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, 2023 and 2022 and our financial condition, liquidity and capital resources as of July 31, 2023 and July 31, 2022. 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, 2023 and July 31, 2022. Results of Operations For the Years Ended July 31, 2023 and 2022 Our operating results for the years ended July 31, 2023 and 2022 are summarized as follows: FOR THE YEAR ENDED JULY 31, 2023 2022 EXPENSES Accretion expense $ 149,505 $ 114,907 Consulting 565,885 527,320 Directors' fees 81,209 80,000 Filing and regulatory 57,751 32,374 Foreign exchange loss 45,134 45,754 General and administrative 363,287 333,888 Geological, mineral, and prospect costs 772,636 788,684 Interest expense 328,097 273,036 Professional fees 757,769 738,119 Promotion and shareholder communication 183,340 165,987 Salaries 135,000 135,000 Share-based payments 466,527 406,790 Loss before other items $ (3,906,140 ) $ (3,641,859 ) Gain on fair value adjustment on warrant derivatives 233,895 67,856 Write-off on payable - 30,739 Other income 11,863 79,137 Net loss and comprehensive loss for the year (3,660,382 ) (3,464,127 ) Basic and diluted loss per common share $ (0.10 ) $ (0.12 ) Weighted average number of common shares outstanding (basic and diluted) 36,393,029 29,803,778 - 49 - Our operating expenses increased during the year ended July 31, 2023 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 obtaining a use permit while planning and researching our mineral properties, along with activities relating to raising funds in the recent private placements. As a result of the ongoing activities, significant expenses during the year ended July 31, 2023 include: Increase in mineral exploration costs to $772,636 (2022 - $788,684) related to activities surrounding the Use Permit application; Increase in share-based payments to $466,527 (2022 - $406,790) for the grant of options pursuant to our stock option plan to incentivize management and certain consultants; Increase in consulting and professional fees $565,885 and $757,769 respectively (2022 - $527,320 and $738,119, respectively) related to an increase in legal and regulatory items pertaining to the application for a Use Permit to Nevada County California; Decrease in other income to $11,863 (2022 - $79,137) as there were less rental income for property use in 2023; Liquidity and Capital Resources As of July 31, 2023, the Company had $758,272 in cash, $980,843 in current assets, $5,658,361 in total assets, $508,571 in current liabilities and $2,086,500 in total liabilities, working capital of $472,272 and an accumulated deficit of $26,668,986. During the year ended July 31, 2023, the Company used $2,476,478 in net cash on operating activities, compared to $2,694,359 in net cash on operating activities during the prior year. The difference in net cash used in operating activities during the year was due to the gain on the fair value of the derivative liability. During the year ended July 31, 2023, we used net cash of $Nil (2022 - $Nil) in investing activities for the Company. During the year ended July 31, 2023, the Company received cash from financing activities of $2,762,832 (2022 - $2,392,998) related to the private placements during the year ended July 31, 2023. 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 I-M Mine Property or the other properties in which it owns an interest and its business may fail. In recent years, global financial conditions have been characterized by increased volatility which has impacted many industries, including the mining industry. Global financial conditions are subject to sudden and rapid destabilization in response to current and future events, as governmental authorities may have limited resources to respond to such events. Global capital markets continue to experience increased volatility in response to global events such as the significant increase in the rate of inflation in recent years, and the effects of certain countermeasures taken by central banks including increased interest rates. Future economic crises may be precipitated by any number of causes, including natural disasters, epidemics (such as the COVID-19 virus pandemic), geopolitical instability and war (such as the Russian invasion of Ukraine and the current escalating Israel-Palestine conflict), the failure of financial institutions, terrorism, material changes in the price of oil, the volatility of metal prices, and the volatility of global financial markets. Continued increased levels of volatility or a sudden or rapid destabilization of global economic conditions could negatively impact our ability to obtain equity or debt financing or to make other suitable arrangements to finance our Idaho-Maryland Mine Project which, in turn, could have a material adverse effect on our operations and financial condition. - 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.