Reliability Incorporated, through its subsidiary The Maslow Media Group, reported a revenue increase of 11.8% for the fiscal year ending December 31, 2024, reaching $23.98 million compared to $21.45 million in 2023. The company’s gross profit also improved, rising to $3.19 million from $3.04 million in the previous year. However, the operating loss narrowed only slightly to $707,000 from $749,000 in 2023, while the net loss decreased to $594,000 from $740,000. The increase in revenue was primarily driven by a significant uptick in Employer of Record (EOR) services, which accounted for 85% of total revenue, reflecting a 14.3% year-over-year growth.
The company experienced notable changes in its client revenue concentration, with its top three clients contributing 63.6% of total revenue in 2024, up from 49.5% in 2023. This shift indicates a growing reliance on a smaller number of clients, which poses potential risks if any of these clients reduce their business. The top five clients collectively represented 74.4% of total revenue, compared to 61.9% in the previous year. The increase in revenue from these key clients was attributed to heightened activity, particularly in the media sector, driven by election-related projects.
Operationally, Reliability has expanded its workforce, employing 23 staff members and approximately 794 field talent workers throughout the year. The company has also made strategic investments in its sales and client services teams, which contributed to a 6.6% increase in staffing revenue. However, the gross margin declined to 13.3% from 14.2% in 2023, primarily due to a shift in revenue mix towards lower-margin EOR services and increased utilization of 1099 contractors.
Looking ahead, Reliability aims to enhance its profitability by diversifying its revenue streams and optimizing cost structures. The company plans to focus on expanding its EOR services into new industries while also increasing its direct hire and staffing capabilities outside the media sector. Management anticipates that the legal costs associated with the ongoing Vivos Group arbitration will decrease in 2025, allowing for a more streamlined focus on operational growth. The company is also exploring opportunities to increase its authorized shares to facilitate potential acquisitions, contingent upon resolving its current legal disputes.
About RELIABILITY INC
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.