----

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

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

| Large accelerated filer |  ̈                                                          | Accelerated filer              |  ̈ |
|-----------------------------------|-----------------------------------------------------------------|-------------------------------------|--------|
|                              |                                                            |                                |   |
| Non-accelerated filer             |  ̈  (Do not check if a smaller reporting company) | Smaller reporting company | x      |

----

----

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| PART I           |                                                                                                               |
|------------------|--------------------------------------------------------------------------------------------------------------------|
|             |                                                                                                               |   |   |   |
|             |                                                                                                               |   |   |   |
| Item 1.          | Description of Business                                                                                            |   |   | 3 |   |
| Item 2.          | Description of Properties                                                                                          |   |   | 3 |   |
| Item 3.          | Legal Proceedings                                                                                                  |   |   | 3 |   |
| Item 4.          | Submission of Matters to a Vote of Security Holders                                                                |   |   | 3 |   |
|             |                                                                                                               |
| PART II          |                                                                                                               |
|             |                                                                                                               |   |   |   |   |
| Item 5.          | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |   |   | 4 |   |
| Item 6.          | Selected Financial Data                                                                                            |   |   | 5 |   |
| Item 7.          | Management’s Discussion and Analysis or Plan of Operation                                                    |   |   | 5 |   |
| Item 7A.         | Quantitative and Qualitative Disclosures About Market Risk                                                         |   |   | 7 |   |
| Item 8.          | Financial Statements                                                                                               |   |   | 7 |   |
| Item 9.          | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                               |   |   | 7 |   |
| Item 9A(T). | Controls and Procedures                                                                                            |   |   | 8 |   |
| Item 9B.         | Other Information                                                                                                  |   |   | 8 |   |
|             |                                                                                                               |
| PART III         |                                                                                                               |
|             |                                                                                                               |   |   |   |   |
| Item 10.         | Directors, Executive Officers, and Corporate Governance                                                            |   |   | 9 |   |
| Item 11.         | Executive Compensation                                                                                             |   |   | 10 |   |
| Item 12.         | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                     |   |   | 11 |   |
| Item 13.         | Certain Relationships and Related Transactions and Director Independence                                           |   |   |   |   |
| Item 14.         | Principal Accountant’s Fees and Services                                                                     |   |   | 12 |   |
| Item 15.         | Exhibits                                                                                                           |   |   | 13 |   |
|             | Signatures                                                                                                         |   |   |   |   |

----

| Item 1. | Description of Business |
|--------------|-------------------------|

| Item 1A. | Risk Factors. |
|---------------|---------------|

| Item 1B. | Unresolved Staff Comments. |
|---------------|----------------------------|

| Item 2. | Description of Properties. |
|--------------|----------------------------|

| Item 3. | Legal Proceedings. |
|--------------|--------------------|

| Item 4. | Submission of Matters to a Vote of Security Holders. |
|--------------|------------------------------------------------------|

----

| Item 5. | Market for Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. |
|--------------|--------------------------------------------------------------------------------------------------|

|   |   | First Quarter |   |   | Second Quarter |   |   | Third Quarter |   |   | Fourth Quarter |   |
|--------|--------|--------------------|--------|--------|---------------------|--------|--------|--------------------|--------|--------|---------------------|--------|
| 2010   |   |               |   |   |                |   |   |               |   |   |                |   |
| High   |   | $                  | .02    |   |                |   | .02    |               |   |   | .03                 |   |   |   | .03 |   |
| Low    |   |               | .01    |   |                |   | .01    |               |   |   | .01                 |   |   |   | .01 |   |
| 2009   |   |               |   |   |                |   |   |               |   |   |                |   |   |   |   |   |
| High   |   | $                  | .08    |   |                | $      | .07    |               |   | $      | .03                 |   |   | $ | .04 |   |
| Low    |   |               | .01    |   |                |   | .01    |               |   |   | .02                 |   |   |   | .01 |   |

| Plan category                                              |   | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) |    | Weighted-average exercise price of outstanding options, warrants and rights (b) |           | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) |
|------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|--------------|----------------------------------------------------------------------------------------------------------|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Equity compensation plans approved by security holders     |   | 370,000                                                                                                                                 |    | $                                                                                                        | 0.21                |                                                                                                                                                                                         | 0 |
| Equity compensation plans not approved by security holders |   | —                                                                                                                       |    |                                                                                                     | —   |                                                                                                                                                                                         | —   |
| Total                                                      |   | 370,000                                                                                                                                 |    | $                                                                                                        | 0.21                |                                                                                                                                                                                         | 0 |

----

| Item 6. | Selected Financial Data. |
|--------------|--------------------------|

| Item 7. | Management’s Discussion and Analysis or Plan of Operation. |
|--------------|------------------------------------------------------------------|

----

----

| Item 7A. | Quantitative and Qualitative Disclosures About Market Risk. |
|---------------|-------------------------------------------------------------|

| Item 8. | Financial Statements and Supplementary Data. |
|--------------|----------------------------------------------|

| Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. |
|--------------|---------------------------------------------------------------------------------------|

----

| Item 9A(T). | Controls and Procedures. |
|------------------|--------------------------|

| Item 9B. | Other Information |
|---------------|-------------------|

----

| Item 10. | Directors Executive Officers, and Corporate Governance. |
|---------------|---------------------------------------------------------|

| NAME                       |   | AGE    |   | PRINCIPAL POSITION                                          |
|--------------------------------------|--------|--------|--------|-------------------------------------------------------------|
|                                 |   |   |   |                                                        |
| Jay Gottlieb               |   | 66     |   | Chairman of the Board of Directors, Secretary and Treasurer |
|                                 |   |   |   |                                                        |
| Michael Pearce        |   | 49     |   | Director                                                    |
|                                 |   |   |   |                                                        |
| Greggory Schneider    |   | 34     |   | Director and Chief Financial Officer                        |
|                                 |   |   |   |                                                        |
| Joshua Krom                |   | 34     |   | Director                                                    |
|                                 |   |   |   |                                                        |
| Ron Gutterson                        |   | 66     |   | Director                                                    |

----

| Item 11. | Executive Compensation. |
|---------------|-------------------------|

----

| Name (a)                          |   | Number of Securities Underlying Unexercised Options |    | Option                                 |
|-----------------------------------|--------|------------------------------------------------------------------------------|---------|----------------------------------------|
|                              |   | # Exercisable (b)                                                  |    | # Unexercisable (1) (c) |   | Exercise Price (e) |   | Expiration Date (f) |
| Larry Edwards: (former President) |   |                                                                         | 200,000 |                                   |   |   |   | $ | .21 |   | 7/19/2016 |

| (1) | All issued options are vested and became exercisable on January 20, 2007. |
|-----|--------------------------------------------------------------------------------|

| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. |
|---------------|-------------------------------------------------------------------------------------------------|

| Name and Address of Beneficial Owner                   |   | Amount and Nature of Beneficial Ownership |      |   | Percent of Class |   |
|--------------------------------------------------------|--------|--------------------------------------------------------------------|-----------|--------|----------------------------|--------|
| Jay Gottlieb                                           |   |                                                               |      |   |                       |   |
| 27 Misty Brook Lane, New Fairfield, CT 06812           |   |                                                               | 3,303,255 |   |                       |   | 31.60 | % |
| William Vlahos                                         |   |                                                               |      |   |                       |   |   |   |
| 601 Montgomery St., Ste. 1112, San Francisco, CA 94111 |   |                                                               | 633,000   |   |                       |   | 6.06 | % |

----

| Name of individual or group                     |   | Amount and Nature of Beneficial Ownership (1), (2) |      |   | Percent of Class (3) |   |
|-------------------------------------------------|--------|-----------------------------------------------------------------------------|-----------|--------|-------------------------------------|--------|
|                                            |   |                                                                        |      |   |                                |   |
| Jay Gottlieb                                    |   |                                                                        | 3,303,255 |   |                                |   | 31 | % |
| Gregg Schneider                                 |   |                                                                        | 400,000   |   |                                |   | 4 |   |
|                                            |   |                                                                        |      |   |                                |   |   |   |
|                                            |   |                                                                        |      |   |                                |   |   |   |
|                                            |   |                                                                        |      |   |                                |   |   |   |
| All executive officers and directors as a group |   |                                                                        | 3,703,255 |   |                                |   | 35 | % |

| Item 14. | Principal Accountant’s Fees and Services |
|---------------|------------------------------------------------|

| Fee category       |   | 2009   |    |   | 2010   |   |
|--------------------|--------|--------|---------|--------|--------|--------|
| Audit fees         |   | $      | 8,400   |   |   | $      | 8,000 |   |
| Audit-related fees |   |   | 2,500   |   |   |   | 6,500 |   |
| Tax fees           |   |   | 00      |   |   |   | 00 |   |
| All other fees     |   |   | — |   |   |   | — |   |
|               |   |   |    |   |   |   |   |   |
| Total fees         |   | $      | 10,900  |   |   | $      | 14,500 |   |
|               |   |   |    |   |   |   |   |   |

----

| Item 15. | Exhibits |
|---------------|----------|

| a) | The following financial statements are filed as part of this report: |
|----|----------------------------------------------------------------------|

| 1.     | Financial Statements: Listed in the Index to Financial Statements provided in response to Item 8 hereof (see p. F-1 for Index)                                                      |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                     |
| 2.     | Financial Statement Schedule. Financial Statement schedules are omitted because they are inapplicable or the required information is shown in the financial statements or noted therein. |

| b) | The following exhibits are filed as part of this report: |
|----|----------------------------------------------------------|

| 3.1    | Restated Articles of Incorporation (with amendment). Reference is made to Exhibit 3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 1995.                                                               |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                             |
| 3.2    | Restated Bylaws. Reference is made to Exhibit 3.2 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2003.                                                                                                        |
|   |                                                                                                                                                                                                                                             |
| 3.3    | Amended Bylaws. Reference is made to Exhibit 3.01 of the Company’s Form 8-K, filed on April 6, 2007.                                                                                                                                       |
|   |                                                                                                                                                                                                                                             |
| 23.1   | Consent of Independent Registered Public Accounting Firm—Ramirez Jimenez International CPA’s.                                                                                                                                        |
|   |                                                                                                                                                                                                                                             |
| 31.1   | Certification Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act.                                                                                                                                                               |
|   |                                                                                                                                                                                                                                             |
| 32     | Certification Pursuant to Rule 13a-14(b)/15d-14(b) and Section 1350, Chapter 63, Title 18 of the United States Code (Certification will not be deemed “filed” for purposes of Section 18 of the Securities Act of 1934, as amended). |

----

|   | RELIABILITY INCORPORATED (Registrant) |                                              |
|--------|---------------------------------------|---------------------------------------------------|
|   |                                  |                                              |   |
|   | By:                                   | /s/ Jay Gottlieb                             |   |
|   |                                  | Jay Gottlieb, Chairman of the Board of Directors, |   |
|   |                                  | President                                         |   |
|   |                                  |                                              |   |

|   | By:    | /s/ Jay Gottlieb                             |   |
|--------|--------|---------------------------------------------------|--------|
|   |   | Jay Gottlieb, Chairman of the Board of Directors, |   |
|   |   | President                                         |   |

|                                                  |         |                          |
|-------------------------------------------------------|--------------|-------------------------------|
| /s/ Jay Gottlieb                                      |    | DATE: March 7, 2011           |
| Jay Gottlieb   President and Director  |    |                          |
|                                                  |         |
| /s/ Gregg Schneider                                   |    | DATE: March 7, 2011           |
| Gregg Schneider, Chief Financial Officer and Director |    |                          |
|                                                  |         |
| /s/ Michael Pearce                                    |    | DATE: March 7, 2011           |
| Michael Pearce, Director                              |    |                          |
|                                                  |         |
| /s/ Ron Gutterson.                                    |    | DATE: March 7, 2011           |
| Ron Gutterson Director                                |    |                          |
|                                                  |         |
| /s/ Josh Krom.                                        |    | DATE  March 7, 2011 |
| Josh Krom, Director                                   |    |                          |

----

|                                          |
|-----------------------------------------------|
| /s/ Ramirez Jimenez International CPA’s |   |
|                                          |
|                                          |
| Irvine, California                            |
| March 7, 2011                                 |

----

| ASSETS                                                                                                                                                                                                                              |    | December 31,2010 |   |   | December 31,2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|------------------|--------|--------|-----------------------|--------|
| Current assets:                                                                                                                                                                                                                     |    |             |   |   |                  |   |   |   |
|        Cash and cash equivalents                                                                                                                                                                 |         | $                | 2      |   |                  | $      | 21 |   |
|                  Total current assets                                                                                                          |    |             | 2      |   |                  |   | 21 |   |
|                                                                                                                                                                                                                                |         |             |   |   |                  |   |   |   |
|                                                                                                                                                                                                                                |    |             |   |   |                  |   |   |   |
| Total Assets                                                                                                                                                                                                                        |         | $                | 2      |   |                  | $      | 21 |   |
|                                                                                                                                                                                                                                |    |             |   |   |                  |   |   |   |
|                                                                                                                                                                                                                                |         |             |
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)                                                                                                                                                                                |    |             |   |   |                  |   |   |   |
| Current liabilities:                                                                                                                                                                                                                |    |             |   |   |                  |   |   |   |
| Accounts payable and accrued liabilities                                                                                                                                                                                            |    | $                | 9      |   |                  | $      | 6 |   |
|                                                                                                                                                                                                                                |         |             |   |   |                  |   |   |   |
|              Total current liabilities                                                                                                                             |    |             | 9      |   |                  |   | 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                                                                                                                                               |    |             | (8,730 | )      |                  |   | (8,698 | ) |
|            Less treasury stock at cost, 354,300 shares                                                                                                                       |    |             | (1,094 | )      |                  |   | (1,094 | ) |
|                                                                                                                                                                                                                                |    |             |   |   |                  |   |   |   |
|                             Total stockholders’ equity (deficit)                  |    |             | (7     | )      |                  |   | 15 |   |
|                                                                                                                                                                                                                                |    |             |   |   |                  |   |   |   |
|                                                                                                                                                                                                                                |    | $                | 2      |   |                  | $      | 21 |   |

----

|                                                                                                              |         | Year endedDecember 31, |   |
|-------------------------------------------------------------------------------------------------------------------|--------------|-----------------------------|--------|
|                                                                                                              |    | 2010                        |   |   | 2009 |   |
| Operating expenses:                                                                                               |         |                        |   |   |   |   |
| General and administrative                                                                                        |    | $                           | 32     |   |   | $ | 23 |   |
|                                                                                                              |         |                        |   |   |   |   |   |   |
|                Total cost and expenses |    |                        | 32     |   |   |   | 23 |   |
|                                                                                                              |         |                        |   |   |   |   |   |   |
|                                                                                                              |         |                        |   |   |   |   |   |   |
|                                                                                                              |         |                        |   |   |   |   |   |   |
| Loss  before income taxes                                                                               |    |                        | (32    | ) |   |   | (23 | ) |
| Provision for income taxes                                                                                        |    |                        | -      |   |   |   | (1 | ) |
|                                                                                                              |         |                        |   |   |   |   |   |   |
|                                                                                                              |         |                        |   |   |   |   |   |   |
| Net Loss                                                                                                          |    | $                           | (32    | ) |   | $ | (24 | ) |
|                                                                                                              |    |                        |   |   |   |   |   |   |
| Basic and diluted loss per share:                                         |    | $                           | Nil    |   |   | $ | Nil |   |
|                                                                                                              |    |                        |   |   |   |   |   |   |
| Weighted average shares:                                                                                          |    |                        |   |   |   |   |   |   |
|        Basic                                                                   |    |                        | 9,965  |   |   |   | 8,993 |   |
|        Diluted                                                                 |    |                        | 9,965  |   |   |   | 8,993 |   |

----

|                                                                       |         | Year  ended December 31, |   |
|----------------------------------------------------------------------------|--------------|------------------------------------|--------|
|                                                                       |    |    2010             |   |   |    2009 |   |
| Cash flows from operating activities:                                      |    |                               |   |   |   |   |   |   |
| Net loss                                                                   |    | $                                  | (32    | ) |   | $ | (24 | ) |
|                                                                       |         |                               |   |   |   |   |   |   |
| Changes in operating assets and liabilities:                               |    |                               |   |   |   |   |   |   |
|  Accounts payable and accrued liabilities                             |         |                               | 3      |   |   |   | (38 | )  |
| Net cash used by operating activities                                      |    |                               | (29    | ) |   |   | (62 | ) |
| Cash flows from financing activities:                                      |         |                               |   |   |   |   |   |   |
|         Issuance of stock for cash      |         |                               | 10     |   |   |   | 40 |   |
| Net cash provided by financing activities                                  |    |                               | 10     |   |   |   | 40 |   |
| Net decrease in cash                                                       |    |                               | (19    | ) |   |   | (22 | ) |
| Cash and cash equivalents:                                                 |    |                               |   |   |   |   |   |   |
|        Beginning of period              |    |                               | 21     |   |   |   | 43 |   |
|        End of period                    |    | $                                  | 2      |   |   | $ | 21 |   |
| Supplemental disclosure of cash flow information:                          |         |                               |   |   |   |   |   |   |
|        Cash paid during the period for: |         |                               |   |   |   |   |   |   |
|        Interest                         |         | $                                  | -      |   |   | $ | - |   |
|        Income taxes                     |         | $                                  | -      |   |   | $ | - |   |

----

|                                                  |   | Common Stock |   |   | Treasury Stock (At Cost) |   |   |   |   |   |   |   |
|-------------------------------------------------------|--------|--------------|--------|--------|-------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                  |   | Shares       |   |   | Amount                        |   |   | Shares |   |   | Amount |   |   | Retained Earnings (Deficit) |   |   | Total Amount |   |
|  Balance at December 31, 2008                    |   |         | 6,690  |   |                          | $      | 9,767  |   |   |   | (354   | )      |   | $ | (1,094 | ) |   | $ | (8,674 | ) |   | $ | (1 | ) |
|                                                  |   |         |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Issuance of stock |   |         | 3,294  |   |                          |   | 40     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 40 |   |
|                                                  |   |         |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ne Net loss                                           |   |         |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   | (24 | ) |   |   | (24 | ) |
|                                                  |   |         |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Balance at December 31,2009                     |   |         | 9,984  |   |                          | $      | 9,807  |   |   |   | (354   | )      |   | $ | (1,094 | ) |   | $ | (8,698 | ) |   | $ | 15 |   |
|                                                  |   |         | 444    |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Iss Issuance of stock                                 |   |         | 800    |   |                          |   | 10     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 10 |   |
|                                                  |   |         |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ne Net loss                                           |   |         |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   | (32 | ) |   |   | (32 | ) |
|                                                  |   |         |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Balance at December 31,2010                     |   |         | 10,784 |   |                          | $      | 9,817  |   |   |   | (354   | )      |   | $ | (1,094 | ) |   | $ | (8,730 | ) |   | $ | (7 | ) |

----

----

|                         |   | 2009   |   |   | 2010   |   |
|------------------------------|--------|--------|--------|--------|--------|--------|
| Deferred tax assets:         |   |   |   |   |   |   |
|                         |   |   |   |   |   |   |
| Net operating loss carryover |   | $      | 5,478  |   |   | $      | 5,478 |   |
| Capital loss carryover       |   |   | 199    |   |   |   | 199 |   |
|                         |   |   |   |   |   |   |   |   |
| Total deferred tax assets    |   |   | 5,677  |   |   |   | 5,677 |   |
| Valuation allowance          |   |   | 5,677  |   |   |   | 5,677 |   |
|                         |   |   |   |   |   |   |   |   |
| Net deferred tax assets      |   | $      | 0      |   |   | $      | 0 |   |

----

|                 |   | 2009   |   |   | 2010   |   |
|----------------------|--------|--------|--------|--------|--------|--------|
| Legal and Accounting |   | $      | 6      |   |   | $      | 9 |   |
|                 |   |   |   |   |   |   |   |   |
| Total                |   | $      | 6      |   |   | $      | 9 |   |

----

|                                          |   | Number of Options |    |   | Weighted Average Price |   |
|-----------------------------------------------|--------|-----------------------------|---------|--------|----------------------------------|--------|
|                                          |   |                        |    |   |                             |   |
| Balance as of December 31, 2009 and 2010 |   |                        | 370,000 |   |                             | $      | .21 |   |

----