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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  |   | 10022      |
|--------------------------------------------------|--------|------------|
| (Address of principal executive offices)         |   | (Zip Code) |

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| PART I. FINANCIAL INFORMATION |                                                                                               |   |   |
|-------------------------------|----------------------------------------------------------------------------------------------------|--------|--------|
|                          |                                                                                               |   |   |   |
| Item 1.                       | Financial Statements                                                                               |   | 3      |   |
|                          |                                                                                               |   |   |   |
|                          | Consolidated Balance Sheets as of June 30, 2010 and December 31, 2009                              |   |   | 3 |   |
|                          |                                                                                               |   |   |   |   |
|                          | Consolidated Statement of Operations for the Three Months Ended June 30, 2010 and 2009 (Unaudited) |   |   | 4 |   |
|                          | Consolidated Statement of Operations for the Six Months Ended June 30, 2010 and 2009 (Unaudited)   |   |   | 5 |   |
|                          | Consolidated Statements of Cash Flows for the Six Months ended June 30, 2010 and 2009 (Unaudited)  |   |   | 6 |   |
|                          |                                                                                               |   |   |   |   |
|                          | Notes to Condensed Consolidated Financial Statements                                               |   |   | 7-10 |   |
|                          |                                                                                               |   |   |   |   |
| Item 2.                       | Management’s Discussion and Analysis of Financial Condition and Results of Operations        |   |   | 11 |   |
|                          |                                                                                               |   |   |   |   |
| Item 3.                       | Quantitative and Qualitative Disclosures About Market Risk                                         |   |   | 13 |   |
|                          |                                                                                               |   |   |   |   |
| Item 4.                       | Controls and Procedures                                                                            |   |   | 13 |   |
|                          |                                                                                               |   |   |   |   |
| PART II. OTHER INFORMATION    |                                                                                               |   |   |   |
|                          |                                                                                               |   |   |   |   |
| Item 6.                       | Exhibits                                                                                           |   |   | 14 |   |
|                          |                                                                                               |   |   |   |   |
| Signatures                    |                                                                                               |   | 15     |   |

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

|  ASSETS                                                                                                                                                                                  |    | June 30,2010(unaudited) |   |   | December 31,2009 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|-------------------------|--------|--------|-----------------------|--------|
| Current assets:                                                                                                                                                                               |    |                    |   |   |                  |   |   |   |
|        Cash and cash equivalents                                                                                                                           |         | $                       | 1      |   |                  | $      | 21 |   |
| Total current assets                                                                                                                                                                          |    |                    | 1      |   |                  |   | 21 |   |
|                                                                                                                                                                                          |         |                    |   |   |                  |   |   |   |
|                                                                                                                                                                                          |    |                    |   |   |                  |   |   |   |
| Total Assets                                                                                                                                                                                  |         | $                       | 1      |   |                  | $      | 21 |   |
|                                                                                                                                                                                          |    |                    |   |   |                  |   |   |   |
|                                                                                                                                                                                          |         |                    |
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)                                                                                                                                          |    |                    |   |   |                  |   |   |   |
| Current liabilities:                                                                                                                                                                          |    |                    |   |   |                  |   |   |   |
| Accounts payable and accrued liabilities                                                                                                                                                      |    | $                       | 1      |   |                  | $      | 6 |   |
|                                                                                                                                                                                          |         |                    |   |   |                  |   |   |   |
| Total current liabilities                                                                                                                                                                     |    |                    | 1      |   |                  |   | 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                                                                                                         |    |                    | (8,713 | )      |                  |   | (8,698 | ) |
|            Less treasury stock at cost, 354,300 shares                                                                                 |    |                    | (1,094 | )      |                  |   | (1,094 | ) |
|                                                                                                                                                                                          |    |                    |   |   |                  |   |   |   |
| Total stockholders’ equity (deficit)                                                                                                                                                    |    |                    | 0      |   |                  |   | 15 |   |
|                                                                                                                                                                                          |    |                    |   |   |                  |   |   |   |
|                                                                                                                                                                                          |    | $                       | 1      |   |                  | $      | 21 |   |

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|                                              |   | (unaudited)                           |        |
|---------------------------------------------------|--------|---------------------------------------|-------------|
|                                              |   | Three months ended June 30, |        |
|                                              |   | 2010                                  |        |   | 2009 |   |
| Operating expenses:                               |   |                                  |        |   |   |   |
| General and administrative                        |   | $                                     | 4           |   |   | $ | 5 |   |
| Total cost and expenses                           |   |                                  | 4           |   |   |   | 5 |   |
| Operating loss                                    |   |                                  | (4          | ) |   |   | (5 | ) |
|                                              |   |                                  |        |   |   |   |   |   |
|                                              |   |                                  |        |   |   |   |   |   |
| Net Loss                                          |   | $                                     | (4          | ) |   | $ | (5 | ) |
| Basic and Diluted Loss Per Share                  |   |                                  | (0.00  | ) |   |   | (0.00  | ) |
| Weighted average shares:                          |   |                                  |        |   |   |   |   |   |
|        Basic   |   |                                  | 9,630       |   |   |   | 9,630 |   |
|        Diluted |   |                                  | 9,630       |   |   |   | 9,630 |   |

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|                                                                                                              |   | (unaudited)              |   |
|-------------------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                                                              |   | Six months endedJune 30, |   |
|                                                                                                              |   | 2010                     |   |   | 2009 |   |
| Operating expenses:                                                                                               |   |                     |   |   |   |   |
| General and administrative                                                                                        |   | $                        | 15     |   |   | $ | 14 |   |
|                Total cost and expenses |   |                     | 15     |   |   |   | 14 |   |
| Operating loss                                                                                                    |   |                     | (15    | ) |   |   | (14 | ) |
| Other income (expense)                                                                                            |   |                     |   |   |   |   |   |   |
|          Other (expense)                                             |   |                     | -      |   |   |   | 1 |   |
|               Total other income (expense)  |   |                     | -      |   |   |   | 1 |   |
|                                                                                                              |   |                     |   |   |   |   |   |   |
|                                                                                                              |   |                     |   |   |   |   |   |   |
| Net Loss                                                                                                          |   | $                        | (15    | ) |   | $ | (15 | ) |
| Basic and Diluted Loss Per Share                                                                                  |   |                     | (0.00  | ) |   |   | (0.00  | ) |
| Weighted average shares:                                                                                          |   |                     |   |   |   |   |   |   |
|        Basic                                                                   |   |                     | 9,630  |   |   |   | 9,630 |   |
|        Diluted                                                                 |   |                     | 9,630  |   |   |   | 9,630 |   |

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|                                                                               |         | (unaudited)               |                                                      |
|------------------------------------------------------------------------------------|--------------|---------------------------|-----------------------------------------------------------|
|                                                                               |         | Six months ended June 30, |                                                      |
|                                                                               |    | 2010                      |                                                      |   | 2009 |   |
| Cash flows from operating activities:                                              |    |                      |                                                      |   |   |   |   |   |
| Net loss                                                                           |    | $                         | (15                                                       | ) |   | $ | (15 | ) |
|                                                                               |         |                      |                                                      |   |   |   |   |   |
|        Loss from continuing operations          |    |                      |          (15 | ) |   |   | (15 | ) |
|                                                                               |         |                      |                                                      |   |   |   |   |   |
| Changes in operating assets and liabilities:                                       |    |                      |                                                      |   |   |   |   |   |
|                                                                               |         |                      |                                                      |   |   |   |   |   |
|        Accounts payable and accrued liabilities |    |                      | (5                                                        | ) |   |   |          (31 | ) |
| Total adjustments                                                                  |    |                      | (5                                                        | ) |   |   | (31 | )  |
|                                                                               |         |                      |                                                      |   |   |   |   |   |
| Net cash used by operating activities                                              |    |                      | (20                                                       | ) |   |   | (46 | ) |
|                                                                               |    |                      |                                                      |   |   |   |   |   |
| Cash flows from financing activities:                                              |         |                      |                                                      |   |   |   |   |   |
|        Issuance of stock for cash               |         |                      | -                                                         |   |   |   | 40 |   |
| Net cash provided by financing activities                                          |    |                      | -                                                         |   |   |   | 40 |   |
| Net decrease increase in cash                                                      |    |                      | (20                                                       | ) |   |   | (6 | ) |
| Cash and cash equivalents:                                                         |    |                      |                                                      |   |   |   |   |   |
|        Beginning of period                      |    |                      | 21                                                        |   |   |   | 43 |   |
|        End of period                            |    | $                         | 1                                                         |   |   | $ | 37 |   |

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

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| Item2.  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)                    |   |
|-----------------|--------|--------|--------|---------------------------------------------------------------|--------|
|            |   |   |   |
| August 12, 2010 |   |   |   | /s/ Jay Gottlieb                                         |   |
|            |   |   |   | Jay GottliebPresident and Chief Executive Officer   |   |
|            |   |   |   | /s/ Gregg Schneider                                           |   |
|            |   |   |   | Gregg SchneiderChief Financial Officer                        |   |

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