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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 June 30, 2009 |
|---|-------------------------------------------------------------------------------------------------------------------------------------------|

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

Commission File Number 0-7092 

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

| 410 Park Avenue - 15 th 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 June 30, 2009 (Unaudited) andDecember 31, 2008                  | 3 |
|                          |                                                                                              |   |
|                          | Consolidated Statement of Operations for the Three MonthsEnded June 30, 2009 and 2008 (Unaudited) | 4 |
|                          |                                                                                              |   |
|                          | Consolidated Statement of Operations for the Six MonthsEnded June 30, 2009 and 2008 (Unaudited)   | 5 |
|                          |                                                                                              |   |
|                          | Consolidated Statements of Cash Flows for the Six Months ended June 30, 2009 and 2008 (Unaudited) | 6 |
|                          |                                                                                              |   |
|                          | Notes to Condensed Consolidated Financial Statements                                              | 7-12 |
|                          |                                                                                              |   |
| Item 2.                       | Management’s Discussion and Analysis of Financial Condition and Results of Operations       | 13-16 |
|                          |                                                                                              |   |
| Item 3.                       | Quantitative and Qualitative Disclosures About Market Risk                                        | 16 |
|                          |                                                                                              |   |
| Item 4.                       | Controls and Procedures                                                                           | 16 |
|                          |                                                                                              |   |
| PART II. OTHER INFORMATION    | 17                                                                                                |
|                          |                                                                                              |   |
| Item 6.                       | Exhibits                                                                                          | 18-21 |
|                          |                                                                                              |   |
| Signatures                    | 17                                                                                                |

  

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Financial Statements 

RELIABILITY INCORPORATED 

|  ASSETS                                                                                                                                                                                                       |    | June 30,2009 (unaudited) |   |   | December 31,2008 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|--------------------------|--------|--------|-----------------------|--------|
| Current assets:                                                                                                                                                                                                    |    |                     |   |   |                  |   |   |   |
|        Cash and cash equivalents                                                                                                                                                |    | $                        | 37     |   |                  | $      | 43 |   |
|                                                                                                                                                                                                               |    |                     |   |   |                  |   |   |   |
|                  Total current assets                                                                                         |    |                     | 37     |   |                  |   | 43 |   |
| Total Assets                                                                                                                                                                                                       |    | $                        | 37     |   |                  | $      | 43 |   |
|                                                                                                                                                                                                               |    |                     |   |   |                  |   |   |   |
|                                                                                                                                                                                                               |         |                     |
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)                                                                                                                                                               |    |                     |   |   |                  |   |   |   |
| Current liabilities:                                                                                                                                                                                               |    |                     |   |   |                  |   |   |   |
| Accounts payable and accrued liabilities                                                                                                                                                                           |    | $                        | --     |   |                  | $      | 31 |   |
| Accrued liabilities of discontinued operations                                                                                                                                                                     |    |                     | 13     |   |                  |   | 13 |   |
|              Total current liabilities                                                                                                            |    |                     | 13     |   |                  |   | 44 |   |
|                                                                                                                                                                                                               |    |                     |   |   |                  |   |   |   |
| Stockholders’ equity (deficit):                                                                                                                                                                              |    |                     |   |   |                  |   |   |   |
|            Common stock, without par value; 20,000,000 shares authorized; 9,984,300 and 6,690,265 shares issued respectively                      |    |                     | 9,807  |   |                  |   | 9,767 |   |
|            Accumulated deficit                                                                                                                              |    |                     | (8,689 | )      |                  |   | (8,674 | ) |
|            Less treasury stock at cost, 354,300 shares                                                                                                      |    |                     | (1,094 | )      |                  |   | (1,094 | ) |
|                                                                                                                                                                                                               |    |                     |   |   |                  |   |   |   |
|                             Total stockholders’ equity (deficit) |    |                     | 24     |   |                  |   | (1 | )  |
|                                                                                                                                                                                                               |    |                     |   |   |                  |   |   |   |
|                                                                                                                                                                                                               |    | $                        | 37     |   |                  | $      | 43 |   |

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|                                                                                                              |         |                        |    |   |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------|--------------|-----------------------------|---------|--------|--------|--------|--------|--------|
|                                                                                                              |         | Three months ended June 30, |    |
|                                                                                                              |    | 2009                        |    |   | 2008   |   |
| General and administrative                                                                                        |    | $                           | 1       |   |   | $      | 24     |   |
| Impairment on real estate held for sale                                                                           |         |                        | 0       |   |   |   | 126    |   |
|                Total cost and expenses |    |                        | 1       |   |   |   | 150    |   |
| Operating loss from continuing operations                                                                         |    |                        | (1      | )      |   |   | (150   | )      |
| Other income (expense)                                                                                            |         |                        |    |   |   |   |   |   |
|          Other (expense)                                             |         |                        | — |   |   |   | (3     | )      |
|               Total other income (expense)  |         |                        | — |   |   |   | (3     | )      |
| Loss from continuing operations, before income taxes                                                              |    |                        | (1      | )      |   |   | (153   | )      |
| Loss from continuing operations                                                                                   |    |                        | (1      | )      |   |   | (153   | )      |
| Loss from discontinued operations, net of income tax provisions of nil                                            |    |                        | 0       |   |   |   | (8     | )      |
| Net Loss                                                                                                          |    | $                           | (1      | )      |   | $      | (161   | )      |
| Basic and diluted loss per share:                                                                                 |    |                        |    |   |   |   |   |   |
|         Continuing operations                                             |    | $                           | (.00    | )      |   | $      | (.03   | )      |
|         Discontinued operations                                           |    |                        | (.00    | )      |   |   | (.00   | )      |
|         Net (loss)                                                        |    | $                           | (.00    | )      |   | $      | (.03   | )      |
| Weighted average shares:                                                                                          |    |                        |    |   |   |   |   |   |
|        Basic                                                                   |    |                        | 9,630   |   |   |   | 6,336  |   |
|        Diluted                                                                 |    |                        | 9,630   |   |   |   | 6,336  |   |

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CONSOLIDATED STATEMENTS OF OPERATIONS 

|                                                                                                              |         |                      |   |   |   |   |                |   |
|-------------------------------------------------------------------------------------------------------------------|--------------|---------------------------|--------|--------|--------|--------|---------------------|--------|
|                                                                                                              |         | Six months ended June 30, |   |
|                                                                                                              |    | 2009                      |   |   | 2008   |   |
| General and administrative                                                                                        |    | $                         | 14     |   |   | $      | 50                  |   |
| Impairment on real estate held for sale                                                                           |         |                      | 0      |   |   |   | 126                 |   |
|                Total cost and expenses |    |                      | 14     |   |   |   | 176                 |   |
| Operating loss from continuing operations                                                                         |    |                      | (14    | )      |   |   | (176                | )      |
| Loss from continuing operations, before income taxes                                                              |    |                      | (14    | )      |   |   | (176                | )      |
| Provision for income taxes                                                                                        |    |                      | (1     | )      |   |   | —   |   |
| Loss from continuing operations                                                                                   |    |                      | (15    | )      |   |   | (176                | )      |
| Loss from discontinued operations, net of income tax provisions of nil                                            |    |                      | (0     | )      |   |   | (10                 | )      |
| Net Loss                                                                                                          |    | $                         | (15    | )      |   | $      | (186                | )      |
| Basic and diluted loss per share:                                                                                 |    |                      |   |   |   |   |                |   |
|         Continuing operations                                             |    | $                         | (.00   | )      |   | $      | (.03                | )      |
|         Discontinued operations                                           |    |                      | (.00   | )      |   |   | (.00                | )      |
|         Net (loss)                                                        |    | $                         | (.00   | )      |   | $      | (.03                | )      |
| Weighted average shares:                                                                                          |    |                      |   |   |   |   |                |   |
|        Basic                                                                   |    |                      | 9,630  |   |   |   | 6,336               |   |
|        Diluted                                                                 |    |                      | 9,630  |   |   |   | 6,336               |   |

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RELIABILITY INCORPORATED 

|                                                                                                                    |         |                      |                                                                                  |   |   |   |                                                                                                    |   |
|-------------------------------------------------------------------------------------------------------------------------|--------------|---------------------------|---------------------------------------------------------------------------------------|--------|--------|--------|---------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                    |         | Six months ended June 30, |                                                                                  |
|                                                                                                                    |    | 2009                      |                                                                                  |   | 2008   |   |
| Cash flows from operating activities:                                                                                   |    |                      |                                                                                  |   |   |   |                                                                                                    |   |
| Net loss                                                                                                                |    | $                         | (15                                                                                   | )      |   | $      | (186                                                                                                    | )      |
|        Loss from discontinued operations                                             |    |                      | —                                                                               |   |   |   | (10                                                                                                     | )      |
|        Loss from continuing operations                                               |    |                      |          (15                             | )      |   |   | (176                                                                                                    | )      |
| Impairment of Real Estate                                                                                               |         |                      |              — |   |   |   | 126                                                                                                     |   |
| Changes in operating assets and liabilities:                                                                            |    |                      |                                                                                  |   |   |   |                                                                                                    |   |
|        Accounts receivable                                                           |    |                      | —                                                                               |   |   |   | 4                                                                                                       |   |
|        Prepaid expenses                                                              |    |                      | —                                                                               |   |   |   | 28                                                                                                      |   |
|        Accounts payable                                                              |    |                      | (31                                                                                   | )      |   |   | —                                                                                       |   |
|        Accrued liabilities                                                           |    |                      | —                                                                               |   |   |   |          (13                                               | )      |
|                  Total adjustments |    |                      | (31                                                                                   | )      |   |   | 145                                                                                                     |   |
| Net cash used by continuing operations                                                                                  |    |                      | (46                                                                                   | )      |   |   | (31                                                                                                     | )      |
| Net cash used by operating activities                                                                                   |    |                      | (46                                                                                   | )      |   |   | (31                                                                                                     | )      |
| Net cash (used) provided by investing activities                                                                        |    |                      | —                                                                     |   |   |   | —                                                                                                 |   |
| Cash flows from financing activities:                                                                                   |    |                      |                                                                                  |   |   |   |                                                                                                    |   |
|         Issuance of stock                                                       |    |                      | 40                                                                                    |   |   |   |                 — |   |
| Net cash provided (used) by financing activities                                                                        |    |                      | 40                                                                                    |   |   |   | —                                                                                                 |   |
| Net (decrease) increase in cash                                                                                         |    |                      | (6                                                                                    | )      |   |   | (31                                                                                                     | )      |
| Cash and cash equivalents:                                                                                              |    |                      |                                                                                  |   |   |   |                                                                                                    |   |
|        Beginning of period                                                           |    |                      | 43                                                                                    |   |   |   | 32                                                                                                      |   |
|        End of period                                                                 |    | $                         | 37                                                                                    |   |   | $      | 1                                                                                                       |   |
| Interest paid                                                                                                           |         | $                         | —                                                                               |   |   | $      | —                                                                                                 |   |
| Income taxes paid                                                                                                       |         | $                         | —                                                                               |   |   | $      | —                                                                                                 |   |

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ELIABILITY INCORPORATED 

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 

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RELIABILITY INCORPORATED 

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  9  

2008. 

|                                            |   |   |    |   |   |   |
|-------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                            |   | 2009   |    |   | 2008   |   |
| Professional Fees                               |   |   | 0       |   |   |   | 27 |   |
| Other                                           |   |   | — |   |   |   | 4 |   |
|        Total |   | $      | 0       |   |   | $      | 31 |   |

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|                                                |   |                  |    |   |                 |   |
|-----------------------------------------------------|--------|-----------------------|---------|--------|----------------------|--------|
|                                                |   | Number ofOptions |    |   | WeightedAveragePrice |   |
| Balance as of December 31, 2008                |   |                  | 370,000 |   |                 | $      | .21 |   |
|      Forfeited or canceled |   |                  | — |   |                 |   | — |   |
|      Exercised             |   |                  | — |   |                 |   | — |   |
|      Granted               |   |                  | — |   |                 |   | — |   |
|  Balance as of June 30, 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 

MANAGEMENT’S DISCUSSION AND ANALYSIS 

  13  

  14  On March 13, 2009, Fitts, Roberts & Co., P.C. (“Fitts, Roberts”), the Company’s independent accountant, resigned by mutual agreement with the Company, due to scheduling matters at Fitts Roberts and its withdrawal from the public company auditing practice. The audit reports of Fitts, Roberts for the Company’sfiscal year ended December 31, 2007 and for the fiscal year ended December 31, 2006 included an emphasis paragraph regarding uncertainty about the Company’s ability to continue as a going concern. Except for the going concern paragraph in the audit reports on the financial statements for the last two years, the reports of Fitts, Roberts did not contain an adverse opinion or disclaimer of opinion, and were not otherwise qualified or modified as to uncertainty, audit scope or accounting principles.The resignation of Fitts, Roberts. was considered by the Board of Directors of the Company and approved by the Chairman of the Audit Committee, under authority from the Board of Directors. During the two most recent fiscal years and in the subsequent interim period, there have been no disagreements with Fitts, Roberts on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure in connection with its reports of the nature identified in Item 304(a)(1)(iv). During the two most recent fiscal years and the subsequent interim period, Fitts, Roberts has not advised Reliability of any of the events identified in Item 304(a)(1)(v) of Regulation S-K, nor does any issue with Fitts, Roberts remain unresolved. Reliability provided to Fitts, Roberts the disclosure contained in this Form 8-K and requested Fitts, Roberts to furnish a letter addressed to the Securities and Exchange Commission stating whether Fitts, Roberts agrees with the statements made by the Company herein, and if not, stating the respects in which Fitts, Roberts does not agree. On March 13, 2009, pursuant to authority from the Board of Directors, the Company engaged Ramirez International as independent auditors for the Company for the 2008 audit. Neither the Company, nor anyone acting on its behalf, consulted with Ramirez International regarding (i) the application of accounting principles to a specified transaction, either completed or proposed or the type of audit opinion that might be rendered on the Company’s financial statements; or (ii) any matter that wasthe subject of a disagreement or event identified in response to Item 304(a)(1)(iv) of Regulation S-K (there being none).On July 22, 2009 Reliability, Inc. announced that the Board of Directors of the Company has by mutual consent terminated the appointment of Ramirez International Financial & Accounting Services, Inc. (Ramirez International) as independent accountants of the Company, and appointed the firm of Schumacher & Associates, Inc. as thenew independent accountants of the Company. The change in accountants resulted from a desire to conserve corporate assets and reduce expenses. The Company stated that during its most recently completed fiscal year ended December 31st 2008, the subsequent interim period ended March 31, 2009 and through termination on July 21, 2009, there were no disagreements with RamirezInternational on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure. The audit report of Ramirez International for the Company’s fiscal year ended December 31, 2008 included an emphasis paragraph regarding uncertainty about the Company’s ability to continue as a going concern. On March 30, 2009 a change of control occurred.  At a March 30, 2009 Special Meeting of Shareholders, Jay A. Gottlieb, Greggory A. Schneider, Michael Pearce, Joshua Krom and Ron Gutterson were elected by a majority of the outstanding voting common stock.  15  The sole purpose of Meeting was the election of a Board of Directors, noting that none of the old directors stood for re-election. A total of 5,083,355 common shares (or 53% of Registrant’s outstanding common) was present in person or by proxy at the Meeting and voted in favor of the election of all Board Designees. As permitted underTexas law and specific provisions of Registrant’s Bylaws, the Board Designees will fill out the terms until the next election of Directors. Concurrently, the following officerships were elected: Mr. Gottlieb (Chairman of the Board, Secretary and Treasurer) and Mr. Schneider (Chief Financial Officer). Item 3.       Quantitative and Qualitative Disclosures About Market RiskNot applicable. Item 4 and 4T.        Controls and Procedures.  After current management gained control of the Company in April 2009, the Company appointed a Chief Financial Officer so that the respective duties of the principal executive officer and principal financial officer are segregated..  There now being three people involved in any Company financial transactions. Specifically, all bills are sent to the bookkeeper and the President/CEO authorizes all expenditures, checks are then drawn by the bookkeeper for payment based on such authorization and, finally, the CFO signs the check and distributes.  In fact, with regard to all expenditures, the President/CEO has never signed a check, the CFO can not sign a check unless the bookkeeper 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.   a)  Evaluation of Disclosure Controls and Procedures.  The Chief Executive Officer and Principal Financial Officer, evaluated the effectiveness of the Company’s disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities andExchange Act of 1934, as of the end of the period covered by this report. Based on that evaluation, the CEO concluded that the disclosure controls and procedures as of the end of the period covered by this report were effective. (b) Changes in Internal Control over Financial Reporting. There were no changes in the Company’s internal controls over financial reporting, known to the CEO, that occurred during the period covered by this report that have materially affected, or are reasonably likely to materiallyaffect, the Company’s internal control over financial reporting.  16  RELIABILITY INCORPORATEDOTHER INFORMATION PART II - OTHER INFORMATION June 30, 2009 Items 1 through 5 are not applicable and have been omitted. Item 6.      Exhibits:  The following exhibits are filed as part of this report: 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  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.   RELIABILITY INCORPORATED(Registrant)        August 13, 2009/s/ Jay Gottlieb    Jay GottliebPresident and Chief Executive Officer      /s/ Gregg Schneider    Gregg SchneiderChief Financial Officer     17