No, he doesn't have to prove anything, but I think it's a bit silly to put that much money in a 5 cent stock that is filing late and has a history of dilution and losses. Not to mention all the other red flags....but hey, it's his money!!!!
Cash is King until further notice!!!
My comments on companies are usually my opinion of long term success (years). The PPS may go up or down greatly in the meantime depending on the number of greedy suckers with money.