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Inventory

12 Months Ended

Dec. 31, 2011

Inventory [Abstract]

3. Inventory

Inventories consisted of the following at December 31:

			September 30,				September 30,
		2011				2010

Raw materials		$	11,304,265			$	11,636,588
Work-in-process			304,783				180,991
Finished goods			4,306,585				6,348,490
Reserve for excess and obsolete inventory			(4,430,872	)			(350,664	)

Total inventory		$	11,484,761			$	17,815,405

During the fourth quarter of 2011, the Company recognized a charge of $3.7 million for excess inventory relative to two specific product lines: the TASER X3 ECD, and the first generation of AXON. The success of the new TASER X2 has led the Company to conclude that it will not sell through its current level of TASER X3 inventory, even though the Company will continue to sell and support the TASER X3 product line. These factors resulted in an excess inventory charge of $1.7 million associated with the X3 product line. Similarly, with the launch of the Company’s new AXON Flex system for the Video segment, the Company has concluded it will not sell through existing first generation AXON inventory. These factors resulted in an excess inventory charge of $2.0 million associated with the first generation AXON product line.

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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