Fast forward nearly 18 months into the 6 month contract, and about $40k later, there is no working app and the "CEO" says "well I would love to give you some of your money back but the contract has expired so I am no longer able to do that, we could sign another one for $20k to finish if you'd like."
I've worked with probably a dozen offshoring companies in my life in one way or another and every single one of them has been deceitful to the point of being fraudulent, and puts out some of the worst code you have ever seen.
I tell everyone considering it that if you can afford it, you're getting scammed in one way or another. You're better off going with a US-based firm that guarantees you'll get American workers who are physically in the US working on your product.
I'd rather hire Deloitte or Accenture for 10x the price - I know they offshore a ton but you'll at least have avenues to get your money back if they don't deliver.