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| x | 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  |   | 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, 2011 and December 31, 2010 (Unaudited)                   | 3 |
|                          |                                                                                                 |   |
|                          | Consolidated Statement of Operations for the Three Months Ended March 31, 2011 and 2010 (Unaudited)  | 4 |
|                          |                                                                                                 |   |
|                          | Consolidated Statements of Cash Flows for the Three Months ended March 31, 2011 and 2010 (Unaudited) | 5 |
|                          |                                                                                                 |   |
|                          | Notes to Unaudited 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                                           | 10 |
|                          |                                                                                                 |   |
| Item 4.                       | Controls and Procedures                                                                              | 11 |
|                          |                                                                                                 |   |
| Item 5.                       | Subsequent Events                                                                                    | 11 |
|                          |                                                                                                 |   |
| PART II. OTHER INFORMATION    | 12                                                                                                   |
|                          |                                                                                                 |   |
| Item 6.                       | Exhibits                                                                                             | 12 |
|                          |                                                                                                 |   |
| Signatures                    | 13                                                                                                   |

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| Item 1. | Financial Statements |
|--------------|----------------------|

|  ASSETS                                                                                                                                                                                                                              |    | March 31,2011(unaudited) |   |   | December 31,2010 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|--------------------------|--------|--------|-----------------------|--------|
| Current assets:                                                                                                                                                                                                                           |    |                     |   |   |                  |   |   |   |
|        Cash and cash equivalents                                                                                                                                                                       |         | $                        | 4      |   |                  | $      | 2 |   |
|                  Total current assets                                                                                                                |    |                     | 4      |   |                  |   | 2 |   |
|                                                                                                                                                                                                                                      |         |                     |   |   |                  |   |   |   |
|                                                                                                                                                                                                                                      |    |                     |   |   |                  |   |   |   |
| Total Assets                                                                                                                                                                                                                              |         | $                        | 4      |   |                  | $      | 2 |   |
|                                                                                                                                                                                                                                      |    |                     |   |   |                  |   |   |   |
|                                                                                                                                                                                                                                      |         |                     |
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)                                                                                                                                                                                      |    |                     |   |   |                  |   |   |   |
| Current liabilities:                                                                                                                                                                                                                      |    |                     |   |   |                  |   |   |   |
| Accounts payable and accrued liabilities                                                                                                                                                                                                  |    | $                        | 1      |   |                  | $      | 9 |   |
|              Total current liabilities                                                                                                                                   |    |                     | 1      |   |                  |   | 9 |   |
|                                                                                                                                                                                                                                      |    |                     |   |   |                  |   |   |   |
| Stockholders’ equity (deficit):                                                                                                                                                                                                     |    |                     |   |   |                  |   |   |   |
|                   Common stock, without par value; 20,000,000 shares authorized; 11,867,633 and 10,784,300 shares issued respectively |    |                     | 9,830  |   |                  |   | 9,817 |   |
|            Accumulated deficit                                                                                                                                                     |    |                     | (8,733 | )      |                  |   | (8,730 | ) |
|            Less treasury stock at cost, 354,300 shares                                                                                                                             |    |                     | (1,094 | )      |                  |   | (1,094 | ) |
|                                                                                                                                                                                                                                      |    |                     |   |   |                  |   |   |   |
|                             Total stockholders’ equity (deficit)                        |    |                     | 3      |   |                  |   | (7 | ) |
|                                                                                                                                                                                                                                      |    |                     |   |   |                  |   |   |   |
|                                                                                                                                                                                                                                      |    | $                        | 4      |   |                  | $      | 2 |   |

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|                                                                                                              |   | (unaudited)                  |   |
|-------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                                                              |   | Three months ended March 31, |   |
|                                                                                                              |   | 2011                         |   |   | 2010 |   |
| Operating expenses:                                                                                               |   |                         |   |   |   |   |
| General and administrative                                                                                        |   | $                            | 3      |   |   | $ | 11 |   |
|                Total cost and expenses |   |                         | 3      |   |   |   | 11 |   |
| Operating loss                                                                                                    |   |                         | (3     | ) |   |   | (11 | ) |
| Other income (expense)                                                                                            |   |                         |   |   |   |   |   |   |
|          Other (expense)                                             |   |                         | 0      |   |   |   | 0 |   |
|               Total other income (expense)  |   |                         | 0      |   |   |   | 0 |   |
| Loss from continuing operations                                                                                   |   |                         | (3     | ) |   |   | (11 | ) |
| Net Loss                                                                                                          |   | $                            | (3     | ) |   | $ | (11 | ) |
| Weighted average shares:                                                                                          |   |                         |   |   |   |   |   |   |
|        Basic                                                                   |   |                         | 11,284 |   |   |   | 9,630 |   |
|        Diluted                                                                 |   |                         | 11,284 |   |   |   | 9,630 |   |

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|                                                                               |         | (unaudited)                  |   |
|------------------------------------------------------------------------------------|--------------|------------------------------|--------|
|                                                                               |         | Three months ended March 31, |   |
|                                                                               |    | 2011                         |   |   | 2010 |   |
| Cash flows from operating activities:                                              |    |                         |   |   |   |   |   |   |
| Net loss                                                                           |    | $                            | (3     | ) |   | $ | (11 | ) |
|                                                                               |         |                         |   |   |   |   |   |   |
|                                                                               |         |                         |   |   |   |   |   |   |
| Changes in operating assets and liabilities:                                       |    |                         |   |   |   |   |   |   |
|        Accounts payable and accrued liabilities |    |                         | (8     | ) |   |   |          (3 | ) |
|                                                                               |         |                         |   |   |   |   |   |   |
|                                                                               |         |                         |   |   |   |   |   |   |
| Net cash used by operating activities                                              |    |                         | (11    | ) |   |   | (14 | ) |
|                                                                               |    |                         |   |   |   |   |   |   |
| Cash flows from financing activities:                                              |         |                         |   |   |   |   |   |   |
|        Issuance of stock for cash               |         |                         | 13     |   |   |   | - |   |
| Net cash provided by financing activities                                          |    |                         | 13     |   |   |   | - |   |
| Net  increase (decrease) in cash                                         |    |                         | 2      |   |   |   | (14 | ) |
| Cash and cash equivalents:                                                         |    |                         |   |   |   |   |   |   |
|        Beginning of period                      |    |                         | 2      |   |   |   | 21 |   |
|        End of period                            |    | $                            | 4      |   |   | $ | 7 |   |

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|                                 |   | Number ofOptions |    |   | WeightedAveragePrice |   |
|--------------------------------------|--------|-----------------------|---------|--------|----------------------|--------|
| Balance as of December 31, 2010 |   |                  | 370,000 |   |                 | $      | .21 |   |
| Expired or canceled                  |   |                  | — |   |                 |   | — |   |
| Exercised                            |   |                  | — |   |                 |   | — |   |
| Granted                              |   |                  | — |   |                 |   | — |   |
|                                 |   |                  |    |   |                 |   |   |   |
| Balance as of March 31, 2011    |   |                  | 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)             |                                  |
|         |                     |                                  |   |
| May 10, 2011 | By:                      | /s/ Jay Gottlieb                 |   |
|         |                     | Jay Gottlieb                          |   |
|         |                     | President and Chief Executive Officer |   |
|         |                     |                                  |   |
|         |                     |                                  |   |
|         |                     | /s/ Gregg Schneider                   |   |
|         |                     | Gregg Schneider                       |   |
|         |                     | Chief Financial Officer               |   |

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