General and administrative expenses for the three months ended April 3, 2022, and April 4, 2021 represented approximately 8.2% and 10.8% of total revenues, respectively. This year-over-year decrease in expense as a percentage of total revenues was due primarily to leverage from the increased revenue resulting from 2021 acquisitions and an increase in dine-in sales.
Asset Impairment, Estimated Lease Termination and Other Closing Costs
The following is a summary of the asset impairment, estimated lease termination and other closings costs we incurred for the periods presented:
| | | | | | |
| | Three Months Ended |
(dollars in thousands) | | April 3, 2022 | | April 4, 2021 |
Asset impairments, net | | $ | 181 | | $ | — |
Lease termination and restaurant closure expenses | | | 228 | | | 12 |
Asset impairment, estimated lease termination charges and other closing costs | | $ | 409 | | $ | 12 |
Income Tax (Expense) Benefit
Income tax benefit for the three months ended April 3, 2022 was approximately $241,000, or 59.4% of our pretax income and the income tax expense for the three months ended April 4, 2021 was $82,000, or 10.5% of our pretax income.
Financial Condition, Liquidity and Capital Resources
Our balance of unrestricted cash and cash equivalents was approximately $35.4 million and $40.3 million as of April 3, 2022, and January 2, 2022, respectively. Our current ratio, which measures our immediate short-term liquidity, was 1.1 as of April 3, 2022, and January 2, 2022, respectively. The current ratio is computed by dividing total current assets by total current liabilities.
Net cash provided by operating activities was approximately $1.4 million for the first three months ended April 3, 2022, and was approximately $4.2 million for the first three months ended April 4, 2021. The $2.8 million year-over-year decrease in net cash provided by operating activities was driven by an additional $1 million in gift card liability redemptions which corresponded with higher gift card sales in the fourth quarter of 2021. Additionally, working capital changes decreased cash flow from operations by approximately $2.1 million year-over-year.
Net cash used for investing activities was approximately $5.2 million for the three months ended April 3, 2022 relating primarily to the purchase of the Famous Craft Concepts restaurants, the acquisition of which we closed in March 2022.
Net cash used for investing activities was approximately $685,000 for the three months ended April 4, 2021, relating to payments for the purchase of equipment and leasehold improvements.
Net cash used for financing activities for the three months ended April 3, 2022, was approximately $585,000 which was primarily the result of payments of $562,000 on our long-term debt.
Net cash used for financing activities for the three months ended April 4, 2021, was approximately $519,000 which was for payments on our long-term debt.
We are subject to various financial and non-financial covenants on our long-term debt, including a debt-service coverage ratio. As of April 3, 2022, we were in compliance with all of our covenants.
Critical Accounting Policies
Our significant accounting policies are described in Note 1 – Nature of Business and Significant Accounting Policies to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended January 2, 2022. Except as disclosed in Note 1 “Basis of Presentation” to the accompanying notes to the consolidated financial statements, there have been no updates to our critical accounting policies.