Restricted net assets

12 Months Ended

Dec. 31, 2019

The Company’s consolidated subsidiaries operating in China and Japan are restricted from transferring funds or assets to its parent company in the form of cash dividends, loans or advances. As of December 31, 2019 and December 31, 2018, the Company's consolidated subsidiaries had $21.1 million and $20.9 million, respectively, of restricted net assets. This compares to the Company's consolidated net assets of $160.2 million and $160.2 million as of December 31, 2019 and December 31, 2018, respectively, which consisted of (in thousands):



	December 31, 2019		December 31, 2018
Cash restricted in China as a result of ongoing litigation and unfulfilled government grants	$	10,936	$	11,018
China earnings restricted to fund statutory common reserves in China	9,240		9,005
Loan agreements in Japan requiring local subsidiaries to maintain minimum net asset levels	920		909
Total restricted net assets in the Company's consolidated subsidiaries	$	21,096	$	20,932