Inception Mining, Inc. reported significant financial changes in its 10-Q filing for the period ending September 30, 2024. The company’s total assets decreased sharply to $3,244 from $23,386 as of December 31, 2023. Concurrently, total current liabilities surged to $3,439,237, up from $1,576,349, resulting in a total liabilities increase from $2,444,967 to $3,439,237. This led to a stockholders' deficit of $(3,435,993), compared to $(2,421,581) at the end of the previous fiscal year.

For the three months ended September 30, 2024, Inception Mining reported a net loss of $(279,946), an improvement from a net loss of $(534,059) in the same period of 2023. This positive change was attributed to a significant reduction in general and administrative expenses, which fell to $109,742 from $479,855, contributing to a total operating expense decrease from $480,037 to $109,924. The loss from operations before taxes also improved, decreasing by $254,113 year-over-year.

For the nine months ended September 30, 2024, the company reported a net loss of $(1,039,455), a stark contrast to a net income of $14,992,619 in the same period of 2023. This decline was influenced by a notable change in derivative liabilities, which increased by $3,593,890, and a significant drop in other income, which fell from $9,299,782 to $(668,994). General and administrative expenses for the nine-month period also decreased to $369,917 from $963,693, reflecting a strategic effort to reduce costs.

Cash flow from operating activities turned negative, with $(64,288) used in the nine months ended September 30, 2024, compared to $1,258,974 provided in the same period of 2023. This decline was primarily due to substantial payments related to the sale of mine property in 2023. However, financing activities provided cash of $64,286, a significant increase from $(1,218,802) used in the previous year.

In terms of strategic developments, Inception Mining has shifted its focus to consulting and advising within the mining industry following the divestiture of its Clavo Rico mine. The company entered into a non-binding Letter of Intent with Mother Lode Mining, Inc. to sell its subsidiary, Compañía Minera Cerros Del Sur, S.A. de C.V., which was finalized in January 2023. The company continues to manage its financial obligations, including various promissory notes and accrued liabilities, while navigating a challenging market environment.