TruGolf Holdings, which makes indoor golf simulators and related software, has seen its Class A share count more than quadruple since year-end as Series A Convertible Preferred Stock converts into common shares at a conversion price that was reset sharply lower in April. Shares closed 58.84% higher on August 17 after the company filed its second-quarter 10-Q.
The stock closed at $1.5400, up from a previous close of $0.9695. Dollar volume was $103,736,818 across 272,319 trades. The free float stood at 1,074,438 shares. Short volume on the same session was 14,418,105 shares, equal to 57.46% of reported volume.
The driver of the share count growth is a conversion price reset. Following a 1-for-10 reverse stock split in March 2026, the Series A Preferred's conversion price stood at $21.60 per share. On April 22, 2026, the company's articles of incorporation reset that conversion price to $2.76 per share under periodic reset provisions tied to the market price of the Class A common stock. Converting at $2.76 instead of $21.60 produces roughly eight times as many Class A shares for the same stated value of preferred stock — the same economic interest converts into a far larger portion of the total share count.
Class A shares outstanding were 422,899 at December 31, 2025. By June 30 the count had risen to 1,569,534, and the filing states 1,903,708 Class A shares as of August 12 — more than four times the year-end figure. Preferred holders who convert also receive a make-whole amount representing dividends that would have accrued to the five-year anniversary of issuance, itself convertible into additional Class A shares, adding further to the dilution.
Cash stood at $6,374,349 at June 30, down from $10,469,263 at December 31. The company consumed cash in both operating and investing activities during the first half, with the largest investing outflow directed to capitalized software development.
Two related-party notes — one owed to ARJ Trust, a trust the filing says is indirectly controlled by the chief executive, and one a no-interest loan from the chief executive himself — carry a combined balance of $2,100,000 and both mature on September 30, 2026. The filing does not disclose a repayment plan.
Second-quarter revenue was $5,792,180 and the net loss was $447,808, against a net loss of $3,321,470 in the same quarter of 2025. The filing does not attribute the year-on-year improvement to any specific factor.