State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 16,914,693 shares of Common Stock, no par value, as of May 14, 2018.

RELIABILITY INCORPORATED

UNAUDITED BALANCE SHEETS

As of March 31, 2018 and December 31, 2017

		Mar. 31, 2018				Dec. 31, 2017
ASSETS
Current assets:
Cash and cash equivalents		$	8,043			$	8,043
Total current assets			8,043				8,043
Total Assets		$	8,043			$	8,043
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable and accrued liabilities		$	10,656			$	7,670
Total Current Liabilities			10,656				7,670
Long term liabilities:
Accrued interest on loans			25,743				23,524
Loans from Stockholder and affiliate			90,000				90,000
Total Long-term Liabilities			115,743				113,524
Total Liabilities			126,399				121,194
Stockholders' equity (deficit):
Preferred stock, without par value; 1,000,000 shares authorized, none issued and outstanding
Common stock, without par value; 300,000,000 shares authorized; 17,268,993 shares issued			9,912,150				9,912,150
Accumulated deficit			(8,935,989,	)			(8,930,784	)
Less treasury stock at cost, 354,300 shares			(1,094,517	)			(1,094,517	)
Total stockholders' deficit			(118,356	)			(113,151	)
Total Liabilities and Stockholders' Deficit		$	8,043			$	8,043

 

 

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RELIABILITY INCORPORATED

UNAUDITED STATEMENTS OF OPERATIONS

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RELIABILITY INCORPORATED

UNAUDITED STATEMENTS OF CASH FLOWS

 

		Three months ended March 31,
		2018				2017
Cash flows from operating activities:
Net loss		$	(5,205	)		$	(5,740	)
Adjustments to reconcile net loss to net cash used in operating activities:
Accrued interest on loans from stockholders and affiliate			2,219				2,213
Accounts payable and accrued liabilities			2,986				(6,858	)
Net cash used in operating activities			-0-				(10,385	)
Net (decrease) in cash and cash equivalents			-0-				(10,385	)
Cash and cash equivalents:
Beginning of period			8,043				30,479
End of period		$	8,043			$	20,094
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest		$	-			$	-
Income taxes		$	-			$	-

 

 

The accompanying notes are an integral part of these statements.

 

 

RELIABILITY INCORPORATED

NOTES TO UNAUDITED FINANCIAL STATEMENTS

 

 

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RELIABILITY INCORPORATED

NOTES TO UNAUDITED FINANCIAL STATEMENTS

March 31, 2018

 

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RELIABILITY INCORPORATED

NOTES TO UNAUDITED FINANCIAL STATEMENTS

March 31, 2018

3. STOCKHOLDERS' EQUITY (DEFICIT)

On January 15, 2014, the Company issued 3,401,360 shares of unregistered common stock in a private placement to Lone Star Value Investors, LP, an entity controlled by a former director and officer of the Company, for cash proceeds of $50,000.  The proceeds of this issuance were used to assist in funding the Company's operating expenses.

 

4.  LOANS FROM STOCKHOLDER AND AFFILIATE

 

This Management's Discussion and Analysis and other parts of this report contain forward-looking statements that involve risks and uncertainties, as well as current expectations and assumptions. From time to time, the Company may publish forward-looking statements, including those that are contained in this report, relating to such matters as anticipated financial performance, business prospects, technological developments, new products, research and development activities and similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause the Company's actual results and experience to differ materially from the anticipated results or other expectations expressed in the Company's forward-looking statements. The risks and uncertainties that may affect the operations, performance, development and results of the Company's business include, but are not limited to, its ability to maintain sufficient working capital, adverse changes in the economy, the ability to attract and maintain key personnel, its ability to identify or complete an acceptable merger or acquisition, and future results related to acquisition, merger or investment activities. The Company's actual results could differ materially from those anticipated in these forward-looking statements, including those set forth elsewhere in this report. The Company assumes no obligation to update any such forward-looking statements.

CRITICAL ACCOUNTING POLICIES AND COMMENTS RELATED TO OPERATIONS

This discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions.

RESULTS OF OPERATIONS

Revenues

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The accompanying financial statements have been prepared assuming the Company will continue as a going concern. However, the Company currently has no operating activities or source of revenue. There can be no assurances that the Company will be able to successfully complete a merger or acquisition or be able to maintain sufficient liquidity to continue to seek a merger or acquisition, in which case the Company might be forced to liquidate or seek protection under the Federal bankruptcy statutes, or both.

No cash was used by operating activities during the three months ended March 31, 2018, compared to $10,385 in the comparable period of 2017.  The decrease was attributable to an increase in accounts payable and accrued liabilities, with no cash outlay.

 

 

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

 

Item 3. Defaults Upon Senior Securities

None.

 

Item 4. Mine Safety Disclosures

Not applicable.

 

Item 5. Other Information

None.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

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