We've been funded mostly through my paying for servers, software, his office space, and equipment out of pocket, and taking out a bank loan to cover outsourcing

We've been funded mostly through my paying for servers, software, his office space, and equipment out of pocket, and taking out a bank loan to cover outsourcing some dev, and paying him for full-time work for a few months. The full-time work didn't work out, since nothing was being produced, so we went back to part-time.. The idea was to tie input directly to output.. If he worked hours, we'd send him a check.. But this didn't result in more hours, just in our paying less ;(