Royalty. Creator shall be entitled to a royalty of 10% of net revenues of Company from the distribution of the Product ("the Royalty"). The value of the Coupons redeemed shall be deducted from the Royalty owed to the Creator. The $8,000 of the original Kickstarter Revenues budgeted to the Creator and kept by him following the Transfer of Production Funds shall be considered a recoupable advance to Creator against the Royalty.
So, James got paid $8k for his work on Dwimmermount and gets a 10% royalty of net revenues of future Dwimmermount sales made by Autarch.
But wait, redeemed coupons, you know, the ones Autarch is giving away to those that don't ask for refunds valued at twice the amount pledged into the Kickstarter, get deducted from those future royalties.
But wait, there's more! That $8k is considered an advance against future royalties.
So, between these two mechanisms, it's pretty clear James made $8k on Dwimmermount and is unlikely to see a penny more. I suspect Autarch is going to take a loss, especially considering the numer of folks that have reached out to me to let me know they were going to ask for a refund from Autarch. It seems to be a combination of excessive time, the general fiasco and the LL version's viability.
So, winners? Losers
James made some cash and took a torpedo to his rep.
Autarch has improved their rep vastly, but at an unknown dollar cost.
Purchasers / Supporters of Dwimmermount will finally get a product, greatly delayed and not James' "pure" vision. As I understand it, the "Rat & Copper Room" will remain intact, and that's simply a win for everyone.