Creations (CEAI) 10-Q 22 Nov 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2023	Nov. 21, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2023
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	333-240161
Entity Registrant Name	CREATIONS, INC.
Entity Central Index Key	0001795938
Entity Tax Identification Number	84-2054332
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	c/o Sichenzia Ross Ference Carmel LLP
Entity Address, Address Line Two	1185 Avenue of the Americas, 31st Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10036
City Area Code	212
Local Phone Number	930-9700
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		3,544,242

Condensed Consolidated Statemen

Condensed Consolidated Statements of Financial Position - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 1,119	$ 114
Capital Note		637
Assets held for sale		1,508
Total current assets	1,119	2,259
Non-current assets
Loans granted to stockholders	12	13
Total non-current assets	12	13
Total assets	1,131	2,272
Current liabilities
Accounts payable	86	145
Liabilities held for sale		767
Total current liabilities	86	912
Total liabilities	86	912
Stockholders’ Equity
Common Stock of $0.0001 par value - Authorized: 100,000,000 shares at September 30, 2023 and December 31, 2022; Issued and outstanding: 3,544,242 shares at September 30, 2023 and December 31, 2022
Additional paid-in capital	3,162	3,162
Treasury stocks receivables	(321)
Accumulated other comprehensive loss	(24)	(24)
Accumulated deficit	(1,772)	(1,778)
Total stockholders’ equity	1,045	1,360
Total liabilities and stockholders’ equity	$ 1,131	$ 2,272

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Financial Position (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	3,544,242	3,544,242
Common stock, shares outstanding	3,544,242	3,544,242

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
General and administrative expenses (related parties of $18, $0, $70 and $0 respectively)	$ (26)	$ 10	$ (122)	$ (30)
Operating loss	(26)	10	(122)	(30)
Foreign exchange differences			(6)
Capital gain from realization of subsidiary			112
Net income (loss) before tax from continuing operations	(26)	10	(16)	(30)
Tax income	22		22
Net income (loss) for the period from continuing operations	(4)	10	6	(30)
Net income from discontinued operations, net of tax		51		90
Net income (loss) for the period	(4)	61	6	60
Other comprehensive expenses:
Other comprehensive expenses: Foreign currency translation adjustments from discontinued operation		(19)		(183)
Comprehensive income (loss)	$ (4)	$ 42	$ 6	$ (123)
Basic net income (loss) per share	$ 0	$ 0.02	$ 0	$ 0.02
Diluted net income (loss) per share	$ 0	$ 0.02	$ 0	$ 0.02
Weighted average number of Common Stock used in computing basic loss per share	3,544,242	3,544,242	3,544,242	3,544,242
Weighted average number of Common Stock used in computing diluted loss per share	3,544,242	3,544,242	3,544,242	3,544,242

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Related Party [Member]
Defined Benefit Plan Disclosure [Line Items]
General and administrative expenses	$ 18	$ 0	$ 70	$ 0

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock, Common [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Dec. 31, 2021		$ 3,162		$ 155	$ (1,752)	$ 1,565
Beginning balance, shares at Dec. 31, 2021	3,544,242
Foreign currency translation adjustments				(183)		(183)
Net income (loss) for the period					60	60
Ending balance, value at Sep. 30, 2022		3,162		(28)	(1,692)	1,442
Ending balance, shares at Sep. 30, 2022	3,544,242
Beginning balance, value at Jun. 30, 2022		3,162		(9)	(1,753)	1,400
Beginning balance, shares at Jun. 30, 2022	3,544,242
Foreign currency translation adjustments				(19)		(19)
Net income (loss) for the period					61	61
Ending balance, value at Sep. 30, 2022		3,162		(28)	(1,692)	1,442
Ending balance, shares at Sep. 30, 2022	3,544,242
Beginning balance, value at Dec. 31, 2022		3,162		(24)	(1,778)	1,360
Beginning balance, shares at Dec. 31, 2022	3,544,242
Foreign currency translation adjustments
Net income (loss) for the period					6	6
Treasury stocks receivables			(321)			(321)
Ending balance, value at Sep. 30, 2023		3,162	(321)	(24)	(1,772)	1,045
Ending balance, shares at Sep. 30, 2023	3,544,242
Beginning balance, value at Jun. 30, 2023		3,162	(321)	(24)	(1,768)	1,049
Beginning balance, shares at Jun. 30, 2023	3,544,242
Foreign currency translation adjustments
Net income (loss) for the period					(4)	(4)
Treasury stocks receivables
Ending balance, value at Sep. 30, 2023		$ 3,162	$ (321)	$ (24)	$ (1,772)	$ 1,045
Ending balance, shares at Sep. 30, 2023	3,544,242

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net income (loss)	$ (4)	$ 61	$ 6	$ 60
Less net income from discontinued operations		(51)		(90)
Adjustments to reconcile net loss to net cash used in operating activities:
Foreign exchange differences			6
Capital gain from realization of subsidiary			(112)
Changes in operating assets and liabilities:
Accounts payable			(59)
Related parties			1
Operating cash flow from discontinued operations				115
Net cash provided by (used in) operating activities			(158)	85
Cash flows from investing activities:
Restricted cash
Investing cash flow from discontinued operations				(46)
Realization of subsidiary (appendix A)			907
Net cash provided by (used in) investing activities			907	(46)
Foreign currency translation adjustments on cash and cash equivalents from discontinued operations				(55)
Change in cash and cash equivalents			749	(16)
Cash of continuing operations at the beginning of the period			114	195
Cash of discontinued operations at the beginning of the period			256	308
Cash at the end of the period	1,119	487	1,119	487
Less cash of discontinued operations at the end of the period		(342)		(342)
Cash and cash equivalents at end of the period	$ 1,119	$ 145	1,119	$ 145
Appendix A – Realization of subsidiary
Asset held for sale (excluding cash)			(485)
Capital note			(637)
Treasury stocks receivables			(321)
Capital gain from realization of subsidiary			(112)
Foreign exchange differences from realization of subsidiary			6
Cash inflow from disposal of subsidiary			$ (907)

GENERAL

GENERAL	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GENERAL	NOTE 1 - GENERAL A. Creations Inc. (hereinafter: the “Company”) was established as a private company under the laws of the State of Delaware on May 13, 2019. The Company’s core business is providing investment services for Israeli mutual funds. It operates as a portfolio manager through its wholly-owned subsidiaries. The Company had three wholly owned subsidiaries. Ocean Yetsira Ltd. (previously called Yestsira Holdings Ltd. (until April 28, 2021)) (hereinafter: “Ocean Yetsira”) which was established as a private Israeli corporation in December 2017, Yetsira Investment House Ltd. (hereinafter: “Yetsira”) which was established as a private Israeli corporation in November 2016 and Ocean Partners Y.O.D.M (hereinafter: “Ocean”) following its acquisition. B. On February 9, 2023, the Company entered into a share exchange agreement (the “Share Exchange Agreement”) by and among Aharon Barkai & Co. Ltd. (the “Purchasers”) through its controllers Yaniv Aharon and Dan Barkai, and an agreement for the purchase of Shares and Capital Notes (the “Purchase Agreement”), whereby the Company sold all of the capital stock and capital notes of Ocean Yetsira Ltd. (“Ocean Yetsira”) in exchange for the payment of an aggregate of ILS 2,061,930 567,000 1,254,498 1,254,498 2,165,800 596,000 The transaction closing was on August 2, 2023. On August 14, 2023, the company received the cash consideration of the transaction amounted to $ 1,163,220 As at the date of the financial statements approval, the shares described above were not received. According to agreements between the parties to the share exchange agreements, as of February 7, 2023, the Company shall not have any financial or economic benefit with respect to the contentious operation of Ocean Yetsira and its subsidiaries. C. On August 31, 2020, the Company’s registration statement on Form S-1 was declared effective by the U.S. Securities and Exchange Commission. As at the date of filing this report, the Company’s shares have not begun to be quoted on the OTCQB. D. The figures in the financial statements are stated in U.S. Dollars in thousands unless otherwise mentioned.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES The interim financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The interim financial statements do not include a full disclosure as required in annual financial statements and should be read with the annual financial statements of the Company as of December 31, 2022. The accounting policies implemented in the interim financial statements is consistent with the accounting policies implemented in the annual financial statements as of December 31, 2022, except of the following accounting pronouncement adopted by the company. A. Use of Estimates in Preparation of Financial Statements The preparation of consolidated financial statements in conformity with U.S. GAAP accounting principles requires management to make estimates and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. B. Principles of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. C. Functional currency The functional currency of the Company is the U.S. dollar, which is the currency of the primary economic environment in which it operates. In accordance with ASC 830, “Foreign Currency Matters” (ASC 830), monetary balances denominated in or linked to foreign currency are stated on the basis of the exchange rates prevailing at the applicable balance sheet date. For foreign currency transactions included in the statement of operations, the exchange rates applicable on the relevant transaction dates are used. Gains or losses arising from changes in the exchange rates used in the translation of such transactions and from the remeasurement of monetary balance sheet items are carried as financing income or expenses. The functional currency of Ocean Yetsira, Yetsira and Ocean is the New Israeli Shekel (“NIS”) and their financial statements are included in the consolidation based on translation into US dollars. Accordingly, assets and liabilities were translated from NIS to US dollars using year-end exchange rates, and income and expense items were translated at average exchange rates during the year. Gains or losses resulting from translation adjustments are reflected in stockholders’ equity, under “Accumulated Other Comprehensive Income”. SCHEDULE OF TRANSLATION ADJUSTMENTS September 30, September 30, 2023 2022 Official exchange rate of NIS 1 to US dollar 0.262 0.282 Exchange rate change in the period (8.0) % (12.2) % CREATIONS INC. AND SUBSIDIARIES NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (U.S. dollars in thousands)

SIGNIFICAN EVENTS DURING THE PE

SIGNIFICAN EVENTS DURING THE PERIOD	9 Months Ended
	Sep. 30, 2023
Significan Events During Period
SIGNIFICAN EVENTS DURING THE PERIOD	NOTE 3 - SIGNIFICAN EVENTS DURING THE PERIOD Following the closing of the transactions described in note 1.B. on March 20, 2023, the company disposed its investments in Ocean Yetsira, Yetsira and Ocean (the sold companies) and recognized a receivable balance in the amount of $ 1,169 321 1,163 As of February 7, 2023, the Company do not have any financial or economic benefit with respect to the contentious operation of Ocean Yetsira and its subsidiaries. As a result, the company ceased the consolidation of the sold companies’ assets, liabilities and results. For practical matters, the consolidation ceased as of January 1, 2023. As at the date of the financial statements approval, the shares described in note 1.B. were not received. Assets Held for Sale In accordance with the provisions of ASC-205-20, presentation of Financial Statements, the company have separately reported the assets and liabilities of the discontinued operations in the consolidated statements of financial position as of December 31, 2022. Following non-commital guidelines for future transactions regarding sale of main activity to related parties during 2022 and the agreement described in note 1.B., the company classified its investments in the sold companies as of December 31, 2022 as an asset held for sale. The balances of the sold companies were as follows. SCHEDULE OF DISCONTINUED OPERATIONS HELD FOR SALE December 31, 2022 Cash and cash equivalents 256 Marketable securities 310 Bank deposit 18 Accounts receivable 102 Other current assets 7 Property and equipment, net 36 Intangible assets, net 205 Goodwill 574 Total assets 1,508 Accounts payable 83 Deferred taxes 47 Capital note 637 Total liabilities 767

RELATED PARTIES BALANCES AND TR

RELATED PARTIES BALANCES AND TRANSACTIONS	9 Months Ended
	Sep. 30, 2023
Related Party Transactions [Abstract]
RELATED PARTIES BALANCES AND TRANSACTIONS	NOTE 4 - RELATED PARTIES BALANCES AND TRANSACTIONS A. Balances with related parties SCHEDULE OF BALANCES WITH RELATED PARTIES September 30, December 31, 2023 2022 Assets: Loans granted to stockholders $ 12 $ 13 Liabilities: Management fee payable to related parties $ 44 $ 67 B. Transactions with related parties SCHEDULE OF TRANSACTIONS WITH RELATED PARTIES 2023 2022 Three months ended September 30, 2023 2022 Income: Interest income in respect to loans granted to stockholders $ - * $ - * Expenses: Management fee ** $ 18 $ 79 2023 2022 Nine months ended September 30, 2023 2022 Income: Interest income in respect to loans granted to stockholders $ - * $ - * Expenses: Management fee ** $ 70 $ 284 * Less than $1 thousand. ** Comparative figures included in discontinued operations.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Use of Estimates in Preparation of Financial Statements	A. Use of Estimates in Preparation of Financial Statements The preparation of consolidated financial statements in conformity with U.S. GAAP accounting principles requires management to make estimates and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.
Principles of consolidation	B. Principles of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Functional currency	C. Functional currency The functional currency of the Company is the U.S. dollar, which is the currency of the primary economic environment in which it operates. In accordance with ASC 830, “Foreign Currency Matters” (ASC 830), monetary balances denominated in or linked to foreign currency are stated on the basis of the exchange rates prevailing at the applicable balance sheet date. For foreign currency transactions included in the statement of operations, the exchange rates applicable on the relevant transaction dates are used. Gains or losses arising from changes in the exchange rates used in the translation of such transactions and from the remeasurement of monetary balance sheet items are carried as financing income or expenses. The functional currency of Ocean Yetsira, Yetsira and Ocean is the New Israeli Shekel (“NIS”) and their financial statements are included in the consolidation based on translation into US dollars. Accordingly, assets and liabilities were translated from NIS to US dollars using year-end exchange rates, and income and expense items were translated at average exchange rates during the year. Gains or losses resulting from translation adjustments are reflected in stockholders’ equity, under “Accumulated Other Comprehensive Income”. SCHEDULE OF TRANSLATION ADJUSTMENTS September 30, September 30, 2023 2022 Official exchange rate of NIS 1 to US dollar 0.262 0.282 Exchange rate change in the period (8.0) % (12.2) %

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
SCHEDULE OF TRANSLATION ADJUSTMENTS	SCHEDULE OF TRANSLATION ADJUSTMENTS September 30, September 30, 2023 2022 Official exchange rate of NIS 1 to US dollar 0.262 0.282 Exchange rate change in the period (8.0) % (12.2) %

SIGNIFICAN EVENTS DURING THE _2

SIGNIFICAN EVENTS DURING THE PERIOD (Tables)	9 Months Ended
	Sep. 30, 2023
Significan Events During Period
SCHEDULE OF DISCONTINUED OPERATIONS HELD FOR SALE	SCHEDULE OF DISCONTINUED OPERATIONS HELD FOR SALE December 31, 2022 Cash and cash equivalents 256 Marketable securities 310 Bank deposit 18 Accounts receivable 102 Other current assets 7 Property and equipment, net 36 Intangible assets, net 205 Goodwill 574 Total assets 1,508 Accounts payable 83 Deferred taxes 47 Capital note 637 Total liabilities 767

RELATED PARTIES BALANCES AND _2

RELATED PARTIES BALANCES AND TRANSACTIONS (Tables)	9 Months Ended
	Sep. 30, 2023
Related Party Transactions [Abstract]
SCHEDULE OF BALANCES WITH RELATED PARTIES	SCHEDULE OF BALANCES WITH RELATED PARTIES September 30, December 31, 2023 2022 Assets: Loans granted to stockholders $ 12 $ 13 Liabilities: Management fee payable to related parties $ 44 $ 67
SCHEDULE OF TRANSACTIONS WITH RELATED PARTIES	SCHEDULE OF TRANSACTIONS WITH RELATED PARTIES 2023 2022 Three months ended September 30, 2023 2022 Income: Interest income in respect to loans granted to stockholders $ - * $ - * Expenses: Management fee ** $ 18 $ 79 2023 2022 Nine months ended September 30, 2023 2022 Income: Interest income in respect to loans granted to stockholders $ - * $ - * Expenses: Management fee ** $ 70 $ 284 * Less than $1 thousand. ** Comparative figures included in discontinued operations.

GENERAL (Details Narrative)

GENERAL (Details Narrative)	Aug. 14, 2023 USD ($)	Feb. 09, 2023 USD ($) shares	Feb. 09, 2023 ILS (₪)
Proceeds from cash consideration | $	$ 1,163,220
Aharon [Member]
Capital notes payable		$ 596,000	₪ 2,165,800
Ocean Yetsira Ltd [Member]
Capital notes payable		$ 567,000	₪ 2,061,930
Ocean Yetsira Ltd [Member] | Common Stock [Member]
Common stock issued		1,254,498
Ocean Yetsira Ltd [Member] | Warrant [Member]
Common stock issued		1,254,498

SCHEDULE OF TRANSLATION ADJUSTM

SCHEDULE OF TRANSLATION ADJUSTMENTS (Details)	9 Months Ended
	Sep. 30, 2023 $ / shares	Sep. 30, 2022 $ / shares
Accounting Policies [Abstract]
Official exchange rate of NIS 1 to US dollar	$ 0.262	$ 0.282
Exchange rate change in the quarter	(0.080)	(0.122)

SCHEDULE OF DISCONTINUED OPERAT

SCHEDULE OF DISCONTINUED OPERATIONS HELD FOR SALE (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Mar. 20, 2023	Dec. 31, 2022
Significan Events During Period
Cash and cash equivalents			$ 256
Marketable securities			310
Bank deposit			18
Accounts receivable		$ 1,169	102
Other current assets			7
Property and equipment, net			36
Intangible assets, net			205
Goodwill			574
Total assets			1,508
Accounts payable			83
Deferred taxes			47
Capital note			637
Total liabilities			$ 767

SIGNIFICAN EVENTS DURING THE _3

SIGNIFICAN EVENTS DURING THE PERIOD (Details Narrative) - USD ($)	Aug. 14, 2023	Sep. 30, 2023	Mar. 20, 2023	Dec. 31, 2022
Significan Events During Period
Receivable balance			$ 1,169,000	$ 102,000
Treasury stock, value		$ 321,000	$ 321,000
Proceeds from cash consideration	$ 1,163,220

SCHEDULE OF BALANCES WITH RELAT

SCHEDULE OF BALANCES WITH RELATED PARTIES (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Related Party Transactions [Abstract]
Loans granted to stockholders	$ 12	$ 13
Management fee payable to related parties	$ 44	$ 67

SCHEDULE OF TRANSACTIONS WITH R

SCHEDULE OF TRANSACTIONS WITH RELATED PARTIES (Details) - Related Party [Member] - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Related Party Transaction [Line Items]
Interest income in respect to loans granted to stockholders	[1]
Management fee	[2]	$ 18	$ 79	$ 70	$ 284
[1]Less than $1 thousand.[2]Comparative figures included in discontinued operations.