PAYCHECK PROTECTION PROGRAM LOAN

9 Months Ended

Sep. 30, 2020

NOTE 6:-

PAYCHECK PROTECTION PROGRAM LOAN

On April 21, 2020, RRI entered into a loan (the “PPP Loan”) with Silicon Valley Bank (the “Lender”) evidencing an unsecured promissory note in the amount of $392 thousand (the “PPP Note”) pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Subject to the terms of the PPP Note, the PPP Loan bears interest at a fixed rate of 1% per year, with the first six months of interest deferred, and has an initial term of two years. The PPP Loan is unsecured and guaranteed by the Small Business Administration.

The PPP Loan may be used for payroll costs, costs related to certain group health care benefits and insurance premiums, rent payments, utility payments, mortgage interest payments and interest payments on any other debt obligation that were incurred before February 15, 2020. PPP loan recipients can apply for and be granted forgiveness for all or a portion of loan granted under the PPP, with such forgiveness to be determined, subject to limitations, based on the use of the loan proceeds for payment of payroll costs and any payments of mortgage interest, rent, and utilities. The terms of any forgiveness may also be subject to further requirements in any regulations and guidelines the Small Business Administration may adopt. On September 29, 2020, the Company submitted an application for loan forgiveness to the Small Business Administration.

The PPP Note provides for customary events of default including, among other things, cross-defaults on any other loan with the Lender. The PPP Loan may be accelerated upon the occurrence of an event of default.

The follow table presents the scheduled principal payments of the Company's PPP Loan payable as of September 30, 2020, shown if the PPP Loan is not forgiven:

Period	Amount
Remainder of 2020	$	43
2021		263
2022		88
Total principal payments	$	394

Current portion	$	240
Long-term portion		154
Note payable, net	$	394