BUSINESS SEGMENTS

9 Months Ended

Sep. 30, 2025

Segment Reporting [Abstract]

BUSINESS SEGMENTS

NOTE 9. BUSINESS SEGMENTS

The Company operates within four industry segments: EOR, Recruiting and Staffing (“Staffing”), Direct Hire, and Video Production. The EOR segment provides media field talent to a host of large corporate customers in all 50 states. The Recruiting and Staffing (“Staffing”) segment provides skilled Media and IT field talent on a nationwide basis for customers in a myriad of industries. Direct Hire fulfils direct placement requests by MMG clients for a wide variety of posts, including administrative, media, and IT professionals. The Video and Multimedia Production segment provides script-to-screen services for corporate, government, and non-profit clients, globally.

Segment gross profit includes revenue and cost of services only. Currently, the Company is not allocating interest income, interest expense, depreciation expense, other income (expense), income tax benefit (expense) and sales, general, and administrative expenses at the segment level. Our operating segments align with our organizational structure and are regularly reviewed by our Chief Executive Officer (our chief operating decision-maker or “CODM”) to allocate resources and assess performance. No additional segment expense categories (beyond cost of services) are regularly provided to the CODM. We evaluate segments based on revenue and gross profit, which also guide our annual budgeting process. Monthly, our CODM reviews segment revenue and gross profit against the prior year and budget to inform working capital allocation decisions. The measure of segment assets is reported on the consolidated balance sheet as total assets.

RELIABILITY INCORPORATED AND SUBSIDIARY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

(amounts in thousands, except per share data)

The following table provides a reconciliation of revenue and gross profit by reportable segment to consolidated results for the three-month and nine-month periods ended September 30, 2025 and 2024, respectively:

Gross Profit Performance by Segment

For the Three Months Ended September 30:

September 30, 2025								September 30, 2024
Business Segment	Revenue		Gross Profit		GM %			Business Segment	Revenue		Gross Profit		GM %
EOR	$	4,299	$	471		11.0	%	EOR	$	5,293	$	641		12.1	%
Staffing	$	1,053	$	265		25.2	%	Staffing	$	822	$	144		17.4	%
Video Production	$	65	$	13		19.8	%	Video Production	$	87	$	23		26.2	%
Direct Hire	$	-	$	-		-		Direct Hire	$	28	$	26		95.6	%
Total	$	5,417	$	749		13.8	%	Total	$	6,230	$	834		13.4	%

For the Nine Months Ended September 30:

September 30, 2025									September 30, 2024
Business Segment	Revenue		Gross Profit		GM %			Business Segment	Revenue		Gross Profit		GM %
EOR	$	11,627	$	1,365		11.7	%	EOR	$	15,108	$	1,827		12.1	%
Staffing	$	3,083	$	683		22.2	%	Staffing	$	2,202	$	411		18.5	%
Video Production	$	149	$	34		22.8	%	Video Production	$	177	$	33		18.6	%
Direct Hire	$	23	$	21		90.0	%	Direct Hire	$	79	$	75		95.5	%
Total	$	14,882	$	2,103		14.1	%	Total	$	17,566	$	2,346		13.4	%