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, 2022 and 2021 and our financial condition, liquidity and capital resources as of July 31, 2022 and July 31, 2021. 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, 2022 and July 31, 2021. Results of Operations For the Years Ended July 31, 2022 and 2021 Our operating results for the years ended July 31, 2022 and 2021 are summarized as follows: FOR THE YEAR ENDED JULY 31, 2022 2021 EXPENSES Accretion expense $ 114,907 $ 114,907 Consulting 527,320 454,176 Directors' fees 80,000 80,000 Filing and regulatory 32,374 55,601 Foreign exchange loss (gain) 45,754 (20,297 ) General and administrative 333,888 399,940 Geological, mineral, and prospect costs 788,684 782,261 Interest expense 273,036 119,523 Professional fees 738,119 517,092 Promotion and shareholder communication 165,987 175,567 Salaries 135,000 145,545 Share-based payments 406,790 560,792 Loss before other items $ (3,641,859 ) $ (3,385,107 ) Gain on fair value adjustment on warrant derivatives 67,856 1,776,341 Write-off on payable 30,739 - Other income 79,137 4,888 Net loss for the year (3,464,127 ) (1,603,878 ) Cumulative translation adjustment - - Net loss and comprehensive loss for the year (3,464,127 ) (1,603,878 ) Basic and diluted loss per common share $ (0.12 ) $ (0.06 ) Weighted average number of common shares outstanding (basic and diluted) 29,803,778 26,721,896 48 Our operating expenses increased during the year ended July 31, 2022 compared to the prior year primarily as a result of increased costs as a result of increased 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, 2022 include: Increase in mineral exploration costs to $788,684 (2021 - $782,261) related to activities surrounding the Use Permit application; Decrease in share-based payments to $406,790 (2021 - $560,792) for the grant of options pursuant to our stock option plan to incentivize management and certain consultants; Increase in professional fees to $738,119 (2021 - $517,092) related to an increase in legal and regulatory items pertaining to the application for a Use Permit to Nevada County California; Increase in other income to $79,137 (2021 - $4,888) related to an increase in rental income for property use and license agreement; Liquidity and Capital Resources As of July 31, 2022, the Company had $471,918 in cash, $986,577 in current assets, $5,687,066 in total assets, $349,960 in current liabilities and $2,088,400 in total liabilities, working capital of $636,617 and an accumulated deficit of $23,008,604. During the year ended July 31, 2022, the Company used $2,694,359 in net cash on operating activities, compared to $2,853,475 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 the increase in our net loss for the most recent year, as we incurred expenses relating to activities surrounding the Use Permit application . During the year ended July 31, 2022, we used net cash of $Nil (2021 - $Nil) in investing activities for the Company During the year ended July 31, 2022, the Company received cash from financing activities of $2,392,998 (2021 - $248,198) related to the private placement during the year ended July 31, 2022. The Company expects to operate at a loss for at least the next 12 months. It has no agreements for additional financing and cannot provide any assurance that additional funding will be available to finance its operations on acceptable terms in order to enable it to carry out its business plan. There are no assurances that the Company will be able to complete further sales of its common stock or any other form of additional financing. However, the Company has been able to obtain such financings in the past. If the Company is unable to achieve the financing necessary to continue its plan of operations, then it will not be able to carry out any exploration work on the Idaho-Maryland Property or the other properties in which it owns an interest and its business may fail. 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. 49 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. In late February 2022, Russia launched a large scale military attack on Ukraine. The invasion significantly amplified already existing geopolitical tensions among Russia, Ukraine, Europe, NATO and the West, including Canada. In response to the military action by Russia, various countries, including Canada, the United States, the United Kingdom and European Union issued broad-ranging economic sanctions against Russia. Such sanctions included, among other things, a prohibition on doing business with certain Russian companies, large financial institutions, officials and oligarchs; a commitment by certain countries and the European Union to remove selected Russian banks from the Society for Worldwide Interbank Financial Telecommunications, or SWIFT, the electronic banking network that connects banks globally; a ban of oil imports from Russia to the United States; and restrictive measures to prevent the Russian Central Bank from undermining the impact of the sanctions. Additional sanctions may be imposed in the future. Such sanctions (and any future sanctions) and other actions against Russia may adversely impact, among other things, the Russian economy and various sectors of the economy, including but not limited to, financials, energy, metals and mining, engineering and defense and defense-related materials sectors; result in a decline in the value and liquidity of Russian securities; result in boycotts, tariffs, and purchasing and financing restrictions on Russia's government, companies and certain individuals; weaken the value of the ruble; downgrade the country's credit rating; freeze Russian securities and/or funds invested in prohibited assets and impair the ability to trade in Russian securities and/or other assets; and have other adverse consequences on the Russian government, economy, companies and region. Further, several large corporations and U.S. states have announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. The ramifications of the hostilities and sanctions may not be limited to Russia, Ukraine and Russian and Ukrainian companies and may spill over to and negatively impact other regional and global economic markets (including Europe, Canada and the United States), companies in other countries (particularly those that have done business with Russia and Ukraine) and on various sectors, industries and markets for securities and commodities globally, such as oil and natural gas. Accordingly, the actions discussed above and the potential for a wider conflict could increase financial market volatility and cause severe negative effects on regional and global economic markets, industries, and companies. In addition, Russia may take retaliatory actions and other countermeasures, including cyberattacks and espionage against other countries and companies around the world, which may negatively impact such countries and companies. The extent and duration of the military action or future escalation of such hostilities, the extent and impact of existing and future sanctions, market disruptions and volatility, and the result of any diplomatic negotiations cannot be predicted. While we expect any direct impacts to our business to be limited, the indirect impacts on the economy and on the mining industry and other industries in general could negatively affect our business and may make it more difficult for us to raise equity or debt financing. In addition, the impact of other current macro-economic factors on our business, which may be exacerbated by the war in Ukraine - including inflation, supply chain constraints and geopolitical events - is uncertain. 50 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.