Segment Data

3 Months Ended

Mar. 31, 2013

Segment Data [Abstract]

Segment data

12. 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 business 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:

	Three Months Ended March 31, 2013									Three Months Ended March 31, 2012
	CEW			Video			Total			CEW			Video			Total
Product sales	$	28,002,622		$	2,180,056		$	30,182,678		$	24,757,674		$	772,131		$	25,529,805
Service revenue		—			250,974			250,974			—			111,587			111,587
Net sales		28,002,622			2,431,030			30,433,652			24,757,674			883,718			25,641,392
Cost of products sold		10,216,667			1,187,846			11,404,513			8,611,419			793,848			9,405,267
Cost of services delivered		—			578,135			578,135			—			994,866			994,866
Gross margin		17,785,955			665,049			18,451,004			16,146,255			(904,996	)		15,241,259
Sales, general & administrative		10,102,625			1,108,275			11,210,900			8,086,497			767,525			8,854,022
Research & development		988,681			1,023,875			2,012,556			840,352			1,291,868			2,132,220
Litigation judgment		—			—			—			(2,200,000	)		—			(2,200,000	)
Gain on write down / disposal of property and equipment, net		(28,960	)		—			(28,960	)		—			—			—
Income (loss) from operations	$	6,723,609		$	(1,467,101	)	$	5,256,508		$	9,419,406		$	(2,964,389	)	$	6,455,017
Purchases of property and equipment	$	253,833		$	129,256		$	383,089		$	108,981		$	168,286		$	277,267
Purchases of intangible assets		103,513			—			103,513			122,541			—			122,541
Depreciation and amortization		998,948			419,811			1,418,759			1,193,616			472,894			1,666,510

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.