Client X wants to use app components my team has written in an app developed/published by their in-house developers.

Client X's Application is currently published/available in the iTunes/Google Play store. They would like to integrate our technology into the application for a trial.

The technology is a complete experience that would be linked to by Client X's app via a button on the App's homescreen.

Legal's assessment: Even with a licensing agreement in place, there is too much risk with the IP to release source in the event of a trial. Outside developer exposure to the source without a sizeable investment and legal agreement is out of the question.
My Approach: I would like my team to deliver the technology to Client X's development team as an encrypted package that can be compiled into their app and published as an app update (however sizeable this may be). The button on their app's homescreen would simply link to the content in this encrypted package.
My questions:
  1. Is this possible with iOS? Android?
  2. If possible, what might I look into on the web to better familiarize myself with this tactic?
  3. What are the potential risks (for the user/Client X) to pursue this line of delivery?
  4. What are the potential risks posed to my company's IP? Is there any way a developer could decompile/access this source once it is delivered as an encrypted package?
  5. Are there any limitations to this encrypted package delivery method?

Thank you in advance for any guidance you can provide. I appreciate any and all help (even if it's a simple "You might want to look into..." statement).