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FAIR VALUE MEASUREMENTS
 3 Months Ended
Mar. 29, 2014
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS
Financial instruments are categorized as Level 1, Level 2 or Level 3 based upon the method by which their fair value is computed. An investment is categorized as Level 1 when its fair value is based on unadjusted quoted prices in active markets for identical assets that the Company has the ability to access at the measurement date. An investment is categorized as Level 2 if its fair market value is based on quoted market prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active, based on observable inputs such as interest rates, yield curves, or derived from or corroborated by observable market data by correlation or other means. An investment is categorized as Level 3 if its fair value is based on assumptions developed by the Company about what a market participant would use in pricing the assets.
The following table details the fair value measurements of the Company’s financial assets:
 
 
 
Fair Value Measurement March 29, 2014 Using:
 
 
 
Level 1
 
Level 2
 
Level 3
Money Markets, Cash and Equivalents
$
14,811,610

 
$
14,811,610

 
$
—

 
$
—

U.S. Government Securities
73,500,103

 
25,013,792

 
48,486,311

 
—

Corporate Debt
4,709,186

 
—

 
4,709,186

 
—

Certificates of Deposit
13,124,923

 
—

 
13,124,923

 
—

Vuzix Corporation
1,293,773

 
1,293,773

 
—

 
—

 
$
107,439,595

 
$
41,119,175

 
$
66,320,420

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurement December 28, 2013 Using:
 
 
 
Level 1
 
Level 2
 
Level 3
Money Markets, Cash and Equivalents
$
16,756,666

 
$
16,756,666

 
$
—

 
$
—

U.S. Government Securities
68,284,392

 
16,542,003

 
51,742,389

 
—

Corporate Debt
12,984,331

 
—

 
12,984,331

 
—

Certificates of Deposit
14,703,812

 
—

 
14,703,812

 
—

Vuzix Corporation
1,433,102

 
1,433,102

 
—

 
—

 
$
114,162,303

 
$
34,731,771

 
$
79,430,532

 
$
—


The corporate debt consists of floating rate notes with a maturity that is over multiple years but has interest rates which are reset every three months based on the then current three month London Interbank Offering Rate (three month Libor). The Company determines the fair market values of these corporate debt instruments through the use of a model which incorporates the three month Libor, the credit default swap rate of the issuer and the bid and ask price spread of the same or similar investments which are traded on several markets.
The carrying amounts of cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value because of their short-term nature.  If accrued liabilities were carried at fair value, these would be classified as Level 2 in the fair value hierarchy.