Restricted net assets

3 Months Ended

Mar. 31, 2022

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 March 31, 2022 and December 31, 2021, the Company's consolidated subsidiaries had $11.4 million and $11.4 million, respectively, of restricted net assets. This compares to the Company's consolidated net assets of $151.5 million and $153.0 million as of March 31, 2022 and December 31, 2021, respectively, which consisted of (in thousands):


	March 31, 2022		December 31, 2021
Cash restricted in China due to unpaid employee benefits and unfulfilled government grants	$	49	$	49
China earnings restricted to fund statutory common reserves in China	10,493		10,463
Loan agreements in Japan requiring local subsidiaries to maintain minimum net asset levels	820		869
Total restricted net assets in the Company's consolidated subsidiaries	$	11,362	$	11,381