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

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

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

| 410 Park Avenue - 15th Floor, New York, NY  |   | 10022      |
|--------------------------------------------------|--------|------------|
| (Address of principal executive offices)         |   | (Zip Code) |

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| PART I. FINANCIAL INFORMATION |                                                                                                                             |   |   |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                          |                                                                                                                             |   |   |   |
| Item 1.                       | Financial Statements                                                                                                             |   |   |   |
|                          |                                                                                                                             |   |   |   |
|                          | Consolidated Balance Sheets as of September 30, 2010 and December 31, 2009                                                       |   | 3      |   |
|                          |                                                                                                                             |   |   |   |
|                          | Consolidated Statement of Operations for the Three Months Ended September 30, 2010 and 2009 (Unaudited)                          |   | 4      |   |
|                          |                                                                                                                             |   |   |   |
|                          | Consolidated Statement of Operations for the Nine Months ended for the Nine Months Ended September 30, 2010 and 2009 (Unaudited) |   | 5      |   |
|                          |                                                                                                                             |   |   |   |
|                          | Consolidated Statements of Cash Flows for the Nine Months September 30, 2010 and 2009 (Unaudited)                                |   | 6      |   |
|                          |                                                                                                                             |   |   |   |
|                          | Notes to Condensed Consolidated Financial Statements                                                                             |   | 7-9    |   |
|                          |                                                                                                                             |   |   |   |
| Item 2.                       | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                      |   | 10-11  |   |
|                          |                                                                                                                             |   |   |   |
| Item 3.                       | Quantitative and Qualitative Disclosures About Market Risk                                                                       |   | 11     |   |
|                          |                                                                                                                             |   |   |   |
| Item 4.                       | Controls and Procedures                                                                                                          |   | 12     |   |
|                          |                                                                                                                             |   |   |   |
| PART II. OTHER INFORMATION    |                                                                                                                             |   |   |
|                          |                                                                                                                             |   |   |   |
| Item 6.                       | Exhibits                                                                                                                         |   | 13     |   |
|                          |                                                                                                                             |   |   |   |
| Signatures                    |                                                                                                                             | 14     |   |

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| ASSETS                                                                                                                                                                                                                              |    | September 30,2010(unaudited) |   |   | December 31,2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|------------------------------|--------|--------|-----------------------|--------|
| Current assets:                                                                                                                                                                                                                     |    |                         |   |   |                  |   |   |   |
|        Cash and cash equivalents                                                                                                                                                                 |         | $                            | 5      |   |                  | $      | 21 |   |
|                  Total current assets                                                                                                          |    |                         | 5      |   |                  |   | 21 |   |
|                                                                                                                                                                                                                                |         |                         |   |   |                  |   |   |   |
|                                                                                                                                                                                                                                |    |                         |   |   |                  |   |   |   |
| Total Assets                                                                                                                                                                                                                        |         | $                            | 5      |   |                  | $      | 21 |   |
|                                                                                                                                                                                                                                |    |                         |   |   |                  |   |   |   |
|                                                                                                                                                                                                                                |         |                         |
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)                                                                                                                                                                                |    |                         |   |   |                  |   |   |   |
| Current liabilities:                                                                                                                                                                                                                |    |                         |   |   |                  |   |   |   |
| Accounts payable and accrued liabilities                                                                                                                                                                                            |    | $                            | 0      |   |                  | $      | 6 |   |
|                                                                                                                                                                                                                                |         |                         |   |   |                  |   |   |   |
|              Total current liabilities                                                                                                                             |    |                         | 0      |   |                  |   | 6 |   |
|                                                                                                                                                                                                                                |    |                         |   |   |                  |   |   |   |
| Stockholders’ equity (deficit):                                                                                                                                                                                               |    |                         |   |   |                  |   |   |   |
|                   Common stock, without par value; 20,000,000 shares authorized; 10,784,300 and 9,984,300 shares issued respectively |    |                         | 9,817  |   |                  |   | 9,807 |   |
|            Accumulated deficit                                                                                                                                               |    |                         | (8,718 | )      |                  |   | (8,698 | ) |
|            Less treasury stock at cost, 354,300 shares                                                                                                                       |    |                         | (1,094 | )      |                  |   | (1,094 | ) |
|                                                                                                                                                                                                                                |    |                         |   |   |                  |   |   |   |
|                             Total stockholders’ equity (deficit)                  |    |                         | 5      |   |                  |   | 15 |   |
|                                                                                                                                                                                                                                |    |                         |   |   |                  |   |   |   |
|                                                                                                                                                                                                                                |    | $                            | 5      |   |                  | $      | 21 |   |

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|                                                                                                              |   | (unaudited)                      |   |
|-------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|
|                                                                                                              |   | Three months ended September 30, |   |
|                                                                                                              |   | 2010                             |   |   | 2009 |   |
| Operating expenses:                                                                                               |   |                             |   |   |   |   |
| General and administrative                                                                                        |   | $                                | 5      |   |   | $ | 11 |   |
|                Total cost and expenses |   |                             | 5      |   |   |   | 11 |   |
| Operating loss                                                                                                    |   |                             | (5     | ) |   |   | (11 | ) |
| Net Loss                                                                                                          |   | $                                | (5     | ) |   | $ | (11 | ) |
|        Net Loss Per Share                                                      |   |                             | nil    |   |   |   | nil |   |
| Weighted average shares:                                                                                          |   |                             |   |   |   |   |   |   |
|        Basic                                                                   |   |                             | 9,985  |   |   |   | 9,630 |   |
|        Diluted                                                                 |   |                             | 9,985  |   |   |   | 9,630 |   |

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|                                                                                                                   |         | (unaudited)                     |   |
|------------------------------------------------------------------------------------------------------------------------|--------------|---------------------------------|--------|
|                                                                                                                   |         | Nine months ended September 30, |   |
|                                                                                                                   |    | 2010                            |   |   | 2009 |   |
| Operating expenses:                                                                                                    |         |                            |   |   |   |   |
| General and administrative                                                                                             |    | $                               | 20     |   |   | $ | 25 |   |
|                                                                                                                   |         |                            |   |   |   |   |   |   |
|                Total cost and expenses      |    |                            | 20     |   |   |   | 25 |   |
|                                                                                                                   |         |                            |   |   |   |   |   |   |
|                Total other income (expense) |         |                            | -      |   |   |   | - |   |
|                                                                                                                   |         |                            |   |   |   |   |   |   |
| Loss from continuing operations, before income taxes                                                                   |    |                            | (20    | ) |   |   | (25 | ) |
| Provision for income taxes                                                                                             |    |                            | -      |   |   |   | (1 | ) |
| Loss from continuing operations                                                                                        |    |                            | (20    | ) |   |   | (26 | ) |
|                                                                                                                   |         |                            |   |   |   |   |   |   |
| Net Loss                                                                                                               |    | $                               | (20    | ) |   | $ | (26 | ) |
|                                                                                                                   |    |                            |   |   |   |   |   |   |
| Basic and diluted loss per share:                                              |    | $                               | Nil    |   |   | $ | Nil |   |
|                                                                                                                   |    |                            |   |   |   |   |   |   |
| Weighted average shares:                                                                                               |    |                            |   |   |   |   |   |   |
|        Basic                                                                        |    |                            | 9,748  |   |   |   | 9,630 |   |
|        Diluted                                                                      |    |                            | 9,748  |   |   |   | 9,630 |   |

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|                                                                       |         | (unaudited)                     |                                                      |
|----------------------------------------------------------------------------|--------------|---------------------------------|-----------------------------------------------------------|
|                                                                       |         | Nine months ended September 30, |                                                      |
|                                                                       |    |    2010          |                                                      |   |    2009 |   |
| Cash flows from operating activities:                                      |    |                            |                                                      |   |   |   |   |   |
| Net loss                                                                   |    | $                               | (20                                                       | ) |   | $ | (26 | ) |
|        Loss from continuing operations  |    |                            |          (20 | ) |   |   |          (26 | ) |
| Changes in operating assets and liabilities:                               |    |                            |                                                      |   |   |   |   |   |
|  Accounts payable and accrued liabilities                             |         |                            | (6)                                                       |   |   |   | (28) |   |
| Net cash used by operating activities                                      |    |                            | (26                                                       | ) |   |   | (54 | ) |
| Cash flows from financing activities:                                      |         |                            |                                                      |   |   |   |   |   |
|         Issuance of stock for cash      |         |                            | 10                                                        |   |   |   | 40 |   |
| Net cash provided by financing activities                                  |    |                            | -                                                         |   |   |   | 40 |   |
| Net (decrease) increase in cash                                            |    |                            | (16                                                       | ) |   |   | (14 | ) |
| Cash and cash equivalents:                                                 |    |                            |                                                      |   |   |   |   |   |
|        Beginning of period              |    |                            | 21                                                        |   |   |   | 43 |   |
|        End of period                    |    | $                               | 5                                                         |   |   | $ | 29 |   |
| Supplemental disclosure of cash flow information:                          |         |                            |                                                      |   |   |   |   |   |
|        Cash paid during the period for: |         |                            |                                                      |   |   |   |   |   |
|        Interest                         |         | $                               | -                                                         |   |   | $ | - |   |
|        Income taxes                     |         | $                               | -                                                         |   |   | $ | - |   |

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|                                 |   | Number ofOptions |    |   | WeightedAveragePrice |   |
|--------------------------------------|--------|-----------------------|---------|--------|----------------------|--------|
| Balance as of December 31, 2009 |   |                  | 370,000 |   |                 | $      | .21 |   |
| Expired or canceled                  |   |                  | — |   |                 |   | — |   |
| Exercised                            |   |                  | — |   |                 |   | — |   |
| Granted                              |   |                  | — |   |                 |   | — |   |
|                                 |   |                  |    |   |                 |   |   |   |
| Balance as of September 30, 2010     |   |                  | 370,000 |   |                 | $      | .21 |   |

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| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|--------------|---------------------------------------------------------------------------------------------|

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| Item 4 and 4T. | Controls and Procedures. |
|---------------------|--------------------------|

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| Item 6. | Exhibits: |
|--------------|-----------|

| 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) |                                  |
|--------------------------|--------------------------------------|---------------------------------------|
|                     |                                 |                                  |   |
| Dated: November 12, 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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