INDEX
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
CREATIONS
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(U.S.
dollars in thousands except share data)
The
accompanying notes are an integral part of the condensed consolidated financial statements
CREATIONS
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(U.S.
dollars in thousands except share data)
The
accompanying notes are an integral part of the condensed consolidated financial statements
CREATIONS
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(U.S.
dollars in thousands except share data)
| | |
Common Stock | | |
Additional paid-in | | |
Accumulated other comprehensive | | |
Accumulated | | |
Total stockholders’ | |
| | |
Number Amount | | |
Capital | | |
Income (loss) | | |
Deficit | | |
equity | |
| | |
Unaudited | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
| Balance as of January 1, 2022 | |
| 3,544,242 | | |
| - | | |
| 3,162 | | |
| 155 | | |
| (1,752 | ) | |
| 1,565 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Other comprehensive loss | |
| - | | |
| - | | |
| - | | |
| (164 | ) | |
| - | | |
| (164 | ) |
| Net loss for the period | |
| - | | |
| - | | |
| - | | |
| - | | |
| (1 | ) | |
| (1 | ) |
| Balance as of June 30, 2022 | |
| 3,544,242 | | |
| - | | |
| 3,162 | | |
| (9 | ) | |
| (1,753 | ) | |
| 1,400 | |
The
accompanying notes are an integral part of the condensed consolidated financial statements
CREATIONS
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S.
dollars in thousands)
The
accompanying notes are an integral part of the condensed consolidated financial statements
CREATIONS
INC. AND SUBSIDIARIES
NOTES
TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(U.S.
dollars in thousands)
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 has 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.
On
January 29, 2018 Ocean Yetsira became the sole stockholder of Yetsira by means of a share exchange agreement (the “Yetsira Exchange”),
under which the issued and outstanding shares of Yetsira were exchanged for shares of Ocean Yetsira on a one-to-one basis.
On
July 3, 2019 the Company entered into a share exchange agreement (the “Holdings Exchange”) pursuant to which all of the outstanding
shares of Ocean Yetsira were exchanged for shares of the Company at a rate of 1:809 (the “Exchange Ratio”), with Ocean Yetsira
stockholders each receiving the same proportional ownership in the Company as they had held in Ocean Yetsira immediately prior to the
agreement. On the execution of the agreement and exchange of shares, Ocean Yetsira became a wholly owned subsidiary of the Company.
| |
B. |
On
August 19, 2020, Ocean Yetsira entered into share purchase agreement with certain shareholders of Ocean, an Israeli corporation that
provides mutual funds investment management services for several mutual funds, under which upon consummation of certain conditions
Ocean Yetsira would purchase 7.5% of the outstanding and issued shares of Ocean for total cash consideration of NIS 300 (approximately
$87) (the “Cash Consideration”). |
On
September 7, 2020, Ocean Yetsira entered into a share exchange agreement (the “Share Exchange Agreement”) by and among Ocean
Yetsira, Ocean, and certain shareholders of Ocean (“Ocean Shareholders”), under which upon the consummation of certain conditions,
Ocean Yetsira would purchase the remaining 92.5% of the shares of Ocean for a total equity consideration which represents 35.4% of the
issued share capital of the Company on a fully diluted basis as of the Closing Date (as defined below) (the “Equity Consideration”),
which comprised of the following:
| |
1. |
1,254,498
shares of common stock of the Company. |
| |
|
|
| |
2. |
1,254,498
warrants to purchase the same number of shares of common stock of the Company (the “Warrants”). The Warrants are convertible
into shares of Common Stock over a period of three-years at an exercise price of $1.00 per share, with the price per share subject
to standard anti-dilution adjustments. |
CREATIONS
INC. AND SUBSIDIARIES
NOTES
TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(U.S.
dollars in thousands)
NOTE 1 - GENERAL (CONT.)
Ocean
Yetsira consummated the aforesaid acquisition at September 28, 2020 (the “Closing Date”). The financial position and results
of operation relating to periods following the Closing Date include the financial position and results of operations of Ocean.
| |
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. |
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”) for interim financial information and with Rule 8-03 of Regulation S-X. 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, 2021 from which the accompanying condensed consolidated statement of financial position dated was derived.
In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation
have been included. Operating results for the six and three months ended June 30, 2022 are not necessarily indicative of the results
that may be expected for the year ending 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, 2021, except of the following
accounting pronouncement adopted by the Company.
Recently
Issued Accounting Pronouncements, not yet adopted
In
August 2020, the FASB issued ASU 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives
and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40)” (“ASU 2020-06”), which is intended to
address issues identified as a result of the complexity associated with applying GAAP for certain financial instruments with characteristics
of liabilities and equity. For convertible instruments, ASU 2020-06 reduces the number of accounting models for convertible debt instruments
and convertible preferred stocks, and enhances information transparency by making targeted improvements to the disclosures for convertible
instruments and earnings-per-share guidance on the basis of feedback from financial statement users. ASU 2020-06 is effective for fiscal
years, and interim periods in those fiscal years, beginning after December 15, 2023 (effective January 1, 2024) for smaller reporting
companies. The Company is determining the adoption of this new accounting guidance and the effect on its consolidated financial statements
throughout the period until implementation.
In
June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326)” (“ASU 2016-13”), which
significantly changes how entities will account for credit losses for most financial assets and certain other instruments that are not
measured at fair value through net income. ASU 2016-13 replaces the existing incurred loss model with an expected credit loss model that
requires entities to estimate an expected lifetime credit loss on most financial assets and certain other instruments. Under ASU 2016-13
credit impairment is recognized as an allowance for credit losses, rather than as a direct write-down of the amortized cost basis of
a financial asset. The impairment allowance is a valuation account deducted from the amortized cost basis of financial assets to present
the net amount expected to be collected on the financial asset. Once the new pronouncement is adopted by the Company, the allowance for
credit losses must be adjusted for management’s current estimate at each reporting date. The new guidance provides no threshold
for recognition of impairment allowance. Therefore, entities must also measure expected credit losses on assets that have a low risk
of loss. For instance, trade receivables that are either current or not yet due may not require an allowance reserve under currently
generally accepted accounting principles, but under the new standard, the Company will have to estimate an allowance for expected credit
losses on trade receivables under ASU 2016-13. ASU 2016-13 is effective for annual periods, including interim periods within those annual
periods, beginning after December 15, 2022 for smaller reporting companies. Early adoption is permitted. The Company is currently assessing
the impact ASU 2016-13 will have on its consolidated financial statements.
CREATIONS
INC. AND SUBSIDIARIES
NOTES
TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(U.S.
dollars in thousands)
| |
A. |
Use
of Estimates in Preparation of Financial Statements |
The
preparation of consolidated financial statements in conformity with U.S. GAAP 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.
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
| | |
June 30, | | |
June 30, | |
| | |
2022 | | |
2021 | |
| Official exchange rate of NIS 1 to US dollar | |
| 0.286 | | |
| 0.307 | |
| Exchange rate change in the period | |
| (11.1 | )% | |
| (1.4 | )% |
CREATIONS
INC. AND SUBSIDIARIES
NOTES
TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(U.S.
dollars in thousands)
The
Company accounts for revenue under ASC 606, Revenue from Contracts with Customers (“ASC 606”). Under the guidance, the Company
determines revenue recognition through the following five steps:
| |
● |
Identification
of the contract, or contracts, with a customer; |
| |
● |
Identification
of the performance obligations in the contract; |
| |
● |
Determination
of the transaction price; |
| |
● |
Allocation
of the transaction price to the performance obligations in the contract; and |
| |
● |
Recognition
of revenue when, or as, the Company satisfies a performance obligation. |
Asset
Management and Investments Fees (Gross): The Company earns Asset management and investment fees from its contracts with its clients.
These fees are primarily earned over time on a daily basis and are generally assessed based on fixed percentage of the Assets Under Management
(AUM). Other related services provided include investment banking and consulting for which the Company’s fees, which are based
on a fixed fee schedule, are recognized when the services are rendered.
All
of the Company’s revenues is from contracts with customers. Customers are invoiced at the end of the month.
Intangible
assets consist of existing customer relationships from the acquisition of Ocean in August and September 2020 for the cost amount of
$364.
The Company accounts for intangible assets at their historical cost and records amortization utilizing the straight-line method
based upon their estimated useful lives. The estimated useful life of customer relationships was determined internally by the
management at 5.25-years
period. Amortization expenses for both of the three months ended June 30, 2022 and 2021 amounted to $18 thousand. Amortization
expense for both of the six months ended June 30, 2022 and June 30, 2021 amounted to $35
thousand. Impairments, if any, are based on excess of the carrying amount over the fair value of the asset. There was no
impairment charge for the June 30, 2022 and December 31, 2021.
Goodwill
represents the excess of the acquisition cost of businesses over the fair value of the identifiable net assets acquired. The goodwill
amount of $577 on June 30, 2022 and $649 on December 31, 2021 relates to the acquisition of Ocean. The difference of the amounts for
these dates is due to foreign currency adjustments only.
Goodwill
is not amortized, but is tested at least annually for impairment, or if circumstances occur that more likely than not reduce the fair
value of the reporting unit below its carrying amount.
The
Company has determined that there has been no impairment of goodwill as of both June 30, 2022 and December 31, 2021.
| G. | Earnings (Loss) per Share |
Basic earnings (loss) per share (“EPS”) is computed
by dividing the net income (loss) applicable to common stockholders by the weighted-average number of shares of common stock outstanding
for the period.
For purposes of calculating diluted
earnings per common share, the denominator includes both the weighted-average number of shares of common stock outstanding during the
period and the number of common stock equivalents if the inclusion of such common stock equivalents is dilutive. There were no dilutive
securities for any periods presented.
CREATIONS
INC. AND SUBSIDIARIES
NOTES
TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(U.S.
dollars in thousands)
NOTE 3 - RELATED PARTIES BALANCES AND TRANSACTIONS
SUMMARY
OF BALANCES WITH RELATED PARTIES
| |
A. |
Balances
with related parties |
| | |
June 30, | | |
December 31, | |
| | |
2022 | | |
2021 | |
| | |
| | |
| |
| Assets: | |
| | | |
| | |
| Loans granted to stockholders | |
$ | 13 | | |
$ | 14 | |
| | |
| | | |
| | |
| Liabilities: | |
| | | |
| | |
| Management fee payable to related parties | |
$ | 94 | | |
$ | 120 | |
| | |
| | | |
| | |
SUMMARY OF TRANSACTIONS WITH RELATED PARTIES
| |
B. |
Transactions
with related parties |
| | |
Three months ended June 30, | |
| | |
2022 | | |
2021 | |
| | |
| | |
| |
| Income: | |
| | | |
| | |
| Interest income in respect to loans granted to stockholders | |
$ | - | * | |
$ | - | * |
| | |
| | | |
| | |
| Expenses: | |
| | | |
| | |
| Management fee | |
$ | 80 | | |
$ | 153 | |
| | |
Six months ended June 30, | |
| | |
2022 | | |
2021 | |
| | |
| | |
| |
| Income: | |
| | | |
| | |
| Interest income in respect to loans granted to stockholders | |
$ | - | * | |
$ | - | * |
| | |
| | | |
| | |
| Expenses: | |
| | | |
| | |
| Management fee | |
$ | 205 | | |
$ | 226 | ** |
| |
* |
Less
than $1 thousand. |
| |
** |
Includes
$43 thousand related to 2020. |
NOTE 4 - MATERIAL EVENTS DURING THE REPORTED PERIOD
On
April 17, 2022, the board of directors approved a resolution as to matters of ongoing conduct such as signatory rights, voting etc. In
addition, compensation of officers was updated. Also, non-commital guidelines for future transactions regarding sale of main activity
to related parties and sale of holdings by those parties were discussed, these guidelines are pursuant to completion of legal structuring,
compliance issues and more.
| ITEM
2. |
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
This
Quarterly Report contains forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond
our control, which may include statements about our:
| |
● |
business
strategy; |
| |
|
|
| |
● |
financial
strategy; |
| |
|
|
| |
● |
intellectual
property; |
| |
|
|
| |
● |
production; |
| |
|
|
| |
● |
future
operating results; and |
| |
|
|
| |
● |
plans,
objectives, expectations and intentions contained in this report that are not historical. |
All
statements, other than statements of historical fact included in this report, regarding our strategy, intellectual property, future operations,
financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking
statements. When used in this report, the words “could,” “believe,” “anticipate,” “intend,”
“estimate,” “expect,” “project” and similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain such identifying words. All forward-looking statements speak only as
of the date of this report. You should not place undue reliance on these forward-looking statements. Although we believe that our plans,
intentions and expectations reflected in or suggested by the forward-looking statements we make in this report are reasonable, we can
give no assurance that these plans, intentions or expectations will be achieved. These statements may be found under “Management’s
Discussion and Analysis of Financial Condition and Results of Operations,” as well as in this report generally. Actual events or
results may differ materially from those discussed in forward-looking statements as a result of various factors. In light of these risks
and uncertainties, there can be no assurance that the forward-looking statements contained in this filing will in fact occur.
Organizational
History
Creations,
Inc. was incorporated in May 2019. On July 1, 2019, Creations, Inc, acquired a 100% interest in Ocean-Yetsira Ltd (former- Yetsira Holdings
Ltd), through a share swap agreement. Ocean Yetsira is an Israeli Corporation incorporated in December 2017 which in turn owns 100% of
Yetsira Investment House (“Yetsira”), which was incorporated in November 2016.
On
August 19, 2020, the Company purchased 7.5% of the outstanding and issued shares of Ocean Partners Y.O.D.M Ltd., an Israeli corporation
(“Ocean”) for total cash consideration of approximately $87,000. On September 7, 2020, the Company entered into a share exchange
agreement by and among Yetsira, Ocean, and certain shareholders of Ocean, pursuant to which the Company acquired the remaining 92.5%
of the capital stock of Ocean in exchange for an aggregate of 1,254,498 shares of common stock of the Company, $0.001 par value, and
1,254,498 warrants to purchase shares of common stock of the Company (the “Warrants”) issued to the certain Ocean shareholders
by the Company. The Warrants are convertible into shares of our common stock over a period of three-years at an exercise price of $1.00
per share. The Company completed the acquisition on September 28, 2020.
Following
the acquisition of Ocean, all the investment management business of the group is managed through Ocean.
On
April 17, 2022, the board of directors approved a resolution as to matters of ongoing conduct such as signatory rights, voting etc. In
addition, compensation of officers was updated. Also, non-committal guidelines for future transactions regarding sale of main activity
to related parties and sale of holdings by those parties were discussed, these guidelines are pursuant to completion of legal structuring,
compliance issues and more.
Our
continued focus is on our core business of mutual fund management, while increasing our number of managed funds and private portfolio
and increasing of our AUM. Part of our growth depends on the strength of our brand, which the Company intends to strengthen by increasing
our exposure to the general public, especially through investment advisors in the commercial banks, which constitute the main channel
for funds distribution in Israel. We also plan to increase public relations activities and advertising. We also continue to examine the
expansion of our areas of activity, through cooperation, locating synergistic opportunities for our existing areas of activity and establishing
additional parallel investment opportunities. In addition, we may pursue the acquisition of other unrelated businesses in the financial
sector.
Through
our wholly owned subsidiary, Ocean, we operate as a portfolio manager, licensed by the Israel Securities Authority (“ISA”).
Ocean currently offers and manages nine mutual funds branded as Ocean-Yetsira funds, and 103 private portfolios with approximately $304M
in assets, currently under management (“AUM”).
We
generate revenue primarily from management fees paid by our unitholders or clients, which fees are based upon a certain percentage of
their assets in the funds. Our expenses are mainly comprised of payments for distribution, commissions to banks, third-party platform
user fees, salary commissions and expenses, and commissions to the ISA and the Israeli Stock Exchange. We conduct our business exclusively
through Ocean Yetsira and exercise effective control over the operations of Ocean and Yetsira pursuant to a series of contractual arrangements,
under which we are entitled to receive substantially all of its economic benefits.
Recently
Issued Accounting Pronouncements
Management
reviewed currently issued pronouncements during the Six month ended June 30, 2022, and does not believe that any recently issued, but
not yet effective, accounting standards if currently adopted would have a material effect on the accompanying condensed financial statements.
Results
of Operations for the Six Month Ended June 30, 2022, compared to Six Month Ended June 30, 2021. (In Thousands)
Revenue
For
the Six month ended June 30, 2022, and 2021, the Company generated revenues in the amount of $1,123 and $891 respectively. The increase
was attributable to an increase in our AUM.
Assets
Under Management and Investment Performance
The
following table reflects the changes in our AUM for the Six month ended June 30, 2022, and 2021.
(In
millions)
| | |
For the Six month ended June 30, 2022 | | |
For the Six month ended June 30, 2021 | |
| Beginning Balance | |
$ | 282.7 | | |
$ | 174.5 | |
| Gross inflows/ outflows, net | |
| 66.7 | | |
| 71 | |
| Market appreciation (depreciation)(1) | |
| (45 | ) | |
| 27.6 | |
| Additional AUM from acquisitions | |
| - | | |
| | |
| | |
| | | |
| | |
| End Balance | |
$ | 304.4 | | |
$ | 273.1 | |
| |
(1) |
Market
appreciation (depreciation) includes investment gains (losses) on assets under management, the impact of foreign exchange rates and
net reinvested dividends. |
Our
total AUM increased by $21.7 million during the Six month ended June 30, 2022, from $282.7 million as of December 31, 2021, to $304.4
million as of June 30, 2022, or a 7.67% increase on our total AUM. The increase was a result of net AUM inflows of $66.7 million, market
depreciation of $45 million.
Cost
of Revenues
For
the Six month ended June 30, 2022, and 2021, cost of revenues was $613 and $544, respectively. The increase in these expenses was mainly
attributable to an increase in the AUM.
Marketing
Expenses
For
the Six month ended June 30, 2022, our marketing expenses were $126 compared to $121 for the prior-year period.
General
and Administrative Expenses
For
the Six month ended June 30, 2022, our general and administrative expenses were $385, compared to $450 for the period ended June 30,
2021, an approximate 14.44% decrease. These expenses are mainly attributed to service and professional fees, payments to the management
and employees as shown in the table below.
The
following table provides a year-over-year breakout of the material components of our general and administrative expenses:
| | |
For the Six month ended
June 30, 2022 (in thousands) | | |
For the Six month ended
June 30, 2021 (in thousands) | |
| Components of G&A Expenses: | |
$ | | | |
$ | | |
| Wages | |
| 16 | | |
| 38 | |
| Travel and vehicle expenses | |
| 8 | | |
| 7 | |
| Communication and office expenses | |
| 34 | | |
| 47 | |
| Services and professional fees | |
| 278 | | |
| 270 | |
| Office rent | |
| 29 | | |
| 29 | |
| Other expenses | |
| 20 | | |
| 59 | |
| Total G&A expenses | |
$ | 385 | | |
$ | 450 | |
The
changes in General and Administrative Expenses are primarily due to the following event:
| ● |
Expenses
that emerged from the merger in 2020 between Ocean and Yetsira was reduced, and a moderate increase in expanses is attributed to
a gradual increase in the company growing operations and increased AUM. |
Net
Loss
The
Company realized a net loss of $1 for the Six month ended June 30, 2022, compared to a net loss of $213 for the Six month ended June
30, 2021. The decrease in net loss attributed to increased revenue following the grows of our AUM.
After
taking into account foreign currency translation adjustments, which resulted in other comprehensive expense of $164 and expense of $15
for the Six month ended June 30, 2022, and 2021, respectively, the Company realized a net loss after other comprehensive expenses of
$165 and $228 for the six month ended June 30, 2022 and 2021, respectively.
Liquidity
and capital resources
As
of June 30, 2022, the Company had cash in the amount of $404 compared to cash in the amount of $503 as of December 31, 2021.
Stockholders’
equity as of June 30, 2022, was $1,400, as compared to stockholders’ equity of $1,565 as of December 31, 2021.
The
Company’s accumulated deficit was $1,753 and $1,752 on June 30, 2022, and December 31, 2020, respectively.
The
Company’s operating activities resulted in net cash provided of $9 for the Six month ended June 30, 2022, compared to net cash
used of $105 for the Six month ended June 30, 2021. The decrease in net cash used was mainly attributable to an increase of revenue,
due to increase in AUM.
The
Company’s investing activities net cash used of $64 for the Six month ended June 30, 2022, compared to $100 investing activities
provided for the Six month ended June 30, 2021.
Off-
Balance Sheet Arrangements
The
Company currently does not have any off-balance sheet arrangements.
