Reliability Inc. Files Q3 2024 10-Q
Ticker: RLBY · Form: 10-Q · Filed: Nov 14, 2024 · CIK: 34285
Sentiment: neutral
Topics: 10-Q, quarterly-report, financials
TL;DR
Reliability Inc. dropped its Q3 10-Q. Check financials for the latest.
AI Summary
Reliability Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter and the year-to-date period. Specific financial figures and business segment information are provided within the report.
Why It Matters
This 10-Q filing provides investors and analysts with the latest financial health and performance data for Reliability Inc., crucial for making informed investment decisions.
Risk Assessment
Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.
Key Numbers
- 2024-09-30 — Period End Date (Current reporting period)
- 2023-09-30 — Prior Year Period End Date (Comparison period)
- 2024-01-01 — Year-to-Date Start Date (Current year-to-date)
- 2023-01-01 — Prior Year Year-to-Date Start Date (Prior year-to-date)
Key Players & Entities
- RELIABILITY INC (company) — Filer
- FAIRLANE INDUSTRIES INC (company) — Former company name
- 20240930 (date) — Period of report
- 20241114 (date) — Filing date
FAQ
What is the reporting period for this 10-Q filing?
The Conformed Period of Report is 20240930, indicating the period ending September 30, 2024.
When was this 10-Q filed with the SEC?
The filing date is 20241114.
What was the company's former name?
The company's former name was FAIRLANE INDUSTRIES INC, with a date of name change on 19800519.
What is the company's primary business address?
The business address is 22505 GATEWAY CENTER DRIVE, P.O. BOX 71, CLARKSBURG, MD 20871.
What is the company's fiscal year end?
The company's fiscal year ends on 1231.
Filing Stats: 4,663 words · 19 min read · ~16 pages · Grade level 13.8 · Accepted 2024-11-14 15:29:43
Filing Documents
- form10q.htm (10-Q) — 508KB
- form10q_001.jpg (GRAPHIC) — 8KB
- ex31-1.htm (EX-31.1) — 11KB
- ex31-2.htm (EX-31.2) — 12KB
- ex32-1.htm (EX-32.1) — 6KB
- 0001493152-24-045745.txt ( ) — 2877KB
- rlby-20240930.xsd (EX-101.SCH) — 25KB
- rlby-20240930_cal.xml (EX-101.CAL) — 35KB
- rlby-20240930_def.xml (EX-101.DEF) — 92KB
- rlby-20240930_lab.xml (EX-101.LAB) — 204KB
- rlby-20240930_pre.xml (EX-101.PRE) — 158KB
- form10q_htm.xml (XML) — 318KB
FINANCIAL INFORMATION
PART I. FINANCIAL INFORMATION 3 Item 1.
Financial Statements
Financial Statements 3 Unaudited Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 3 Unaudited Condensed Consolidated Statements of Operations for the Three Months Ended September 30, 2024 and 2023 4 Unaudited Condensed Consolidated Statements of Operations for the Nine Months Ended September 30, 2024 and 2023 5 Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity for the Nine Months Ended September 30, 2024 and 2023 6 Unaudited Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 7-8 Notes to Unaudited Condensed 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 16-19 Item 3.
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative Disclosures About Market Risk 19 Item 4. Risk Controls and Procedures 19
OTHER INFORMATION
PART II. OTHER INFORMATION 20 Item 1.
Legal Proceedings
Legal Proceedings 20 Item 1a.
Risk Factors
Risk Factors 20 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 21 Item 3. Defaults Upon Senior Securities 21 Item 4. Mine Safety Disclosures 21 Item 5. Other Information 21 Item 6. Exhibits 21
Signatures
Signatures 22 Exhibits 23 2 PART I. FINANCIAL INFORMATION Item 1. Financial Statements RELIABILITY INCORPORATED AND SUBSIDIARY UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands, except per share data) September 30, December 31, 2024 2023 ASSETS CURRENT ASSETS Cash and cash equivalents $ 140 $ 822 Trade receivables, net of credit losses 4,020 2,993 Other receivables - 10 Notes receivable from related parties 5,827 5,501 Prepaid expenses and other current assets 197 442 Total current assets 10,184 9,768 Other intangible assets, net 3 3 Property, plant and equipment, net 58 15 Total assets $ 10,245 $ 9,786 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Factoring liability $ 741 $ 174 Accounts payable 566 548 Accrued expenses 389 290 Accrued payroll 755 637 Deferred revenue 197 206 Total current liabilities 2,648 1,855 Total liabilities 2,648 1,855 Commitment and contingencies (note 6) - - SHAREHOLDERS' EQUITY Common stock, without par value, 300,000,000 shares authorized, 300,000,000 issued and outstanding as of September 30, 2024 and as of December 31, 2023 - Additional paid-in capital 750 750 Retained earnings 6,847 7,181 Total shareholders' equity 7,597 7,931 Total liabilities and shareholders' equity $ 10,245 $ 9,786 The accompanying notes are an integral part of these statements. 3 RELIABILITY INCORPORATED AND SUBSIDIARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands, except per share data) 2024 2023 For the Three Months Ended September 30, 2024 2023 Revenue earned Service revenue $ 6,230 $ 5,341 Cost of revenue Cost of revenue 5,396 4,569 Gross profit 834 772 Selling, general, and administrative expenses 958 998 Operating loss ( 124 ) ( 226 ) Other income (expense) Interest income from related parties 146 68 Interest income 2 7 In
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. 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. NOTE 4. ACCOUNTS RECEIVABLE Accounts receivable consist of the following: SCHEDULE OF ACCOUNTS RECEIVABLE September 30, 2024 December 31, 2023 Accounts receivable, unfactored $ 2,620 $ 2,819 Unbilled receivables 659 - Accounts receivable, factored 741 174 Total Accounts Receivable $ 4,020 $ 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 arrangement calls for interest at prime plus 2 %, and includes an advance rate of 15 basis points. The amount of an invoice eligible for sale to Gulf is 93%. This agreement