On June 8, 2018, xG Technology, Inc. received a second written notice from Nasdaq that the Company did not comply with Nasdaq’s audit and compensation committee requirements under Listing Rule 5605(c)(2) and 5605(d)(2). These rules require that a company have an audit and compensation committee comprised of independent members as defined in Listing Rule 5601(a)(2). Furthermore, Listing Rule 5605(c)(2)(A)(iii) requires, among other things, that each member of the audit committee must not have participated in the preparation of the financial statements of the Company or any current subsidiary of the Company at any time during the past three years. At the time Mr. Cuccio was appointed interim CEO and Executive Chairman, he was a member of the Company’s audit and compensation committees. Due to such appointments, he was no longer an independent member of the audit or compensation committee. Furthermore, in connection with the filing of the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2018, Mr. Cuccio, in his capacity as Principal Executive Officer, signed the Section 302 and Section 906 certifications. On June 6, 2018, Mr. Cuccio resigned from the audit and compensation committees, and the company appointed Mr. Raymond Sidney (an independent director) as a member of the audit committee. As a result, the Company has regained compliance with these listing rules and the immediately foregoing matter is now closed.