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Clarksburg
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<p id="xdx_801_eus-gaap--OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock_z2nRHjIXvv12" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
1. <span id="xdx_822_zE68O1JMaP5h">NATURE OF OPERATIONS AND BASIS OF PRESENTATION</span></b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Nature
of Operations</i></b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reliability,
Inc. is a leading provider of Employer of Record and temporary Media and Information Technology (“IT”) staffing services
that operates, along with its wholly owned subsidiary, The Maslow Media Group, Inc (“MMG”), (collectively, “Reliability”
or the “Company”), primarily within the United States of America in four industry segments: Employer of Record (“EOR”),
Recruiting and Staffing, Direct Hire, and Video and Multimedia Production, which provides script-to-screen services. Our Staffing segment
provides skilled field talent on a nationwide basis for Media, IT, and finance and accounting client partner projects. Video Production
involves assembling and providing crews for special projects, webcasting, live events, post-production services, and production management.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reliability
was incorporated under the laws of the State of Texas in 1953, but the then principal business of the Company started in 1971 was closed
down in 2007. The Company completed a reverse merger with MMG (the “Merger”) on October 29, 2019.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -0.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Company
Background</i></b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -0.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Linda
Maslow founded MMG initially in 1988 and incorporated the firm under the name The Maslow Media Group Inc. in March 1992.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
November 9, 2016, Linda Maslow sold the business to Vivos Holdings, LLC (“Vivos Holdings”) owned by Dr. Naveen Doki (“Dr.
Doki”) and Silvija Valleru (“Ms. Valleru”).</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2019, Vivos Holdings collaborated on a share swap of MMG for other Vivos companies with individuals who included, but were not limited
to, Dr. Doki, Shirisha Janumpally (“Mrs. Janumpally”), wife of Dr. Doki, Kalyan Pathuri (“Mr. Pathuri”) husband
of Silvija Valleru, Igly Trust, and Judos Trust. These parties also have common ownership combinations in a number of other entities:
Vivos Holdings, LLC, Vivos Real Estate Holdings, LLC (“VREH”), Vivos Holdings, Inc., Vivos Group, Vivos Acquisitions, LLC,
and Federal Systems, LLC, (collectively referred to herein as “Vivos Group”).</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
a result of the Merger, on October 29, 2019, MMG became a wholly owned subsidiary of Reliability, and the Vivos Group (Vivos Holdings,
LLC, officially) acquired approximately <span id="xdx_907_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_c20191029__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--VivosHoldingsLLCMember_zuAi441Wii0j" title="Ownership percentage">84</span>% of the issued and outstanding shares of Reliability which were distributed by Vivos Holdings,
LLC.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
purchasing MMG and thereafter, the Vivos Group began borrowing monies from MMG starting with $<span id="xdx_901_eus-gaap--ProceedsFromPreviousAcquisition_pn3n3_c20161109__20161109__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember__dei--LegalEntityAxis__custom--MaslowMediaGroupIncMember__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember_za8T6wSPZhHd" title="Borrowing from acquisition">1,400</span> in 2016, and by the end of 2019 the
balance had reached $<span id="xdx_900_eus-gaap--NotesPayable_iI_pn3n3_c20191231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember__dei--LegalEntityAxis__custom--MaslowMediaGroupIncMember__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember_zhcs5euZjKP" title="Notes payable">3,418</span>, which included a $<span id="xdx_90D_eus-gaap--NotesPayable_iI_pn3n3_c20191231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember__dei--LegalEntityAxis__custom--MaslowMediaGroupIncMember__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember__us-gaap--GuaranteeObligationsByNatureAxis__us-gaap--PaymentGuaranteeMember_zjf749FHtSD6" title="Notes payable">3,000</span> guarantee from Dr. Doki. Vivos Holdings, LLC, Vivos Real Estate Holdings, LLC, and
Dr. Doki are collectively referred to as “Vivos Debtors.”</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally,
Reliability became aware of debt obligations that included MMG as a borrower or guarantor that the Vivos Group failed to disclose to
Reliability. This and the attempted collection of the guarantee and debt from the Vivos Group set off a chain of legal events culminating
in an arbitration hearing and award in 2022. We refer below to the disputes between Reliability and the Vivos Group as the “Vivos
Matter.”</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
series of legal actions and hearings took place starting in March of 2020 through September of 2021, culminating in an agreement to settle
through arbitration. On August 31, 2022, the arbitrator issued an award (the “Award”) with the Company and MMG prevailing
on their claims. The awards included citing fraud damages. Supplemental awards were subsequently issued on May 17, 2023, October 10,
2023, and finally, on October 27, 2023. Summarily, MMG was awarded the totals of all notes the Vivos Group had with MMG for its borrowings,
the contracted interest, attorneys’ fees and expenses of $<span id="xdx_90E_eus-gaap--LegalFees_pn3n3_c20231027__20231027__dei--LegalEntityAxis__custom--MaslowMediaGroupIncMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember_zNfiPHf0Al45" title="Attorneys fees and expenses">1,209</span>, and a contract damage of $<span id="xdx_90A_eus-gaap--LossContingencyDamagesAwardedValue_pn3n3_c20231027__20231027__dei--LegalEntityAxis__custom--MaslowMediaGroupIncMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember_zNBx5E0dXUX3" title="Contract damage amount">1,000</span> to be satisfied by the transfer
of their shares of the Company common stock to the Company equal in value to $<span id="xdx_902_eus-gaap--StockIssued1_pn3n3_c20231027__20231027__dei--LegalEntityAxis__custom--MaslowMediaGroupIncMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember_ztSdf27posHl" title="Value to stock to be received">1,000</span>.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 1.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>RELIABILITY
INCORPORATED AND SUBSIDIARY</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>March
31, 2025</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(amounts
in thousands, except per share data)</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><br/>
The May 17, 2023 award also appointed a rehabilitative receiver (the “Receiver”) whose primary function is to collect the
contract and fraud damages, including costs, expenses, and fees provided in the awards. With respect to the receivership, the Vivos Group
owners or holders of all of the shares of common stock of the Company were declared not to be entitled to vote any of those shares at
any annual or special meetings of the shareholders of the Company during the period of the receivership.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
December 29, 2023, the Circuit Court for Montgomery County, Maryland signed orders entering all three arbitration awards as judgments
in Reliability’s case against the Vivos Group. These orders became final on January 29, 2024, when the appeal period expired for
the defendants. The judgments are good for 12 years and can be enrolled in other states. Reliability has collectible judgments which
the Receiver has been eligible to pursue. In May 2025, MMG expects the Receiver to make a recommendation to the arbitrator.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
final resolution as to the underlying ownership and rights of certain shareholders, the Company intends to hold an annual meeting of
shareholders within a reasonable time thereafter.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of March 31, 2025, the Vivos Debtor balance was $<span id="xdx_903_eus-gaap--NotesAndLoansReceivableNetCurrent_iI_pn3n3_c20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosDebtorMember_zYBj0i7bosck" title="Debtor amount receivable">5,973</span>. The Award value in totality currently aggregates $<span id="xdx_902_eus-gaap--LossContingencyReceivableCurrent_iI_pn3n3_c20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosDebtorMember_z4jSu1mEcoKd" title="Litigation awarded value accrued">8,333</span>, independent of legal
fees after the award and interest.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Basis
of presentation</i></b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
unaudited condensed consolidated financial statements include the accounts of the Company and all wholly owned divisions, including its
<span id="xdx_904_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_c20250331__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--MaslowMediaGroupIncMember_zQHAXWBLBsx" title="Ownership percentage">100</span>% owned subsidiary, MMG. All significant intercompany accounts and transactions have been eliminated in consolidation.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally
accepted in the United States and the rules of the SEC and should be read in conjunction with the audited financial statements and notes
thereto contained in our Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary
for a fair statement of financial position and the results of operations for the periods presented, have been reflected herein. The results
of operations for the periods presented herein are not necessarily indicative of the results expected for the full year.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report
on Form 10-K for the year ended December 31, 2024.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Concentration
of Credit Risk</i></b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the three months ended March 31, 2025, $<span id="xdx_901_eus-gaap--Revenues_pn3n3_c20250101__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--OneCustomerMember_z3XOH4Ew4zj6">1,533
</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">or <span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--OneCustomerMember_z9UrUfnnrrX9">32.3</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%
of revenue came from one customer, and $<span id="xdx_903_eus-gaap--Revenues_pn3n3_c20250101__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--SecondCustomerMember_zPoymAjJwpK4">1,166
</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">or <span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--SecondCustomerMember_zM33tPJ1vUDd">24.6</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%
from a second customer. Combined, this totals $<span id="xdx_90B_eus-gaap--Revenues_pn3n3_c20250101__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--TwoCompaniesMember_zPbyk7aoEk0a">2,699
</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">or <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--TwoCompaniesMember_z0qazXUPa0m2">56.9</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%
of revenue. In 2024, three companies accounted for $<span id="xdx_908_eus-gaap--Revenues_pn3n3_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CompanyOneMember_zQgAd36pY5Ha">1,621
</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">or <span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CompanyOneMember_z4gg0pkPtFrl">30.6</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%, $<span id="xdx_90E_eus-gaap--Revenues_pn3n3_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CompanyTwoMember_zxuHsUmShn8b">820
</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">or <span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CompanyTwoMember_zjsUQj936Gv2">15.5</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%,
and $<span id="xdx_901_eus-gaap--Revenues_pn3n3_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CompanyThreeMember_zHywEHrFXhr1">672
</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">or <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CompanyThreeMember_z6AGC8164gt6">12.7</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%,
respectively, which combined, totals $<span id="xdx_902_eus-gaap--Revenues_pn3n3_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--ThreeCompaniesMember_zhm7JTvEHy19">3,113
</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">or <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--ThreeCompaniesMember_zHJB9gdSolHh">58.8</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%.
No other client exceeded 10% of revenues for the three months ending March 31, 2025 and 2024.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of March 31, 2025, the Company had accounts receivable of $<span id="xdx_908_eus-gaap--AccountsReceivableNet_iI_pn3n3_c20250331_zbp0TwiFwS62" title="Accounts receivable">2,864</span>, of which $<span id="xdx_90F_eus-gaap--AccountsReceivableNet_iI_pn3n3_c20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--SecondLargestCustomerMember_zzHm6XvQRpd7" title="Accounts receivable">1,489</span> (<span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--SecondLargestCustomerMember_zwGE0AkFy17i" title="Concentration risk percentage">52</span>%) was attributable to its second-largest
client, $<span id="xdx_909_eus-gaap--AccountsReceivableNet_iI_pn3n3_c20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--LargestCustomerMember_zVZo50Jr9L17" title="Accounts receivable">459</span> (<span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--LargestCustomerMember_zVr40VW2FqSl" title="Concentration risk percentage">16</span>%) to its largest client, and $<span id="xdx_90A_eus-gaap--AccountsReceivableNet_iI_pn3n3_c20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--ThirdLargestCustomerMember_zARv2HGk39I2" title="Accounts receivable">334</span> (<span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--ThirdLargestCustomerMember_z1bZEvYpySAl" title="Concentration risk percentage">11.7</span>%) to its third-largest revenue-producing client for the quarter. Together,
these three clients accounted for approximately $<span id="xdx_904_eus-gaap--AccountsReceivableNet_iI_pn3n3_c20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--ThreeClientsMember_zWO9tlskofZj" title="Accounts receivable">2,283</span>, or <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--ThreeClientsMember_zJC0wJ0XJixk" title="Concentration risk percentage">79.7</span>% of total accounts receivable.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
comparison, as of December 31, 2024, the same three clients—listed in the same order—represented $<span id="xdx_907_eus-gaap--AccountsReceivableNet_iI_pn3n3_c20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerOneMember_z2dJ9ptt0Dee" title="Accounts receivable">1,862</span> (<span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerOneMember_zYjwASfWWH33" title="Concentration risk percentage">44.2</span>%), $<span id="xdx_90C_eus-gaap--AccountsReceivableNet_iI_pn3n3_c20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerTwoMember_z2GCErDZiIRk" title="Accounts receivable">1,102</span>
(<span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerTwoMember_z0lzV29PCrXf" title="Concentration risk percentage">23.5</span>%), and $<span id="xdx_904_eus-gaap--AccountsReceivableNet_iI_pn3n3_c20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerThreeMember_zkzxI2y3ykKk" title="Accounts receivable">611</span> (<span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerThreeMember_z0V7eS59o3y3" title="Concentration risk percentage">13.0</span>%) of accounts receivable, respectively, collectively comprising <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--ThreeClientsMember_zwPnpxxHH4ab" title="Concentration risk percentage">80.7</span>% of the total A/R balance.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"></p><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>RELIABILITY
INCORPORATED AND SUBSIDIARY</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>March
31, 2025</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(amounts
in thousands, except per share data)</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p>
0.84
1400000
3418000
3000000
1209000
1000000
1000000
5973000
8333000
1
1533000
0.323
1166000
0.246
2699000
0.569
1621000
0.306
820000
0.155
672000
0.127
3113000
0.588
2864000
1489000
0.52
459000
0.16
334000
0.117
2283000
0.797
1862000
0.442
1102000
0.235
611000
0.130
0.807
<p id="xdx_808_ecustom--ManagementsPlanTextBlock_zbvRmunSp7Qh" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
2. <span id="xdx_82D_z4WmoNpfJZXd">MANAGEMENT’S PLAN</span></b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Although
the Company incurred net losses after taxes of $<span id="xdx_90E_eus-gaap--NetIncomeLoss_iN_pn3n3_di_c20250101__20250331_zRuvbdJD96H3" title="Net income losses after taxes">333</span>, $<span id="xdx_903_eus-gaap--NetIncomeLoss_iN_pn3n3_di_c20240101__20241231_zDUqNlkLIn91" title="Net income losses after taxes">594</span>, and $<span id="xdx_90E_eus-gaap--NetIncomeLoss_iN_pn3n3_di_c20230101__20231231_z29l1fdk2ajd" title="Net income losses after taxes">740</span> for the three months ended March 31, 2025 and the years
ended December 31, 2024 and 2023, respectively, management believes the Company will continue as a going concern and meet its financial
obligations as they become due in 2025 and beyond. This assessment is based on the following key factors:</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Cash
Flow Forecast</b>: Management has prepared a 52-week cash flow forecast from May 15, 2025,
which projects sufficient cash and working capital to fund operations.</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Reduction
in Legal Fees</b>: Legal expenses are expected to decline in 2025, as the Company holds collectible
judgments currently being pursued by a court-appointed receiver.</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Collection
of Notes Receivable</b>: Management anticipates that notes receivable from related parties
will be settled through a combination of cash and stock, providing additional liquidity and
potential access to capital markets.</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Client
Financing Arrangement</b>: A financing arrangement through JPMorgan for the Company’s
second-largest client is expected to reduce the cash conversion cycle by approximately 90
days. This client generated $<span id="xdx_90F_eus-gaap--Revenues_pn5n6_c20240101__20241231_zFxbynK1xxo2" title="Revenue">5.5</span> million in revenue in 2024, representing about <span id="xdx_905_ecustom--RevenueOfPercentage_iI_pid_dp_uPure_c20241231_z8u7XSubXuh8" title="Total revenue percentage">20</span>% of total
revenue.</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Factoring
Availability</b>: As of May 3, 2025, the Company had access to additional borrowing under
its factoring facility of up to <span id="xdx_909_ecustom--LineOfCreditFacilityBorrowingPercentage_iI_pid_dp_uPure_c20250503__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zpEdC50cIK07" title="Extended borrowing percentage">93</span>% of unfactored invoices, totaling approximately $<span id="xdx_90C_eus-gaap--LineOfCreditFacilityMaximumBorrowingCapacity_iI_pn5n6_c20250503__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zF3DqbhYnxah" title="Maximum borrowing capacity">1.5</span> million
in available liquidity.</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Cost
Flexibility</b>: If necessary, the Company can align costs more closely with revenues by
reducing personnel and software expenditures.</span></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Based
on these factors, management believes the Company has adequate resources to meet its obligations as they come due for at least the next
12 months and that the use of the going concern basis of accounting remains appropriate.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>
-333000
-594000
-740000
5500000
0.20
0.93
1500000
<p id="xdx_808_eus-gaap--SignificantAccountingPoliciesTextBlock_zMk6SrJAfNi7" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
3. <span id="xdx_82A_zlEbG5Ia4HG6">SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</span></b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p id="xdx_84E_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zTSWlm8mLNKa" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86B_zkBIXc9taFMd">Accounting
Pronouncements</span></i></b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update ASU No. 2024-03<i>, Income Statement
- Reporting Comprehensive Income - Expense Recognition Disclosures</i>. This ASU will require entities to provide enhanced disclosures
related to certain expense categories included in income statement captions. The ASU aims to increase transparency and provide investors
with more detailed information about the nature of expenses reported on the face of the income statement. The new standard does not change
the requirements for the presentation of expenses in the face of the income statement. Under this ASU, entities are required to disaggregate,
in a tabular format, expense captions presented on the face of the income statement — excluding earnings or losses from equity
method investments — if they include any of the following expense categories: purchases of inventory, employee compensation, depreciation,
intangible asset amortization, and depreciation or depletion. For any remaining items within each relevant expense caption, entities
must provide a qualitative description of the nature of those expenses. The new ASU is effective for annual reporting periods beginning
after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is
currently evaluating the impact of the adoption of this standard on the related disclosures.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
December 14, 2023, the FASB issued ASU <i>2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09)</i>.
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.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p>
<p id="xdx_85C_zsogGoZR3286" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>RELIABILITY
INCORPORATED AND SUBSIDIARY</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>March
31, 2025</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(amounts
in thousands, except per share data)</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p>
<p id="xdx_84E_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zTSWlm8mLNKa" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86B_zkBIXc9taFMd">Accounting
Pronouncements</span></i></b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update ASU No. 2024-03<i>, Income Statement
- Reporting Comprehensive Income - Expense Recognition Disclosures</i>. This ASU will require entities to provide enhanced disclosures
related to certain expense categories included in income statement captions. The ASU aims to increase transparency and provide investors
with more detailed information about the nature of expenses reported on the face of the income statement. The new standard does not change
the requirements for the presentation of expenses in the face of the income statement. Under this ASU, entities are required to disaggregate,
in a tabular format, expense captions presented on the face of the income statement — excluding earnings or losses from equity
method investments — if they include any of the following expense categories: purchases of inventory, employee compensation, depreciation,
intangible asset amortization, and depreciation or depletion. For any remaining items within each relevant expense caption, entities
must provide a qualitative description of the nature of those expenses. The new ASU is effective for annual reporting periods beginning
after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is
currently evaluating the impact of the adoption of this standard on the related disclosures.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
December 14, 2023, the FASB issued ASU <i>2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09)</i>.
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.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p>
<p id="xdx_803_eus-gaap--LoansNotesTradeAndOtherReceivablesDisclosureTextBlock_zGx5u7jeuMRg" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
4. <span id="xdx_827_zFBFzXcM6GEi">ACCOUNTS RECEIVABLE</span></b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p id="xdx_891_eus-gaap--ScheduleOfAccountsNotesLoansAndFinancingReceivableTextBlock_z14u4Li3hZR8" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accounts
receivable consist of the following:</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BE_z9okY9EHksr4" style="display: none">SCHEDULE
OF ACCOUNTS RECEIVABLE</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" id="xdx_497_20250331_zin9ZkH93fTe" style="border-bottom: Black 1pt solid; text-align: center">March 31, <br/> 2025</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" id="xdx_490_20241231_zFC3hxIwDwFi" style="border-bottom: Black 1pt solid; text-align: center">December 31, <br/> 2024</td><td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold"> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr id="xdx_40E_ecustom--AccountsReceivableUnfactored_iI_maCzXRN_z7XJNN8DnEki" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left">Accounts receivable, unfactored</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,701</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,313</td><td style="width: 1%; text-align: left"> </td></tr>
<tr id="xdx_409_eus-gaap--UnbilledReceivablesCurrent_iI_pn3n3_maCzXRN_zSJxBJp0dtTc" style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Unbilled receivables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">400</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">97</td><td style="text-align: left"> </td></tr>
<tr id="xdx_40A_ecustom--AccountsReceivableFactored_iI_pn3n3_maCzXRN_zr2BUEA35Nz1" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Accounts receivable, factored</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,163</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,375</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr id="xdx_404_eus-gaap--AccountsReceivableNetCurrent_iTI_pn3n3_mtCzXRN_z3JIRKfevca8" style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt">Total Accounts Receivable</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,264</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,785</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p id="xdx_8A8_zJuipWyxXdPc" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b></b></span></p>
<p id="xdx_891_eus-gaap--ScheduleOfAccountsNotesLoansAndFinancingReceivableTextBlock_z14u4Li3hZR8" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accounts
receivable consist of the following:</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BE_z9okY9EHksr4" style="display: none">SCHEDULE
OF ACCOUNTS RECEIVABLE</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" id="xdx_497_20250331_zin9ZkH93fTe" style="border-bottom: Black 1pt solid; text-align: center">March 31, <br/> 2025</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" id="xdx_490_20241231_zFC3hxIwDwFi" style="border-bottom: Black 1pt solid; text-align: center">December 31, <br/> 2024</td><td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold"> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr id="xdx_40E_ecustom--AccountsReceivableUnfactored_iI_maCzXRN_z7XJNN8DnEki" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left">Accounts receivable, unfactored</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,701</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,313</td><td style="width: 1%; text-align: left"> </td></tr>
<tr id="xdx_409_eus-gaap--UnbilledReceivablesCurrent_iI_pn3n3_maCzXRN_zSJxBJp0dtTc" style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Unbilled receivables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">400</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">97</td><td style="text-align: left"> </td></tr>
<tr id="xdx_40A_ecustom--AccountsReceivableFactored_iI_pn3n3_maCzXRN_zr2BUEA35Nz1" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Accounts receivable, factored</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,163</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,375</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr id="xdx_404_eus-gaap--AccountsReceivableNetCurrent_iTI_pn3n3_mtCzXRN_z3JIRKfevca8" style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt">Total Accounts Receivable</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,264</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,785</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
1701000
2313000
400000
97000
1163000
2375000
3264000
4785000
<p id="xdx_803_eus-gaap--DebtDisclosureTextBlock_z9yyQ6MnLpy6" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
5. <span id="xdx_828_zkbKMnpQ1ech">DEBT</span></b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Factoring
Facility </span></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company is party to a factoring and security agreement with Gulf Coast Bank and Trust (“Gulf”), which provides liquidity
by enabling the Company to sell eligible accounts receivable (i.e., invoices) to Gulf in exchange for immediate cash advances. The proceeds
from this agreement are primarily used to fund operating expenses, including employee compensation, vendor payments, and general overhead.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the terms of the agreement, Gulf advances funds at an interest rate equal to the prime rate plus <span id="xdx_904_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20250331__us-gaap--TypeOfArrangementAxis__custom--FactoringAndSecurityAgreementMember_zX1Ftk6cHdHd" title="Interest rate">2</span>%, with an additional advance fee of
15 basis points. The eligible advance amount is up to <span id="xdx_906_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20250331__us-gaap--TypeOfArrangementAxis__custom--FactoringAndSecurityAgreementMember__srt--RangeAxis__srt--MaximumMember_zWK5ui67iHv7" title="Interest rate">93</span>% of the face value of an invoice. The agreement is structured on a month-to-month
basis and requires the Company to comply with certain financial covenants, including those related to invoicing activity and minimum
reserve account balances.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Receivables
are sold to Gulf on a full recourse basis, meaning the Company retains the risk of collection. For the three months ended March 31, 2025,
the Company received $<span id="xdx_901_eus-gaap--ProceedsFromSaleAndCollectionOfReceivables_pn3n3_c20250101__20250331_zvwRzxXK2OW6" title="Proceeds from sale and collection of receivables">2,222</span> in proceeds from the sale of receivables and repaid $<span id="xdx_907_ecustom--RepaymentsToFactoringFacility_pn3n3_c20250101__20250331_zj289Ybesm4b" title="Repaid receivables">3,434</span> under the agreement. This compares to
$<span id="xdx_90E_eus-gaap--ProceedsFromSaleAndCollectionOfReceivables_pn3n3_c20240101__20241231_zOGfazYPIu2j" title="Proceeds from sale and collection of receivables">9,132</span> in proceeds and $<span id="xdx_90F_ecustom--RepaymentsToFactoringFacility_pn3n3_c20240101__20241231_zK4Jq7BFJhH3" title="Repaid">6,930</span> in repayments for the year ended December 31, 2024. The outstanding balance under the factoring
arrangement was $<span id="xdx_902_ecustom--FactoringLiabilityCurrent_iI_pn3n3_c20250331_zIuP62DWiay6" title="Outstanding balance under resource contract">1,163</span> as of March 31, 2025, down from $<span id="xdx_90A_ecustom--FactoringLiabilityCurrent_iI_pn3n3_c20241231_zgzemw3mIta2" title="Outstanding balance under resource contract">2,375</span> as of December 31, 2024.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
factoring facility is collateralized by substantially all the assets of the Company. In the event of a default, the factor may demand
that the Company repurchase the receivable or debit the reserve account.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Insurance
Financing</span></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">MMG
also employs short term 10-month loan agreements annually to finance advance payments on crime, EPLI, E&O, and D&O insurances.
In 2024-2025, MMG entered into two loans totaling $<span id="xdx_906_eus-gaap--ProceedsFromIssuanceOfDebt_pn3n3_c20240101__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MaslowMediaGroupIncMember__us-gaap--ShortTermDebtTypeAxis__us-gaap--LoansPayableMember_zgvfS2oTZTDc" title="Loans payable">140</span> with finance charges each over 10 months totaling approximately $<span id="xdx_90C_ecustom--FinanceCosts_pn3n3_c20240101__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MaslowMediaGroupIncMember__us-gaap--ShortTermDebtTypeAxis__us-gaap--LoansPayableMember_zVI9T7VbW0Gc" title="Finance charges">6</span>. The combined
APR for these loans is <span id="xdx_90F_eus-gaap--DebtInstrumentInterestRateDuringPeriod_pid_dp_uPure_c20240101__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MaslowMediaGroupIncMember__us-gaap--ShortTermDebtTypeAxis__us-gaap--LoansPayableMember_zUeLCWLio3S2" title="Debt interest rate">5.0</span> %.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Software
Financing with Long Term Debt</span></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 30, 2024, MMG entered into an agreement which deferred $<span id="xdx_90E_eus-gaap--DebtInstrumentFeeAmount_iI_pn3n3_c20241030_zKiy9p7iCRv3" title="Deferred fee">52</span>
due for our ADP implementation that was concluded in January 2024, to be paid over 24 months, at <span id="xdx_90D_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_uPure_c20241030_zuu5AvGpH801" title="Interest rate">6.21</span>%
interest. As of March 31, 2025, the current portion balance was $<span id="xdx_90A_eus-gaap--DebtCurrent_iI_pn3n3_c20250331_zHH1ZOHBgo93" title="Debt current">25</span>
and the long term, $<span id="xdx_905_eus-gaap--LongTermDebt_iI_pn3n3_c20250331_zZuTaWjaIiq1" title="Long term">15</span>.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
0.02
0.93
2222000
3434000
9132000
6930000
1163000
2375000
140000
6000
0.050
52000
0.0621
25000
15000
<p id="xdx_808_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_z9cvHI4QBWAg" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
6. <span id="xdx_82C_zVa3l1Ps1el5">COMMITMENTS AND CONTINGENCIES</span></b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 13.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">From
time to time, the Company may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business.
However, litigation is subject to inherent uncertainties and an adverse result in</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>RELIABILITY
INCORPORATED AND SUBSIDIARY</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>March
31, 2025</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(amounts
in thousands, except per share data)</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">these
or other matters may arise from time to time that may harm our business. Except as set forth below, we are not aware of any such legal
proceedings or claims against the Company.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
series of legal actions and hearings took place starting in March of 2020 with the Vivos Group over Merger agreement violations and Vivos
Group debt obligations. Arbitration was agreed to in the fall of 2021 by both the Vivos Group and MMG with the proceedings commencing
in February 2022.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
August 31, 2022, the arbitrator issued the Award with the Company and MMG prevailing on their claims. The awards included citing of fraud
damages. Supplemental awards were subsequently issued on May 17, 2023, October 10, 2023, and finally on October 27, 2023. Summarily,
MMG was awarded the totals of all notes the Vivos Group had with MMG for its borrowings, the contracted interest, attorneys’ fees
and expenses of $<span id="xdx_904_eus-gaap--LegalFees_pn3n3_c20231027__20231027__dei--LegalEntityAxis__custom--MaslowMediaGroupIncMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember_z9uFGvJmqTf" title="Attorneys fees and expenses">1,209</span>, and a contract damage of $<span id="xdx_90A_eus-gaap--LossContingencyDamagesAwardedValue_pn3n3_c20231027__20231027__dei--LegalEntityAxis__custom--MaslowMediaGroupIncMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember_z4hYu5f7UNud" title="Contract damage amount">1,000</span> to be satisfied by the transfer of their shares of the Company Common Stock to
the Company equal in value to $<span id="xdx_902_eus-gaap--StockIssued1_pn3n3_c20231027__20231027__dei--LegalEntityAxis__custom--MaslowMediaGroupIncMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember_zCneV5prXt47" title="Value to stock to be received">1,000</span>. The aggregate amount of the Awards, which are now court judgements, totals $<span id="xdx_904_eus-gaap--LossContingencyReceivable_iI_pn3n3_c20231027__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosDebtorMember_zKK6EAYOeS8e" title="Litigation awarded value accrued">8,333</span> as interest continues
to accrue on these awarded balances.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
May 17, 2023 award also appointed a Receiver whose primary function is to collect the contract and fraud damages, including costs, expenses,
and fees provided in the awards.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 10, 2023, the Arbitrator issued a Supplemental Award appointing the Receiver to assist the Company in collecting the awarded
amounts. In the award, the Arbitrator established the powers of the Receiver.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
December 29, 2023, the Circuit Court for Montgomery County, Maryland signed orders entering all three arbitration awards as judgments
in Reliability’s case against the Vivos Group. These orders became final on January 29, 2024, when the appeal period expired for
the defendants. The judgments are good for 12 years and can be enrolled in other states. Reliability has collectible judgments which
the Receiver has been eligible to pursue.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>
1209000
1000000
1000000
8333000
<p id="xdx_80F_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_znEFt7ESDzO2" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
7. <span id="xdx_82D_zEJku6o8Jf5e">EQUITY</span></b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 60pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company’s authorized capital stock consists of <span id="xdx_90D_eus-gaap--CommonStockSharesAuthorized_iI_pid_c20250331_z9EmdeLaFjP9" title="Common stock, shares authorized"><span id="xdx_90B_eus-gaap--CommonStockSharesIssued_iI_pid_c20250331_zVGDJd9FU7n3" title="Common stock, shares issued"><span id="xdx_903_eus-gaap--CommonStockSharesOutstanding_iI_pid_c20250331_z5IRhfLPacmc" title="Common stock, shares outstanding">300,000,000</span></span></span> shares of common stock, with <span id="xdx_903_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_do_c20250331_zVMiG7PMIizc" title="Common stock, par value">no</span> par value. All authorized shares of
Company Common Stock are issued and outstanding.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
300000000
300000000
300000000
0
<p id="xdx_807_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_zbLoq2kDv22a" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
8. <span id="xdx_82B_zkEPRMnzT6Nl">RELATED PARTY TRANSACTIONS</span></b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Stock
Purchase Agreement</span></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
November 9, 2016, Vivos Holdings, LLC, the former owner of MMG, acquired <span id="xdx_902_eus-gaap--BusinessCombinationStepAcquisitionEquityInterestInAcquireePercentage_iI_pid_dp_uPure_c20161109__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember__us-gaap--BusinessAcquisitionAxis__custom--MaslowMediaGroupIncMember__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember_zadE7wEtMMz5" title="Equity interest acquired">100</span>% of MMG through a stock acquisition exchange for a purchase
price of $<span id="xdx_900_eus-gaap--BusinessCombinationStepAcquisitionEquityInterestInAcquireeFairValue1_pn3n3_c20161109__20161109__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember__us-gaap--BusinessAcquisitionAxis__custom--MaslowMediaGroupIncMember__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember_zjNMMKB2cADd" title="Equity interest purchase price">1,750</span>, of which $<span id="xdx_90E_eus-gaap--ProceedsFromPreviousAcquisition_pn3n3_c20161109__20161109__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember__us-gaap--BusinessAcquisitionAxis__custom--MaslowMediaGroupIncMember__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember_zrgiXSjMoiL7" title="Settlement paid with proceeds">1,400</span> was paid at settlement with proceeds from MMG. The Vivos Debtors subsequently entered into a promissory
note receivable with MMG for the full stock purchase price. Between 2018 to present there was $<span id="xdx_905_ecustom--AdditionalBorrowing_pn3n3_c20180101__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember__us-gaap--BusinessAcquisitionAxis__custom--MaslowMediaGroupIncMember__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember_zbTRloSw8CWe" title="Additional borrowings">2,217</span> in additional borrowings.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Related
Party Notes Receivable</span></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company has several notes receivable from related parties. Prior to the Merger, Vivos Holdings collaborated on a share swap of MMG for
other Vivos companies with individuals who included, but were not limited to, Dr. Doki, Shirisha Janumpally (“Mrs. Janumpally”),
wife of Dr. Doki, Kalyan Pathuri (“Mr. Pathuri”) husband of Silvija Valleru, Igly Trust, and Judos Trust. These parties also
have common ownership combinations in a number of other entities: Vivos Holdings, LLC, Vivos Real Estate Holdings, LLC (“VREH”),
Vivos Holdings, Inc., Vivos Group, Vivos Acquisitions, LLC, and Federal Systems, LLC, which are collectively referred to as the “Vivos
Group.”</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>RELIABILITY
INCORPORATED AND SUBSIDIARY</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>March
31, 2025</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(amounts
in thousands, except per share data)</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
table below is a summary of Vivos Group related party notes receivable which, as of March 31, 2025, totals $<span id="xdx_90A_eus-gaap--NotesAndLoansReceivableNetCurrent_iI_pn3n3_c20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zKu43ulNMSG3" title="Related party notes receivable">5,973</span>.</span></p>
<p id="xdx_890_eus-gaap--ScheduleOfRelatedPartyTransactionsTableTextBlock_z2TZFNBg0CI7" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8B3_zigFtoARsUf5" style="display: none">SCHEDULE OF RELATED PARTY NOTES RECEIVABLE</span></span></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Note Description</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Acquisition Loan to Vivos, LLC</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Interco Loan to Vivos Real Estate, LLC</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Tax Note</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total Notes Receivable</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%">Balance on December 31, 2024</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--NotesAndLoansReceivableNetCurrent_iS_pn3n3_c20250101__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosLlcMember__us-gaap--RelatedPartyTransactionAxis__custom--AcquisitionLoanMember_zAQBhlMcXan7" style="width: 11%; text-align: right" title="Balance , beginning">4,039</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--NotesAndLoansReceivableNetCurrent_iS_pn3n3_c20250101__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--RealEstateLlcMember__us-gaap--RelatedPartyTransactionAxis__custom--IntercoLoanMember_zdRc95gSJJZc" style="width: 11%; text-align: right" title="Balance , beginning">897</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--NotesAndLoansReceivableNetCurrent_iS_pn3n3_c20250101__20250331__us-gaap--RelatedPartyTransactionAxis__custom--TaxNoteMember_zAagNkZZ8tZ2" style="width: 11%; text-align: right" title="Balance , beginning">911</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--NotesAndLoansReceivableNetCurrent_iS_pn3n3_c20250101__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zoMexC2YYyv7" style="width: 11%; text-align: right" title="Balance , beginning">5,847</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Accrued interest</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--IncreaseDecreaseInAccruedInterestReceivableNet_pn3n3_c20250101__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosLlcMember__us-gaap--RelatedPartyTransactionAxis__custom--AcquisitionLoanMember_zYeuX3Jozei6" style="border-bottom: Black 1pt solid; text-align: right" title="Accrued interest">86</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--IncreaseDecreaseInAccruedInterestReceivableNet_pn3n3_c20250101__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--RealEstateLlcMember__us-gaap--RelatedPartyTransactionAxis__custom--IntercoLoanMember_zt1eSqp4ztcc" style="border-bottom: Black 1pt solid; text-align: right" title="Accrued interest">20</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--IncreaseDecreaseInAccruedInterestReceivableNet_pn3n3_c20250101__20250331__us-gaap--RelatedPartyTransactionAxis__custom--TaxNoteMember_zogchaNx3Uq7" style="border-bottom: Black 1pt solid; text-align: right" title="Accrued interest">20</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--IncreaseDecreaseInAccruedInterestReceivableNet_pn3n3_c20250101__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zQ5oYw65svxf" style="border-bottom: Black 1pt solid; text-align: right" title="Accrued interest">126</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; padding-bottom: 2.5pt">Balance on March 31, 2025</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98F_eus-gaap--NotesAndLoansReceivableNetCurrent_iE_pn3n3_c20250101__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosLlcMember__us-gaap--RelatedPartyTransactionAxis__custom--AcquisitionLoanMember_zFJZFHiJfUzh" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Balance , ending">4,125</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98A_eus-gaap--NotesAndLoansReceivableNetCurrent_iE_pn3n3_c20250101__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--RealEstateLlcMember__us-gaap--RelatedPartyTransactionAxis__custom--IntercoLoanMember_z0v0uYBp96ml" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Balance , beginning">917</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_984_eus-gaap--NotesAndLoansReceivableNetCurrent_iE_pn3n3_c20250101__20250331__us-gaap--RelatedPartyTransactionAxis__custom--TaxNoteMember_zSTGjq9Zs47d" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Balance , ending">931</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98A_eus-gaap--NotesAndLoansReceivableNetCurrent_iE_pn3n3_c20250101__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zip8DVr7iF75" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Balance, ending">5,973</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<p id="xdx_8A2_zYEdCOesC4jf" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The Award value in totality
is currently aggregated to $<span id="xdx_902_eus-gaap--LossContingencyReceivableCurrent_iI_pn3n3_c20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosDebtorMember_z9q3sT52ANG9" title="Litigation awarded value accrued">8,333</span>, independent of legal fees and interest.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b></b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Debt
Settlement Agreements</span></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
June 2023, VREH successfully sold the property at 22 Baltimore Road in Rockville, Maryland, relieving Maslow of any liability
related to the building, which MMG had been signed as a guarantor for in 2017 without management’s knowledge. In September
2024, the Company received $<span id="xdx_90A_eus-gaap--Cash_iI_pn3n3_c20240930__us-gaap--TypeOfArrangementAxis__custom--DebtSettlementAgreementMember_zoLU9jhyV1B6" title="Cash">91</span>
from the bankruptcy proceedings and sale of the building. This amount was applied toward reducing the Vivos Group’s
outstanding debt to MMG (see table above). In December 2024, he SWC matter was also resolved with MMG’s portion being $<span id="xdx_90F_eus-gaap--ProceedsFromRepaymentsOfRelatedPartyDebt_pn3n3_c20241201__20241231__us-gaap--TypeOfArrangementAxis__custom--DebtSettlementAgreementMember_z5aSWX7MxnJg" title="Debt resolved">10</span>.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Related
Party Costs</span></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">RLBY’s Other expense portion of Other Income totaled approximately
$<span id="xdx_908_eus-gaap--OtherIncome_pn3n3_c20250101__20250331_zGi2m0eA4Vxb" title="Other income">26</span>, were exclusively for receivership related costs for recovery of the arbitration award related to the Vivos Group.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Related
Party Relationships</span></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 29, 2019, prior to the Merger, Naveen Doki and Silvija Valleru became beneficial owners of Company Common Stock, equal to approximately
<span id="xdx_906_eus-gaap--SaleOfStockPercentageOfOwnershipBeforeTransaction_pid_dp_uPure_c20191029__20191029__us-gaap--TypeOfArrangementAxis__custom--MergerAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--NaveenDokiMember_zfR5doowblu" title="Common stock beneficial ownership percentage">69</span>% and <span id="xdx_90B_eus-gaap--SaleOfStockPercentageOfOwnershipBeforeTransaction_pid_dp_uPure_c20191029__20191029__us-gaap--TypeOfArrangementAxis__custom--MergerAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SilvijaValleruMember_zDZKInypvYdl" title="Common stock beneficial ownership percentage">17</span>% of the total number of shares of the Company’s Common Stock outstanding after giving effect to the Merger, respectively.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">At
the present time, the Vivos Group shall not be entitled to vote any of their shares in Reliability at any annual or special meetings
of the shareholders. The Receiver is empowered to recover the awards by seizing shares of the Company held by Dr. Naveen Doki and his
affiliates, the Vivos Group. Once the judgments in favor of Reliability are satisfied, the restrictions on the rights of the Vivos Group
shareholders imposed by the Award shall be lifted.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>
1
1750000
1400000
2217000
5973000
<p id="xdx_890_eus-gaap--ScheduleOfRelatedPartyTransactionsTableTextBlock_z2TZFNBg0CI7" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8B3_zigFtoARsUf5" style="display: none">SCHEDULE OF RELATED PARTY NOTES RECEIVABLE</span></span></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Note Description</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Acquisition Loan to Vivos, LLC</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Interco Loan to Vivos Real Estate, LLC</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Tax Note</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total Notes Receivable</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%">Balance on December 31, 2024</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--NotesAndLoansReceivableNetCurrent_iS_pn3n3_c20250101__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosLlcMember__us-gaap--RelatedPartyTransactionAxis__custom--AcquisitionLoanMember_zAQBhlMcXan7" style="width: 11%; text-align: right" title="Balance , beginning">4,039</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--NotesAndLoansReceivableNetCurrent_iS_pn3n3_c20250101__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--RealEstateLlcMember__us-gaap--RelatedPartyTransactionAxis__custom--IntercoLoanMember_zdRc95gSJJZc" style="width: 11%; text-align: right" title="Balance , beginning">897</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--NotesAndLoansReceivableNetCurrent_iS_pn3n3_c20250101__20250331__us-gaap--RelatedPartyTransactionAxis__custom--TaxNoteMember_zAagNkZZ8tZ2" style="width: 11%; text-align: right" title="Balance , beginning">911</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--NotesAndLoansReceivableNetCurrent_iS_pn3n3_c20250101__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zoMexC2YYyv7" style="width: 11%; text-align: right" title="Balance , beginning">5,847</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Accrued interest</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--IncreaseDecreaseInAccruedInterestReceivableNet_pn3n3_c20250101__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosLlcMember__us-gaap--RelatedPartyTransactionAxis__custom--AcquisitionLoanMember_zYeuX3Jozei6" style="border-bottom: Black 1pt solid; text-align: right" title="Accrued interest">86</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--IncreaseDecreaseInAccruedInterestReceivableNet_pn3n3_c20250101__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--RealEstateLlcMember__us-gaap--RelatedPartyTransactionAxis__custom--IntercoLoanMember_zt1eSqp4ztcc" style="border-bottom: Black 1pt solid; text-align: right" title="Accrued interest">20</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--IncreaseDecreaseInAccruedInterestReceivableNet_pn3n3_c20250101__20250331__us-gaap--RelatedPartyTransactionAxis__custom--TaxNoteMember_zogchaNx3Uq7" style="border-bottom: Black 1pt solid; text-align: right" title="Accrued interest">20</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--IncreaseDecreaseInAccruedInterestReceivableNet_pn3n3_c20250101__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zQ5oYw65svxf" style="border-bottom: Black 1pt solid; text-align: right" title="Accrued interest">126</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; padding-bottom: 2.5pt">Balance on March 31, 2025</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98F_eus-gaap--NotesAndLoansReceivableNetCurrent_iE_pn3n3_c20250101__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosLlcMember__us-gaap--RelatedPartyTransactionAxis__custom--AcquisitionLoanMember_zFJZFHiJfUzh" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Balance , ending">4,125</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98A_eus-gaap--NotesAndLoansReceivableNetCurrent_iE_pn3n3_c20250101__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--RealEstateLlcMember__us-gaap--RelatedPartyTransactionAxis__custom--IntercoLoanMember_z0v0uYBp96ml" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Balance , beginning">917</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_984_eus-gaap--NotesAndLoansReceivableNetCurrent_iE_pn3n3_c20250101__20250331__us-gaap--RelatedPartyTransactionAxis__custom--TaxNoteMember_zSTGjq9Zs47d" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Balance , ending">931</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98A_eus-gaap--NotesAndLoansReceivableNetCurrent_iE_pn3n3_c20250101__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zip8DVr7iF75" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Balance, ending">5,973</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr>
</table>
4039000
897000
911000
5847000
86000
20000
20000
126000
4125000
917000
931000
5973000
8333000
91000
10000
26000
0.69
0.17
<p id="xdx_804_eus-gaap--SegmentReportingDisclosureTextBlock_zX5KFUmJn1C2" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
9. <span id="xdx_829_zHBZQjLYH6Ya">BUSINESS SEGMENTS</span></b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company operates within <span id="xdx_908_eus-gaap--NumberOfOperatingSegments_pid_dc_c20250101__20250331_zw5yN0uzUUnk" title="Number of operating segments">four</span> industry segments: EOR, Recruiting and Staffing (“Staffing”), Direct Hire, and Video Production.
The EOR segment provides media field talent to a host of large corporate customers in all 50 states. The Recruiting and Staffing segment
provides skilled Media and IT field talent on a nationwide basis for customers in a myriad of industries. Direct Hire fulfils direct
placement requests by MMG clients for a wide variety of posts, including administrative, media, and IT professionals. The Video and Multimedia
Production segment provides script-to-screen services for corporate, government, and non-profit clients, globally.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Segment
gross profit includes revenue and cost of services only. Currently, the Company is not allocating interest income, interest expense,
depreciation expense, other income (expense), income tax benefit (expense) and sales, general, and administrative expenses at the segment
level. Our operating segments align with our organizational</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>RELIABILITY
INCORPORATED AND SUBSIDIARY</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>March
31, 2025</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(amounts
in thousands, except per share data)</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">structure
and are regularly reviewed by our Chief Executive Officer (our chief operating decision-maker or “CODM”) to allocate resources
and assess performance. We evaluate segments based on revenue and gross profit, which also guide our annual budgeting process. Monthly,
our CODM reviews segment revenue and gross profit against the prior year and budget to inform working capital allocation decisions. The
measure of segment assets is reported on the consolidated balance sheet as total assets.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p id="xdx_896_eus-gaap--ReconciliationOfRevenueFromSegmentsToConsolidatedTextBlock_zYEpW3EENA91" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table provides a reconciliation of revenue and gross profit by reportable segment to consolidated results for the three months
ended March 31, 2025 and 2024, respectively:</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Gross
Profit Performance by Segment</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span><span id="xdx_8BD_zKMpJzl5Jgzf" style="display: none">SCHEDULE OF GROSS PROFIT PERFORMANCE BY SEGMENT</span></span></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom">
<td colspan="13" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">March
31, 2025</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td>
<td colspan="13" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">March
31, 2024</span></td></tr>
<tr style="font: bold 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Business
Segment</b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td>
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Revenue</b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td>
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Gross
Profit</b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td>
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>GM
%</b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td>
<td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><p style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Business Segment</b></span></p></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td>
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Revenue</b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td>
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><p style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Gross Profit</b></span></p></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td>
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>GM
%</b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 16%">EOR</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250331__srt--ProductOrServiceAxis__custom--EORMember_zIp44dyIdst2" style="width: 7%; text-align: right">3,755</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--GrossProfit_pn3n3_c20250101__20250331__srt--ProductOrServiceAxis__custom--EORMember_zzEIc9oJWMw1" style="width: 7%; text-align: right">452</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td id="xdx_98B_ecustom--GrossMarginPercentage_pid_dp_uPure_c20250101__20250331__srt--ProductOrServiceAxis__custom--EORMember_zCeOPeq1gAz" style="width: 7%; text-align: right">12.0</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td>
<td style="width: 16%">EOR</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20240101__20240331__srt--ProductOrServiceAxis__custom--EORMember_z95KuG5OZdQg" style="width: 7%; text-align: right">4,572</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--GrossProfit_pn3n3_c20240101__20240331__srt--ProductOrServiceAxis__custom--EORMember_zFD2LBvt9MX9" style="width: 7%; text-align: right">560</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td id="xdx_984_ecustom--GrossMarginPercentage_pid_dp_uPure_c20240101__20240331__srt--ProductOrServiceAxis__custom--EORMember_zAcHBzGFTOJ9" style="width: 7%; text-align: right">12.2</td><td style="width: 1%; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Staffing</td><td> </td>
<td style="text-align: left">$</td><td id="xdx_98F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250331__srt--ProductOrServiceAxis__custom--StaffingMember_zOFTXpfFbRtb" style="text-align: right">932</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td id="xdx_98E_eus-gaap--GrossProfit_pn3n3_c20250101__20250331__srt--ProductOrServiceAxis__custom--StaffingMember_zBfh44fbbiIl" style="text-align: right">167</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td id="xdx_983_ecustom--GrossMarginPercentage_pid_dp_uPure_c20250101__20250331__srt--ProductOrServiceAxis__custom--StaffingMember_zF5B3hONYL3k" style="text-align: right">17.9</td><td style="text-align: left">%</td><td> </td>
<td>Staffing</td><td> </td>
<td style="text-align: left">$</td><td id="xdx_982_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20240101__20240331__srt--ProductOrServiceAxis__custom--StaffingMember_z0UNXrP2eHy3" style="text-align: right">667</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td id="xdx_985_eus-gaap--GrossProfit_pn3n3_c20240101__20240331__srt--ProductOrServiceAxis__custom--StaffingMember_zbcIpStoptkh" style="text-align: right">123</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td id="xdx_982_ecustom--GrossMarginPercentage_pid_dp_uPure_c20240101__20240331__srt--ProductOrServiceAxis__custom--StaffingMember_zDghsYxl1naf" style="text-align: right">18.4</td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Video Production</td><td> </td>
<td style="text-align: left">$</td><td id="xdx_98C_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250331__srt--ProductOrServiceAxis__custom--VideoProductionMember_zZk4EqzRcd4c" style="text-align: right">49</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td id="xdx_98B_eus-gaap--GrossProfit_pn3n3_c20250101__20250331__srt--ProductOrServiceAxis__custom--VideoProductionMember_z0VwM0thwWFj" style="text-align: right">13</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td id="xdx_98A_ecustom--GrossMarginPercentage_pid_dp_uPure_c20250101__20250331__srt--ProductOrServiceAxis__custom--VideoProductionMember_zbaqG5tWAdC4" style="text-align: right">26.5</td><td style="text-align: left">%</td><td> </td>
<td style="white-space: nowrap; text-align: left">Video Production</td><td> </td>
<td style="text-align: left">$</td><td id="xdx_987_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20240101__20240331__srt--ProductOrServiceAxis__custom--VideoProductionMember_zOI3FUlytV4e" style="text-align: right">32</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td id="xdx_985_eus-gaap--GrossProfit_pn3n3_c20240101__20240331__srt--ProductOrServiceAxis__custom--VideoProductionMember_zn9K4GTHxEw1" style="text-align: right">3</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td id="xdx_987_ecustom--GrossMarginPercentage_pid_dp_uPure_c20240101__20240331__srt--ProductOrServiceAxis__custom--VideoProductionMember_z6GePSRcIVv7" style="text-align: right">9.4</td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Direct Hire</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_987_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250331__srt--ProductOrServiceAxis__custom--DirectHireMember_zJ8UJONHHWh1" style="border-bottom: Black 1pt solid; text-align: right">10</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_989_eus-gaap--GrossProfit_pn3n3_c20250101__20250331__srt--ProductOrServiceAxis__custom--DirectHireMember_zdAfUb0ao04e" style="border-bottom: Black 1pt solid; text-align: right">9</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_ecustom--GrossMarginPercentage_pid_dp_uPure_c20250101__20250331__srt--ProductOrServiceAxis__custom--DirectHireMember_zNrTEStUSEF8" style="border-bottom: Black 1pt solid; text-align: right">90.0</td><td style="padding-bottom: 1pt; text-align: left">%</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left; padding-bottom: 1pt">Direct Hire</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98C_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20240101__20240331__srt--ProductOrServiceAxis__custom--DirectHireMember_z5XNFgYOUay1" style="border-bottom: Black 1pt solid; text-align: right">24</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98D_eus-gaap--GrossProfit_pn3n3_c20240101__20240331__srt--ProductOrServiceAxis__custom--DirectHireMember_zIsmgF7Nii4a" style="border-bottom: Black 1pt solid; text-align: right">23</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_ecustom--GrossMarginPercentage_pid_dp_uPure_c20240101__20240331__srt--ProductOrServiceAxis__custom--DirectHireMember_zr2rbVtYVYKe" style="border-bottom: Black 1pt solid; text-align: right">95.8</td><td style="padding-bottom: 1pt; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_985_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250331_zqdEkbP6HTae" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">4,746</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--GrossProfit_pn3n3_c20250101__20250331_zGOjNIvGMflb" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">641</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td id="xdx_98B_ecustom--GrossMarginPercentage_pid_dp_uPure_c20250101__20250331_zoO6zUy4mivj" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">13.5</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">%</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="font-weight: bold; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20240101__20240331_zomAPgmEgkUl" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">5,295</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98F_eus-gaap--GrossProfit_pn3n3_c20240101__20240331_zfZMs2m0tY3h" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">709</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td id="xdx_981_ecustom--GrossMarginPercentage_pid_dp_uPure_c20240101__20240331_zxGoL5WyF0Md" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">13.4</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">%</td></tr>
</table>
<p id="xdx_8A4_zgkchSh4EB0j" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
4
<p id="xdx_896_eus-gaap--ReconciliationOfRevenueFromSegmentsToConsolidatedTextBlock_zYEpW3EENA91" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table provides a reconciliation of revenue and gross profit by reportable segment to consolidated results for the three months
ended March 31, 2025 and 2024, respectively:</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Gross
Profit Performance by Segment</b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span><span id="xdx_8BD_zKMpJzl5Jgzf" style="display: none">SCHEDULE OF GROSS PROFIT PERFORMANCE BY SEGMENT</span></span></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom">
<td colspan="13" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">March
31, 2025</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td>
<td colspan="13" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">March
31, 2024</span></td></tr>
<tr style="font: bold 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Business
Segment</b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td>
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Revenue</b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td>
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Gross
Profit</b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td>
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>GM
%</b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td>
<td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><p style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Business Segment</b></span></p></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td>
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Revenue</b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td>
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><p style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Gross Profit</b></span></p></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td>
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>GM
%</b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 16%">EOR</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250331__srt--ProductOrServiceAxis__custom--EORMember_zIp44dyIdst2" style="width: 7%; text-align: right">3,755</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--GrossProfit_pn3n3_c20250101__20250331__srt--ProductOrServiceAxis__custom--EORMember_zzEIc9oJWMw1" style="width: 7%; text-align: right">452</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td id="xdx_98B_ecustom--GrossMarginPercentage_pid_dp_uPure_c20250101__20250331__srt--ProductOrServiceAxis__custom--EORMember_zCeOPeq1gAz" style="width: 7%; text-align: right">12.0</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td>
<td style="width: 16%">EOR</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20240101__20240331__srt--ProductOrServiceAxis__custom--EORMember_z95KuG5OZdQg" style="width: 7%; text-align: right">4,572</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--GrossProfit_pn3n3_c20240101__20240331__srt--ProductOrServiceAxis__custom--EORMember_zFD2LBvt9MX9" style="width: 7%; text-align: right">560</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td id="xdx_984_ecustom--GrossMarginPercentage_pid_dp_uPure_c20240101__20240331__srt--ProductOrServiceAxis__custom--EORMember_zAcHBzGFTOJ9" style="width: 7%; text-align: right">12.2</td><td style="width: 1%; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Staffing</td><td> </td>
<td style="text-align: left">$</td><td id="xdx_98F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250331__srt--ProductOrServiceAxis__custom--StaffingMember_zOFTXpfFbRtb" style="text-align: right">932</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td id="xdx_98E_eus-gaap--GrossProfit_pn3n3_c20250101__20250331__srt--ProductOrServiceAxis__custom--StaffingMember_zBfh44fbbiIl" style="text-align: right">167</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td id="xdx_983_ecustom--GrossMarginPercentage_pid_dp_uPure_c20250101__20250331__srt--ProductOrServiceAxis__custom--StaffingMember_zF5B3hONYL3k" style="text-align: right">17.9</td><td style="text-align: left">%</td><td> </td>
<td>Staffing</td><td> </td>
<td style="text-align: left">$</td><td id="xdx_982_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20240101__20240331__srt--ProductOrServiceAxis__custom--StaffingMember_z0UNXrP2eHy3" style="text-align: right">667</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td id="xdx_985_eus-gaap--GrossProfit_pn3n3_c20240101__20240331__srt--ProductOrServiceAxis__custom--StaffingMember_zbcIpStoptkh" style="text-align: right">123</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td id="xdx_982_ecustom--GrossMarginPercentage_pid_dp_uPure_c20240101__20240331__srt--ProductOrServiceAxis__custom--StaffingMember_zDghsYxl1naf" style="text-align: right">18.4</td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Video Production</td><td> </td>
<td style="text-align: left">$</td><td id="xdx_98C_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250331__srt--ProductOrServiceAxis__custom--VideoProductionMember_zZk4EqzRcd4c" style="text-align: right">49</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td id="xdx_98B_eus-gaap--GrossProfit_pn3n3_c20250101__20250331__srt--ProductOrServiceAxis__custom--VideoProductionMember_z0VwM0thwWFj" style="text-align: right">13</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td id="xdx_98A_ecustom--GrossMarginPercentage_pid_dp_uPure_c20250101__20250331__srt--ProductOrServiceAxis__custom--VideoProductionMember_zbaqG5tWAdC4" style="text-align: right">26.5</td><td style="text-align: left">%</td><td> </td>
<td style="white-space: nowrap; text-align: left">Video Production</td><td> </td>
<td style="text-align: left">$</td><td id="xdx_987_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20240101__20240331__srt--ProductOrServiceAxis__custom--VideoProductionMember_zOI3FUlytV4e" style="text-align: right">32</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td id="xdx_985_eus-gaap--GrossProfit_pn3n3_c20240101__20240331__srt--ProductOrServiceAxis__custom--VideoProductionMember_zn9K4GTHxEw1" style="text-align: right">3</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td id="xdx_987_ecustom--GrossMarginPercentage_pid_dp_uPure_c20240101__20240331__srt--ProductOrServiceAxis__custom--VideoProductionMember_z6GePSRcIVv7" style="text-align: right">9.4</td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Direct Hire</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_987_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250331__srt--ProductOrServiceAxis__custom--DirectHireMember_zJ8UJONHHWh1" style="border-bottom: Black 1pt solid; text-align: right">10</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_989_eus-gaap--GrossProfit_pn3n3_c20250101__20250331__srt--ProductOrServiceAxis__custom--DirectHireMember_zdAfUb0ao04e" style="border-bottom: Black 1pt solid; text-align: right">9</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_ecustom--GrossMarginPercentage_pid_dp_uPure_c20250101__20250331__srt--ProductOrServiceAxis__custom--DirectHireMember_zNrTEStUSEF8" style="border-bottom: Black 1pt solid; text-align: right">90.0</td><td style="padding-bottom: 1pt; text-align: left">%</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left; padding-bottom: 1pt">Direct Hire</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98C_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20240101__20240331__srt--ProductOrServiceAxis__custom--DirectHireMember_z5XNFgYOUay1" style="border-bottom: Black 1pt solid; text-align: right">24</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98D_eus-gaap--GrossProfit_pn3n3_c20240101__20240331__srt--ProductOrServiceAxis__custom--DirectHireMember_zIsmgF7Nii4a" style="border-bottom: Black 1pt solid; text-align: right">23</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_ecustom--GrossMarginPercentage_pid_dp_uPure_c20240101__20240331__srt--ProductOrServiceAxis__custom--DirectHireMember_zr2rbVtYVYKe" style="border-bottom: Black 1pt solid; text-align: right">95.8</td><td style="padding-bottom: 1pt; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_985_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250331_zqdEkbP6HTae" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">4,746</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--GrossProfit_pn3n3_c20250101__20250331_zGOjNIvGMflb" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">641</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td id="xdx_98B_ecustom--GrossMarginPercentage_pid_dp_uPure_c20250101__20250331_zoO6zUy4mivj" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">13.5</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">%</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="font-weight: bold; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20240101__20240331_zomAPgmEgkUl" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">5,295</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98F_eus-gaap--GrossProfit_pn3n3_c20240101__20240331_zfZMs2m0tY3h" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">709</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td id="xdx_981_ecustom--GrossMarginPercentage_pid_dp_uPure_c20240101__20240331_zxGoL5WyF0Md" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">13.4</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">%</td></tr>
</table>
3755000
452000
0.120
4572000
560000
0.122
932000
167000
0.179
667000
123000
0.184
49000
13000
0.265
32000
3000
0.094
10000
9000
0.900
24000
23000
0.958
4746000
641000
0.135
5295000
709000
0.134
<p id="xdx_804_eus-gaap--SubsequentEventsTextBlock_zJ4nlVX7k9w4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
10. <span id="xdx_822_z1uy5QUb3SSk">SUBSEQUENT EVENTS</span></b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company has evaluated subsequent events through May 15, 2025, the date on which the unaudited condensed consolidated financial statements
were available to be issued. Based upon this evaluation, management has determined that no material subsequent events have occurred that
would require recognition in or disclosures in the accompanying unaudited condensed consolidated financial statements, except as follows:</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
April 23, 2025, we entered into a Receivable Purchase Agreements with JP Morgan which will purchase one of our largest client’s
invoices within 15 days of approval. The program uses a market index rate based on the Secured Overnight Financing rate (SOFR) and adds
80 basis points called a program rate. The APR on this loan as of May 3, 2025, was <span id="xdx_90F_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_c20250503__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zfAvzUnAcrz7" title="APR on Loan percentage">5.15%</span>.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
April 24, 2025, Reliability submitted its application for the new Over-the-Counter Identification (“OTCID”), which is scheduled
to launch on July 1, 2025. OTCID is meant to replace the “Pink Current” tier, and is intended to establish baseline requirements
for companies, including the submission of current information disclosures and management certifications. OTC Markets will still maintain
the Pink Limited and Expert Market tiers for companies that do not meet the OTCID criteria.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
0.0515