Reliability Inc. Files 10-Q for Period Ending March 31, 2024

Ticker: RLBY · Form: 10-Q · Filed: May 15, 2024 · CIK: 34285

Sentiment: neutral

Topics: 10-Q, Reliability Inc., Financials, Customer Risk, Q1 2024

TL;DR

<b>Reliability Inc. has filed its Q1 2024 10-Q, detailing financial performance and risks including customer concentration.</b>

AI Summary

RELIABILITY INC (RLBY) filed a Quarterly Report (10-Q) with the SEC on May 15, 2024. Reliability Inc. filed a 10-Q for the period ending March 31, 2024. The filing includes financial data for Q1 2024 and comparative periods. Key entities mentioned include Vivos Holdings LLC, Maslow Media Group Inc., and MMG. The company has identified customer concentration risk with specific customers. Financial data related to common stock, additional paid-in capital, and retained earnings are presented.

Why It Matters

For investors and stakeholders tracking RELIABILITY INC, this filing contains several important signals. Investors can assess the company's financial health and operational performance during the first quarter of 2024. Understanding customer concentration risk is crucial for evaluating potential revenue instability.

Risk Assessment

Risk Level: medium — RELIABILITY INC shows moderate risk based on this filing. The company faces customer concentration risk, with specific customers accounting for significant portions of revenue, which could lead to revenue volatility if these relationships change.

Analyst Insight

Monitor revenue trends and customer relationships closely to assess the impact of customer concentration on future performance.

Key Numbers

Key Players & Entities

FAQ

When did RELIABILITY INC file this 10-Q?

RELIABILITY INC filed this Quarterly Report (10-Q) with the SEC on May 15, 2024.

What is a 10-Q filing?

A 10-Q is a quarterly financial report with unaudited financials, management discussion, and interim business updates. This particular 10-Q was filed by RELIABILITY INC (RLBY).

Where can I read the original 10-Q filing from RELIABILITY INC?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by RELIABILITY INC.

What are the key takeaways from RELIABILITY INC's 10-Q?

RELIABILITY INC filed this 10-Q on May 15, 2024. Key takeaways: Reliability Inc. filed a 10-Q for the period ending March 31, 2024.. The filing includes financial data for Q1 2024 and comparative periods.. Key entities mentioned include Vivos Holdings LLC, Maslow Media Group Inc., and MMG..

Is RELIABILITY INC a risky investment based on this filing?

Based on this 10-Q, RELIABILITY INC presents a moderate-risk profile. The company faces customer concentration risk, with specific customers accounting for significant portions of revenue, which could lead to revenue volatility if these relationships change.

What should investors do after reading RELIABILITY INC's 10-Q?

Monitor revenue trends and customer relationships closely to assess the impact of customer concentration on future performance. The overall sentiment from this filing is neutral.

Risk Factors

Key Dates

Glossary

10-Q
A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a continuing disclosure of financial performance. (Provides a snapshot of the company's financial health and operational status for the specified quarter.)
Customer Concentration Risk
The risk that a company's revenue is heavily dependent on a small number of customers. (Highlights potential instability in revenue streams if key customer relationships are lost or altered.)

Filing Stats: 4,732 words · 19 min read · ~16 pages · Grade level 13.3 · Accepted 2024-05-15 09:36:53

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 3 Item 1.

Financial Statements

Financial Statements 3 Unaudited Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 3 Unaudited Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023 4 Unaudited Consolidated Statements of Changes in Sharehold ers' Eq uity for the Three Months Ended March 31, 2024 and 2023 5 Unaudited Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 6-7 Notes to Unaudited Consolidated Financial Statements 8-14 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 15-18 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 18 Item 4. Risk Controls and Procedures 18

OTHER INFORMATION

PART II. OTHER INFORMATION 19 Item 1.

Legal Proceedings

Legal Proceedings 19 Item 1a.

Risk Factors

Risk Factors 19 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 20 Item 3. Defaults Upon Senior Securities 20 Item 4. Mine Safety Disclosures 20 Item 5. Other Information 20 Item 6. Exhibits 20

Signatures

Signatures 21 Exhibits 22 2 PART I. FINANCIAL INFORMATION Item 1. Financial Statements RELIABILITY INCORPORATED AND SUBSIDIARY UNAUDITED CONSOLIDATED BALANCE SHEETS (amounts in thousands, except per share data) March 31, December 31, 2024 2023 ASSETS CURRENT ASSETS Cash and cash equivalents $ 485 $ 822 Trade receivables, net of credit losses 3,047 2,993 Retention credit receivable - 10 Other receivables 288 - Notes receivable from related parties 5,571 5,501 Prepaid expenses and other current assets 279 442 Total current assets 9,670 9,768 Other intangible assets, net 3 3 Property, plant and equipment, net 13 15 Total assets $ 9,686 $ 9,786 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Factoring liability $ 149 $ 174 Accounts payable 592 548 Accrued expenses 285 290 Accrued payroll 644 637 Deferred revenue 217 206 Total current liabilities 1,887 1,855 Total liabilities 1,887 1,855 Commitment and contingencies (Note 6) - - Subsequent events (Note 10) - - SHAREHOLDERS' EQUITY Common stock, without par value, 300,000,000 shares authorized, 300,000,000 issued and outstanding as of March 31, 2024 and as of December 31, 2023 - - Additional paid-in capital 750 750 Retained earnings 7,049 7,181 Total shareholders' equity 7,799 7,931 Total liabilities and shareholders' equity $ 9,686 $ 9,786 The accompanying notes are an integral part of these statements. 3 RELIABILITY INCORPORATED AND SUBSIDIARY UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands, except per share data) 2024 2023 For the Three Months Ended March 31, 2024 2023 Revenue earned Service revenue $ 5,295 $ 5,199 Cost of revenue Cost of revenue 4,586 4,488 Gross profit 709 711 Selling, general, and administrative expenses 947 933 Operating loss ( 238 ) ( 222 ) Other income (expense) Interest income from related part

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