$RLBY

RELIABILITY INC

CIK:0000034285|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue earned
Service revenue	$ 5,017	$ 4,718	$ 10,568	$ 9,465
Cost of revenue
Cost of revenue	4,325	4,005	9,106	8,110
Gross profit	692	713	1,462	1,355
Selling, general, and administrative expenses	811	966	1,666	1,989
Operating loss	(119)	(253)	(204)	(634)
Other income (expense)
Interest income from related parties	0	127	66	253
Interest income	1	1	1	1
Interest expense	(23)	(36)	(44)	(88)
Expense	(58)	(44)	(133)	(70)
Loss before income tax (expense) benefit	(199)	(205)	(314)	(538)
Income tax (expense) benefit	(7)	0	(11)	0
Consolidated net loss	$ (206)	$ (205)	$ (325)	$ (538)
Net loss per share:
Basic	$ (0.00)	$ (0.00)	$ (0.00)	$ (0.00)
Diluted	$ (0.00)	$ (0.00)	$ (0.00)	$ (0.00)
Shares used in per share computation:
Basic	49,522,148	300,000,000	49,522,148	300,000,000
Diluted	49,522,148	300,000,000	49,522,148	300,000,000

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net loss	$ (325)	$ (538)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	11	16
Loss on receivable purchase agreements	60
Loss on Disposal of fixed assets	3
Accrued interest	(66)	(253)
Changes in operating assets and liabilities:
Trade receivables	(441)	2,133
Other Receivables		(15)
Prepaid expenses and other current assets	41	45
Accounts payable	329	(389)
Accrued payroll	375	432
Accrued expenses	(137)	(160)
Deferred revenue		4
Income taxes payable	3
Net cash provided by (used in) operating activities	(147)	1,275
Cash flows from investing activities:
Purchase of fixed assets	(15)	(11)
Net cash provided by (used in) investing activities	(15)	(11)
Cash flows from financing activities:
Proceeds from the factoring facility	4,111	5,038
Repayments to the factoring facility	(4,052)	(6,586)
Proceeds from issuing short-term debt	92	14
Proceeds from issuing long-term debt		25
Repayment of long term debt	(2)	(15)
Net cash provided by (used in) financing activities	149	(1,524)
Net increase (decrease) in cash and cash equivalents	(13)	(260)
Cash and cash equivalents, beginning of period	483	522
Cash and cash equivalents, end of period	470	262
Cash paid during the period for:
Interest	44	88
Income taxes	7
Noncash settlement of related-party notes receivable through receipt of treasury shares	$ 6,422

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
CURRENT ASSETS
Cash and cash equivalents	$ 470	$ 483
Trade receivables, net of allowance for credit losses	1,759	1,467
Unbilled receivables	216	127
Other receivables	28	28
Notes receivable from related parties		6,357
Prepaid expenses and other current assets	301	341
Total current assets	2,774	8,803
Other intangible assets, net	2	2
Property, plant and equipment, net	42	40
Total assets	2,818	8,845
CURRENT LIABILITIES
Factoring liability	514	455
Accounts payable	1,057	728
Accrued expenses	186	323
Accrued payroll	756	381
State income tax liability	3
Deferred revenue	235	235
Notes payable, current	127	34
Total current liabilities	2,878	2,156
LONG-TERM LIABILITIES
Notes payable, net of current	14	16
Total long-term liabilities	14	16
Total liabilities	2,892	2,172
Commitments and contingencies (Note 6)
STOCKHOLDERS’ EQUITY
Common stock, without par value, 300,000,000 shares authorized and issued; 46,707,790 and 300,000,000 shares outstanding as of June 30, 2026 and December 31, 2025, respectively
Treasury stock, at cost, 253,292,210 shares as of June 30, 2026	(6,422)
Additional paid-in capital	750	750
Retained earnings	5,598	5,923
Total stockholders’ equity	(74)	6,673
Total liabilities and stockholders’ equity	$ 2,818	$ 8,845