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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%