I think if you can't answer this, you're likely to face other issues down the road. If they're offering to pay you they'll no doubt want you to sign a contract which will give them all your IP. You won't have a business after that.
Yep, thats correct. We're considering another way of approaching this after receiving good advice from the communities that I asked the question and also brainstormed this with my co-founder. Will share more details soon.