Inception Mining, Inc. reported significant financial challenges in its 10-Q filing for the period ending June 30, 2024. The company recorded total current assets of $10,002 and total assets of $6,022, while total current liabilities stood at $3,187,112, resulting in a stockholders' deficit of $(3,181,090).

For the three months ended June 30, 2024, Inception Mining experienced a net loss of $(502,529), a stark contrast to a net income of $242,945 for the same period in 2023. This trend continued for the six-month period, with a net loss of $(759,509) compared to a net income of $15,526,678 in the prior year. The company's total operating expenses decreased from $192,208 in Q2 2023 to $136,619 in Q2 2024, primarily due to reduced consulting expenses. However, the overall financial performance was adversely affected by a significant decline in income from operations, which fell from $242,945 to $(502,529) year-over-year.

The company’s cash flow situation also deteriorated, with net cash used in operating activities amounting to $(59,141) for the six months ended June 30, 2024, compared to a positive cash flow of $1,297,780 in the same period of 2023. The accumulated deficit since inception reached $29,673,091, raising concerns about the company's ability to continue operations without additional capital.

In terms of strategic developments, Inception Mining has undergone several corporate changes, including the divestiture of its subsidiary, Compañía Minera Cerros Del Sur, S.A. de C.V., to Mother Lode Mining, Inc. in January 2023. The sale included a total cash consideration of $2,880,000, with additional payments of $2,620,000 to be made over 24 months. However, as of June 30, 2024, Mother Lode Mining was behind on payments, leading the company to create an allowance for doubtful collection for the outstanding balance of $2,219,442.

The company also reported ongoing litigation against Mother Lode Mining for breach of contract related to the sale, claiming damages of at least $2,237,800. Furthermore, Inception Mining's management acknowledged that the ultimate liability from ongoing litigation could materially impact its financial position and operations.

Overall, the financial results for the first half of 2024 reflect a significant downturn in profitability and operational challenges, compounded by strategic shifts and ongoing legal issues.