Segment Data

9 Months Ended

Sep. 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 to 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 segment 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 September 30, 2012									Three Months Ended September 30, 2011
	Video			ECD			Total			Video			ECD		Total
Product sales	$	1,528,347		$	27,085,180		$	28,613,527		$	925,836		$	23,361,182	$	24,287,018
Service revenue		159,429			—			159,429			96,092			—		96,092
Net sales		1,687,776			27,085,180			28,772,956			1,021,928			23,361,182		24,383,110
Cost of products sold		1,181,906			9,673,370			10,855,276			693,278			9,437,149		10,130,427
Cost of services delivered		1,114,668			—			1,114,668			1,149,075			—		1,149,075
Gross margin (loss)	$	(608,798	)	$	17,411,810		$	16,803,012		$	(820,425	)	$	13,924,033	$	13,103,608
Income (loss) from operations	$	(2,472,638	)	$	7,749,953		$	5,277,315		$	(2,745,950	)	$	3,958,042	$	1,212,092
Purchases of property and equipment		68,215			217,092			285,307			94,581			416,740		511,321
Purchases of intangible assets		9,728			76,148			85,876			1,425			95,800		97,225
Depreciation and amortization		664,307			1,054,239			1,718,546			663,527			1,331,505		1,995,032
	Nine Months Ended September 30, 2012									Nine Months Ended September 30, 2011
	Video			ECD			Total			Video			ECD		Total
Product sales	$	3,464,606		$	78,774,581		$	82,239,187		$	2,420,960		$	66,025,172	$	68,446,132
Service revenue		397,604			—			397,604			251,983			—		251,983
Net sales		3,862,210			78,774,581			82,636,791			2,672,943			66,025,172		68,698,115
Cost of products sold		2,712,678			28,068,676			30,781,354			1,955,722			25,686,372		27,642,094
Cost of services delivered		3,308,794			—			3,308,794			3,503,057			—		3,503,057
Gross margin (loss)	$	(2,159,262	)	$	50,705,905		$	48,546,643		$	(2,785,836	)	$	40,338,800	$	37,552,964
Litigation judgment (recovery) expense	$	—		$	(2,200,000	)	$	(2,200,000	)	$	—		$	3,301,243	$	3,301,243
Income (loss) from operations		(7,935,198	)		25,726,461			17,791,263			(9,189,537	)		5,495,271		(3,694,266	)
Purchases of property and equipment		357,226			530,383			887,609			115,112			1,056,081		1,171,193
Purchases of intangible assets		15,526			322,337			337,863			3,115			307,386		310,501
Depreciation and amortization		1,777,586			3,336,403			5,113,989			1,977,570			4,135,042		6,112,612

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.