Gucci, that's precisely what my concern is. If he started working with the military, why did he just TELL you and not PR it? I'm sorry but recent history tells me (and others) to question everything he says.
One thing alott of people are ignorins with regards to financing is that alot of companies (big companies) have had problems with financing. Often financing that they thought they had in place just as not paned through. In my mind as long as it goes through and the deal with the military goes through all should be good (imho)