Segment Data

6 Months Ended

Jun. 30, 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 provided 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 June 30, 2012									Three Months Ended June 30, 2011
	Video			ECD			Total			Video			ECD			Total
Product sales	$	1,164,128		$	26,931,727		$	28,095,855		$	664,868		$	20,450,150		$	21,115,018
Service revenue		126,588			—			126,588			83,037			—			83,037
Net sales		1,290,716			26,931,727			28,222,443			747,905			20,450,150			21,198,055
Cost of products sold		736,924			9,783,886			10,520,810			550,501			7,203,441			7,753,942
Cost of service delivered		1,199,260			—			1,199,260			1,202,420			—			1,202,420
Gross margin	$	(645,468	)	$	17,147,841		$	16,502,373		$	(1,005,016	)	$	13,246,709		$	12,241,693
Litigation judgment expense	$	—		$	—		$	—		$	—		$	3,301,243		$	3,301,243
Income (loss) from operations		(2,498,171	)		8,557,103			6,058,932			(3,626,480	)		(1,390,065	)		(5,016,545	)
Purchases of property and equipment		120,725			181,847			302,572			18,317			785,050			803,367
Purchases of intangible assets		—			129,809			129,809			—			125,420			125,420
Depreciation and amortization		640,095			1,067,237			1,707,332			650,616			1,548,451			2,199,067
	Six Months Ended June 30, 2012									Six Months Ended June 30, 2011
	Video			ECD			Total			Video			ECD			Total
Product sales	$	1,936,259		$	51,689,401		$	53,625,660		$	1,495,124		$	42,663,989		$	44,159,113
Service revenue		238,175			—			238,175			155,891			—			155,891
Net sales		2,174,434			51,689,401			53,863,835			1,651,015			42,663,989			44,315,004
Cost of products sold		1,530,772			18,395,306			19,926,078			1,262,444			16,249,223			17,511,667
Cost of service delivered		2,194,125			—			2,194,125			2,353,982			—			2,353,982
Gross margin	$	(1,550,463	)	$	33,294,095		$	31,743,632		$	(1,965,411	)	$	26,414,766		$	24,449,355
Litigation judgment benefit (expense)	$	—		$	(2,200,000	)	$	(2,200,000	)	$	—		$	3,301,243		$	3,301,243
Income (loss) from operations		(5,462,559	)		17,976,508			12,513,949			(6,443,587	)		1,537,228			(4,906,359	)
Purchases of property and equipment		289,011			313,291			602,302			20,531			639,341			659,872
Purchases of intangible assets		—			251,987			251,987			—			213,276			213,276
Depreciation and amortization		1,112,989			2,282,454			3,395,443			1,135,948			2,981,632			4,117,580

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.