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<p id="xdx_80E_eus-gaap--BasisOfPresentationAndSignificantAccountingPoliciesTextBlock_z5kmyztNwaE6" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">NOTE 1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION Nature of Operations Reliability, Inc. is a leading provider of employer of record and temporary media and information technology (“IT”) staffing services that operates, along with its wholly owned subsidiary, The Maslow Media Group, Inc (“MMG”), (collectively, “Reliability” or the “Company”), primarily within the United States of America in four industry segments: Employer of Record (“EOR”), Recruiting and Staffing, Permanent Placements, and Video and Multimedia Production which provides script to screen media talent. EOR, which is a unique workforce management solution, represented <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20200101__20200630__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--RevenueFromRightsConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--BusinessAcquisitionAxis__custom--MaslowMediaGroupIncMember_zuoEVY5q45C1" title="Percentage of revenue">80.7% of the revenue in 2020 and <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--RevenueFromRightsConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--BusinessAcquisitionAxis__custom--MaslowMediaGroupIncMember_zF3gapC6yZ1f" title="Percentage of revenue">78.5% of second quarter 2021 revenue. Our Staffing segment provides skilled field talent on a nationwide basis for Media, IT and finance and accounting client partner projects. Our Staffing previously included revenue derived from permanent placements which was a rare occurrence. In the second quarter, MMG decided to add Permanent Placement as a segment when new clients began requesting the Company source candidates for permanent hire on a regular basis. The Company had one such placement in the second quarter. Video Production involves assembling and providing crews for special projects that can last anywhere from a week to 6 months. Reliability was incorporated under the laws of the State of Texas in 1953, but the then principal business of the Company started in 1971 was closed down in 2007. The Company completed a reverse merger with MMG (the “Merger”) on October 29, 2019. Vivos Holdings LLC, the previous sole shareholder of MMG and their transferees who were issued shares of Reliability Common Stock include Naveen Doki, Silvija Valleru, Shirisha Janumpally (through Judos Trust and Federal Systems), and Kalyan Pathuri (through Igly Trust) together own approximately 84% of the issued and outstanding shares of Reliability Common Stock. Vivos Holdings, LLC and Vivos Real Estate Holdings, LLC and Mr. Doki have outstanding notes with MMG that date back to acquisition of MMG in November 2016 (See Note 8) (collectively “Vivos Debtors”). Mrs. Janumpally, Mr. Doki, and Mr. Pathuri also have common ownership combinations in a number of other entities [Vivos Holdings, LLC. Vivos Real Estate Holdings, LLC (“VREH”), Vivos Holdings, Inc., Vivos Group, Vivos Acquisitions, LLC., and Federal Systems, LLC], (collectively referred to herein as “Vivos Group”). On December 1, 2019, the Company acquired the customer contracts and trade receivables and assumed certain liabilities of Intelligent Quality Solutions, Inc. (“IQS”). IQS operates as a division of MMG. On or about February 17, 2020, the Company, as plaintiff, filed a complaint with the Circuit Court of Montgomery County, Maryland against Vivos Debtors. (“Vivos Default Claim”) See Note 6. On or about May 6, 2020, the Vivos Debtors and other Vivos Group members, specifically. Kaylan Pathuri (“Pathuri”), Judos Trust by Shirisha Janumpally, its trustee (“Judos”) and Igly Trust by Kaylan Pathuri, its trustee, (“Igly”) responded to the Vivos Default Claim with a Counterclaim and Third-Party Complaint (the “Vivos Default Counterclaim”). On June 5, 2020, Reliability commenced an arbitration seeking to address purported merger violations before the American Arbitration Association (“AAA”) in New York, New York (the “Merger Arbitration”), as permitted by the Merger Agreement against Mr. Doki; Mrs. Valleru; Mrs. Janumpally (individually and in her capacity as trustee of Judos Trust); Mr. Pathuri (individually in his capacity as trustee of Igly Trust) and Federal Systems (the “Merger Respondents”). Although the Merger Respondents filed a counterclaim, Merger Respondents have not paid the AAA’s fees, and ultimately refused to participate in the arbitration. Thereafter, Reliability petitioned the state court in New York to compel arbitration, but this action was removed to federal court, where it has been pending for several months awaiting court action. The Company is seeking damages which if granted will likely be the remedy set forth within the Merger agreement which is primarily the relinquishment in whole or in part shares of Company Common Stock received by the Merger Respondents in connection with the Merger. On December 23, 2020, after an evidentiary hearing before the Circuit Court for Montgomery County, Maryland, a judge denied a motion by Vivos Holdings, LLC, VREH, Doki, Kaylan Pathuri (“Pathuri”), Judos Trust by Shirisha Janumpally, its trustee (“Judos”) and Igly Trust by Kaylan Pathuri, its trustee, (“Igly”) to compel a shareholder meeting based on the facts presented at trial. The judge also commented that, based on the evidence presented, management was performing its fiduciary duties to protect the Company despite adverse circumstances. This same judge has been assigned to preside over a full trial regarding Company’s lawsuit to enforce the repayment of notes and the Vivos Group counterclaim, over a two-week period starting on October 4, 2021, absent any COVID-19 disruptions that may affect scheduling. On May 27, 2021, MMG filed a 941X refund request for $1,440 after determining it’s eligibility for the Employee Retention Credit (“ERC”). On June 10, 2021, MMG received notification by the Small Business Administration (“SBA”) of forgiveness of its PPP 2020 Loan totaling $5,216. The forgiveness included the deferred interest of $59 totaling $5,275 in principal and interest. On August 9, 2021, Reliability filed an additional claim in the Debt Collection Suit and Vivos Default Counterclaim in the Circuit Court of Montgomery County, Maryland against Doki, Valleru, Pathuri, Janumpally, Igly, and Judos, asserting that the Respondents breached the Merger Agreement in a number of significant respects and potentially committed fraud in connection with the Merger. RELIABILITY INCORPORATED AND SUBSIDIARY NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 (amounts in thousands, except per share data) Basis of presentation The unaudited condensed consolidated interim financial statements include the accounts of the Company and all wholly owned divisions, including its 100% owned subsidiary, MMG. All significant intercompany accounts and transactions have been eliminated in consolidation. These unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S (“U.S. GAAP”) for interim financial information and with instructions to Form 10-Q. Operating results of the interim periods are not necessarily indicative of financial results for the full year. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. In preparing these unaudited consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated financial statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant estimates and assumptions included in the Company’s consolidated financial statements related revenue recognition, allowances for doubtful accounts, recoverability of notes receivable, useful lives for depreciation and amortization, loss contingencies, allocation of purchase price in connection with business combinations, valuation allowances for deferred income taxes, and the assumptions used for web site development cost classifications. For further information, refer to the financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2020. Concentration of Credit Risk For the six months ended June 30, 2021, <span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__dei--LegalEntityAxis__custom--ATTServicesIncMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--RevenueFromRightsConcentrationRiskMember_z76psus9lEsc" title="Percentage of revenue">24.1% of revenue came from AT&T Services, Inc. (inclusive of its DirecTV division) (“AT&T”), <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__srt--TitleOfIndividualAxis__custom--GoldmanSachsMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--RevenueFromRightsConcentrationRiskMember_zTYgpj4PZeLj" title="Percentage of revenue">16.3% from Goldman Sachs, <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__srt--TitleOfIndividualAxis__custom--MorganStanleyMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--RevenueFromRightsConcentrationRiskMember_zoEnEVQ4b7Mi" title="Percentage of revenue">13.5% from Morgan Stanley, and <span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__dei--LegalEntityAxis__custom--JanssenPharmaceuticalsMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--RevenueFromRightsConcentrationRiskMember_zPEIwMfKXlSa" title="Percentage of revenue">11.2% from Janssen Pharmaceuticals (which includes workforce partners Ortho McNeil and Johnson & Johnson). AT&T, Goldman Sachs, Morgan Stanley and Janssen accounted for <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20200101__20200630__dei--LegalEntityAxis__custom--ATTServicesIncMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--RevenueFromRightsConcentrationRiskMember_zJvHhg957jP5" title="Percentage of revenue">27.4%, <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20200101__20200630__srt--TitleOfIndividualAxis__custom--GoldmanSachsMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--RevenueFromRightsConcentrationRiskMember_zarROtlPZqye" title="Percentage of revenue">8.6%,<span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20200101__20200630__srt--TitleOfIndividualAxis__custom--MorganStanleyMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--RevenueFromRightsConcentrationRiskMember_zMwr8bjkAJNf" title="Percentage of revenue"> 5.8% and <span id="xdx_907_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20200101__20200630__dei--LegalEntityAxis__custom--JanssenPharmaceuticalsMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--RevenueFromRightsConcentrationRiskMember_zlrv8vAjq2pi" title="Percentage of revenue">11.3%, respectively, in revenue for the same time period ended June 30, 2020. No other client exceeded 10% of revenues.

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No other client exceeded 10% of revenues.

<p id="xdx_809_eus-gaap--SubstantialDoubtAboutGoingConcernTextBlock_zYmIkFxp2zX4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">NOTE 2. LIQUIDITY AND GOING CONCERN Going Concern Management considers on a regular basis, the Company’s ability to continue as a going concern. The factors which have impacted the business and our liquidity are; <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="text-align: justify; width: 0.25in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.25in">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Notification from the SBA on June 10, 2021, that our PPP Loan totaling $5,275 in principal and interest had been 100% forgiven;</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Eligibility for Employee Retention Credits (“ERC”) resulting in a refund in April 2021 in the amount of $1,440;</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Continued eligibility for ERCs in the second quarter resulting in additional credits of $153 in the second quarter;</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Operating loss of approximately $224 for the six months ended June 30, 2021;</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Operating loss of $161 for the three months ended June 30, 2021;</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The pandemic resulting decline in client demand for our services continuing through the present;</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Difficulties in raising cash via public market for organic and inorganic growth, due to lack of unissued authorized shares available for Company use, despite having public company cost structure;</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Inability to realize approximately $4.4M in notes receivables from Vivos Debtors; and</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Contingent liabilities, described further in Note 6.</td></tr> </table> RELIABILITY INCORPORATED AND SUBSIDIARY NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 (amounts in thousands, except per share data) All these conditions noted above, most notably the adverse impact of COVID 19 on sales and a scenario where the presumption is all debts come due with an inability to raise cash through equity given the unavailability of unissued authorized shares, raise substantial doubt about the Company’s ability to continue as a going concern. There can be no assurances that the Company will be successful in managing the impact of the foregoing or its ability to maintain sufficient liquidity over a period of time that will allow it to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liability that may result from the possible inability of the Company to continue as a going concern. The Company’s ongoing liquidity position is facing pressures due to the loss of business resulting from the COVID-19 pandemic as well as increased pressure to make cash payments, which ultimately took place on July 21, 2021, (See Note 10: Subsequent Events) pursuant to the Settlement Agreements (filed as exhibits 10.4, 10.5 and 10.6 the Company’s Current Report on Form 8-K filed on October 30, 2019) prior to the Company’s anticipated liquidation of the shares of Company Common Stock pledged pursuant to the Agreement for the Contingent Liquidation of the Common Stock of Reliability Incorporated (as successor in interest to MMG Media Group, Inc.), dated October 28, 2019 (the “Liquidation Agreement”) (filed as exhibit 10.30 to the Company’s Current Report on Form 8-K filed on October 30, 2019). The Vivos Group that are the counterparties to the Liquidation Agreement are not cooperating with the Company to liquidate the shares subject thereto as contemplated thereby. No assurance can be given that the Company will return to its pre-pandemic revenue levels, and how long it will take to enforce the requirements of the Liquidation Agreement. As a result, the Company faces hurdles to maintaining sufficient liquidity to continue to operate, in which case the Company might be forced to liquidate or seek to reorganize under applicable bankruptcy statutes. The Company is quoted on the OTC Marketplace under the symbol “RLBY”.

5275000

1440000 153000

224000

-161000

4400000

<p id="xdx_805_ecustom--RecentlyIssuedAccountingPronouncementsTextBlock_zY3DUF1IaQrc" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">NOTE 3. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, to replace the incurred loss methodology with an expected credit loss model that requires consideration of a broader range of information to estimate credit losses over the lifetime of the asset, including current conditions and reasonable and supportable forecasts in addition to historical loss information, to determine expected credit losses. Pooling of assets with similar risk characteristics and the use of a loss model are also required. Also, in April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, to clarify the inclusion of recoveries of trade receivables previously written off when estimating an allowance for credit losses. The amendments in this update were required to be applied using the modified retrospective method with an adjustment to retained earnings and were effective for us beginning with fiscal year 2020, including interim periods. The adoption of the amendments in this update as of January 1, 2020, did not have a material impact on our accounts receivable, retained earnings, as well as our results of operations for the year ended December 31, 2020. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework— Changes to the Disclosure Requirements for Fair Value Measurement, to improve the fair value measurement reporting of financial instruments. The amendments in this update require, among other things, added disclosure of the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this update eliminate, among other things, disclosure of the reasons for and amounts of transfers between Level 1 and Level 2 for assets and liabilities that are measured at fair value on a recurring basis and an entity’s valuation processes for Level 3 fair value measurements. The amendments in this update were effective for us RELIABILITY INCORPORATED AND SUBSIDIARY NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 (amounts in thousands, except per share data) beginning with fiscal year 2020. Retrospective application is required for all amendments in this update except the added disclosures, which should be applied prospectively. The adoption of the amendments in this update did not have a material impact on our consolidated financial position and results of operations as of and for the year ended December 31, 2020. In August 2018, the FASB issued ASU No. 2018-15, Intangibles–Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract, to provide additional guidance on the accounting for costs of implementing cloud computing arrangements that are service contracts. The amendments in this update require the capitalization of implementation costs during the application development stage of such hosting arrangements and amortization of the expense over the term of the arrangement, including any option to extend reasonably certain to be exercised or option to terminate reasonably certain not to be exercised. Capitalized implementation costs and amortization thereof are also required to be classified in the same line item in the statements of financial position, operations and cash flows associated with the hosting service fees. The amendments in this update were effective for us beginning with fiscal year 2020. Entities may select retrospective or prospective application to all implementation costs incurred after the adoption date. We selected prospective application to all implementation costs incurred after the adoption date. The adoption of the amendments in this update did not have a material impact on our property and equipment, net and results of operations as of and for the year ended December 31, 2020. In March 2020, the FASB issued ASU No. 2020-04 Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting, that provides optional relief to applying reference rate reform to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (LIBOR), which will be discontinued by the end of 2021. Also, in January 2021, the FASB issued ASU No. 2021-01 Reference Rate Reform (Topic 848)—Scope, to clarify that cash flow hedges are eligible for certain optional expedients and exceptions for the application of subsequent assessment methods to assume perfect effectiveness as previously presented in ASU 2020-04. The amendments in this update are effective for us immediately and may be applied through December 31, 2022. The adoption of this update is not expected to have a material impact on our consolidated financial position and results of operations. In December 2019, the FASB issued ASU No. 2019-12 Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes, to remove certain exceptions and improve consistency of application, including, among other things, requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The amendment in this update is effective for us beginning with fiscal year 2021, with early adoption permitted. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The adoption of the amendments in this update did not have a material impact on the Company’s consolidated financial position and results of operations. In October 2020, the FASB issued ASU No. 2020-10 Codification Improvements, to make incremental improvements to U.S. GAAP and address stakeholder suggestions, including, among other things, clarifying that the requirement to provide comparative information in the financial statements extends to the corresponding disclosures section. The amendment in this update is effective for the Company beginning with fiscal year 2021, with early adoption permitted. The amendments in this update should be applied retrospectively and at the beginning of the period that includes the adoption date. The adoption of the amendments in this update did not have a material impact on the Company’s consolidated financial position and results of operations. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. An entity no longer will determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if the reporting unit had been acquired in a business combination. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The FASB also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. The amendments in this update will be effective for the Company beginning with fiscal year 2023, with early adoption permitted. The adoption of the amendments in this update is not expected to have a material impact on our consolidated financial position and results of operations. RELIABILITY INCORPORATED AND SUBSIDIARY NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 (amounts in thousands, except per share data) The Company does not believe any other recently issued but not yet effective accounting pronouncement, if adopted, would have a material effect on its present or future consolidated financial statements.

NOTE 4. DEBT On June 10, 2021, the SBA notified MMG that it’s Paycheck Protection Program (“PPP”) loan of $5,216 issued in May of 2020 had been forgiven along with $59 in SBA calculated deferred interest. This eliminated the long-term debt on the Company’s books, leaving only the $103 in federal income tax as explained in Tax Liabilities portion below. The Company recorded this forgiveness as a component of other income on the accompanying unaudited consolidated statements of operations. Convertible Debt The Company had notes payable in the amount of $890 as of December 31, 2019, pursuant to a convertible debt offering that MMG commenced June 13, 2019. Pursuant to this agreement, MMG issued to each individual a warrant for <span id="xdx_901_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_uShares_c20190613__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleDebtMember_zRXPBJGQi31e" title="Warrants to purchase shares of common stock">0.5 shares of Company Common Stock and a convertible promissory note of same date in the initial principal amount of $50, in exchange for $<span id="xdx_90A_eus-gaap--DebtConversionConvertedInstrumentAmount1_c20200611__20200613__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleDebtMember_pn3n3" title="Convertible promissory note exchange value">50. The notes bore interest at <span id="xdx_90B_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20190613__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleDebtMember_z6ZoXzDqYKO6" title="Convertible promissory note interest rate">12% per year with the balance becoming due within 1 year from the issuance date unless earlier converted into shares of Company Common Stock upon the issuance by Reliability of Company Common Stock for gross proceeds of at least $5,000. Since no conversion occurred, notes were paid in full as they became due over a 3-month period between June 2020 and September 2020. Warrants can only be redeemable if the proceeds of $<span id="xdx_90E_eus-gaap--ProceedsFromIssuanceOfCommonStock_c20200611__20200613__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleDebtMember__srt--RangeAxis__srt--MinimumMember_pn3n3" title="Proceeds from issuance of common stock">5,000 are secured within 5 years of note issuance, which expires correspondingly to each note between June and October 2024. Tax Liabilities When MMG was initially acquired by Vivos Holdings, LLC in December 2016, MMG’s corporate status was changed from an S Corp to a C Corp due to its new ownership structure. This triggered an accelerated tax event, a $<span id="xdx_902_ecustom--AcceleratedTaxEventEstimatedAnnualImpact_c20161201__20161231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember_pn3n3" title="Accelerated Tax Event Estimated Annual Impact">215 estimated annual impact per year for four years, that MMG is working with the IRS to pay. As of June 30, 2021, the tax liability was $92 compared to $292 as of December 31, 2020. The Company also accrued current income taxes of $669 as of June 30, 2021, relating to its current operations. Factoring Facilities Triumph Business Capital On November 4, 2016, the MMG entered into a factoring and security agreement with Triumph Business Capital (“Triumph”). Pursuant to the agreement, MMG received advances on its accounts receivable (i.e., invoices) through Triumph to fund growth and operations. The proceeds of this agreement were used to pay operating costs of the business which include employee salaries, vendor payments and overhead expenses. On January 5, 2018, the agreement was amended to lower the factoring fee and interest rate for a term of one year. The agreement was amended again on January 19, 2018, to increase the maximum advance rate to $<span id="xdx_907_ecustom--IncreaseInFactoringFee_c20180119__us-gaap--TypeOfArrangementAxis__custom--FactoringAndSecurityAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--TriumphBusinessCapitalMember_pn3n3" title="Increase in factoring fee">5,500. <span id="xdx_905_eus-gaap--DebtInstrumentDescriptionOfVariableRateBasis_c20200101__20200131__us-gaap--TypeOfArrangementAxis__custom--FactoringAndSecurityAgreementMember__us-gaap--VariableRateAxis__us-gaap--PrimeRateMember" title="Debt instrument description of variable rate">In January 2020, a new agreement was negotiated with Triumph lowering advance rate from 18 basis points to 15 and the interest rate from prime plus <span id="xdx_906_eus-gaap--DebtInstrumentInterestRateStatedPercentage_c20200131__us-gaap--TypeOfArrangementAxis__custom--FactoringAndSecurityAgreementMember__us-gaap--VariableRateAxis__us-gaap--PrimeRateMember__srt--RangeAxis__srt--MaximumMember_pdd" title="Convertible promissory note interest rate">2.5% to prime plus<span id="xdx_900_eus-gaap--DebtInstrumentInterestRateStatedPercentage_c20200131__us-gaap--TypeOfArrangementAxis__custom--FactoringAndSecurityAgreementMember__us-gaap--VariableRateAxis__us-gaap--PrimeRateMember__srt--RangeAxis__srt--MinimumMember_pdd" title="Convertible promissory note interest rate"> 2%. The amount of an invoice eligible for sale to Triumph went from 90% to 93%. The agreement which previously renewed annually, is now month to month. MMG continues to be obligated to meet certain financial covenants in respect to invoicing and reserve account balance. In accordance with the agreement, a reserve amount is required for the total unpaid balance of all purchased accounts multiplied by a percentage equal to the difference between one hundred percent and the advanced rate percentage. As of June 30, 2021, the required amount was 10%. Any excess of the reserve amount is paid to MMG on a weekly basis, as requested. If a reserve shortfall exists for a period of ten-days, MMG is required to make payment to the financial institution for the shortage. Accounts receivable (A/R) were sold with full recourse. Proceeds from the sale of receivables were $1,131 For the three months ended June 30, 2021, compared to $2,450 in the same period ending June 30, 2020. The Factoring Facilities are collateralized by substantially all the assets of MMG. In the event of a default, the Factor may demand that the Company repurchase the receivable or debit the reserve account. Total finance line fees for the three months ended June 30, 2021, and 2020 comparatively totaled $16 and $39, respectively.

5216000

59000

103000

890000

0.5

50000

0.12

P1Y

5000000

P5Y

This triggered an accelerated tax event, a $215 estimated annual impact per year for four years, that MMG is working with the IRS to pay 215000

92000

292000

669

5500000

In January 2020, a new agreement was negotiated with Triumph lowering advance rate from 18 basis points to 15 and the interest rate from prime plus 2.5% to prime plus 2%. The amount of an invoice eligible for sale to Triumph went from 90% to 93%.

2.5

1131000

2450000

16000

39000

NOTE 5. VARIABLE INTEREST ENTITY (“VIE”) In December 2019, the Company’s executive management learned that prior to the Merger, in January 2017, one of the Company’s related parties, on behalf of MMG, executed a guarantee of obligations of Vivos Real Estate Holdings, LLC (“VREH”), under a mortgage loan for the purchase of the property at 22 Baltimore Rd., Rockville, Maryland. MMG leased this space on market terms. MMG challenges its status as a guarantor on the building. Although the Company has neither any decision-making authority over VREH, nor financial interest in the operations of VREH, the Company was required to consolidate its financial statements with those of VREH as it was considered the primary beneficiary of the VIE. As a result of the Company terminating the lease on April 30, 2020, VREH was no longer to be considered a VIE after April 30, 2020. The potential financial exposure to loss as a guarantor could equal all the book value of the related party mortgage loan payable, a total of approximately $1,760 as of December 31, 2020, with $<span id="xdx_900_ecustom--VariableInterestEntityConsolidatedRelatedPartyMortgageLoanPayable_c20201231__us-gaap--AwardDateAxis__custom--DueWithinTwoThousandTwentyoneMember_pn3n3" title="Related party mortgage loan payable, VIE">126 due in 2021. VREH is currently a few months behind on payments. To date, the Company has not been called on for any loan repayment guarantee. The Company believes the building valuation is at or near the current mortgage amount.

1760000 126000

<p id="xdx_800_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_zQLol7z5uK8h" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">NOTE 6. COMMITMENTS AND CONTINGENCIES The Company is engaged from time to time in legal matters and proceedings arising out of its normal course of business, and currently also is involved in litigation outside of the normal course of business. The Company establishes a liability related to its legal proceedings and claims when it has determined that it is probable that the Company has incurred a liability and the related amount can be reasonably estimated. If the Company determines that an obligation is reasonably possible, the Company will, if material, disclose the nature of the loss contingency and the estimated range of possible loss, or include a statement that no estimate of the loss can be made. RELIABILITY INCORPORATED AND SUBSIDIARY NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 (amounts in thousands, except per share data) On September 28, 2018, Credit Cash filed a complaint against MMG, Vivos Holdings LLC, Vivos Acquisitions, LLC, Dr. Doki, Dr. Valleru (the “Credit Cash Defendants”) and other defendants in the United States Circuit Court of Montgomery County, Maryland for the District of New Jersey for, among other things, breach of contract of the MMG and HCRN Credit Facilities and their respective guaranties in relation to the November 15, 2017, agreement (the “Credit Cash Complaint”). On October 30, 2018, Credit Cash filed a motion to intervene in an action pending in New York State, Monroe County, filed by HCRN and LE Finance, LLC against the Credit Cash Defendants, and other defendants (“NY State Action”). On December 10, 2018, the Credit Cash Defendants entered into a settlement agreement for the purpose of settling certain claims related to the Credit Cash Complaint only. Pursuant to the settlement agreement, certain repayment terms were agreed upon between Credit Cash and the Credit Cash Defendants, but Credit Cash did not relinquish the right to pursue any claims related to the NY State Action, nor to pursue any remedies against any of the Credit Cash Defendants in relation to the November 15, 2017, agreement. Naveen Doki, Kalyan Pathuri, Shirisha Janumpally, and Federal Systems, LLC, (“Credit Cash Vivos Group”) executed and delivered to MMG that certain Agreement for the Contingent Liquidation of the Common Stock of MMG , dated as of October 28, 2019 (the “Liquidation Agreement”), pursuant to which the Credit Cash Vivos Group pledged to MMG the shares of Company Common Stock they received in the Merger to provide the capital required to satisfy the Credit Cash Defendants’ obligations under the Settlement Agreements. Members of the Credit Cash Vivos Group misrepresented upon the execution of the Liquidation Agreement the status of its obligations under the Settlement Agreement, which were, in fact, then in default. To date the Credit Cash Vivos Group have not cooperated with the Company to monetize those shares as contemplated by the Liquidation Agreement. The Company will take appropriate action to enforce its rights under the Liquidation Agreement, which actions will be dictated in part by the outcome of the Merger Arbitration wherein relinquishment of shares for certain claims may be an applied remedy. On or about March 16, 2020, Credit Cash entered its New Jersey confession of judgment with the Circuit Court of Montgomery County, Maryland. On October 9, 2018, MMG was named as a defendant along with six other defendants, all of which are entities related to the Vivos Group, in an Affidavit of Confession of Judgment (COJ) filed in the Supreme Court of the State of New York in relation to a case brought by Hop Capital, wherein the defendants collectively agree to pay a sum of $400 to Hop Capital. The claim brought by Hop Capital against the defendants in this case is in relation to a Merchant Agreement dated October 4, 2018; an agreement to which MMG was not a party. As such, MMG contends that being named in the COJ as a defendant was made in error and is currently seeking to have its name removed from the COJ. As of March 2021, we have not been contacted again on this matter, nor have we been notified on any developments The Company will defend itself from this case. On or about February 17, 2020, the Company, as plaintiff, filed a complaint with the Circuit Court of Montgomery County, Maryland against Vivos Holdings, LLC, Vivos Real Estate Holdings, LLC and Naveen Doki (“Vivos Debtors”), to enforce MMG’s rights under certain promissory notes and a personal guarantee made by the Vivos Debtors (“Vivos Default Claim”). The case is proceeding. Although there are no certainties or guarantees, the Company believes that it will be granted a judgment in its favor as it vigorously pursues this litigation. On February 28, 2020, Healthcare Resource Network, LLC (“HCRN”) filed a complaint against MMG in the Circuit Court of Montgomery County, Maryland alleging that Maslow participated with members of the Vivos Group to financially harm the plaintiff. The plaintiff has not specified any alleged damage caused by MMG and the Company believes any claims are without merit. The Company will defend itself from this case. On March 16, 2020, CC Business Solutions, a division of Credit Cash NJ, LLC domesticated a foreign judgement in the Montgomery County Circuit Court system against Health Care Resources Network (“HCRN”), MMG, Vivos Holdings, LLC, Vivos Acquisitions, LLC, Naveen Doki and Silvija Valleru. This foreign judgement relates to Vivos Holdings adding Maslow Media Group as a guarantor on a loan made to Health Care Resources Network which is in default by HCRN and Vivos Holdings. Foreign judgement total is $<span id="xdx_908_eus-gaap--LossContingencyDamagesPaidValue_pn3n3_c20200315__20200316__dei--LegalEntityAxis__custom--MaslowMediaGroupIncMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--CreditCashNJLLCMember__srt--TitleOfIndividualAxis__custom--NaveenDokiAndSilvijaValleruMember_zU7XKZW2NySf" title="Foreign Judgement amount">820. This judgement relates to the default on the settlement agreement dated <span id="xdx_905_eus-gaap--LossContingencySettlementAgreementDate_c20200315__20200316__dei--LegalEntityAxis__custom--MaslowMediaGroupIncMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--CreditCashNJLLCMember__srt--TitleOfIndividualAxis__custom--NaveenDokiAndSilvijaValleruMember" title="Settlement agreement, date">December 10, 2018, referenced above in the Credit Cash Complaint. RELIABILITY INCORPORATED AND SUBSIDIARY NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 (amounts in thousands, except per share data) On May 5, 2020, Libertas Funding, LLC (“Libertas”) domesticated a foreign judgement in the Montgomery County Circuit Court system against HCRN, MMG, Vivos Holdings, LLC, Vivos Acquisitions, LLC, Vivos IT, LLC, Vivos Global Services, LLC, Alliance Micro, Inc. and Naveen Doki. This foreign judgement from the State of New York relates to loans the Vivos Group took out by adding MMG additional collateral. This loan is currently in default. Foreign Judgement total is $<span id="xdx_900_eus-gaap--LossContingencyDamagesPaidValue_c20200504__20200505__dei--LegalEntityAxis__custom--MaslowMediaGroupIncMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--LibertasFundingLLCMember__srt--TitleOfIndividualAxis__custom--NaveenDokiMember_pn3n3" title="Foreign Judgement amount">229. On May 5, 2020, Kinetic Direct Funding (Kinetic”) domesticated a foreign judgement in the Montgomery County Circuit Court system against HCRN, MMG, US IT Solutions Inc., 360 IT Professionals, Alliance Micro, Inc. and Naveen Doki. This foreign judgement from the State of New York relates to loans the Vivos Group took out by adding MMG as additional collateral. This loan is currently in default. Foreign Judgement total is $<span id="xdx_903_eus-gaap--LossContingencyDamagesPaidValue_pn3n3_c20200504__20200505__dei--LegalEntityAxis__custom--MaslowMediaGroupIncMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--KineticDirectFundingLLCMember__srt--TitleOfIndividualAxis__custom--NaveenDokiMember_zxnZaqBufMR3" title="Foreign Judgement amount">579. There were 4 total loans in the settlement, with the 3 domesticated judgements in Montgomery County circuit court relating to MMG totaling $1,038 On or about May 6, 2020, the Vivos Debtors and other Vivos Group members, specifically. Kaylan Pathuri (“Pathuri”), Judos Trust by Shirisha Janumpally, its trustee (“Judos”) and Igly Trust by Kaylan Pathuri, its trustee, (“Igly”) responded to the Vivos Default Claim with a Counterclaim and Third-Party Complaint (the “Vivos Default Counterclaim”). The Company believes that the Counterclaim has no merit. The Company continues to vigorously defend itself and its indemnified officers, directors and other parties as permitted by the Company’s organizational documents. Trial on this matter is scheduled to begin on October 4, 2021. On or about June 5, 2020, the Company submitted a Claimant’s Notice of Intention to Arbitrate and Demand for Arbitration (the “Merger Arbitration”) with the American Arbitration Association in New York, and to the Respondents thereto: Naveen Doki; Silvija Valleru; Shirisha Janumpally (individually and in her capacity as trustee of Judos Trust); Kalyan Pathuri (individually in his capacity as trustee of Igly Trust) and Federal Systems (the “Merger Respondents”). The Merger Arbitration alleges that the Merger Respondents breached the Merger Agreement in a number of significant respects and may have committed fraud in connection with the Merger. The Company is seeking damages, which if granted will likely be the remedy set forth within the Merger Agreement which is in whole or in part shares of Company Common Stock received by the Merger Respondents in connection with the Merger. The Company has brought a motion to compel the Arbitration which is currently being decided by the Federal Courts in New York. The Company believes a strong basis for the motion exists, but no assurance can be given that it will be granted. Regardless, the Company intends to pursue claims under the Merger Agreement in whatever venue is required. On June 12, 2020, Igly Trust, a Vivos entity, asked the Texas court for an injunction requiring the Company to provide a shareholder list and to hold a shareholder meeting. On October 20, 2020, the Texas court denied the injunction but, incongruously, dismissed all the Vivos plaintiffs for lack of personal jurisdiction. The Company appealed the dismissal because the court had jurisdiction over Igly Trust once it made affirmative claims in Texas and because the Court’s order denying the injunction is an important precedent for establishing that the directors under Texas law retain control of shareholder lists and determining the timing of shareholder meetings. On December 23, 2020, at a hearing in the Maryland Circuit Court of Montgomery County, Maryland, a motion by the Vivos Group to compel a shareholder meeting was summarily dismissed. This same judge is scheduled to preside over a full trial on the Vivos Default Claim and Vivos Default Counterclaim in October 2021, absent any disruptions that could affect scheduling. On January 20, 2021, Defendants and Counter/Third-Party Plaintiffs, Vivos Holdings, LLC (“Vivos”), Vivos Real Estate Holdings, LLC (“VREH”), Dr. Naveen Doki (“Doki”), Kaylan Pathuri (“Pathuri”), Igly Trust (“Igly”), Judos Trust (“Judos”), by counsel, filed a Notice of Appeal on the dismissal. RELIABILITY INCORPORATED AND SUBSIDIARY NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 (amounts in thousands, except per share data) On July 21, 2021, Maslow settled the obligation which with it had been committed by Vivos Holdings, LLC in July 2018, with Libertas and Kinetic for $<span id="xdx_904_ecustom--SettlementObligation_iI_uUSD_c20210721__dei--LegalEntityAxis__custom--VivosHoldingsLLCMember__us-gaap--TypeOfArrangementAxis__custom--AgreementMember_zx62YWNE8noe" title="Settlement obligation">475. The agreement which included $100 in legal fees, released MMG from all claims judgements and obligation against MMG but did not release Naveen Doki, Silvija Valleru, Judos Trust, Igly Trust, Srinivas Kalidindi, Shirisha Janumpally, Federal Systems, Kalyan Pathuri, US IT Solutions Inc., 360 IT Professionals Inc., Alliance Micro Inc. Vivos IT LLC, Vivos Global Holdings LLC, Vivos Acquisitions LLC, or Vivos Holdings.from the remaining obligation. This debt belonged to Vivos Holdings LLC, and the aforementioned Liquidation Agreement, (See Note 2) had been created as a safeguard to shelter MMG should Vivos default, which actually transpired prior to the merger closing in October 2019.

400000

820000

December 10, 2018,

229000

579000

1038

475

100

NOTE 7. EQUITY The Company’s authorized capital stock consists of 300,000,000 shares of common stock, with no par value. All authorized shares of Company Common Stock are issued and outstanding.

300000000

<p id="xdx_80D_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_zMCVVDZg1nob" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">NOTE 8. RELATED PARTY TRANSACTIONS Stock Purchase Agreement On November 9, 2016, Vivos Holdings LLC, the former owner of MMG, acquired <span id="xdx_903_eus-gaap--BusinessCombinationStepAcquisitionEquityInterestInAcquireePercentage_iI_pid_dp_uPure_c20161109__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember__us-gaap--BusinessAcquisitionAxis__custom--MaslowMediaGroupIncMember__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember_z08TkqnVqRL8" title="Acquisition percentage">100% of MMG through a stock acquisition exchange for a purchase price of $<span id="xdx_90A_eus-gaap--BusinessAcquisitionCostOfAcquiredEntityTransactionCosts_c20161109__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember__dei--LegalEntityAxis__custom--MaslowMediaGroupIncMember__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember_pn3n3" title="Purchase price">1,750, of which: (i) $<span id="xdx_904_eus-gaap--ProceedsFromPreviousAcquisition_c20161108__20161109__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember__dei--LegalEntityAxis__custom--MaslowMediaGroupIncMember__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember_pn3n3" title="Proceeds from settlement of acquisition">1,400 was paid at settlement with proceeds from MMG and (ii) a promissory note to pay the remaining $<span id="xdx_90B_eus-gaap--NotesPayable_c20161109__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember__dei--LegalEntityAxis__custom--MaslowMediaGroupIncMember__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember_pn3n3" title="Promissory note payable">350 (“Vivos/MMG Purchase Agreement”). <span id="xdx_902_eus-gaap--DebtInstrumentDescription_c20161108__20161109__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember__dei--LegalEntityAxis__custom--MaslowMediaGroupIncMember__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember" title="Note installments term description">The promissory note was to be paid in twenty-four equal installments, including interest at 4.5%, in the amount of approximately $15, commencing six months after closing, with the last payment on March 1, 2019. These payments were paid by the MMG on behalf of the Vivos. Vivos subsequently entered into a promissory note receivable with the MMG, described below, for the full stock purchase price. No payment has ever been made against this note. Notes Receivable The Company has notes receivable from Vivos Holdings LLC and VREH, a member of Vivos Group, both related party affiliates due to their ownership percentage in the Company. In January 2021, MMG began applying the legal rate of interest which per Virginia statute is <span id="xdx_90A_ecustom--LegalRateInterestRatePercentage_pid_dp_uPure_c20210101__20210131__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember__dei--LegalEntityAxis__custom--MaslowMediaGroupIncMember_z09cGmncLEcl" title="Legal rate interest rate percentage">8.0% on two of the three defaulted notes receivable below, which were so eligible. In connection with the Vivos/MMG Purchase Agreement, on November 15, 2016, MMG executed a promissory note receivable with Vivos Holdings LLC in the amount of $<span id="xdx_90F_eus-gaap--NotesReceivableRelatedParties_c20161115__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember_pn3n3" title="Related parties, notes receivable">1,400. As defined by the Vivos/MMG Purchase Agreement, the loan consists of two periods, whereby the first period from November 15, 2016, until September 30, 2018, no principal or interest payments were required. Interest would accrue monthly and a new loan in the amount of $<span id="xdx_902_eus-gaap--NotesPayable_c20180930__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember_pn3n3" title="Promissory note payable">1,773 would be subject to a second loan period. <span id="xdx_906_eus-gaap--DebtInstrumentDescription_c20161114__20161115__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember" title="Note installments term description">During the second loan period, interest shall be paid in 20 equal consecutive payments, quarterly. Principal plus any unpaid interest is due <span id="xdx_900_eus-gaap--DebtInstrumentMaturityDate_dd_c20161114__20161115__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember_zq6DU7ck6b35" title="Debt due date">September 20, 2023. Interest during both loan periods accrues at a rate of <span id="xdx_905_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20180930__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember__us-gaap--DebtInstrumentAxis__custom--FirstLoanMember_zmEZIScvtV8c" title="Note interest percentage"><span id="xdx_90D_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20180930__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember__us-gaap--DebtInstrumentAxis__custom--SecondLoanMember_z9lujaD2nNz6" title="Note interest percentage">2.5%. Additionally, monthly payments of $<span id="xdx_906_eus-gaap--DebtInstrumentPeriodicPayment_c20161114__20161115__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember_pn3n3" title="Debt instrument periodic payment">15 are made on behalf of Vivos Holdings, Inc. to the seller by MMG. These payments, plus any other payments made by MMG on behalf of Vivos Holdings, Inc, are added to the principal balance of the promissory note receivable (“Vivos/MMG Purchase Agreement Note Receivable”). In 2018, all quarterly interest payments to be made in phase 2 were offset by the management fees due to Vivos Holdings. In January 2021, MMG began applying the legal rate of interest which per Virginia statute is <span id="xdx_90A_ecustom--LegalRateInterestRatePercentage_pid_dp_uPure_c20210101__20210131__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember__dei--LegalEntityAxis__custom--MaslowMediaGroupIncMember_zO0fDXqG5HCb">8.0% on two of the three defaulted notes receivable, which were eligible. Only the $<span id="xdx_90F_eus-gaap--DebtInstrumentAnnualPrincipalPayment_c20190905__us-gaap--TypeOfArrangementAxis__custom--SecuredPromissoryNoteAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosMember__dei--LegalEntityAxis__custom--MaslowMediaGroupIncMember_pn3n3">750 September 5, 2019, note is not eligible for a default rate of interest but is eligible for recovery of legal fees. As of June 30, 2021, the total outstanding balance was $2,767 which includes accrued interest receivable of $70. The actual funds (additional eligible interest and legal fees) sought may be greater than what is represented herein per GAAP. RELIABILITY INCORPORATED AND SUBSIDIARY NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 (amounts in thousands, except per share data) On November 15, 2017, MMG executed an intercompany promissory note receivable with VREH in the amount of $<span id="xdx_90A_eus-gaap--NotesPayable_c20171115__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosRealEstateMember__us-gaap--DebtInstrumentAxis__custom--VivosREPromissoryNoteMember_pn3n3" title="Promissory note payable">772. As defined by the agreement, the loan consists of two periods, whereby the first period from November 15, 2017, until June 30, 2018, no principal or interest payments are required. During the first loan period, interest accrued monthly and a new loan amount of $<span id="xdx_90E_eus-gaap--InterestReceivable_c20171115__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosRealEstateMember__us-gaap--DebtInstrumentAxis__custom--VivosREPromissoryNoteMember_pn3n3" title="Accrued interest receivable">781 will be subject to a second loan period. During the second period, interest is payable in 20 equal consecutive installments and the principal balance plus accrued and unpaid interest is due June 30, 2023. Interest during both periods accrues at a rate of <span id="xdx_90F_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20180630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosRealEstateMember__us-gaap--DebtInstrumentAxis__custom--FirstLoanMember_zzcFKTNgmLHc" title="Note interest percentage"><span id="xdx_904_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20180630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosRealEstateMember__us-gaap--DebtInstrumentAxis__custom--SecondLoanMember_zGhKXzus5Nj1" title="Note interest percentage">3.5% annually. In 2018, all quarterly interest payments to be made in Phase 2 were offset by the management fees due to Vivos, Holdings LLC. In addition, principal payments totaling $<span id="xdx_901_eus-gaap--DebtInstrumentPeriodicPayment_c20180701__20181231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember_pn3n3" title="Debt instrument periodic payment">30 were made by the Vivos Group. As of June 30, 2021, the total outstanding balance was $<span id="xdx_90E_eus-gaap--DebtInstrumentFaceAmount_c20210630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosRealEstateMember__us-gaap--DebtInstrumentAxis__custom--VivosREPromissoryNoteMember_pn3n3" title="Related party outstanding balance amount">774. which includes accrued interest receivable of $<span id="xdx_903_eus-gaap--InterestReceivable_c20210630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosRealEstateMember__us-gaap--DebtInstrumentAxis__custom--VivosREPromissoryNoteMember_pn3n3" title="Accrued interest receivable">15. On June 12, 2019, MMG entered into a Personal Guaranty agreement with Dr. Doki, pursuant to which Dr. Naveen Doki personally guaranteed to MMG repayment of $<span id="xdx_905_eus-gaap--RepaymentsOfRelatedPartyDebt_c20190611__20190612__us-gaap--TypeOfArrangementAxis__custom--PersonalGuarantyAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MrNaveenDokiMember_pn3n3" title="Repayments of related party">3,000 of the balance of the Promissory Note issued to Vivos on November 15, 2017, within the 2019 calendar year via cash, stock, or other business assets acceptable to the Company. Dr. Doki is a <span id="xdx_900_eus-gaap--BusinessCombinationStepAcquisitionEquityInterestInAcquireePercentage_iI_pid_dp_uPure_c20190612__us-gaap--TypeOfArrangementAxis__custom--PersonalGuarantyAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MrNaveenDokiMember__us-gaap--BusinessAcquisitionAxis__custom--MaslowMediaGroupIncMember_znyi2gdT4Eo5" title="Acquisition percentage">5% or greater beneficial holder of Company Common Stock, and therefore is a related party. As of February 2020, the Company filed a lawsuit against the majority shareholder, pursuant to the personal guaranty agreement for defaulting on the outstanding notes receivables. In summary, the Vivos Holdings receivable totaled $<span id="xdx_90C_eus-gaap--DebtInstrumentFaceAmount_c20201231__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember_pn3n3" title="Related party outstanding balance amount">4,258 on December 31, 2020, which included $<span id="xdx_905_eus-gaap--DebtInstrumentFaceAmount_c20191231__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember_pn3n3" title="Related party outstanding balance amount">2,007 of additional borrowings over the period between November 2016 and December 31, 2109. As of June 30, 2021, the receivable totaled $<span id="xdx_90F_eus-gaap--NotesReceivableRelatedPartiesCurrent_c20210630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember_pn3n3" title="Notes receivable from related parties">4,372. On September 5, 2019, MMG entered into a Secured Promissory Note agreement with Vivos, pursuant to which MMG issued a secured promissory note to Vivos in the principal amount of $750. The note bears interest at <span id="xdx_901_eus-gaap--DebtInstrumentInterestRateStatedPercentage_c20191202__us-gaap--TypeOfArrangementAxis__custom--SecuredPromissoryNoteAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosMember__dei--LegalEntityAxis__custom--MaslowMediaGroupIncMember_pdd" title="Note interest percentage">2.5% per year and requires Vivos to make monthly payments to MMG of $<span id="xdx_909_eus-gaap--DebtInstrumentPeriodicPayment_c20191130__20191202__us-gaap--TypeOfArrangementAxis__custom--SecuredPromissoryNoteAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosMember__dei--LegalEntityAxis__custom--MaslowMediaGroupIncMember_pn3n3" title="Debt instrument periodic payment">10 beginning December 1, 2019, with balance due and payable on <span id="xdx_90D_eus-gaap--DebtInstrumentMaturityDate_c20191130__20191202__us-gaap--TypeOfArrangementAxis__custom--SecuredPromissoryNoteAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosMember__dei--LegalEntityAxis__custom--MaslowMediaGroupIncMember" title="Debt due date">November 1, 2026. Upon an event of default, which occurs upon failure of Vivos to make any monthly payment due under the terms of the note, MMG has the right to declare the entire unpaid balance of the note due and payable. The note is secured by <span id="xdx_907_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_c20190904__20190905__us-gaap--TypeOfArrangementAxis__custom--SecuredPromissoryNoteAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosMember_pdd" title="Conversion of shares">30,000,000 shares of Company Common Stock, which is due and payable upon a default by Vivos, which occurs upon failure of Vivos to make any monthly payment due under the terms of the note. In addition, both Naveen Doki and Silvija Valleru personally guaranty the repayment of the note by Vivos. Naveen Doki and Silvija Valleru were beneficial owners of Vivos and are also <span id="xdx_902_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20190905__us-gaap--TypeOfArrangementAxis__custom--SecuredPromissoryNoteAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosMember_zwDF6mR4AVMe" title="Ownership percentage">5% or greater beneficial owners of Company Common Stock, which is qualified by the Merger Arbitration complaint. As of June 30, 2021, the total outstanding balance was $780.which includes interest of $12. In January 2021, MMG began charging the Maryland minimum interest rate by law allowed for defaulted totals as this note is in default and we are pursuing collection via the Vivos Default Claim. Debt Settlement Agreements On August 10, 2017, the Vivos Group executed a receivable advance agreement with Argus Capital Funding. MMG received a net advance of $<span id="xdx_90F_ecustom--RelatedPartyAdvanceFees_c20170810__us-gaap--TypeOfArrangementAxis__custom--ReceivableAdvanceAgreementMember__dei--LegalEntityAxis__custom--ArgusCapitalFundingMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosMember_pn3n3" title="Related party advance fees">487 in exchange for $<span id="xdx_90E_eus-gaap--RepaymentsOfRelatedPartyDebt_c20170809__20170810__us-gaap--TypeOfArrangementAxis__custom--ReceivableAdvanceAgreementMember__dei--LegalEntityAxis__custom--ArgusCapitalFundingMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosMember_pn3n3" title="Repayments of related party">705 of MMG’s accounts receivable. Included in this loan is a fee of $<span id="xdx_907_ecustom--LoanFeesAmount_c20170809__20170810__us-gaap--TypeOfArrangementAxis__custom--ReceivableAdvanceAgreementMember__dei--LegalEntityAxis__custom--ArgusCapitalFundingMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosMember_pn3n3" title="Loan fees">218. The agreement was refinanced on November 15, 2017, when Vivos, and Vivos Acquisitions, LLC, via Dr. Naveen Doki and Dr. Silvija Valleru entered into an agreement with CC Business Solutions, a division of Credit Cash NJ, LLC (“Credit Cash”) pursuant to which Credit Cash advanced to the Company $<span id="xdx_902_ecustom--LoanFeesAmount_c20190519__20190520__us-gaap--TypeOfArrangementAxis__custom--ReceivableAdvanceAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--CreditCashNJLLCMember__us-gaap--CreditFacilityAxis__us-gaap--LineOfCreditMember_pn3n3" title="Loan fees">600 in exchange for $<span id="xdx_90B_eus-gaap--LineOfCreditFacilityRemainingBorrowingCapacity_c20190520__us-gaap--TypeOfArrangementAxis__custom--ReceivableAdvanceAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--CreditCashNJLLCMember__us-gaap--CreditFacilityAxis__us-gaap--LineOfCreditMember_pn3n3" title="Exchange of line of credit facility">780 of the Company’s accounts receivable, to be repaid fully by approximately May 20, 2019 (the “Maslow Credit Facility”). In addition, pursuant to the same agreement, Credit Cash advanced to Healthcare Resource Network, a company owned by the Vivos Group (“HCRN”) a credit facility in the principal amount of $<span id="xdx_905_ecustom--LoanFeesAmount_c20190519__20190520__us-gaap--TypeOfArrangementAxis__custom--ReceivableAdvanceAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--HCRNMember__us-gaap--CreditFacilityAxis__custom--HCRNCreditFacilityMember_pn3n3" title="Loan fees">1,005 (“HCRN Credit Facility”). Each of MMG, Vivos Holdings, Vivos Acquisitions, LLC, Mr. Naveen Doki and Mrs. Silvija Valleru guaranteed the HCRN Credit Facility. To secure repayment of their guaranteed obligations, the Company and Vivos Holdings granted to Credit Cash a security interest in all their assets. On September 14, 2018, the Company defaulted on the Maslow Credit Facility. In addition, on same date, the HCRN Credit Facility went into default. As a result, repayment on both facilities were accelerated, with the full balance for each becoming immediately due and payable. On December 10, 2018, the Company, Vivos Holdings, Vivos Acquisitions, LLC, Mr. Doki, and Mrs. Valleru and Credit Cash entered into a settlement agreement in connection the November 15, 2017, agreement to govern the terms of the repayment of the HCRN Credit Facility and Maslow Credit Facility. <span id="xdx_903_eus-gaap--DebtInstrumentDescription_c20190519__20190520__us-gaap--TypeOfArrangementAxis__custom--ReceivableAdvanceAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--HCRNMember__us-gaap--CreditFacilityAxis__custom--HCRNCreditFacilityMember" title="Note installments term description">Pursuant to the settlement agreement, the Company agreed to pay $10 per week until the entire balance of the Maslow Credit Facility was paid off. Pursuant to a subsequent agreement dated May 17, 2019, not involving the Company, Vivos Holdings and Vivos Acquisitions, LLC agreed to fully repay the HCRN Credit Facility via quarterly payments beginning June 30, 2019. The HCRN Credit Facility is still being repaid by Vivos Holdings, and as of October 29, 2019, has an outstanding balance of approximately $<span id="xdx_90E_eus-gaap--DebtInstrumentFaceAmount_c20191029__us-gaap--TypeOfArrangementAxis__custom--ReceivableAdvanceAgreementMember__us-gaap--CreditFacilityAxis__custom--HCRNCreditFacilityMember_pn3n3" title="Related party outstanding balance amount">635. RELIABILITY INCORPORATED AND SUBSIDIARY NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 (amounts in thousands, except per share data) The Company has a binding and enforceable agreement with certain shareholders permitting Maslow to liquidate up to the full amount of Maslow equity held by such shareholders to satisfy the shareholders’ obligations under the Settlement Agreements. As of December 31, 2019, the Company had repaid the outstanding balance due for the Maslow Credit Facility under the settlement agreement in full. MMG was facing pressure to make cash payments pursuant to the Settlement Agreements prior to the Company’s anticipated liquidation of the shares of Company Common Stock pledged pursuant to the Liquidation Agreement. So, on July 21, 2021, Maslow signed a settlement agreement with Kinetic Direct Funding, LLC and Libertas Funding, LLC for $<span id="xdx_908_ecustom--PaymentForSettlement_iI_pn3n3_c20210721__us-gaap--TypeOfArrangementAxis__custom--SettlementAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zgDBoBQZZjnh" title="Payment for settlement">475 in order to remove MMG from the remaining obligation owed by the Vivos Group which we were informed was $<span id="xdx_904_ecustom--PaymentForRemainingSettlement_iI_pn3n3_c20210721__us-gaap--TypeOfArrangementAxis__custom--SettlementAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VivosHoldingsLLCMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zfI0gf5rXrO6" title="Payment for remaining settlement">1,773. The Vivos Group that are the counterparties to the Liquidation Agreement are not cooperating with the Company to liquidate the shares subject thereto as contemplated thereby. No assurance can be given how long it will take to enforce the requirements of the Liquidation Agreement. Having made the payment may at some point present a liquidity issue for the Company. Related Party Relationships On October 29, 2019, prior to the Merger, pursuant to the Merger Agreement, Naveen Doki and Silvija Valleru became beneficial owners of <span id="xdx_900_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_c20191028__20191029__us-gaap--TypeOfArrangementAxis__custom--MergerAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--NaveenDokiMember_pdd" title="Conversion of shares">206,606,528 and <span id="xdx_902_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_c20191028__20191029__us-gaap--TypeOfArrangementAxis__custom--MergerAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SilvijaValleruMember_pdd" title="Conversion of shares">51,652,908 shares of RLBY Common Stock, respectively, equal to <span id="xdx_90D_eus-gaap--DebtConversionConvertedInstrumentRate_pid_dp_uPure_c20191028__20191029__us-gaap--TypeOfArrangementAxis__custom--MergerAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--NaveenDokiMember_z1z8EwY6vY75" title="Conversion of shares, percentage">68.9% and <span id="xdx_908_eus-gaap--DebtConversionConvertedInstrumentRate_pid_dp_uPure_c20191028__20191029__us-gaap--TypeOfArrangementAxis__custom--MergerAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SilvijaValleruMember_zLIxKHgy09Oi" title="Conversion of shares, percentage">17.2% of the total number of shares of RLBY Common Stock outstanding after giving effect to the Merger, respectively. The Company is seeking damages which if granted will likely be the remedy set forth within the merger agreement which is primarily the relinquishment in whole or in part shares of Company Common Stock received by the Respondents in connection with the Merger. On June 27, 2019, prior to the Merger, MMG entered into a Securities Purchase Agreement with Hawkeye Enterprises, Inc., a company owned and controlled by Mark Speck (“Mr. Speck”), an officer and then director of Maslow. Pursuant to this agreement, MMG issued to Hawkeye Enterprises <span id="xdx_903_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_c20190626__20190627__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__srt--TitleOfIndividualAxis__custom--NickTsahalisMember__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_pdd" title="Conversion of shares">16,323 (on a post-Merger basis) shares of Company Common Stock, a warrant (as defined below) for <span id="xdx_901_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_c20190626__20190627__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__srt--TitleOfIndividualAxis__custom--MarkSpeckMember__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_pdd" title="Conversion of shares">81,616 (on a post-Merger basis) shares of Company Common Stock and a convertible promissory note of same date in the initial principal amount of $<span id="xdx_907_eus-gaap--DebtInstrumentAnnualPrincipalPayment_c20190627__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--DebtInstrumentAxis__custom--ConvertiblePromissoryNoteMember_pn3n3" title="Principal amount">50, in exchange for $<span id="xdx_908_eus-gaap--DebtInstrumentFaceAmount_c20190627__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--DebtInstrumentAxis__custom--ConvertiblePromissoryNoteMember_pn3n3" title="Related party outstanding balance amount">50. The note bore interest at 12% per year, with the balance of $56 paid in full on June 26, 2020. On July 31, 2019, prior to the Merger, MMG entered into a Securities Purchase Agreement with Mr. Speck, the Company issued to this individual a Warrant for <span id="xdx_90E_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_c20190729__20190731__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__srt--TitleOfIndividualAxis__custom--MarkSpeckMember__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zjhEg45yNy33" title="Conversion of shares">81,616 (on a post-Merger basis) shares of MMG Common Stock and a convertible promissory note of same date in the initial principal amount of $<span id="xdx_90D_eus-gaap--DebtInstrumentAnnualPrincipalPayment_c20190731__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__srt--TitleOfIndividualAxis__custom--MarkSpeckMember__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_pn3n3" title="Principal amount">50, in exchange for $<span id="xdx_907_eus-gaap--DebtInstrumentFaceAmount_c20190731__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__srt--TitleOfIndividualAxis__custom--MarkSpeckMember__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_pn3n3" title="Related party outstanding balance amount">50. The note bore interest at 12% per year, with balance of $56 paid in full on August 4, 2020. On July 31, 2019, prior to the Merger, MMG entered into a Securities Purchase Agreement with Nick Tsahalis, an executive officer and director of MMG. Pursuant to this agreement, the Company issued to this individual <span id="xdx_903_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_c20190730__20190731__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__srt--TitleOfIndividualAxis__custom--NickTsahalisMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_pdd" title="Conversion of shares">32,646 (on a post-Merger basis) shares of MMG Common Stock, and a Warrant to purchase <span id="xdx_90B_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_c20190730__20190731__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__dei--LegalEntityAxis__custom--MaslowMediaGroupIncMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--HawkeyeEnterprisesIncMember__srt--TitleOfIndividualAxis__custom--MarkSpeckMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_pdd" title="Conversion of shares">16,323 (on a post-Merger basis) shares of the MMG Common Stock, and a Convertible Promissory Note of same date in the initial principal amount of $<span id="xdx_90A_eus-gaap--DebtInstrumentAnnualPrincipalPayment_c20190731__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__srt--TitleOfIndividualAxis__custom--NickTsahalisMember__us-gaap--DebtInstrumentAxis__custom--ConvertiblePromissoryNoteMember_pn3n3" title="Principal amount"><span id="xdx_90B_eus-gaap--DebtInstrumentFaceAmount_c20190731__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__srt--TitleOfIndividualAxis__custom--NickTsahalisMember__us-gaap--DebtInstrumentAxis__custom--ConvertiblePromissoryNoteMember_pn3n3" title="Related party outstanding balance amount">100, in exchange for $100. The note bore interest at 12% per year, with balance of $112 becoming due and paid in full on July 31, 2020. RELIABILITY INCORPORATED AND SUBSIDIARY NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 (amounts in thousands, except per share data) On September 18, 2019, in anticipation of the closing of the Merger and intending that it be assumed by MMG after the closing of the Merger, Hawkeye entered into a letter of intent (the “LOI”) regarding the potential acquisition of a complementary business. MMG was then prohibited from entering into the LOI directly. In connection with the LOI, Hawkeye paid a non-refundable deposit of $<span id="xdx_90C_ecustom--NonRefundableDeposit_c20190918__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--HawkeyeEnterprisesIncMember_pn3n3" title="Non refundable deposit">75 with the understanding that after the closing of the Merger, the LOI would be assigned to the Company and the Company would reimburse Hawkeye for the deposit. On October 17, 2019, Hawkeye assigned, and MMG agreed to assume the LOI and reimbursed Hawkeye for the deposit. The reimbursement took place on May 8, 2020 and totaled $83. The term “warrant” herein refers to warrants issued by MMG and assumed by RLBY as a result of the Merger. The terms of all Warrants are the same other than as to the number of shares covered thereby. The Warrant may be exercised at any time or from time to time during the period commencing at 10:00 a.m. Eastern time on first business day following the completion of the Qualified Financing (as defined below) and expiring at 5:00 p.m. Eastern time on the fifth annual anniversary thereof (the “Exercise Period”). For purposes herein, a “Qualified Financing” means the issuance by the Company, other than certain excluded issuances of shares of Common Stock, in one transaction or series of related transactions, which transaction(s) result in aggregate gross proceeds actually received by the Company of at least $5,000. The exercise price per full share of RLBY Common Stock shall be 120% of the average sale price of the RLBY Common Stock across all transactions constituting a part of the Qualified Financing, with equitable adjustments being made for any splits, combinations or dividends relating to the RLBY Common Stock, or combinations, recapitalization, reclassifications, extraordinary distributions and similar events, that occur following one transaction constituting a part of the Qualified Financing and prior to one or more other transactions constituting a part of the Qualified Financing (the “Exercise Price”). Convertible note warrants were not valued and included as liability on balance sheet because of uncertainty around their pricing, value and low probability at this juncture in receiving the $5,000 trigger. In prior filings, when referencing these related party notes, we have defined the issuer as the Company, when we could have been more specific and referenced MMG or Reliability. For clarification purposes, any of the related party transactions entered into prior to the Merger on October 29, 2019, should refer to MMG and not Reliability.

1750000

1400000

350000

The promissory note was to be paid in twenty-four equal installments, including interest at 4.5%, in the amount of approximately $15, commencing six months after closing, with the last payment on March 1, 2019.

0.080

1400000

1773000

During the second loan period, interest shall be paid in 20 equal consecutive payments, quarterly. Principal plus any unpaid interest is due September 20, 2023.

2023-09-20

0.025

15000

0.080

750000

2767000

70000

772000

781000

0.035

30000

774000

15000

3000000

0.05

4258000

2007000

4372000

2.5

10000

2026-11-01

30000000

0.05

780000

12000

487000

705000

218000 600000

780000

1005000

Pursuant to the settlement agreement, the Company agreed to pay $10 per week until the entire balance of the Maslow Credit Facility was paid off.

635000

475000

206606528

51652908

0.689

0.172

16323

81616

50000

0.12

56000

81616

50000

0.12

56000

32646

16323

100000

0.12

112000

75000 83000

5000000

1.20 5000000

NOTE 9. BUSINESS SEGMENTS The Company operates within four industry segments: EOR, Recruiting and Staffing, Permanent Placements and Video and Multimedia Production. The EOR segment provides media field talent to a host of large corporate customers in all 50 states. The Recruiting and Staffing segment provides skilled media and IT field talent on a nationwide basis for customers in a myriad of industries. Permanent Placements was added as a segment this quarter as the Company took on clients who will have the Company source candidates for permanent hire on a regular basis. The Video and Multimedia Production segment provides Script to Screen services for corporate, government and non-profit clients, globally. RELIABILITY INCORPORATED AND SUBSIDIARY NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 (amounts in thousands, except per share data) <p id="xdx_898_eus-gaap--ReconciliationOfAssetsFromSegmentToConsolidatedTextBlock_zfaH4aO4hpd7" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table provides a reconciliation of revenue by reportable segment to consolidated results for the three months Ended June 30, 2021, and 2020, respectively: SCHEDULE OF RECONCILIATION OF REVENUE AND OPERATING INCOME BY REPORTABLE SEGMENT TO CONSOLIDATED RESULTS For the three months ended June 30: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 85%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Revenue:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 64%">EOR</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20210401__20210630__srt--ProductOrServiceAxis__custom--EORMember_zTytVEV3u3Ah" style="width: 14%; text-align: right" title="Total">3,981</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20200401__20200630__srt--ProductOrServiceAxis__custom--EORMember_zzZ0DyVe4jUg" style="width: 14%; text-align: right" title="Total">3,807</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Recruiting and Staffing</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20210401__20210630__srt--ProductOrServiceAxis__custom--RecruitingAndStaffingMember_zXCzvqippESj" style="text-align: right" title="Total">812</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20200401__20200630__srt--ProductOrServiceAxis__custom--RecruitingAndStaffingMember_zImaYnRm3jk9" style="text-align: right" title="Total">1,144</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Permanent Placement</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_c20210401__20210630__srt--ProductOrServiceAxis__custom--PermanentPlacementMember_zyk6pkDrAPa1" style="text-align: right">30</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_c20200401__20200630__srt--ProductOrServiceAxis__custom--PermanentPlacementMember_zM8yEBXDopX7" style="text-align: right">0</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Video and Multimedia Production</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20210401__20210630__srt--ProductOrServiceAxis__custom--VideoAndMultimediaProductionMember_zKhacqdcgdmg" style="text-align: right" title="Total">250</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20200401__20200630__srt--ProductOrServiceAxis__custom--VideoAndMultimediaProductionMember_zUo08ICjKIW2" style="text-align: right" title="Total">241</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Other</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20210401__20210630__srt--ProductOrServiceAxis__custom--OtherMember_zMQJvMs94FL5" style="text-align: right" title="Total">1</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20200401__20200630__srt--ProductOrServiceAxis__custom--OtherMember_zwO2yqK78Rl" style="text-align: right" title="Total">5</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Total</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98C_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20210401__20210630_z1tqs84aNjt5" style="text-align: right" title="Total">5,074</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_983_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20200401__20200630_zSDimNtZAVH" style="text-align: right" title="Total">5,197</td><td style="text-align: left"> </td></tr> </table> For the six months ended June 30: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 85%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Revenue:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 64%">EOR</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20210101__20210630__srt--ProductOrServiceAxis__custom--EORMember_zDhdfHWQVF3f" style="width: 14%; text-align: right" title="Total">8,478</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20200101__20200630__srt--ProductOrServiceAxis__custom--EORMember_ztXMKhImKxDl" style="width: 14%; text-align: right" title="Total">10,959</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Recruiting and Staffing</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20210101__20210630__srt--ProductOrServiceAxis__custom--RecruitingAndStaffingMember_zhNZ5XVWcIf2" style="text-align: right" title="Total">1,696</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20200101__20200630__srt--ProductOrServiceAxis__custom--RecruitingAndStaffingMember_ztiV5YBfuBz7" style="text-align: right" title="Total">2,423</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Permanent Placement</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_c20210101__20210630__srt--ProductOrServiceAxis__custom--PermanentPlacementMember_zO92Bbs8Gyei" style="text-align: right">30</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_c20200101__20200630__srt--ProductOrServiceAxis__custom--PermanentPlacementMember_zzuTPC78vWz7" style="text-align: right">0</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Video and Multimedia Production</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20210101__20210630__srt--ProductOrServiceAxis__custom--VideoAndMultimediaProductionMember_z78yWALPA2ab" style="text-align: right" title="Total">661</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20200101__20200630__srt--ProductOrServiceAxis__custom--VideoAndMultimediaProductionMember_zKshsK2Nkofg" style="text-align: right" title="Total">581</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Other</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20210101__20210630__srt--ProductOrServiceAxis__custom--OtherMember_zRpmgqhbbi5j" style="text-align: right" title="Total">3</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20200101__20200630__srt--ProductOrServiceAxis__custom--OtherMember_z5I33wL7XTV2" style="text-align: right" title="Total">24</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Total</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20210101__20210630_znWacv1DIhz7" style="text-align: right" title="Total">10,868</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98E_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20200101__20200630_zP48F9edTuc6" style="text-align: right" title="Total">13,998</td><td style="text-align: left"> </td></tr> </table>

<p id="xdx_898_eus-gaap--ReconciliationOfAssetsFromSegmentToConsolidatedTextBlock_zfaH4aO4hpd7" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table provides a reconciliation of revenue by reportable segment to consolidated results for the three months Ended June 30, 2021, and 2020, respectively: SCHEDULE OF RECONCILIATION OF REVENUE AND OPERATING INCOME BY REPORTABLE SEGMENT TO CONSOLIDATED RESULTS For the three months ended June 30: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 85%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Revenue:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 64%">EOR</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20210401__20210630__srt--ProductOrServiceAxis__custom--EORMember_zTytVEV3u3Ah" style="width: 14%; text-align: right" title="Total">3,981</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20200401__20200630__srt--ProductOrServiceAxis__custom--EORMember_zzZ0DyVe4jUg" style="width: 14%; text-align: right" title="Total">3,807</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Recruiting and Staffing</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20210401__20210630__srt--ProductOrServiceAxis__custom--RecruitingAndStaffingMember_zXCzvqippESj" style="text-align: right" title="Total">812</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20200401__20200630__srt--ProductOrServiceAxis__custom--RecruitingAndStaffingMember_zImaYnRm3jk9" style="text-align: right" title="Total">1,144</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Permanent Placement</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_c20210401__20210630__srt--ProductOrServiceAxis__custom--PermanentPlacementMember_zyk6pkDrAPa1" style="text-align: right">30</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_c20200401__20200630__srt--ProductOrServiceAxis__custom--PermanentPlacementMember_zM8yEBXDopX7" style="text-align: right">0</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Video and Multimedia Production</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20210401__20210630__srt--ProductOrServiceAxis__custom--VideoAndMultimediaProductionMember_zKhacqdcgdmg" style="text-align: right" title="Total">250</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20200401__20200630__srt--ProductOrServiceAxis__custom--VideoAndMultimediaProductionMember_zUo08ICjKIW2" style="text-align: right" title="Total">241</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Other</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20210401__20210630__srt--ProductOrServiceAxis__custom--OtherMember_zMQJvMs94FL5" style="text-align: right" title="Total">1</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20200401__20200630__srt--ProductOrServiceAxis__custom--OtherMember_zwO2yqK78Rl" style="text-align: right" title="Total">5</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Total</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98C_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20210401__20210630_z1tqs84aNjt5" style="text-align: right" title="Total">5,074</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_983_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20200401__20200630_zSDimNtZAVH" style="text-align: right" title="Total">5,197</td><td style="text-align: left"> </td></tr> </table> For the six months ended June 30: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 85%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Revenue:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 64%">EOR</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20210101__20210630__srt--ProductOrServiceAxis__custom--EORMember_zDhdfHWQVF3f" style="width: 14%; text-align: right" title="Total">8,478</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20200101__20200630__srt--ProductOrServiceAxis__custom--EORMember_ztXMKhImKxDl" style="width: 14%; text-align: right" title="Total">10,959</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Recruiting and Staffing</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20210101__20210630__srt--ProductOrServiceAxis__custom--RecruitingAndStaffingMember_zhNZ5XVWcIf2" style="text-align: right" title="Total">1,696</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20200101__20200630__srt--ProductOrServiceAxis__custom--RecruitingAndStaffingMember_ztiV5YBfuBz7" style="text-align: right" title="Total">2,423</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Permanent Placement</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_c20210101__20210630__srt--ProductOrServiceAxis__custom--PermanentPlacementMember_zO92Bbs8Gyei" style="text-align: right">30</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_c20200101__20200630__srt--ProductOrServiceAxis__custom--PermanentPlacementMember_zzuTPC78vWz7" style="text-align: right">0</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Video and Multimedia Production</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20210101__20210630__srt--ProductOrServiceAxis__custom--VideoAndMultimediaProductionMember_z78yWALPA2ab" style="text-align: right" title="Total">661</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20200101__20200630__srt--ProductOrServiceAxis__custom--VideoAndMultimediaProductionMember_zKshsK2Nkofg" style="text-align: right" title="Total">581</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Other</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20210101__20210630__srt--ProductOrServiceAxis__custom--OtherMember_zRpmgqhbbi5j" style="text-align: right" title="Total">3</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20200101__20200630__srt--ProductOrServiceAxis__custom--OtherMember_z5I33wL7XTV2" style="text-align: right" title="Total">24</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Total</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20210101__20210630_znWacv1DIhz7" style="text-align: right" title="Total">10,868</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98E_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20200101__20200630_zP48F9edTuc6" style="text-align: right" title="Total">13,998</td><td style="text-align: left"> </td></tr> </table>

3981000

3807000

812000

1144000

30000

250000

241000

1000

5000

5074000

5197000

8478000

10959000

1696000

2423000

30000

661000

581000

3000

24000

10868000

13998000

NOTE 10. SUBSEQUENT EVENTS The Company has evaluated subsequent events through August 15, 2021, the date on which the unaudited condensed consolidated financial statements were available to be issued. Based upon this evaluation, management has determined that no material subsequent events have occurred that would require recognition in or disclosures in the accompanying unaudited condensed consolidated financial statements, except as follows: On July 21, 2021, Maslow entered into a settlement agreement with Libertas and Kinetic, which resulted in MMG paying both parties $<span id="xdx_909_eus-gaap--DefinedBenefitPlanBenefitObligationPaymentForSettlement_c20210718__20210721__dei--LegalEntityAxis__custom--VivosHoldingsIncMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_z00gt1UnP884" title="Payment for settlement obligation">475, to settle the obligation which Vivos Holdings, LLC had committed MMG to, in July 2018. The agreement which included $100 in legal fees, released MMG from all claims judgements and obligations against MMG but did not release Naveen Doki, Silvija Valleru, Judos Trust, Igly Trust, Srinivas Kalidindi, Shirisha Janumpally, Federal Systems, Kalyan Pathuri, US IT Solutions Inc., 360 IT Professionals Inc., Alliance Micro Inc. Vivos IT LLC, Vivos Global Holdings LLC, Vivos Acquisitions LLC, or Vivos Holdings.from the remaining obligation. According to Kinetic and Libertas the amount due before the settlement was $1,773. MMG became a debtor when Vivos Holdings had included MMG as a signer on its confession of judgement in September 2018. MMG will pursue enforcement of the aforementioned Liquidation Agreement, (See Note 2) which was put into place prior to the Merger Agreement to shield the Company if the Vivos Group should default, which unbeknownst to the Company had already transpired, prior to the merger closing. However, upon default the Libertas notes reverted to their original outstanding totals. There were 4 total loans in the settlement, with the 3 domesticated judgements in Montgomery County circuit court relating to MMG totaling $1,038. MMG’s negotiated payment of $475 settles that portion of the Libertas debt. On August 9, 2021, Reliability filed an additional claim in the Debt Collection Suit and Vivos Default Counterclaim in the Circuit Court of Montgomery County, Maryland against Doki, Valleru, Pathuri, Janumpally, Igly, and Judos, asserting that the Respondents breached the Merger Agreement in a number of significant respects and potentially committed fraud in connection with the Merger.

475

100

1773

There were 4 total loans in the settlement, with the 3 domesticated judgements in Montgomery County circuit court relating to MMG totaling $1,038. MMG’s negotiated payment of $475 settles that portion of the Libertas debt.