Reliability, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing notable changes in revenue and profitability compared to the previous fiscal period. For the three months ended September 30, 2024, the company generated service revenue of $6,230,000, an increase of 16.6% from $5,341,000 in the same period of 2023. The nine-month revenue also rose to $17,566,000, up 9.8% from $15,992,000 year-over-year. The Employer of Record (EOR) segment was a significant contributor, with revenues for the three months reaching $5,293,000, an 18.5% increase from $4,467,000 in Q3 2023.
Despite the revenue growth, the company reported a consolidated net loss of $66,000 for Q3 2024, an improvement from a loss of $176,000 in Q3 2023. For the nine-month period, the net loss narrowed to $334,000 from $612,000 in the prior year. Gross profit for Q3 2024 was $834,000, reflecting an 8.0% increase from $772,000 in Q3 2023, although gross margins decreased slightly to 13.4% from 14.5%.
Total current assets as of September 30, 2024, were $10,184,000, up from $9,768,000 at the end of 2023, while total current liabilities increased to $2,648,000 from $1,855,000. Shareholders’ equity decreased to $7,597,000 from $7,931,000 during the same period. Cash and cash equivalents saw a significant decline, dropping to $140,000 from $822,000 at the end of 2023.
The company has also been actively managing its legal matters, with a total award value of $8,036,000 from arbitration proceedings against the Vivos Group, which includes fraud damages and legal fees. A rehabilitative receiver was appointed in May 2023 to assist in collecting these amounts. The company anticipates a reduction in continuing legal fees in 2024 due to collectible judgments being pursued.
Operationally, the company has entered into short-term loan agreements totaling $150,000 and has a factoring agreement with Gulf Coast Bank to manage liquidity. The Days Outstanding (DSO) improved to 49 days from 53 days year-over-year, indicating better cash flow management. The company reported only $180 in bad debt over the past five years, highlighting its effective credit management practices.
About RELIABILITY INC
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