Property and Equipment

12 Months Ended

Dec. 31, 2011

Property and Equipment [Abstract]

Property and Equipment

4. Property and Equipment

Property and equipment consisted of the following at December 31:

		September 30,		September 30,			September 30,
	Estimated
	Useful Life		2011			2010
Land		N/A	$	2,899,962		$	2,899,962
Building		39 years		13,998,874			14,126,110
Production equipment		3-7 years		17,338,392			18,579,556
Telephone equipment		5 years		9,283			9,283
Computer equipment		3-5 years		8,482,545			8,143,098
Furniture and office equipment		5-7 years		3,067,048			3,001,496
Vehicles		5 years		313,325			503,872
Website development costs		3 years		600,949			846,387
Capitalized software development costs		3 years		3,806,547			3,670,122
Construction-in-process		N/A		797,306			2,082,404
Total cost				51,314,230			53,862,290
Less: Accumulated depreciation				(24,469,010	)		(17,956,525	)
Property and equipment, net			$	26,845,220		$	35,905,765

In 2011, the Company recognized a loss on write-down / disposal of property and equipment of $2.8 million which consisted of the following: (i) $1.4 million for tooling relative to the first generation AXON equipment, which is discussed further above; (ii) $0.8 million relative to the decision to dispose of surplus equipment and billing software for EVIDENCE.COM operations; and (iii) $0.6 million for tooling relative to the TASER X3. In 2011, the Company also recognized an impairment charge of $1.4 million following the Company’s determination to abandon the Protector product line, of which $0.7 million relates to property and equipment. In 2010, the Company wrote off or disposed of a total of $1.6 million of computer, production and office equipment, which were no longer in service. These assets had accumulated depreciation of $1.5 million and generated a loss on disposal of $0.1 million for the equipment that was sold.

At December 31, 2011 and 2010, construction-in-process includes new product production equipment that was not in service at such time. Depreciation and amortization expense relative to property and equipment was $7.5 million, $6.8 million and $3.5 million for the years ended December 31, 2011, 2010 and 2009, respectively, of which $5.2 million, $4.3 million, and $1.0 million relates to cost of products sold, respectively.