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, 2025 and 2024 and our financial condition, liquidity and capital resources as of July 31, 2025 and July 31, 2024. 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, 2025 and July 31, 2024. Results of Operations For the Years Ended July 31, 2025 and 2024 Our operating results for the years ended July 31, 2025 and 2024 are summarized as follows: FOR THE YEAR ENDED JULY 31, 2025 2024 EXPENSES Accretion expense (Note 10 and 12) $ 230,478 $ 122,920 Consulting 221,925 310,718 Directors' fees 90,000 118,022 Filing and regulatory 49,840 38,910 Foreign exchange (gain) loss 6,771 15,421 General and administrative 254,456 445,028 Geological, mineral, and prospect costs (Note 6) 96,520 808,832 Interest expense (Note 10 and 12) 232,113 306,246 Professional fees 549,923 1,000,394 Promotion and shareholder communication 54,073 58,361 Salaries - 89,296 Share-based compensation (Note 13) 697,122 345,507 Loss $ (2,483,221 ) $ (3,659,655 ) Gain on fair value adjustment on derivative liability (Note 11) - 140,015 Gain on accounts payable settlement 66,871 - Loss on sale of assets (Note 7) (411,530 ) - Loss on note receivable (Note 6) (155,727 ) - Loss on settlement of loans (Note 10) (312,939 ) - Write-off of receivable - (64,356 ) Other income 36,188 18,365 Net loss and comprehensive loss for the year $ (3,260,358 ) $ (3,565,631 ) - 51 - For the notes referenced above, please see our audited financial statements and the notes for the years ended July 31, 2025 and July 31, 2024, included below under Item 8. Our operating expenses decreased during the year ended July 31, 2025 compared to the prior year primarily as a result of decreased activities by our Company. These activities include consulting, 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, 2025 include: Decrease in mineral exploration costs to $96,520 (2024 - $808,832) related to activities surrounding the Vested Rights and Use Permit application and hearings; Increase in share-based payments to $697,122 (2024 - $345,507) for the grant of options pursuant to our stock option plan to incentivize management and certain consultants; Decrease in consulting and professional fees to $221,925 and $549,923 respectively (2024 - $310,718 and $1,000,394, respectively) as the Company incurred fewer advisory fees in 2025 compared to 2024 when the Company reviewed its litigation options relating to its Vested Rights; Significant non-operating items include write down of the value of the drilling equipment (loss of $411,530; 2024 - $Nil); note receivable sold at a discount to generate cash (loss of $155,727; 2024 - $Nil); accounting loss recognized with the repayment of the loans in May 2025 on the value of the warrants recorded as loan issuance costs (loss of $312,939; 2024 - $Nil). Liquidity and Capital Resources As of July 31, 2025, the Company had $2,783,348 in cash, $2,980,679 in current assets, $4,442,507 in total assets, $1,050,421 in current liabilities and $1,179,422 in total liabilities, working capital surplus of $1,930,258 and an accumulated deficit of $33,494,975. During the year ended July 31, 2025, the Company used $1,169,386 in net cash on operating activities, compared to $2,213,199 in net cash on operating activities during the prior year. The higher amount of net cash used in operating activities during the prior year was due mainly to higher professional fees and associated costs related to the Use Permit and Vested Rights petition. During the year ended July 31, 2025, received net cash of $2,612,699 (2024 - $Nil) from investing activities of the Company (i.e. sale of parcels of land). During the year ended July 31, 2025, the Company received cash of $2,990,936 (2024 - $ 1,898,596) from financing activities related to the private placements. Proceeds received from loans during the year ended July 31, 2025 were $500,000 (2024 - $Nil). The cash paid by the Company to settle the outstanding loans during the year ended July 31, 2025 was $2,394,570 (2024 - $200,000). Net cash flow received from financing activities was $1,096,366 during the year ended July 31, 2025 (2024 - $1,698,596). The Company expects to operate at a loss for at least the next 12 months. On October 24, 2025, the Company raised $7,000,000 through issuance of securities. Based on working capital at year end, and subsequent equity financing of $7,000,000, management estimates that it does have sufficient funds to continue as a going concern. 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 long term. 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. - 52 - 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.