RELIABILITY INC 8-K

What Happened
Reliability Incorporated (RLBY) announced on Feb. 16, 2026 that it entered a Settlement Agreement with Maslow Media Group, Inc. and several respondents (including Vivos Holdings, LLC and related parties) resolving prior arbitration and related court litigation. Under the agreement the respondents agreed to transfer an aggregate of 253,292,210 shares of Reliability common stock to the company, and to not seek to vacate the Arbitrator’s Fifth Supplemental Award. The settlement resolves multiple arbitration awards (ranging from Aug. 31, 2022 through Dec. 26, 2025) and related Circuit Court proceedings in Montgomery County, Maryland.

Key Details

• Respondents to transfer 253,292,210 shares to the company; if transferred, outstanding shares would fall by ~84% to about 46,707,790.
• Transfer documentation must be delivered to the company’s transfer agent within 20 days of the agreement; if not completed, parties consent to entry of a consent judgment directing the transfer agent to effect the transfer.
• If any respondent files for bankruptcy within 91 days after that respondent’s share transfer, the agreement is void as to that respondent but remains enforceable as to the others.
• Upon completion of transfers, the company and Maslow will file satisfactions of money judgments and stipulations dismissing the arbitration and court case with prejudice; as of the Feb. 20, 2026 filing, the transfer agent has not yet confirmed completion.

Why It Matters
This settlement both resolves long‑running litigation and could materially change Reliability’s share structure if the large block of shares is retired. A confirmed transfer would substantially reduce the float and outstanding share count, which can affect ownership percentages and potential market dynamics for remaining shares. However, the transfer is not yet confirmed and contains timing and bankruptcy‑related conditions that could alter the outcome. The company will report when the transfer is confirmed.