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, 2024 and 2023 and our financial condition, liquidity and capital resources as of July 31, 2024 and July 31, 2023. 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, 2024 and July 31, 2023. Results of Operations For the Years Ended July 31, 2024 and 2023 Our operating results for the years ended July 31, 2024 and 2023 are summarized as follows: FOR THE YEAR ENDED JULY 31, 2024 2023 EXPENSES Accretion expense $ 122,920 $ 149,505 Consulting 310,718 565,885 Directors' fees 118,022 81,209 Filing and regulatory 38,910 57,751 Foreign exchange loss 15,421 45,134 General and administrative 445,028 363,287 Geological, mineral, and prospect costs 808,832 772,636 Interest expense 306,246 328,097 Professional fees 1,000,394 757,769 Promotion and shareholder communication 58,361 183,340 Salaries 89,296 135,000 Share-based payments 345,507 466,527 Loss before other items $ (3,659,655 ) $ (3,906,140 ) Gain on fair value adjustment on derivative liability 140,015 233,895 Write-off of receivable (64,356 ) - Other income 18,365 11,863 Net loss and comprehensive loss for the year (3,565,631 ) (3,660,382 ) Basic and diluted loss per common share $ (0.08 ) $ (0.10 ) Weighted average number of common shares outstanding (basic and diluted) 46,995,567 36,393,029 - 50 - Our operating expenses decreased during the year ended July 31, 2024 compared to the prior year primarily as a result of decreased activities by our Company. These activities include salaries, filing and regulatory, general and administrative, professional fees, driven by the need for expenses related to Vested Rights and Use Permit application and hearings while lowering consulting costs relating to 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, 2024 include: Increase in mineral exploration costs to $808,832 (2023 - $772,636) related to activities surrounding the Vested Rights and Use Permit application and hearings; Decrease in share-based payments to $345,507 (2023 - $466,527) for the grant of options pursuant to our stock option plan to incentivize management and certain consultants; Decrease in consulting but increase professional fees $310,718 and $1,000,394 respectively (2023 - $565,885 and $757,769, respectively) due to the shift in strategy as the Company reviews its litigation options relating to its Vested Rights; Increase in other income to $18,365 (2022 - $11,863) as there was more rental income for property use in 2024; Liquidity and Capital Resources As of July 31, 2024, the Company had $243,669 in cash, $894,638 in current assets, $5,155,398 in total assets, $2,661,598 in current liabilities and $2,777,728 in total liabilities, working capital deficit of $1,766,960 and an accumulated deficit of $30,234,617. During the year ended July 31, 2024, the Company used $2,213,199 in net cash on operating activities, compared to $2,476,478 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 difference between the gain of the revaluation adjustment of the derivative liability, share-based compensation for options granted during the period, and professional fees related to the Use Permit and Vested Rights petition. During the year ended July 31, 2024, we used net cash of $Nil (2023 - $Nil) in investing activities for the Company. During the year ended July 31, 2024, the Company received cash from financing activities of $1,698,598 (2023 - $2,762,832) related to the private placements during the year ended July 31, 2024. 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. 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. As such, these material uncertainties cast a substantial doubt regarding the Company's ability to continue as a going concern. 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. - 51 - Item 7A. Quantitative and Qualitative Disclosures About Market Risk. Not required.