Yes, Army of the Lost Horizon has been cancelled. Along with other backers, I was sent the below email today that confirms the cancellation.
"We are truly grateful for your enthusiasm and generosity. However, due to changed circumstances, we are unable to continue forward with “Army of the Lost Horizon.” All your pledges for this project will be cancelled. We are overwhelmed by your response and interest and hope to work with you on another project in the future.
Until our next adventure, we thank you!”
This is a real shame as Army of the Lost Horizon looked like a great idea. Hopefully we’ll see the cast and crew back on another project soon.