Related Party Transactions

6 Months Ended

Jun. 30, 2012

Related Party Transactions [Abstract]

Related Party Transactions

10. Related party transactions

Aircraft charter

The Company reimburses Thomas P. Smith, the former Chairman of the Board of Directors and brother of Patrick W. Smith, Chief Executive Officer, for business use of his personal aircraft. For the three and six months ended June 30, 2012, the Company incurred expenses of approximately $10,500 and $17,200, respectively, to Thomas P. Smith. For the three and six months ended June 30, 2011, the Company incurred expenses of approximately $24,000 and $78,000, respectively, to Thomas P. Smith. At June 30, 2012 and December 31, 2011, there were no outstanding payables due to Thomas P. Smith.

TASER Foundation

In November 2004, the Company established the TASER Foundation. The TASER Foundation is a 501(c)(3) non-profit corporation and has been granted tax exempt status by the Internal Revenue Service. The TASER Foundation’s mission is to honor the service and sacrifice of local and federal law enforcement officers in the United States and Canada lost in the line of duty by providing financial support to their families. Over half of the initial $1.0 million endowment was contributed directly by TASER International, Inc. employees. The Company bears all administrative costs of the TASER Foundation in order to ensure 100% of all donations are distributed to the families of fallen officers. For the three and six months ended June 30, 2012, the Company incurred $1,945 and $2,226 in such administrative costs, respectively. For the three and six months ended June 30, 2011, the Company incurred approximately $2,300 and $3,900, respectively, in such administrative costs. The Company is authorized by its Board of Directors to make a discretionary contribution to the TASER Foundation up to a maximum of $200,000 per quarter. For the three and six months ended June 30, 2012 and 2011, the Company did not make a discretionary contribution to the TASER Foundation.

Consulting services

The Company engages Mark Kroll, a member of the Board of Directors, to provide consulting services. Expenses relating to these services for the three and six months ended June 30, 2012, were approximately $48,000 and $102,500, respectively. Expenses relating to these services for the three and six months ended June 30, 2011, were approximately $63,000 and $116,000, respectively. At June 30, 2012 and December 31, 2011, the Company had accrued liabilities of approximately $33,800 and $12,500 for these services, respectively.