What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-05-12 compared with 2025-02-12 · 39 added, 40 removed, 132 unchanged (37% 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 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.

It also analyzes our financial condition and summarizes the results of our operations for the three and nine months ended March 31, 2025 and compares these results to the results of the prior year three and nine months ended March 31, 2024.

Operating Highlights:

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

For the three and nine months ended March 31, 2025, 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.

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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 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.

Comparison of Operating Results for the nine months ended March 31, 2025 and 2024

We did not earn any revenue from mining operations for the nine months ended March 31, 2025 and 2024.

Our net loss for the three months ended March 31, 2025 was $2,618,307 compared to a net loss of $1,814,045 in the three months ended March 31, 2024.

The drivers of the increase in net loss of 44% 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.

Our net loss for the nine months ended March 31, 2025 was $6,221,934 compared to a net loss of $5,462,764 in the nine months ended March 31, 2024.

The drivers of the increase in net loss of 14% are fully described below.

The Company expects to incur losses for the foreseeable future as we continue with our planned exploration and development programs.

Exploration, Development, Reclamation and Land Holding Costs

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

For the three months ended March 31, 2025 and 2024, exploration expenses were $733,906 and $713,404, respectively.

This represents an increase of 3% or $20,502.

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At Grassy Mountain, the Company continued with permitting activities with state and federal permitting agencies and these expenses totaled $676,251.

A significant amount of the expenses incurred were related to the State of Oregon completing its environmental evaluation of the proposed gold mine at Grassy Mountain.

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

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

At Sleeper, expenses of $57,655 were related to general maintenance of operations and mining claims.

For the three months ended March 31, 2025 and 2024, reclamation expenses were $14,193 and $252,534, respectively.

This represents a decrease of 94% or $ 238,341.

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.

The decrease in reclamation expenses reflects that in the previous year's 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 three months ended December 31, 2024 and 2023, land holding costs were $186,389 and $157,143, respectively.

For the three months ended March 31, 2025 and 2024, land holding costs were $185,408 and $157,143, respectively.

The increase in land holding costs of $28,265 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.

For the nine months ended March 31, 2025 and 2024, exploration expenses were $1,506,315 and $1,530,533, respectively.

This represents a decrease of 2% or $24,218.

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At Sleeper, the Company completed an updated TRS with expenses totaling $135,958.

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

For the nine months ended March 31, 2025 and 2024, reclamation expenses were $84,550 and $2,469,126, respectively.

This represents a decrease of 97% or $2,384,576.

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.

For the nine months ended March 31, 2025 and 2024, land holding costs were $538,362 and $471,429, respectively.

This represents an increase of 14% or $66,933.

The increase in land holding costs of $66,933 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 periods ended December 31, 2024 and 2023, salary and benefits were $280,711 and $259,194, respectively.

For the three month periods ended March 31, 2025 and 2024, salary and benefits were $691,666 and $675,952, respectively.

This represents an increase of 2%.

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 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.

The net increase is primarily due to lower bonuses paid to employees, offset by higher stock-based compensation in the three month period ended March 31, 2025 compared to the three month period ended March 31, 2024.

Included in the salary and benefits expense amount for the three months ended March 31, 2025 and 2024 was non-cash equity based compensation applicable to executive and administration employees of $232,545 and $65,134, respectively.

For the nine months ended March 31, 2025 and 2024, salary and benefits were $1,260,857 and $1,214,742, respectively.

This represents an increase of 4% or $46,115.

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.

The net increase is primarily due to lower bonuses paid offset by higher stock-based compensation in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024.

Included in the salary and benefits expense amount for the nine months ended March 31, 2025 and 2024 was non-cash equity based compensation applicable to executive and administration employees of $326,452 and $168,471, respectively.

Directors’ Compensation

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

For the three month periods ended March 31, 2025 and 2024, directors’ compensation expenses were $178,433 and $90,076, respectively.

This represents an increase of 98%.

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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.

For the nine months ended March 31, 2025 and 2024, directors' compensation expenses were $278,411 and $148,059, respectively.

This represents an increase of 88%.

1 unchanged sentence

Professional Fees and General and Administration

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.

For the three months ended March 31, 2025 and 2024, professional fees were $109,901 and $52,156, respectively.

This represents an increase of $57,745.

The increase 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.

For the three months ended March 31, 2025 and 2024, general and administration expenses increased by 59% to $237,044 from $149,332.

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

For the nine months ended March 31, 2025 and 2024, professional fees were $367,132 and $205,722, respectively.

This represents an increase of $161,410.

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 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.

For the nine months ended March 31, 2025 and 2024, general and administration expenses increased by 28% to $604,305 from $471,199.

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

At March 31, 2025, we had cash and cash equivalents of $2,139,516 compared to $5,423,059 as at June 30, 2024.

As of March 31, 2025, we had working capital of approximately $2,182,208.

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 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:

During the nine months ended March 31, 2025, the Company issued shares 1,158,309 under the program for net proceeds of $439,564.

The main uses of cash for the nine months ended March 31, 2025 were:

• Cash used in operating activities of $3,564,009 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 $159,098 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:

In addition to cash used in operating and investing activities, the Company received cash during the nine months ended March 31, 2025 as follows:

• Cash provided by financing activities of $439,564 from sales under the ATM program.

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

Subsequent to May 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