In reality there's no reason whatsoever for a "bona fide start up" to choose to be listed on the developed world's sleaziest stock venue, the US OTC.
SEC has issued several generic warnings about microcap fraud and most smart would be investors heed these warnings and avoid sleazy stocks like HJOE like the plague.
Sadly there's a group of perpetual victims who fall prey to obvious scams like SRGE, SPNG and HJOE time and time again.
No one can reasonably expect SEC to protect against that kind of voluntary victimhood.
"It is difficult to get a man to understand something, when his salary depends upon his not understanding it."
Upton Sinclair
"Nobody ever went broke underestimating the intelligence of the American public."
H. L. Mencken