The Company and Basis of Presentation

3 Months Ended

Mar. 31, 2023

Note 1. The Company and Basis of Presentation

SiTime Corporation (the “Company”) was incorporated in the State of Delaware in December 2003. The Company is a leading provider of precision timing solutions to the global electronics industry, providing the timing functionality that is needed for electronics to operate reliably and correctly. The Company's products have been designed to address a wide range of applications across a broad array of end markets. The Company operates a fabless business model and leverages its global network of distributors to address the broad set of end markets that it serves.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments of a normal, recurring nature, which are necessary to state fairly the financial information included therein. These financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in SiTime Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 2022. The year-end condensed balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP.

Coronavirus Disease (“the COVID-19 pandemic”)

The COVID-19 pandemic continued to impact the Company's workforce and the operations of its customers and suppliers during 2022. In response to the COVID-19 pandemic and related government measures, the Company implemented safety measures to protect its employees and contractors at its locations around the world.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

Significant Accounting Policies

The Company’s significant accounting policies are disclosed in the Company’s audited consolidated financial statements and related notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2022. There have been no changes to these accounting policies through March 31, 2023.

Recent Accounting Pronouncements

There are no new accounting pronouncements that are pending to be adopted by the Company.

Restatement

The Company’s previously issued interim condensed consolidated financial statements as of and for the three months ended March 31, 2023 contained a misclassification of “interest received upon maturity of held-to-maturity securities” as an investing activity instead of as an operating activity within the statement of cash flows for the three months ended March 31, 2023.

A summary of the impact on the condensed consolidated statements of cash flows for the three months ended March 31, 2023 is as follows:


	Three Months Ended March 31, 2023
	As Reported		Adjustment		As Restated
	(in thousands)
Cash flows from operating activities:
Net change in unrealized interest on held to maturity securities	$	(4,235)	$	4,447	$	212
Net cash provided by operating activities	$	7,502	$	4,447	$	11,949
Cash flows from investing activities:
Proceeds from maturity of held to maturity securities	$	375,454	$	(4,447)	$	371,007
Net cash used in investing activities	$	(6,374)	$	(4,447)	$	(10,821)