I understand the need for cost savings. Is your friends company a public (stock) company? Private companies can do whatever they want. Public companies that sell stock have certain rules to live by which they agreed to by becoming public.
The other thing that concerns me is that STAU has NEVER filed with the SEC. If you check the SEC daily list, it becomes apparent that the SEC is moving much more quickly on non-filers.
As far as costs, Corley has sold 5 Billion shares. Even at .0002, that is a Million bucks. Surely he can afford to file. At the very least he should be able to file enough to please pink sheets.