Vistagen Therapeutics, Inc. (NASDAQ: VTGN) has informed Nasdaq of its non-compliance with Listing Rule 5605(c)(2), which mandates that audit committees have at least three independent board members. This issue arose after the resignation of board member Mary Rotunno, leaving the committee with only two members. Vistagen's shares have experienced a significant decline of 75% over the past year, currently priced at $0.59, leading to a market capitalization of approximately $23.18 million. Despite these challenges, the company is entitled to a cure period to rectify the situation, which will last until the earlier of its next annual stockholder meeting or one year from the resignation date. Vistagen has expressed its commitment to regain compliance within this timeframe. In its recent Q3 2026 earnings call, the company reported a cash position of $61.2 million as of December 31, 2025, and announced a 20% workforce reduction aimed at improving cash management and supporting ongoing clinical studies. Vistagen is focused on advancing its clinical trials, particularly the PALISADE Program, which evaluates fasedienol for treating social anxiety disorder, with topline results expected in the first half of 2026.