Reliability Inc. Files Q2 2024 10-Q

TL;DR

Reliability Inc. dropped its Q2 10-Q. Check financials.

AI Summary

Reliability Inc. filed its 10-Q for the period ending June 30, 2024. The filing covers financial performance and operational details for the second quarter and the first half of the fiscal year. Key financial statements and disclosures are included, providing insights into the company's financial health and strategic direction.

Why It Matters

This 10-Q filing provides investors and analysts with crucial financial data for Reliability Inc., enabling informed decisions about the company's performance and future prospects.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags or significant new risks highlighted.

Key Numbers

• 2024-06-30 — Period End Date (End of the reporting period for the 10-Q.)
• 2024-08-13 — Filing Date (Date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• RELIABILITY INC (company) — Filer
• 20240630 (date) — Period of Report
• 20240813 (date) — Filing Date
• FAIRLANE INDUSTRIES INC (company) — Former Company Name

FAQ

Filing Documents

• form10-q.htm (10-Q) — 506KB
• ex31-1.htm (EX-31.1) — 11KB
• ex31-2.htm (EX-31.2) — 11KB
• ex32-1.htm (EX-32.1) — 6KB
• form10-q_001.jpg (GRAPHIC) — 7KB
• 0001493152-24-031693.txt ( ) — 2893KB
• rlby-20240630.xsd (EX-101.SCH) — 25KB
• rlby-20240630_cal.xml (EX-101.CAL) — 35KB
• rlby-20240630_def.xml (EX-101.DEF) — 97KB
• rlby-20240630_lab.xml (EX-101.LAB) — 203KB
• rlby-20240630_pre.xml (EX-101.PRE) — 162KB
• form10-q_htm.xml (XML) — 313KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 3 Item 1.

Financial Statements

Financial Statements 3 Unaudited Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 3 Unaudited Consolidated Statements of Operations for the Three Months Ended June 30, 2024 and 2023 4 Unaudited Consolidated Statements of Operations for the Six Months Ended June 30, 2024 and 2023 5 Unaudited Consolidated Statements of Changes in Shareholders' Equity for the Six Months Ended June 30, 2024 and 2023 6 Unaudited Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023 7-8 Notes to Unaudited Consolidated Financial Statements 9-15 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 16-20 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 20 Item 4. Risk Controls and Procedures 20

OTHER INFORMATION

PART II. OTHER INFORMATION 21 Item 1.

Legal Proceedings

Legal Proceedings 21 Item 1a.

Risk Factors

Risk Factors 21 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 22 Item 3. Defaults Upon Senior Securities 22 Item 4. Mine Safety Disclosures 22 Item 5. Other Information 22 Item 6. Exhibits 22

Signatures

Signatures 23 Exhibits 24 2 PART I. FINANCIAL INFORMATION Item 1. Financial Statements RELIABILITY INCORPORATED AND SUBSIDIARY UNAUDITED CONSOLIDATED BALANCE SHEETS (amounts in thousands, except per share data) June 30, December 31, 2024 2023 ASSETS CURRENT ASSETS Cash and cash equivalents $ 271 $ 822 Trade receivables, net of credit losses 3,742 2,993 Other receivables 14 10 Notes receivable from related parties 5,766 5,501 Prepaid expenses and other current assets 182 442 Total current assets 9,975 9,768 Other intangible assets, net 3 3 Property, plant and equipment, net 69 15 Total assets $ 10,047 $ 9,786 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Factoring liability $ 217 $ 174 Accounts payable 747 548 Accrued expenses 234 290 Accrued payroll 985 637 Deferred revenue 200 206 Total current liabilities 2,383 1,855 Total liabilities 2,383 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 June 30, 2024 and as of December 31, 2023 - - Additional paid-in capital 750 750 Retained earnings 6,914 7,181 Total shareholders' equity 7,664 7,931 Total liabilities and shareholders' equity $ 10,047 $ 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 June 30, 2024 2023 Revenue earned Service revenue $ 6,041 $ 5,452 Cost of revenue Cost of revenue 5,237 4,712 Gross profit 804 740 Selling, general, and administrative expenses 986 911 Operating loss ( 182 ) ( 171 ) Other income (expense) Interest income from related parties 210 66 Interest income 1 6 Inter

financial statements and disclosures

financial statements and disclosures. On December 14, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09) . The ASU focuses on income tax disclosures around effective tax rates and cash income taxes paid. ASU 2023-09 largely follows the proposed ASU issued earlier in 2023 with several important modifications and clarifications discussed below. ASU 2023-09 is effective for public business entities for annual periods beginning after December 15, 2024 (generally, calendar year 2025) and effective for all other business entities one year later. Entities should adopt this guidance on a prospective basis, though retrospective application is permitted. The Company is currently evaluating how this ASU will impact its consolidated financial statements and disclosures. Adopted Accounting Pronouncements The Company does not believe any other recently issued but not yet effective accounting pronouncement, if adopted, would have a material effect on its present or future consolidated financial statements. 11 RELIABILITY INCORPORATED AND SUBSIDIARY NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2024 (amounts in thousands, except per share data) NOTE 4. ACCOUNTS RECEIVABLE Accounts receivable consist of the following: SCHEDULE OF ACCOUNTS RECEIVABLE June 30, 2024 December 31, 2023 Accounts receivable, unfactored $ 3,113 $ 2,819 Accounts receivable, factored 629 174 Total Accounts Receivable $ 3,742 $ 2,993 NOTE 5. DEBT Factoring Facility & Insurance Financing The Company is in a factoring and security agreement with Gulf Coast Bank and Trust ("Gulf"), which enables the Company to receive advances on its accounts receivable (i.e. invoices) through Gulf to fund growth and operations. The proceeds of this agreement are most frequently used to pay operating costs of the business, which include employee salaries, vendor payments, and overhead expenses. Our arrangem

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View this 10-Q filing on SEC EDGAR