Segment Data

12 Months Ended

Dec. 31, 2011

Segment Data [Abstract]

Segment Data

15. Segment Data

During the fourth quarter of 2011 management determined that its operations are comprised of two reportable segments, the sale of ECDs, accessories and other products and services (the “ECD segment”) and the Video business, which includes the TASER Cam, AXON Video products and EVIDENCE.COM (the “Video segment”). The Company has restated the corresponding items of segment information for earlier periods to reflect the change in the internal organization review structure. On an overall basis, the Company has elected to only put the costs directly attributable to the Video Segment in that segment. Included in these costs are sales, the costs of sales for both products and services, overhead allocation based on direct labor, selling expense for the Video sales team, Video segment product management expenses, Video segment trade shows and related expenses, and research and development for products included in the Video segment.

Information relative to the Company’s reportable segments is as follows:

		September 30,		September 30,			September 30,
	2011
	ECD		Video			Total
Product sales	$	86,675,067	$	3,001,143		$	89,676,210
Service revenue		—		351,696			351,696
Net sales		86,675,067		3,352,839			90,027,906
Cost of products sold		34,212,839		2,692,729			36,905,568
Cost of service delivered		—		4,846,952			4,846,952
Excess inventory charges		1,749,099		1,997,050			3,746,149
Gross margin		50,713,129		(6,183,892	)		44,529,237
Litigation judgment		3,301,243		—			3,301,243
Loss on impairment		1,353,857		—			1,353,857
Loss on write down / disposal of property and equipment, net		643,560		2,156,836			2,800,396
Income (loss) from operations		4,463,015		(15,378,948	)		(10,915,933	)
Purchase of property and equipment		1,573,749		352,962			1,926,711
Purchase of intangible assets		343,983		—			343,983
Depreciation and amortization		5,409,026		2,687,517			8,096,543

		September 30,		September 30,			September 30,
	2010
	ECD		Video			Total
Product sales	$	82,390,462	$	4,460,212		$	86,850,674
Service revenue		—		79,345			79,345
Net sales		82,390,462		4,539,557			86,930,019
Cost of products sold		35,018,904		3,396,217			38,415,121
Cost of service delivered		—		3,148,023			3,148,023
Gross margin		47,371,557		(2,004,682	)		45,366,875
Income (loss) from operations		5,118,532		(10,258,171	)		(5,139,639	)
Purchase of property and equipment		3,156,918		1,022,986			4,179,904
Purchase of intangible assets		478,984		—			478,984
Depreciation and amortization		5,704,286		1,582,629			7,286,915

		September 30,		September 30,			September 30,
	2009
	ECD		Video			Total
Product sales	$	101,165,046	$	3,086,514		$	104,251,560
Service revenue		—		—			—
Net sales		101,165,046		3,086,514			104,251,560
Cost of products sold		39,044,902		1,804,249			40,849,151
Cost of service delivered		—		—			—
Gross margin		62,120,144		1,282,265			63,402,409
Income (loss) from operations		8,049,449		(8,128,623	)		(79,174	)
Purchase of property and equipment		12,539,867		2,553,399			15,093,266
Purchase of intangible assets		471,697		—			471,697
Depreciation and amortization		3,448,217		186,195			3,634,412

The CODM does not review assets by segment as part of the financial information provided, therefore no asset information is provided in the above table. Expenses directly attributable to the Video segment are included in this segment, with all other costs remaining in the ECD segment, which is consistent with the Company’s methodology for evaluating each of these segments.