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 June 30, 2013							Three Months Ended June 30, 2012
	CEW		Video			Total		CEW			Video			Total
Product sales	$	30,272,853	$	1,569,551		$	31,842,404	$	26,931,727		$	1,164,128		$	28,095,855
Service revenue		—		333,393			333,393		—			126,588			126,588

Net sales		30,272,853		1,902,944			32,175,797		26,931,727			1,290,716			28,222,443

Cost of products sold		10,410,910		1,355,699			11,766,609		9,783,886			736,924			10,520,810
Cost of services delivered		—		666,825			666,825		—			1,199,260			1,199,260

Gross margin		19,861,943		(119,580	)		19,742,363		17,147,841			(645,468	)		16,502,373
Sales, general & administrative		9,417,473		1,522,612			10,940,085		7,668,654			735,957			8,404,611
Research & development		977,508		1,014,556			1,992,064		922,084			1,116,746			2,038,830

Income (loss) from operations	$	9,466,962	$	(2,656,748	)	$	6,810,214	$	8,557,103		$	(2,498,171	)	$	6,058,932

Purchases of property and equipment	$	344,098	$	111,808		$	455,906	$	181,847		$	120,725		$	302,572
Purchases of intangible assets		90,074		8,606			98,680		129,809			—			129,809
Depreciation and amortization		973,736		555,771			1,529,507		1,088,838			640,095			1,728,933

	Six Months Ended June 30, 2013							Six Months Ended June 30, 2012
	CEW		Video			Total		CEW			Video			Total
Product sales	$	58,275,475	$	3,749,607		$	62,025,082	$	51,689,401		$	1,936,259		$	53,625,660
Service revenue		—		584,367			584,367		—			238,175			238,175

Net sales		58,275,475		4,333,974			62,609,449		51,689,401			2,174,434			53,863,835

Cost of products sold		20,627,577		2,543,545			23,171,122		18,395,306			1,530,772			19,926,078
Cost of services delivered		—		1,244,960			1,244,960		—			2,194,125			2,194,125

Gross margin		37,647,898		545,469			38,193,367		33,294,095			(1,550,463	)		31,743,632
Sales, general & administrative		19,491,138		2,630,887			22,122,025		15,755,151			1,503,482			17,258,633
Research & development		1,966,189		2,038,431			4,004,620		1,762,436			2,408,614			4,171,050
Litigation judgment		—					—		(2,200,000	)		—			(2,200,000	)

Income (loss) from operations	$	16,190,571	$	(4,123,849	)	$	12,066,722	$	17,976,508		$	(5,462,559	)	$	12,513,949

Purchases of property and equipment	$	597,931	$	241,064		$	838,995	$	313,291		$	289,011		$	602,302
Purchases of intangible assets		193,587		8,606			202,193		251,987			—			251,987
Depreciation and amortization		1,972,684		975,582			2,948,266		2,282,454			1,112,989			3,395,443

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.