The problem is with the 3 year operating history. I looked into the Nasdaq alternative standards a while back and had a difficult time finding a definition for "operating history". I can't provide you a source right now, but I ended up concluding that "operating" is synonymous with "revenue generating". Hence the $2 Capital markets criteria can't be met.
The company doesn't clear this up. From the last 10-K (p. 27):
We are a development stage company with a limited operating history, making it difficult for you to evaluate our business and your investment, and we may never generate any revenue which could cause us to cease operations.
Immediately followed by:
We are in the development stage and our operations and the development of our proposed products are subject to all of the risks inherent in the establishment of a new business enterprise, including but not limited to:
-the absence of an operating history;
(etc.)
I believe that any near term uplisting would have to be to NYSE MKT. Even so, as you said "They still need to get BOD/audit committee done."
Market Data 
Markets 
AI
