Rise Gold Corp. 10-K

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. The following discussion provides information regarding the results of operations for the years ended July 31, 2021 and 2020 and our financial condition, liquidity and capital resources as of July 31, 2021 and July 31, 2020. The following discussion and analysis should be read in conjunction with the information set forth in our audited financial statements and the notes thereto as of and for the years ended July 31, 2021 and July 31, 2020. Results of Operations For the Years Ended July 31, 2021 and 2020 Our operating results for the years ended July 31, 2021 and 2020 are summarized as follows: FOR THE YEAR ENDED JULY 31, 2021 2020 EXPENSES Accretion expense $ 114,907 $ 104,518 Consulting 454,176 89,139 Directors' fees 80,000 84,167 Filing and regulatory 55,601 55,464 Foreign exchange (20,297 ) 21,451 General and administrative 399,940 440,616 Geological, mineral, and prospect costs 782,261 1,636,791 Interest expense 119,523 101,014 Professional fees 517,092 244,764 Promotion and shareholder communication 175,567 176,652 Salaries 145,545 149,724 Share-based payments 560,792 357,271 Loss before other items $ (3,385,107 ) $ (3,461,571 ) Gain (loss) on fair value adjustment on warrant derivatives 1,776,341 (2,218,107 ) Gain on settlement of equipment loan - 19,924 Other income 4,888 188,219 Net loss for the year (1,603,878 ) (5,471,535 ) Cumulative translation adjustment - - Net loss and comprehensive loss for the year (1,603,878 ) (5,471,535 ) Basic and diluted loss per common share $ (0.06 ) $ 0.25 Weighted average number of common shares outstanding (basic and diluted) 26,721,896 21,835,235 - 38 - Our operating expenses decreased during the year ended July 31, 2021 compared to the prior year primarily as a result of lower costs as a result of moderated activities by our company. These include salaries, filing and regulatory, general and administrative, professional fees, driven by the need for expenses related to planning and researching our mineral properties, and activity involved in raising funds in the recent private placements. As a result of the ongoing activities, significant expenses during the year ended July 31, 2021 include: Decrease in mineral exploration costs to $782,261 (2020 - $1,636,791) related to less activities and exploration work on the I-M Mine Property during the year; Increase in share-based payments to $560,792 (2020 - $357,271) for the grant of options pursuant to our stock option plan to incentivize management and certain consultants; Increase in professional fees to $517,092 (2020 - $244,764) related to an increase in legal and regulatory items pertaining to the dewatering of the mine. Liquidity and Capital Resources As of July 31, 2021, the Company had $773,279 in cash, $1,156,426 in current assets, $5,881,260 in total assets, $199,902 in current liabilities and $1,618,255 in total liabilities, working capital of $956,524 and an accumulated deficit of $19,544,477. During the year ended July 31, 2021, the Company used $2,853,745 in net cash on operating activities, compared to $3,066,689 in net cash on operating activities during the prior year. The difference in net cash used in operating activities during the year was largely due to lower level of activity relating to mineral exploration within the I-M Mine Project. During the year ended July 31, 2021, we used net cash of $Nil (2020 - $Nil) in investing activities for the Company. During the year ended July 31, 2021, we generated net cash from financing activities of $248,198 (2020 - $6,231,357). The Company completed private placements totaling $250,000 (2020 - $5,499,131) in gross proceeds. We expect to operate at a loss for at least the next 12 months. We have received additional financing during the year ended July 31, 2021 through private placements for a total of $250,000 in gross proceeds but we cannot provide any assurance that additional funding will be available to finance our operations on acceptable terms in order to enable us to carry out our business plan. There are no assurances that we will be able to complete further sales of our common stock or any other form of additional financing. If we are unable to achieve the financing necessary to continue our plan of operations, then we will not be able to carry out any further exploration work on the I-M Mine Property or the other properties in which we own an interest. However, management believes that they will be able to raise funding based on their ability to do so in the past. On March 11, 2020, the novel coronavirus outbreak ("COVID-19") was declared a pandemic by the World Health Organization. governmental authorities around the world have implemented measures to reduce the spread of COVID-19. These measures have adversely affected workforces, customers, supply chains, consumer sentiment, economies, and financial markets, and, along with decreased consumer spending, have led to an economic downturn across many global economies. The extent to which COVID-19 ultimately impacts our business, financial condition and results of operations will depend on future developments, which are highly uncertain and unpredictable, including new information which may emerge concerning the severity and duration of the COVID-19 pandemic and the effectiveness of actions taken to contain the COVID-19 pandemic or treat its impact. The COVID-19 pandemic is evolving and new information emerges regularly, and as a result, the ultimate duration and magnitude of the impact on the economy and our business are not known at this time. These conditions may affect our ability to obtain debt and equity financing to fund ongoing exploration activities, as well as conduct business more efficiently. - 39 - We have taken action to minimize the risks of the COVID-19 virus for our employees, contractors and other people participating in our operations, programs, and activities. Although there have been no known or suspected cases of the virus reported at any of our workplaces, either in Canada or the United States, the health and safety of our work force remains a priority. We are closely monitoring the rapid developments of the outbreak and continually assessing the potential impact on our business. We continue to follow government health protocols including our continued "work from home" protocol for personnel whose attendance at the office or work sites is not critical. - 40 - Off-Balance Sheet Arrangements We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors. Item 7A. Quantitative and Qualitative Disclosures About Market Risk. Not required.