Operating Activities
During the three months ended March 31, 2022 our cash provided by operating activities was $692,863 compared to cash provided by operating activities of $206,818 for the three months ended March 31, 2021, an increase of cash provided by operating activities of $486,045.
Cash flows from operating activities has two components. The first component consists of net operating loss adjusted for non-cash operating activities. During the three months ended March 31, 2022, operating activities adjusted for non-cash items resulted in net cash provided by operating activities of $689,045. During the three months ended March 31, 2021, operating activities adjusted for non-cash items resulted in net cash provided in operating activities of $50,868. The increase of $638,177 in cash flows from operating activities for the three months ended March 31, 2022 was a result of improved operating performance across all property types, as well as cash flows from our company’s acquisition of the Lancer Center, Parkway and Greenbrier Business Center properties, none of which we owned during the three months ended March 31, 2021.
The second component consists of changes in assets and liabilities. Increases in assets and decreases in liabilities result in cash used in operations. Decreases in assets and increases in liabilities result in cash provided by operations. During the three months ended March 31, 2022, net changes in asset and liability accounts resulted in $3,818 in cash provided by operations. During the three months ended March 31, 2021, net changes in asset and liability accounts resulted in $155,950 in cash provided by operations. This decrease of $152,132 in changes in assets and liabilities is a result of a decreased change in accounts payable and accrued liabilities of $386,704, offset by an increased change in rent and other receivables, net, of $1,401, unbilled rent of $73,246, and other assets of $159,925.
The net of (i) the $638,177 increase in cash provided by operations from the first category and (ii) the $152,132 decrease in cash provided by operations from the second category results in a total increase of cash provided in operations of $486,045 for the three months ended March 31, 2022.
Investing Activities
During the three months ended March 31, 2022, our cash used in investing activities was $366,059, compared to cash used in investing activities of $45,140 during the three months ended March 31, 2021, an increase in cash used in investing activities of $320,919. During the three months ended March 31, 2022, cash used in investing activities consisted of $366,059 in capitalized expenditures, including $230,857 in building improvements, $78,921 in capitalized leasing commissions, and $56,281 in capitalized tenant improvements. During the three months ended March 31, 2021, cash used in investing activities consisted of $45,150 in capitalized tenant improvements.
There were no non-cash investing activities during the three months ended March 31, 2022. The non-cash investing activity for the three months ended March 31, 2021, that did not affect our cash provided by investing activities, was the transfer of investment properties, net, to assets held for sale, net of $9,683,555.
Financing Activities
During the three months ended March 31, 2022, our cash provided by financing activities was $368,253 compared to cash provided by financing activities of $1,092,648 during the three months ended March 31, 2021, a decrease in cash provided by financing activities of $724,395. During the three months ended March 31, 2022, financing activities generated $1,188,574 in net proceeds, after issuance costs, from common stock issuances under our SEPA (see above), offset by cash used in financing activities, including dividends and distributions of $341,521, mortgage debt principal payments of $192,257 and repurchases of our company’s common stock of $286,543, including costs and fees.
During the three months ended March 31, 2021, financing activities generated net proceeds, after issuance costs, from the closing of the third tranche of our convertible debentures of $1,305,000. Additionally, our company used funds for mortgage debt principal payments of $134,150, distributions to noncontrolling interests of $12,000 and $66,202 in capitalized offering costs related to our April 13, 2021 stock issuance.
There were no non-cash financing activities during the three months ended March 31, 2022. Non-cash financing activities for the three months ended March 31, 2021, that did not affect our cash provided by financing activities were the conversion ofconvertible debentures and accrued interest totaling $3,799,268 into common stock, and the transfer of the mortgage payable, net, of $7,592,931,