Segment Data

12 Months Ended

Dec. 31, 2012

Segment Data [Abstract]

Segment Data

15. Segment Data

The Company’s operations are comprised of two reportable segments: the sale of CEWs, accessories and other products and services (the “CEW segment”); and the Video business, which includes the TASER Cam, AXON Video products and EVIDENCE.COM (the “Video segment”). The Company includes only revenues and costs directly attributable to the Video segment in that segment. Included in Video segment costs are: 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. All other costs are included in the CEW segment.

Information relative to the Company’s reportable segments is as follows:

	2012
	CEW			Video			Total
Product sales	$	109,054,723		$	5,070,600		$	114,125,323
Service revenue		—			627,425			627,425
Net sales		109,054,723			5,698,025			114,752,748
Cost of products sold		39,350,134			3,773,152			43,123,286
Cost of services delivered		—			3,914,887			3,914,887
Gross margin		69,704,589			(1,990,014	)		67,714,575
Sales, General & Administrative		35,575,818			3,510,372			39,086,190
Research & Development		3,938,166			4,201,193			8,139,359
Litigation judgment		(2,200,000	)		—			(2,200,000	)
Loss on write down / disposal of property and equipment, net		160,506			—			160,506
Income (loss) from operations	$	32,230,099		$	(9,701,579	)	$	22,528,520
Purchase of property and equipment	$	922,329		$	411,657		$	1,333,986
Purchase of intangible assets		428,983			—			428,983
Depreciation and amortization		4,327,427			2,191,823			6,519,250

	2011
	CEW		Video			Total
Product sales	$	86,675,067	$	3,001,143		$	89,676,210
Service revenue		—		351,696			351,696
Net sales		86,675,067		3,352,839			90,027,906
Cost of products sold		34,212,839		2,692,729			36,905,568
Cost of services delivered		—		4,846,952			4,846,952
Excess inventory charges		1,749,099		1,997,050			3,746,149
Gross margin		50,713,129		(6,183,892	)		44,529,237
Sales, General & Administrative		34,793,889		3,206,566			38,000,455
Research & Development		5,444,874		4,544,345			9,989,219
Litigation judgment		3,301,243		—			3,301,243
Loss on impairment		1,353,857		—			1,353,857
Loss on write down / disposal of property and equipment, net		643,560		2,156,836			2,800,396
Income (loss) from operations	$	5,175,706	$	(16,091,639	)	$	(10,915,933	)
Purchase of property and equipment	$	1,501,121	$	352,962		$	1,854,083
Purchase of intangible assets		413,466		—			413,466
Depreciation and amortization		5,409,026		2,687,517			8,096,543
	2010
	CEW		Video			Total
Product sales	$	82,390,462	$	4,460,212		$	86,850,674
Service revenue		—		79,345			79,345
Net sales		82,390,462		4,539,557			86,930,019
Cost of products sold		35,018,904		3,396,217			38,415,121
Cost of services delivered		—		3,148,023			3,148,023
Gross margin		47,371,558		(2,004,683	)		45,366,875
Sales, General & Administrative		36,644,150		2,377,414			39,021,564
Research & Development		5,535,815		5,876,074			11,411,889
Loss on write down / disposal of property and equipment, net		73,061		—			73,061
Income (loss) from operations	$	5,118,532	$	(10,258,171	)	$	(5,139,639	)
Purchase of property and equipment	$	3,000,705	$	1,022,986		$	4,023,691
Purchase of intangible assets		478,983		—			478,983
Depreciation and amortization		5,704,286		1,582,629			7,286,915

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.