"FJ, The main problem is that it's a letter of intent, not a signed contract. I've seen this before with Viyya Technologies which is now out of business."

Not too much difference, really, Poetry, if it were a signed contract, it would have a whole bunch of contingencies and conditions.  It's common to go this route as you don't have to pay huge legal bills until you have a better handle on whether the deal will go through.  

Believe me, if we get the bridge financing, that tells me that the deal is a very good bet to be closed.