paid approximately $1.4 million in dividends in April 2023. Our liquidity requirements may include future quarterly dividends if such dividends are declared by our Board.
As of March 31, 2023, we had cash and cash equivalents of $51.1 million and working capital of $70.6 million.
With the exception of the liquidity matter relating to CW-Bahamas that is discussed in the paragraphs that follow, we are not presently aware of anything that would lead us to believe that we will not have sufficient liquidity to meet our needs.
CW-Bahamas Liquidity
CW-Bahamas’ accounts receivable balance (which include accrued interest) due from the WSC amounted to $16.6 million and $16.3 million as of March 31, 2023 and December 31, 2022, respectively. Approximately 65% of these accounts receivable balances were delinquent as of both of those dates.
From time to time, CW-Bahamas has experienced delays in collecting its accounts receivable from the WSC. When these delays occur, we hold discussions and meetings with representatives of the WSC and The Bahamas government, and as a result, payment schedules are developed for WSC’s delinquent accounts receivable. All previous delinquent accounts receivable from the WSC, including accrued interest thereon, were eventually paid in full. Based upon this payment history, CW-Bahamas has never been required to provide an allowance for doubtful accounts for any of its accounts receivable, despite the periodic accumulation of significant delinquent balances. As of March 31, 2023, we have not provided an allowance for doubtful accounts for CW-Bahamas’ accounts receivable from the WSC.
We have received correspondence from the Ministry of Finance of the Government of the Bahamas that stated the Government intends to return all of CW-Bahamas’ accounts receivable from the WSC to current status.
In its latest report dated October 6, 2022, Moody’s Investor Services (“Moody’s”) downgraded the Government of The Bahamas’ long-term issuer and senior unsecured ratings to B1 from Ba3. Moody’s also lowered The Bahamas’ local currency ceiling to Baa3 from Baa2 and its foreign currency ceiling to Ba1 from Baa3. Based upon our review of this Moody’s report, we continue to believe no allowance for doubtful accounts is required for CW-Bahamas’ accounts receivable from the WSC.
Discussion of Cash Flows for the Three Months Ended March 31, 2023
Our cash and cash equivalents increased to $51,104,268 as of March 31, 2023 from $50,711,751 as of December 31, 2022.
Cash Flows from Operating Activities
Net cash provided by our operating activities was $5,346,545. This net cash reflects the net income generated for the three months ended March 31, 2023 of $3,976,747 as adjusted for (i) various items included in the determination of net income that do not affect cash flows during the year; and (ii) changes in the other components of working capital. The more significant of such items and changes in working capital components included depreciation and amortization of $1,594,078, an increase in accounts receivable of $2,502,421, an increase in contract assets of $3,213,865, an increase in inventory of $3,382,870, and an increase in contract liabilities of $6,695,239.
Cash Flows from Investing Activities
Net cash used by our investing activities was $3,805,879. On January 4, 2023, we purchased the remaining 39% ownership interest in PERC for $2,440,027 and 368,383 shares of the Company’s common stock. We also used $1,381,796 for additions to property, plant and equipment and construction in progress.
Cash Flows from Financing Activities
Net cash used by our financing activities was $1,334,114, almost all of which related to the payment of dividends.