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Reliability Incorporated (RLBY0.00%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in revenue to $6,230,000 from $5,341,000 in the same quarter the previous year. The increase is attributed to growth in the Employer of Record (EOR) segment.
Cost of revenue for the quarter was $5,396,000, resulting in a gross profit of $834,000, compared to $772,000 in the previous year. The gross margin decreased slightly due to changes in the revenue mix.
Selling, general, and administrative expenses decreased to $958,000 from $998,000, primarily due to reduced legal costs.
The company reported an operating loss of $124,000 for the quarter, an improvement from a loss of $226,000 in the previous year.
Interest income from related parties increased to $146,000 from $68,000, while interest expense rose to $27,000 from $12,000.
Other expenses increased to $68,000, up from $13,000, due to legal costs related to ongoing arbitration and settlement matters.
Net loss for the quarter was $66,000, compared to a net loss of $176,000 in the previous year.
Cash used in operating activities was $1,192,000, while cash used in investing activities was $58,000. Cash provided by financing activities was $568,000.
Reliability had a working capital of $7,536,000 as of September 30, 2024. The company continues to focus on collecting judgments from legal proceedings and improving its cash flow through factoring and other financial arrangements.
The filing also details ongoing legal proceedings with the Vivos Group, including arbitration awards and the appointment of a receiver to collect damages.
Reliability does not anticipate cash dividend payments to common stockholders in the near future.
The company is evaluating the impact of new accounting standards, including those related to segment reporting and income tax disclosures, on its financial statements.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Reliability Incorporated quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.