What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-02-12 compared with 2024-11-12 · 54 added, 24 removed, 118 unchanged (40% of the section changed)

26 unchanged sentences

The following discussion updates our outlook and plan of operations for the foreseeable future.

It also analyzes our financial condition and summarizes the results of our operations for the three months ended September 30, 2024 and compares these results to the results of the prior year three months ended September 30, 2023.

It also analyzes our financial condition and summarizes the results of our operations for the three and six months ended December 31, 2024 and compares these results to the results of the prior year three and six months ended December 31, 2023.

Operating Highlights:

For the three months ended September 30, 2024, the Company highlights include:

For the three and six months ended December 31, 2024, the Company highlights include:

• The State of Oregon's Technical Review Team approved the completion of the Environmental Evaluation (“EE”) for the Grassy Mountain project.

6 unchanged sentences

We ensure we have sufficient cash on hand to meet our annual land holding costs as the maintenance of mining claims and leases are essential to preserve the value of our mineral property assets.

Comparison of Operating Results for the three months ended September 30, 2024 and 2023

We did not earn any revenue from mining operations for the three months ended September 30, 2024 and 2023.

Our net loss for three months ended September 30, 2024 was $1,572,138 compared to a net loss of $2,074,160 in the previous three months ended September 30, 2023.

Comparison of Operating Results for the six months ended December 31, 2024 and 2023

We did not earn any revenue from mining operations for the six months ended December 31, 2024 and 2023.

Our net loss for the three months ended December 31, 2024 was $2,031,489 compared to a net loss of $1,574,559 in the three months ended December 31, 2023.

The drivers of the increase in net loss of 29% are fully described below.

Our net loss for the six months ended December 31, 2024 was $3,603,627 compared to a net loss of $3,648,719 in the six months ended December 31, 2023.

The drivers of the decrease in net loss of 1% are fully described below.

1 unchanged sentence

Exploration, Development, Reclamation and Land Holding Costs

For the three months ended September 30, 2024 and 2023, exploration expenses were $395,298 and $513,097, respectively.

This represents an decrease of 23% or $117,799.

For the three months ended December 31, 2024 and 2023, exploration expenses were $377,112 and $304,033, respectively.

This represents an increase of 24% or $73,079.

Expenses related to our exploration or development activities are generally not comparable from period to period as activities will vary based on several factors.

2 unchanged sentences

At Sleeper, expense of $20,074 were related to general maintenance of operations and mining claims.

For the three months ended September 30, 2024 and 2023, reclamation expenses were $53,937 and $746,696, respectively.

For the three months ended December 31, 2024 and 2023, reclamation expenses were $16,420 and $1,469,897, respectively.

This represents a decrease of 99% or $ 1,453,477.

2 unchanged sentences

On-going regular monitoring activities for the Sleeper Gold project continue year to year.

For the three months ended September 30, 2024 and 2023, land holding costs were $166,565 and $157,143, respectively.

The increase in land holding costs of $9,422 from the previous period relates to the increase in holding costs imposed by the BLM commencing in September 2024.

For the three months ended December 31, 2024 and 2023, land holding costs were $186,389 and $157,143, respectively.

The increase in land holding costs of $29,246 from the previous period relates to the increase in holding costs per claim enacted by the BLM commencing in September 2024.

For the six months ended December 31, 2024 and 2023, exploration expenses were $772,410 and $817,127, respectively.

This represents a decrease of 5% or $44,717.

Expenses related to our exploration or development activities are generally not comparable from period to period as activities will vary based on several factors.

At Grassy Mountain the Company continued with permitting activities with state and federal permitting agencies.

These expenses totaled $694,107.

At Sleeper, the Company completed an updated TRS with expenses totaling $78,303.

For the six months ended December 31, 2024 and 2023, reclamation expenses were $70,357 and $2,216,593, respectively.

This represents a decrease of 97% or $2,146,236.

The decrease in reclamation expenses reflects that in the previous year comparable period the Company was conducting a one-time conversion of historical mining collection ponds to e-cell conversion ponds.

This work was substantially completed in the previous fiscal year.

On-going regular monitoring activities for the Sleeper Gold project continue year to year.

For the six months ended December 31, 2024 and 2023, land holding costs were $352,954 and $314,287, respectively.

This represents and increase of 12% or $38,667.

The increase in land holding costs of $38,667 from the previous period relates to the increase in holding costs per claim enacted by the BLM commencing in September 2024.

Salaries and Benefits

For the three month period ended September 30, 2024 and 2023, salary and benefits were $288,480 and $279,596, respectively.

For the three month periods ended December 31, 2024 and 2023, salary and benefits were $280,711 and $259,194, respectively.

This represents an increase of 8%.

Salary and benefits are comprised of cash and equity based compensation of the Company’s executive and corporate administration teams.

The increase primarily reflects increases to base salaries paid to employees in the three month period ended September 30, 2024 compared to the three month period ended September 30, 2023.

Included in the salary and benefits expense amount for the three months ended September 30, 2024 and 2023 was non-cash equity based compensation of $47,830 and $63,254, respectively.

The increase primarily reflects increases to base salaries paid to employees in the three month period ended December 31, 2024 compared to the three month period ended December 31, 2023.

Included in the salary and benefits expense amount for the three months ended December 31, 2024 and 2023 was non-cash equity based compensation of $46,077 and $40,084, respectively.

For the six months ended December 31, 2024 and 2023, salary and benefits were $569,191 and $538,790, respectively.

This represents an increase of 6% or $30,401.

Salary and benefits are comprised of cash and equity based compensation of the Company’s executive and corporate administration teams.

The increase primarily reflects increases to base salaries paid to employees in the six months ended December 31, 2024 compared to the six months ended December 31, 2023.

Included in the salary and benefits expense amount for the six months ended December 31, 2024 and 2023 was non-cash equity based compensation of $93,907 and $103,337, respectively.

Directors’ Compensation

For the three month period ended September 30, 2024 and 2023, directors’ compensation expenses were $51,530 and $29,033, respectively.

For the three month periods ended December 31, 2024 and 2023, directors’ compensation expenses were $48,447 and $28,951, respectively.

This represents an increase of 67%.

1 unchanged sentence

The increase reflects higher equity based compensation recorded in the current quarter compared to the prior year’s comparable period.

For the six months ended December 31, 2024 and 2023, directors' compensation expenses were $99,978 and $57,984, respectively.

This represents an increase of 72%.

The increase reflects higher equity based compensation recorded in the current quarter compared to the prior year’s comparable period.

Professional Fees and General and Administration

For the three months ended September 30, 2024 and 2023, professional fees were $171,997 and $55,252, respectively.

For the three months ended December 31, 2024 and 2023, professional fees were $85,234 and $98,315, respectively.

This represents a decrease of $13,081.

The decrease was mainly due legal fees incurred in the previous period that were not incurred in the previous year comparable period.

Professional fees include legal, audit, advisory and consultant expenses incurred on corporate and operational activities being performed by the Company on a period-by-period basis.

For the three months ended December 31, 2024 and 2023, general and administration expenses decreased by 3% to $178,949 from $184,727.

The decrease in general and administration expenses from the previous year’s comparable period was mainly due to lower travel costs.

For the six months ended December 31, 2024 and 2023, professional fees were $257,231 and $153,567, respectively.

This represents an increase of $103,664.

1 unchanged sentence

Professional fees include legal, audit, advisory and consultant expenses incurred on corporate and operational activities being performed by the Company on a period-by-period basis.

For the three months ended September 30, 2024 and 2023, general and administration expenses increased by 38% to $188,313 from $136,283.

The increase in general and administration expenses from the previous year’s comparable period was mainly due to higher insurance, marketing and travel costs.

For the six months ended December 31, 2024 and 2023, general and administration expenses increased by 14% to $367,260 from $321,866.

The increase in general and administration expenses from the previous year’s comparable period was mainly due to higher insurance costs.

Liquidity and Capital Resources

As an exploration and development company, Paramount funds its operations, reclamation activities and discretionary exploration programs with its cash on hand.

At September 30, 2024, we had cash and cash equivalents of $4,293,941 compared to $5,423,059 as at June 30, 2024.

We had working capital of approximately $4,838,147.

At December 31, 2024, we had cash and cash equivalents of $3,405,400 compared to $5,423,059 as at June 30, 2024.

As of December 31, 2024, we had working capital of approximately $3,716,907.

Our plans to manage our liquidity position is described below under Going Concern and Capital Resources.

2 unchanged sentences

In May 2024, the Company established a new $7 million "at the market" offering program with Cantor and A.G.P./Alliance Global Partners.

During the three months ended September 30, 2024, the Company issued 114,918 shares under the program for net proceeds of $46,358.

The main uses of cash for the three months ended September 30, 2024 were:

During the six months ended December 31, 2024, the Company issued shares 252,052 under the program for net proceeds of $104,228.

The main uses of cash for the six months ended December 31, 2024 were:

• Cash used in operating activities of $2,062,789 were mainly used to fund our permitting and exploration activities at our projects, salary and benefits costs of our employees and ongoing general and administration costs.

• Cash used in investing activities of $8,021 for the purchase of computer equipment.

In addition to cash used in operating and investing activities, the Company received cash during the three months ended September 30, 2024 as follows:

• Cash used in investing activities of $59,098 for the purchase of computer equipment and purchase of mineral property.

In addition to cash used in operating and investing activities, the Company received cash during the six months ended December 31, 2024 as follows:

• Cash provided by financing activities of $104,228 from sales under the ATM program.

9 unchanged sentences

For any interest that accrues and is owing on the outstanding Debenture, the Company expects to elect to pay the quarterly-annual interest payment in shares of its Common Stock.

Subsequent to November 12 2024, the Company expects to fund operations as follows:

Subsequent to February 12, 2025, the Company expects to fund operations as follows:

• Existing cash on hand and working capital.

41 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis