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| x | QUARTERLY REPORT UNDER SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT UNDER SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

|  RELIABILITY INCORPORATED            |
|-------------------------------------------|
|  (Name of registrant in its charter) |

| 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)                             |

| (212) 231-8359                                         |
|--------------------------------------------------------|
| (Issuer’s telephone number, including area code) |

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| PART I. FINANCIAL INFORMATION |                                                                                                 |
|-------------------------------|------------------------------------------------------------------------------------------------------|
|                          |                                                                                                 |   |   |   |
| Item 1.                       | Financial Statements                                                                                 |   |   |   3 |   |
|                          |                                                                                                 |   |   |   |   |
|                          | Consolidated Balance Sheets as of March 31, 2010 and December 31, 2009                               |   |   | 3 |   |
|                          |                                                                                                 |   |   |   |   |
|                          | Consolidated Statement of Operations for the Three Months Ended March 31, 2010 and 2009 (Unaudited)  |   |   | 4 |   |
|                          |                                                                                                 |   |   |   |   |
|                          | Consolidated Statements of Cash Flows for the Three Months ended March 31, 2010 and 2009 (Unaudited) |   |   | 5 |   |
|                          |                                                                                                 |   |   |   |   |
|                          | Notes to Condensed Consolidated Financial Statements                                                 |   |   | 6-8 |   |
|                          |                                                                                                 |   |   |   |   |
| Item 2.                       | Management’s Discussion and Analysis of Financial Condition and Results of Operations          |   |   | 9-10 |   |
|                          |                                                                                                 |   |   |   |   |
| Item 3.                       | Quantitative and Qualitative Disclosures About Market Risk                                           |   |   | 11 |   |
|                          |                                                                                                 |   |   |   |   |
| Item 4.                       | Controls and Procedures                                                                              |   |   | 11 |   |
|                          |                                                                                                 |   |   |   |   |
| Item 5.                       | Subsequent Events                                                                                    |   |   | 11 |   |
|                          |                                                                                                 |   |   |   |   |
| PART II. OTHER INFORMATION    |                                                                                                 |
|                          |                                                                                                 |   |   |   |   |
| Item 6.                       | Exhibits                                                                                             |   |   | 12 |   |
|                          |                                                                                                 |   |   |   |   |
| Signatures                    |                                                                                                 |   | 13 |   |

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|  ASSETS                                                                                                                                                                                                       |    | March 31,2010(unaudited) |   |   | December 31,2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|--------------------------|--------|--------|-----------------------|--------|
| Current assets:                                                                                                                                                                                                    |    |                     |   |   |                  |   |   |   |
|        Cash and cash equivalents                                                                                                                                                |         | $                        | 7      |   |                  | $      | 21 |   |
|                  Total current assets                                                                                         |    |                     | 7      |   |                  |   | 21 |   |
|                                                                                                                                                                                                               |         |                     |   |   |                  |   |   |   |
|                                                                                                                                                                                                               |    |                     |   |   |                  |   |   |   |
| Total Assets                                                                                                                                                                                                       |         | $                        | 7      |   |                  | $      | 21 |   |
|                                                                                                                                                                                                               |    |                     |   |   |                  |   |   |   |
|                                                                                                                                                                                                               |         |                     |
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)                                                                                                                                                               |    |                     |   |   |                  |   |   |   |
| Current liabilities:                                                                                                                                                                                               |    |                     |   |   |                  |   |   |   |
| Accounts payable and accrued liabilities                                                                                                                                                                           |    | $                        | 2      |   |                  | $      | 6 |   |
|              Total current liabilities                                                                                                            |    |                     | 2      |   |                  |   | 6 |   |
|                                                                                                                                                                                                               |    |                     |   |   |                  |   |   |   |
| 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  |   |                  |   | 9,807 |   |
|            Accumulated deficit                                                                                                                              |    |                     | (8,708 | )      |                  |   | (8,698 | ) |
|            Less treasury stock at cost, 354,300 shares                                                                                                      |    |                     | (1,094 | )      |                  |   | (1,094 | ) |
|                                                                                                                                                                                                               |    |                     |   |   |                  |   |   |   |
|                             Total stockholders’ equity (deficit) |    |                     | 5      |   |                  |   | 15 |   |
|                                                                                                                                                                                                               |    |                     |   |   |                  |   |   |   |
|                                                                                                                                                                                                               |    | $                        | 7      |   |                  | $      | 21 |   |

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|                                                                                                              |   | (unaudited)                  |   |
|-------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                                                              |   | Three months ended March 31, |   |
|                                                                                                              |   | 2010                         |   |   | 2009 |   |
| Operating expenses:                                                                                               |   |                         |   |   |   |   |
| General and administrative                                                                                        |   | $                            | 11     |   |   | $ | 10 |   |
|                Total cost and expenses |   |                         | 11     |   |   |   | 10 |   |
| Operating loss                                                                                                    |   |                         | (11    | ) |   |   | (10 | ) |
| Other income (expense)                                                                                            |   |                         |   |   |   |   |   |   |
|          Other (expense)                                             |   |                         | -      |   |   |   | - |   |
|               Total other income (expense)  |   |                         | -      |   |   |   | - |   |
| Loss from continuing operations                                                                                   |   |                         | (11    | ) |   |   | (10 | ) |
| Net Loss                                                                                                          |   | $                            | (11    | ) |   | $ | (10 | ) |
| Weighted average shares:                                                                                          |   |                         |   |   |   |   |   |   |
|        Basic                                                                   |   |                         | 9,630  |   |   |   | 9,630 |   |
|        Diluted                                                                 |   |                         | 9,630  |   |   |   | 9,630 |   |

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|                                                                                                                    |         | (unaudited)                  |                                                      |
|-------------------------------------------------------------------------------------------------------------------------|--------------|------------------------------|-----------------------------------------------------------|
|                                                                                                                    |         | Three months ended March 31, |                                                      |
|                                                                                                                    |    | 2010                         |                                                      |   | 2009 |   |
| Cash flows from operating activities:                                                                                   |    |                         |                                                      |   |   |   |   |   |
| Net loss                                                                                                                |    | $                            | (11                                                       | ) |   | $ | (10 | ) |
|        Loss from continuing operations                                               |    |                         |          (11 | ) |   |   | (10 | ) |
| Impairment of Real Estate                                                                                               |         |                         | -                                                         |   |   |   | - |   |
| Changes in operating assets and liabilities:                                                                            |    |                         |                                                      |   |   |   |   |   |
|        Accounts payable and accrued liabilities                                      |    |                         | (3                                                        | ) |   |   |          (22 | ) |
|                  Total adjustments |    |                         | (3                                                        | ) |   |   | (22 | )  |
|                                                                                                                    |         |                         |                                                      |   |   |   |   |   |
| Net cash (used by) operating activities                                                                                 |    |                         | (14                                                       | ) |   |   | (32 | ) |
|                                                                                                                    |    |                         |                                                      |   |   |   |   |   |
| Cash flows from financing activities:                                                                                   |         |                         |                                                      |   |   |   |   |   |
|        Issuance of stock for cash                                                    |         |                         | -                                                         |   |   |   | 40 |   |
| Net cash provided by financing activities                                                                               |    |                         | -                                                         |   |   |   | 40 |   |
| Net (decrease) increase in cash                                                                                         |    |                         | (14                                                       | ) |   |   | 8 |   |
| Cash and cash equivalents:                                                                                              |    |                         |                                                      |   |   |   |   |   |
|        Beginning of period                                                           |    |                         | 21                                                        |   |   |   | 43 |   |
|        End of period                                                                 |    | $                            | 7                                                         |   |   | $ | 51 |   |

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|                                 |   | Number ofOptions |    |   | WeightedAveragePrice |   |
|--------------------------------------|--------|-----------------------|---------|--------|----------------------|--------|
| Balance as of December 31, 2009 |   |                  | 370,000 |   |                 | $      | .21 |   |
| Expired or canceled                  |   |                  | — |   |                 |   | — |   |
| Exercised                            |   |                  | — |   |                 |   | — |   |
| Granted                              |   |                  | — |   |                 |   | — |   |
|                                 |   |                  |    |   |                 |   |   |   |
| Balance as of March 31, 2010    |   |                  | 370,000 |   |                 | $      | .21 |   |

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| 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. |
|------|--------------|-------------------------------------------------------------------------------------------------------------------------|

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|              | RELIABILITY INCORPORATED(Registrant) |                                  |
|-------------------|--------------------------------------|---------------------------------------|
|              |                                 |                                  |   |
| May 17, 2010 | By:                                  | /s/ Jay Gottlieb                 |   |
|              |                                 | Jay Gottlieb                          |   |
|              |                                 | President and Chief Executive Officer |   |
|              |                                 |                                  |   |
|              |                                 |                                  |   |
|              |                                 |                                  |   |
|              | By:                                  | /s/ Gregg Schneider                   |   |
|              |                                 | Gregg Schneider                       |   |
|              |                                 | Chief Financial Officer               |   |

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