Our revenues are benefiting from repeat purchases from existing customers and traction in the multifamily residential market. Additionally, the growth that we saw in our Smart Glass revenues was driven by a favorable product mix shift to our higher priced and higher margin products that are typically shipped towards the end of these projects. And we have fewer — as we have fewer early stage Smart Glass projects with IGUs in production following the shift to smart building platform. Moving forward, we anticipate Smart Glass revenues to decrease and be a much smaller part of our total revenues. While we grew revenues year-over-year, our Q3 2023 non-GAAP cost of revenues decreased 13% from Q3 2022, reflecting the benefit of our lower fixed costs in the factory and the field, and favorable product mix within and across the three major product offerings, partially offset by $6 million of charges for our changes in estimate in future per unit IGU costs.
As we have been discussing throughout this year, our lower fixed costs revenues in the factory and the field are driven by our cost savings initiatives put in place during the second half of 2022 and earlier this year. Revenue growth coupled with our lower cost of revenues resulted in continued significant improvement in gross margin. This quarter, our gross margin increased by $21 million as compared to Q3 2022 and increased sequentially from Q2 2023 by $9 million. Turning to operating expenses. We’ve incurred $8 million in non-GAAP research and development expense in Q3 2023, a decrease of 42% or $6 million from Q3 2022. This decrease was primarily driven by the completion of certain R&D projects, as well as the realization of cost savings initiatives we have put in place.
We anticipate that R&D expense will continue to reflect lower spending as compared to prior periods for the remainder of this year and into 2024 as we focus on cash profitability. We incurred $16 million in non-GAAP SG&A expenses in Q3 2023, which decreased to 20% or $4 million compared to Q3 2022, reflecting lower spend on legal fees following the completion of a restatement as well as lower sales and marketing expenses following our cost savings initiatives. During the quarter, we noted a continued decline in economic and market conditions, including a continued and sustained decline in our market capitalization, rising interest rates and a prolonged outlook for a continued slowdown in the real estate market. This combined with the limited amount of additional financing we secured and our revised projections for our future operating results culminated in a $170 million impairment charge to write-down the value of our property and equipment.
Additionally, following the revisions to our outlook for future production, we determined that our estimated future costs of IGU production would be higher on a per unit basis, and recorded this — and recorded $6 million of charges this quarter. $4 million to increase our warranty liability and $2 million to increase our contract loss accrual. We have further reduced our factory fixed costs as we focus on strategic volume growth with higher quality projects with favorable economics. And we are running the factory with this rationalized capacity model. It is important to note that these charges do not result in higher cash outflows for factory costs. For the third quarter of 2023, we reported a $30 million improvement in adjusted EBITDA with a loss of $23 million compared to $53 million in Q3 2022, reflecting the impact of higher revenues, improving gross margins and lower operating expenses.
Now turning to cash. We ended the quarter with $51 million of cash and cash equivalents compared to $80 million as of June 30, 2023. Cast used in operations for the third quarter of 2023 was $32 million, a $90 million improvement compared to the third quarter of 2022 and a sequential improvement of $15 million from the second quarter of 2023. On our last earnings call, we said that we anticipated cash burn would improve in the second half of 2023, driven by leverage from higher revenues with the lower fixed cost structure following our recent cost savings initiatives. And we are seeing these results in the third quarter. On October 16, we announced the closing on a $50 million senior secured credit facility from an investor consortium comprised of real estate investors.
Initial net proceeds from this facility were $10 million, and we anticipate additional draws of $37.5 million over the next two quarters subject to meeting certain covenants within the agreement. We believe cash on hand in combination with the projected draws from the credit facility should be sufficient to fund our currently anticipated operating and capital requirements into but not through the first quarter of 2024. This timeframe gives us runway to continue to execute our business and demonstrate reduction in cash burn as we look to finance the business to cash flow positive. With that operator, we will turn it over for questions.
Operator: [Operator Instructions] Our first questions come from the line of Graham Price with Raymond James. Please proceed with your questions.
Graham Price: Hey, good afternoon, guys and thank you very much for taking the questions. I guess, first of all, well done on gross margin turning positive, excluding the $6 million charge. Though did want to get some clarification on, I guess, why that would impact the current quarter if it’s tied to future per unit costs? And then maybe more broadly, realizing that you have yet to give guidance for 2024. But just directionally, how do you see margins progressing from here? And then maybe talk a little bit about where you see the longer term margin profile kind of shaking out.
