BB, liabilities are not pure indicators of a companies health. Every company in the world has a liability on its books. DEBT is something very different from the other items listed on a balance sheet. RESX only has $3 million in debt. That's a big difference from $10 million.
Every company authorizes more stock than they issue, and a great deal of that stock on the sidelines until they NEED it. For example, if they need to raise money in the future, or if they want to acquire a company.
There would be a big problem if the company just started handing that stock out to its board members.
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