Restricted net assets (Tables)

12 Months Ended

Dec. 31, 2019

Restricted cash was as follows (in thousands):



	December 31,
	2019		2018
Restricted in connection with notes payable and short-term borrowing (see Note 11)	$	2,559	$	2,589
Restricted in connection with asset purchase agreement (see Note 9)	1,999		2,019
Restricted in connection with a current legal dispute with APAT OE (See Note 9)	5,989		5,156
Restricted in connection with government grants received in advance	425		1,289
Total restricted cash	$	10,972	$	11,053
Reported as:
Restricted cash	$	10,972	$	11,053

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