Phunware Inc. has announced a regulatory compliance issue following the resignation of Rahul Mewawalla from its audit committee. Mewawalla stepped down after being appointed as Executive Chair and Chief Artificial Intelligence Architect, leaving the company in violation of Nasdaq's audit committee composition requirements outlined in Listing Rule 5605. This rule mandates that the audit committee must have at least three independent members, a criteria no longer met by Phunware as its committee is currently down to two members, Elliot Han and Quyen Du. Additionally, the company must have a financially sophisticated audit committee member, a role previously filled by Mewawalla. Phunware is evaluating options to rectify this situation within the cure period provided by Nasdaq, but there is no assurance of regaining compliance.