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| x | QUARTERLY      REPORT UNDER SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF      1934 For      the quarterly period ended March 31,2009 |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ¨ | TRANSITION      REPORT UNDER SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF      1934 For      the transition period from                   to                   . |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

RELIABILITY INCORPORATED

| TEXAS                                                                   |   | 75-0868913                                       |
|-------------------------------------------------------------------------|--------|--------------------------------------------------|
| (State      or other jurisdiction ofincorporation      or organization) |   | (I.R.S.      EmployerIdentification      Number) |

| 410      Park Avenue - 15th      Floor, New York, NY  |   | 91362           |
|------------------------------------------------------------|--------|-----------------|
| (Address      of principal executive offices)              |   | (Zip      Code) |

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| PART I. FINANCIAL INFORMATION |                                                                                                      |
|-------------------------------|-----------------------------------------------------------------------------------------------------------|
|                          |                                                                                                      |   |
| Item 1.                       | Financial Statements                                                                                      |   |
|                          |                                                                                                      |   |
|                          | Consolidated Balance Sheets as of March 31, 2009      andDecember 31, 2008                                | 3 |
|                          |                                                                                                      |   |
|                          | Consolidated Statement of Operations for the Three      MonthsEnded March 31, 2009 and 2008 (Unaudited)   | 4 |
|                          |                                                                                                      |   |
|                          | Consolidated Statements of Cash Flows for the Three Months ended      March 31, 2009 and 2008 (Unaudited) | 5 |
|                          |                                                                                                      |   |
|                          | Notes to Condensed Consolidated Financial      Statements                                                 | 6-12 |
|                          |                                                                                                      |   |
| Item 2.                       | Management’s Discussion and Analysis of Financial Condition and      Results of Operations          | 12-14 |
|                          |                                                                                                      |   |
| Item 3.                       | Quantitative and Qualitative Disclosures About Market      Risk                                           | 15 |
|                          |                                                                                                      |   |
| Item 4.                       | Controls and Procedures                                                                                   | 15 |
|                          |                                                                                                      |   |
| PART II. OTHER INFORMATION    | 16                                                                                                        |
|                          |                                                                                                      |   |
| Item 6.                       | Exhibits                                                                                                  | 16 |
|                          |                                                                                                      |   |
| Signatures                    | 16                                                                                                        |

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Financial Statements

CONSOLIDATED BALANCE SHEETS

|        ASSETS                                                                                                               |    | March 31,2009      (unaudited) |                |   | December 31,2008 |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------------|-------------------------------------|---------------------|--------|-----------------------|--------|
| Current      assets:                                                                                                             |    |                                |                |   |                  |   |   |   |
| Cash      and cash equivalents                                                                                                   |    | $                                   | 51                  |   |                  | $      | 43 |   |
|                                                                                                                             |    |                                |                |   |                  |   |   |   |
| Total      current assets                                                                                                        |    |                                | 51                  |   |                  |   | 43 |   |
|                                                                                                                             |    |                                |                |   |                  |   |   |   |
| Other      assets                                                                                                                |    |                                |                |   |                  |   |   |   |
| Assets      held for sale                                                                                                        |    |                                | —   |   |                  |   | —   |   |
| Total      Assets                                                                                                                |    | $                                   | 51                  |   |                  | $      | 43 |   |
|                                                                                                                             |    |                                |                |   |                  |   |   |   |
|                                                                                                                             |         |                                |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY (DEFICIT)                                                                        |    |                                |                |   |                  |   |   |   |
| Current      liabilities:                                                                                                        |    |                                |                |   |                  |   |   |   |
| Accounts      payable and accrued liabilities                                                                                    |    | $                                   | 9                   |   |                  | $      | 31 |   |
| Accrued      liabilities of discontinued operations                                                                              |    |                                | 13                  |   |                  |   | 13 |   |
| Total      current liabilities                                                                                                   |    |                                | 22                  |   |                  |   | 44 |   |
|                                                                                                                             |    |                                |                |   |                  |   |   |   |
| Stockholders’      equity (deficit):                                                                                       |    |                                |                |   |                  |   |   |   |
| Common      stock, without par value; 20,000,000 shares authorized; 9,984,300 and      6,690,265 shares issued respectively |    |                                | 9,767               |   |                  |   | 9,767 |   |
| Accumulated      deficit                                                                                                         |    |                                | (8,684              | )      |                  |   | (8,674 | ) |
| Less      treasury stock at cost, 354,300 shares                                                                                 |    |                                | (1,094              | )      |                  |   | (1,094 | ) |
|                                                                                                                             |    |                                |                |   |                  |   |   |   |
| Total      stockholders’ equity (deficit)                                                                                  |    |                                | 29                  |   |                  |   | (1 | )  |
|                                                                                                                             |    |                                |                |   |                  |   |   |   |
|                                                                                                                             |    | $                                   | 51                  |   |                  | $      | 43 |   |

See accompanying notes.

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RELIABILITYINCORPORATED

CONSOLIDATEDSTATEMENTS OF OPERATIONS

|                                                                             |         |                        |                |   |   |   |                |   |
|----------------------------------------------------------------------------------|--------------|-----------------------------|---------------------|--------|--------|--------|---------------------|--------|
|                                                                             |         | Three months ended March31, |                |
|                                                                             |    | 2009                        |                |   | 2008   |   |
| General      and administrative                                                  |    | $                           | 10                  |   |   | $      | 24                  |   |
| Total      cost and expenses                                                     |    |                        | 10                  |   |   |   | 24                  |   |
| Operating      loss from continuing operations                                   |    |                        | (10                 | )      |   |   | (24                 | )      |
| Other      income (expense):                                                     |    |                        |                |   |   |   |                |   |
| Interest      income                                                             |    |                        | —   |   |   |   | 0                   |   |
| Other      income                                                                |    |                        |  0             |   |   |   | 0                   |   |
| Total      other income (expense)                                                |    |                        | 0                   |   |   |   | 0                   |   |
| Loss      from continuing operations, before income taxes                        |    |                        | (10                 | )      |   |   | (24                 | )      |
| Provision      for income taxes                                                  |    |                        | —   |   |   |   | —   |   |
| Loss      from continuing operations                                             |    |                        | (10                 | )      |   |   | (24                 | )      |
| Loss      from discontinued operations, net of income tax provisions of      nil |    |                        | (0                  | )      |   |   | (2                  | )      |
| Net      loss                                                                    |    | $                           | (10                 | )      |   | $      | (26                 | )      |
| Basic      and diluted loss per share:                                           |    |                        |                |   |   |   |                |   |
| Continuing      operations                                                       |    | $                           | (.00                | )      |   | $      | (.00                | )      |
| Discontinued      operations                                                     |    |                        | (.00                | )      |   |   | (.00                | )      |
| Net      loss                                                                    |    | $                           | (.00                | )      |   | $      | (.00                | )      |
| Weighted      average shares:                                                    |    |                        |                |   |   |   |                |   |
| Basic                                                                            |    |                        | 9,630               |   |   |   | 6,336               |   |
| Diluted                                                                          |    |                        | 9,630               |   |   |   | 6,336               |   |

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RELIABILITYINCORPORATED

CONSOLIDATED STATEMENTS OF CASHFLOWS

|                                                                                       |         |                        |                |   |   |   |                |    |
|--------------------------------------------------------------------------------------------|--------------|-----------------------------|---------------------|--------|--------|--------|---------------------|---------|
|                                                                                       |         | Three months ended March31, |                |
|                                                                                       |    | 2009                        |                |   | 2008   |   |
| Cash      flows from operating activities:                                                 |    |                        |                |   |   |   |                |    |
| Net      loss                                                                              |    | $                           | (10                 | )      |   | $      | (26                 | )       |
| Loss      from discontinued operations                                                     |    |                        | —             |   |   |   | (2                  | )       |
| Loss      from continuing operations                                                       |    |                        | (10                 | )      |   |   | (24                 | )       |
| Changes      in operating assets and liabilities:                                          |    |                        |                |   |   |   |                |    |
| Accounts      receivable                                                                   |    |                        | —             |   |   |   | 4                   |    |
| Prepaid      expenses                                                                      |    |                        | —             |   |   |   | 13                  |    |
| Accounts      payable                                                                      |    |                        | (22                 | )      |   |   | —   |    |
| Accrued      liabilities                                                                   |    |                        | —             |   |   |   | (2                  | )  |
| Total      adjustments                                                                     |    |                        | (22                 | )      |   |   | 15                  |    |
| Net      cash used by continuing operations                                                |    |                        | (32                 | )      |   |   | (9                  | )       |
| Net      cash used provided by discontinued operations                                     |    |                        |  —       |   |   |   | (2                  | )       |
| Net      cash used by operating activities                                                 |    |                        | (32                 | )      |   |   | (11                 | )       |
| Net      cash (used) provided by investing activities                                      |    |                        | —   |   |   |   | —             |    |
| Cash      flows from financing activities:                                                 |    |                        |                |   |   |   |                |    |
|           Repayment      of note payable |         |                        |                |   |   |   |   (7      | )       |
| Paid      in Capital                                                                       |    |                        | 40                  |   |   |   |                |    |
| Net      cash provided (used) by financing activities                                      |    |                        | 40                  |   |   |   | (7                  | )       |
| Net      (decrease) increase in cash                                                       |    |                        | 8                   |   |   |   | (18                 | )       |
| Cash      and cash equivalents:                                                            |    |                        |                |   |   |   |                |    |
| Beginning      of period                                                                   |    |                        | 43                  |   |   |   | 32                  |    |
| End      of period                                                                         |    | $                           | 51                  |   |   | $      | 14                  |    |

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RELIABILITYINCORPORATED

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

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2008.

|                   |   |   |    |   |   |   |
|------------------------|--------|--------|---------|--------|--------|--------|
|                   |   | 2009   |    |   | 2008   |   |
| Property      Tax      |   | $      | — |   |   | $      | — |   |
| Professional      Fees |   |   | 9       |   |   |   | 27 |   |
| Other                  |   |   | — |   |   |   | 4 |   |
| Total                  |   | $      | 9       |   |   | $      | 31 |   |

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|                                      |   |                  |    |   |                 |   |
|-------------------------------------------|--------|-----------------------|---------|--------|----------------------|--------|
|                                      |   | Number ofOptions |    |   | WeightedAveragePrice |   |
| Balance      as of December 31, 2008 |   |                  | 370,000 |   |                 | $      | .21 |   |
| Expired      or canceled                  |   |                  | — |   |                 |   | — |   |
| Exercised                                 |   |                  | — |   |                 |   | — |   |
| Granted                                   |   |                  | — |   |                 |   | — |   |
| Balance      as of March 31, 2009    |   |                  | 370,000 |   |                 | $      | .21 |   |

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|                                          |   |   |   |
|-----------------------------------------------|--------|--------|--------|
|                                          |   | 2009   |   |   |   | 2008 |   |
| Assets:                                       |   |   |   |   |   |   |   |
| Cash                                          |   | $      | 0      |   |   | $ | 0 |   |
| Accounts      receivable                      |   |   | 0      |   |   |   | 0 |   |
|                                          |   |   |   |   |   |   |   |   |
|                                          |   | $      | 0      |   |   | $ | 0 |   |
| Accrued      liabilities:                     |   |   |   |   |   |   |   |   |
| Accrued      payroll and termination benefits |   | $      | 13     |   |   | $ | 13 |   |
| Other      accrued liabilities                |   |   | 0      |   |   |   | 0 |   |
|                                          |   | $      | 13     |   |   | $ | 13 |   |

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RELIABILITY INCORPORATED

Item 2.    Management’sDiscussion and Analysis of Financial Condition and Results ofOperations

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Item 3.

Item 4 and 4T.     Controlsand Procedures.

Aftercurrent management gained control of the Company in April 2009, the Companyappointed a Chief Financial Officer so that the respective duties of theprincipal executive officer and principal financial officer aresegregated..  There now being three people involved in any Companyfinancial transactions.  Specifically, all bills are sent to the bookkeeperand the President/CEO authorizes all expenditures, checks are then drawn by thebookkeeper for payment based on such authorization and, finally, the CFO signsthe check and distributes.  In fact, with regard to all expenditures, thePresident/CEO has never signed a check, the CFO can not sign a check unless thebookkeeper has prepared and the bookkeeper has no check signing authority. With regard to revenues, since the Company has discontinued operations,its only function being to find a merger partner.  Revenues areminimal and the foregoing internal process should be effective to fulfill itsinternal controls and financial reportingresponsibilities. 

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PART II - OTHERINFORMATION

Item 6.

|   |         |
|--------|--------------|
| 31.1   |    | Certification      Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of      1934, as Amended  |
| 31.2   |    | Certification      Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of      1934, as Amended  |
| 32.1   |    | Certification      Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002. |

| 32.2 |    | Certification      Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002. |
|------|--------------|-----------------------------------------------------------------------------------------------------------------------------------|

SIGNATURES

|                   |  RELIABILITY      INCORPORATED(Registrant)                         |   |
|------------------------|-------------------------------------------------------------------------|--------|
|                   |                                                                    |   |
| May 13,      2009 | /s/ Jay      Gottlieb                                              |   |
|                   | Jay      GottliebPresident      and Chief Executive Officer   |   |
|                   | /s/      Gregg Schneider                                                |   |
|                   | Gregg      SchneiderChief      Financial Officer                        |   |

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