and stats! Other combat systems are limited to SL only. Ours will allow them to show themselves, their friends, and the world their stats!

Use of Capital

We have calculated the best approach to both sim quality and Mech quantities to get the most for our money and the have the best system out that we can at launch.

(SL bills in US. So $L estimates below vary with exchange rates)

These prices are for the full Stage 1 & Stage 2 packages:

Stage 1 cost: $6,000,000L
includes: 3-5 mechs, 2 sims, web systems, combat systems

Stage 2 cost: $4,000,000L
includes: remaining work to reach total of 5 mechs & 5 sims

(The top 10 investors will vote on and approve stage 2 before it is launched)
____

Land:

5 Sims @ $1675us each = 2,400,000L
6 months tier for 5 sims = 2,500,000L

Total needed for Land purchase and 6 months tier: $4,900,000L
____

Design Fees & Scripting Fees: ***


Mech Designs:

1) Initial Bid is for 5 Unique Mech designs
2) Each Mech has up to 5 unique textures & shapes to show damage
3) Each Mech will have 5-10 unique upgrades (1-4-10 rockets etc)
4) Each Mech will have a unique HUD display
5) All Mechs will have a custom weapons system to work in our arenas
6) Mechs will be scripted so they can be sold or rented

$300,000L per mech for the building and texturing of each mech with all its variables (5 shapes / damages levels with 10 weapons layouts means each mech is really 50 mechs! And they all are scripted different to reflect changes in power etc)

Total needed for 5 mechs: $1,500,000L before discount
Discount for pack of 5 = 33%: -500,000L


Sim Designs:

1) Main sim will have retail stores to sell all the items
2) Main sim will have staging areas to enter the 4 arenas
3) Each arena will have unique theme / design
4) All buildings and objects in the sims will be interactive
(street lights fall, buildings crumble or explode etc)
5) Every texture in the sim will be hand baked out of SL.
6) Sim will be able to withstand a minimum of 4 full functioning mechs with sim turned on at full interactive mode at a minimum without crashing. Sim will support 10-50 with sim interactive modes turned off or down a level.
7) Sims will be settable to have both free play or reserved and private time blocks.

$600,000L Per full textures, sculpted, and interactive sim

Total needed for 5 sims built: $3,000,000L before discount
Discount for 5 sims= 20%: 600,000L

*** (At this time YEP! has the job due to the fact their 3d Sculptie builds are better quality than anything else made in SL. But if the top 10 investors after IPO vote to use other builders we will entertain the option. CEO has final say). As I mentioned above, see the demo mechs they are building in their showroom on Luxe Island sim. They are not textured yet, but they are already amazing!
(We can and might break each of the below parts to separate builders & scripters if YEP! does not meet its deadlines. But they have agreed to large fines for delays, so the project should be done on schedule, and a project always works more smoothly with one company doing the entire build instead of 5 people / companies trying to get their sripts to interact correctly and troubleshoot.)


Web Design:

1) Full functioning website that interacts and tracks stats from SL
2) Professional look and layout. Will be customized to my specs.

Total needed for Web Site: $600,000L

____

Total needed for Advertising: $300,000L
-6 month campaign of Slex item listings, Banner adds on most large SL sites, and inworld search.

____

Total deducted from IPO for exchange fees: $300,000L

____

Total Float for $L variations to make tier payments etc. Unexpected expenses. Or any other misc. costs that arise: $500,000L

________________________

Overview of expenses:
Land & 6 months tier: 4,900,000L
Mech Designs: 1,000,000L
Sim Designs: 2,400,000L
Web Design: 600,000L
Advertising: 300,000L
Exchange Fees: 300,000L
Emergency Float (cash reserves):500,000L

Total Used / Needed: 10,000,000L

________________________

Risk Factors

Land Risk:

Most companies’ risk of land is that they pay hundreds or thousands to develop it, then run out of money in a few months and do not pay the tier and lose their $2K us (just for land from SL, not counting building cost / losses)

We have planned on this and set aside 6 months tier in case things take longer to develop then we plan. If the sims are fully working in 2 months and making money, then we will let our top 10 shareholders vote on saving the back-up tier in case of slow months, or paying it out as dividends at that point.

And, as for land costs and loss, these will be private islands not mainland. We will be able to sell them empty for cost or even a few hundred below cost if we have to get rid of them fast, and all the money that is gained will be repaid to investors, OR, (we’ve already had buyers asking us) we could sell the sims outright for what we paid for them or more including development costs and let the next owner maintain the combat systems.

Other Risks:

After we have all the land and mechs established, there are no other risks besides the land loss. Except of course If SL crashed completely and went out of business.

Management

ImA Janitor: CEO (worked my way up, lol)

Joshua Pilote: HR Director. He will train and hire people to train staff for initial waves of mechs. (if needed) He will also train volunteers to teach new players how to use system.

TasteMy Shams: Sim Director. She will make sure our store is working correctly and handle advertising and the limited signage rentals throughout our sim.

Perfect Price: Player Recruitment Director. He will recruit and find noobs or anyone else who would fit in or enjoy playing in our arenas to build initial player base and word of mouth.