Segment data

3 Months Ended

Mar. 31, 2012

Segment data [Abstract]

Segment data

12. 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 assign costs directly attributable to the Video segment in that segment, which is consistent with the Company’s methodology for evaluating each of its segments. Included in these costs are 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:

	Three Months Ended March 31, 2012
	Video			ECD			Total
Product sales	$	772,131		$	24,757,674		$	25,529,805
Service revenue		111,587			—			111,587
Net sales		883,718			24,757,674			25,641,392
Cost of products sold		793,848			8,611,419			9,405,267
Cost of service delivered		994,866			—			994,866
Gross margin	$	(904,996	)	$	16,146,255		$	15,241,259
Litigation judgment expense	$	—		$	(2,200,000	)	$	(2,200,000	)
Income (loss) from operations	$	(2,964,389	)	$	9,419,406		$	6,455,017
Purchases of property and equipment	$	168,286		$	108,981		$	277,267
Purchases of intangible assets	$	—		$	122,541		$	122,541
Depreciation and amortization	$	472,894		$	1,193,616		$	1,666,510

	Three Months Ended March 31, 2011
	Video			ECD		Total
Product sales	$	830,256		$	22,213,840	$	23,044,096
Service revenue		72,853			—		72,853
Net sales		903,109			22,213,840		23,116,949
Cost of products sold		711,943			9,044,581		9,756,524
Cost of service delivered		1,151,562			—		1,151,562
Gross margin	$	(960,396	)	$	13,169,259	$	12,208,863
Income (loss) from operations	$	(2,817,108	)	$	2,927,293	$	110,185
Purchases of property and equipment	$	2,214		$	323,162	$	325,376
Purchases of intangible assets	$	—		$	87,856	$	87,856
Depreciation and amortization	$	663,427		$	1,404,665	$	2,068,092

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.