Adia Nutrition, Inc. (ADIA)

[Jason Coombs]

In addition to the increased importance and liquidity of the private market over the last 20 years, there are new ways for companies to be "public" today and more options for being "public" coming soon ... not the least of which is Title III Crowdfunding under the JOBS Act, which might not require audited financial statements (we'll know soon, the final SEC Rules are coming later this month). For more on this topic, see:

http://www.crowdfundinsider.com/2015/10/75571-4th-annual-global-alternative-funding-forum-to-kick-off-with-david-weild-venture-exchanges/

The question for ADIA at this point is whether, and if yes then how, to prepare audited financial statements that are reasonably-accurate and that don't waste hundreds of thousands of dollars of new investor capital at a time when the investor capital MUST go into value creation not into politics and regulatory-compliance.

There may be inherent leeway in preparing and auditing financial statements at lower cost and with room for estimating unknowns under Regulation A+ which wouldn't be available under the 1934 Exchange Act as a fully-reporting registered issuer. If ADIA must estimate its financial condition given unknowns from the past, I see no reason that such estimated and honestly-audited financial statements would constitute fraud of any kind yet I don't see any way for estimated financial statements to be used legally in a new registration filing with the SEC.

Whether a Regulation A+ Offering is going to be conducted next year or whether a different option is going to be used instead to raise capital, the JOBS Act Rules obviously open the door to the full-scale relaunch.