AXT Inc. has announced a regulatory issue pertaining to its compliance with Nasdaq Listing Rule 5605(c)(2)$(A)$. Following the passing of Ms. Christine Russell, the company's Audit Committee currently consists of only two independent directors, falling short of the required three. Nasdaq has notified AXT Inc. of its non-compliance and has provided a cure period to rectify the situation. The company intends to appoint a new independent director to regain compliance before the deadline, which is either the next annual meeting of shareholders or by July 11, 2026, depending on which occurs first. AXT Inc. must submit documentation to Nasdaq demonstrating compliance within this timeframe.