Related Party Transactions

9 Months Ended

Sep. 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 nine months ended September 30, 2012, the Company incurred expenses of approximately $3,000 and $21,000, respectively, to Thomas P. Smith. For the three and nine months ended September 30, 2011, the Company incurred expenses of approximately $57,000 and $135,000, respectively, to Thomas P. Smith. At September 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. In September 2012, the Company transferred the administration and assets of the TASER Foundation to the International Association of Chiefs of Police. The assets transferred were $0.3 million. Previously, the Company bore all administrative costs of the TASER Foundation in order to ensure 100% of all donations were distributed to the families of fallen officers. For the three and nine months ended September 30, 2012, the Company incurred $300 and $2,500 in such administrative costs, respectively. For the three and nine months ended September 30, 2011, the Company incurred approximately $1,000 and $4,500, respectively, in such administrative costs. For the three and nine months ended September 30, 2012 and 2011, the Company made no discretionary contributions to the TASER Foundation. The TASER Foundation distributed $3.0 million of grants to the families of fallen officers from 2004 to 2012.

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 nine months ended September 30, 2012, were approximately $39,000 and $141,000, respectively. Expenses relating to these services for the three and nine months ended September 30, 2011, were approximately $43,000 and $159,000, respectively. At September 30, 2012 and December 31, 2011, the Company had accrued liabilities of approximately $10,500 and $12,500 for these services, respectively.