Cash Flows. The following table shows our sources and uses of cash (in thousands) for the years ended December 31, 2020 and 2019:
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Year Ended December 31,
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2020
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2019
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Net cash provided by (used in)
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Operating activities
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$
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19,641
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$
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9,480
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Investing activities
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(512)
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4,185
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Financing activities
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(4,534)
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(11,256)
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Effect of exchange rate changes on cash and cash equivalents and restricted cash
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89
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133
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Net change in cash and cash equivalents and restricted cash
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$
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14,684
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$
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2,542
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Year Ended December 31, 2020 versus Year Ended December 31, 2019
Net cash provided by operating activities was $19,641,000 and $9,480,000 for the years ended December 31, 2020 and 2019, respectively. The increase in cash provided by operating activities was primarily due to a decrease in our operating level of accounts receivable as of December 31, 2020.
Net cash used in investing activities was $512,000 for the year ended December 31, 2020 and includes $1,767,000 of proceeds from maturities of short-term investments that were not reinvested offset by cash capital expenditures of $2,847,000. Net cash provided by investing activities was $4,185,000 for the year ended December 31, 2019 and includes $8,233,000 of proceeds from maturities of short-term investments that were not reinvested offset by cash capital expenditures of $4,396,000.
Net cash used in financing activities was $4,534,000 for the year ended December 31, 2020 and includes principal payments of $2,138,000 on our notes and $2,326,000 on our finance leases and outflows of $70,000 associated with taxes related to stock vesting. Additionally, during the second quarter of 2020, we received proceeds from a promissory note with Dominion Bank of $6,374,000 related to an unsecured loan under the Paycheck Protection Program and repaid such loan in its entirety shortly after we received the proceeds. Net cash used in financing activities was $11,256,000 for the year ended December 31, 2019 and includes principal payments of $8,165,000 on our notes and $2,855,000 on our finance leases and outflows of $236,000 associated with taxes related to stock vesting.
We continually strive to supply our clients with technologically advanced 3-D data acquisition recording services and data processing capabilities. We maintain equipment in and out of service in anticipation of increased future demand for our services.
Capital Resources. Historically, we have primarily relied on cash generated from operations, cash reserves and borrowings from commercial banks to fund our working capital requirements and, to some extent, our capital expenditures. Recently, we have funded some of our capital expenditures through finance leases and equipment term loans. From time to time in the past, we have also funded our capital expenditures and other financing needs through public equity offerings.
Dominion Loan Agreement. On September 30, 2019, we entered into a Loan and Security Agreement with Dominion Bank. On September 30, 2020, we entered into a Loan Modification Agreement to the Loan and Security Agreement (as amended by the Loan Modification Agreement, the “Loan Agreement”) for the purpose of amending and extending the maturity of our line of credit with Dominion Bank by one year. The Loan Agreement provides for a Revolving Credit Facility in an amount up to the lesser of (i) $15,000,000 or (ii) a sum equal to (a) 80% of our eligible accounts receivable plus 100% of the amount on deposit with Dominion Bank in our collateral account, consisting of a restricted CDARS account of $5,000,000 (the “Deposit”). As of December 31, 2020, we have not borrowed any amounts under the Revolving Credit Facility.
Under the Revolving Credit Facility, interest will accrue at an annual rate equal to the lesser of (i) 6.00% and (ii) the greater of (a) the prime rate as published from time to time in The Wall Street Journal or (b) 3.50%. We will pay a commitment fee of 0.10% per annum on the difference of (a) $15,000,000 minus the Deposit minus (b) the daily average usage of the Revolving Credit Facility. The Loan Agreement contains customary covenants for credit facilities of this type, including limitations on disposition of assets. We are also obligated to meet certain financial covenants under the Loan Agreement, including maintaining a tangible net worth of $75,000,000 and specified ratios with respect to current assets and liabilities and debt to tangible net worth. Our obligations under the Loan Agreement are secured by a security interest