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Inventory

12 Months Ended

Dec. 31, 2012

Inventory [Abstract]

3. Inventory

Inventories consisted of the following at December 31:


		2012				2011
Raw materials		$	9,689,172			$	11,304,265
Work-in-process			131,492				304,783
Finished goods			3,492,167				4,306,585
Reserve for excess and obsolete inventory			(2,319,622	)			(4,430,872	)

Total inventory		$	10,993,209			$	11,484,761

During 2011, the Company recognized a charge of $3.7 million for excess inventory relative to two specific product lines: the TASER X3 CEW, and the first generation of AXON. The success of the new TASER X2 led the Company to conclude that it would not sell its current level of TASER X3 CEW inventory, resulting in an excess inventory charge of $1.7 million. Similarly, with the launch of the Company’s new AXON Flex system for the Video segment, the Company concluded it would not sell its current level of first generation AXON inventory, resulting in an excess inventory charge of $2.0 million. The Company disposed of some of its previously reserved for inventory during the year ended December 31, 2012, thereby reducing the reserve compared to the year ended December 31, 2011.

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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