If the SEC advised N that it could never become compliant, it would have suspended trading.
HUH?
Are you saying that ALL pinksheets should be halted because they're not "compliant"?
I think you're either confused or don't understand terminology. From what I understand, MS was looking for a company that could be fully reporting and given a clean slate: fully audited, etc. NHSH did not qualify because of missing financial records. It has nothing to do with whether or not a stock can trade. Heck, they can even uplist after a certain number of years have passed, but that doesn't remove the past history.