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, 2020 and 2019 and our financial condition, liquidity and capital resources as of July 31, 2020 and July 31, 2019. 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, 2020 and July 31, 2019. Results of Operations For the Years Ended July 31, 2020 and 2019 Our operating results for the years ended July 31, 2020 and 2019 are summarized as follows: 38 Our operating expenses increased during the year ended July 31, 2020 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 increased activity, significant expenses during the year ended July 31, 2020 include: · Decrease in mineral exploration costs to $1,636,791 (2019 - $2,849,335) related to less activities and exploration work on the I-M Mine Property during the year; · Increase in share-based payments to $357,271 (2019 - $131,300) for the grant of options pursuant to our stock option plan to incentivize management and certain consultants; · Decrease in professional fees to $244,764 (2019 - $395,465) related to a decrease in legal and regulatory items pertaining to operating in Canada and the United States; and · Decrease in promotion and shareholder communication to $176,652 (2019 - $414,341) as there were fewer activities compared to the previous year. 39 Liquidity and Capital Resources As of July 31, 2020, the Company had $3,378,826 in cash, $3,762,515 in current assets, $8,512,928 in total assets, $494,771 in current and 3,455,035 in total liabilities, working capital of $3,267,744 and an accumulated deficit of $17,940,599. During the year ended July 31, 2020, the Company used $3,066,689 in net cash on operating activities, compared to $3,719,747 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 mineral exploration within the I-M Mine Project. During the year ended July 31, 2020, we used net cash of $Nil (2019 - $94,795) in investing activities for the acquisition of the I-M Mine Property, related transaction costs, and the recent option agreement to increase the holdings of the I-M Mine Property. During the year ended July 31, 2020, we generated net cash from financing activities of $6,231,357 (2019 - $3,975,219). The Company completed private placements totaling $5,499,131 (2019 - $3,295,029) in gross proceeds. In the current year, the Company repaid an equipment loan of $203,650 (2019 - $227,713). We also received gross proceeds of $1,000,000 from issuance of a loan. We expect to operate at a loss for at least the next 12 months. We have received additional financing since the end of the July 31, 2020 fiscal year 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 and our 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. 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.