12. Segment data

The Company’s operations are comprised of two reportable segments: the sale of CEWs, accessories and other products and services, the TASER Weapons segment; and the EVIDENCE.com & Video segment, which includes the TASER Cam, AXON video products and EVIDENCE.com. The Company includes only revenues and costs directly attributable to the EVIDENCE.com & Video business in that segment. Direct costs included in EVIDENCE.com & Video segment costs are: cost of sales for both products and services, overhead allocation based on direct labor, selling expense for the segment sales team, segment product management expenses, segment trade shows and related expenses, and research and development for products included in the segment. All other costs are included in the TASER Weapons segment.

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


	Three Months Ended September 30, 2013							Three Months Ended September 30, 2012
	TASER		EVIDENCE.com					TASER			EVIDENCE.com
	Weapons		& Video			Total		Weapons			& Video			Total
Product sales	$	31,626,484	$	3,103,781		$	34,730,265	$	27,085,180		$	1,528,347		$	28,613,527
Service revenue		—		466,557			466,557		—			159,429			159,429

Net sales		31,626,484		3,570,338			35,196,822		27,085,180			1,687,776			28,772,956

Cost of products sold		10,906,999		1,896,691			12,803,690		9,673,370			1,181,906			10,855,276
Cost of services delivered		—		297,127			297,127		—			1,114,668			1,114,668

Gross margin		20,719,485		1,376,520			22,096,005		17,411,810			(608,798	)		16,803,012
Sales, general & administrative		11,130,971		1,645,009			12,775,980		8,618,250			921,746			9,539,996
Research & development		1,160,400		1,279,412			2,439,812		1,043,607			942,094			1,985,701

Income (loss) from operations	$	8,428,114	$	(1,547,901	)	$	6,880,213	$	7,749,953		$	(2,472,638	)	$	5,277,315

Purchases of property and equipment	$	229,965	$	105,460		$	335,425	$	217,092		$	68,215		$	285,307
Purchases of intangible assets		66,844		2,107			68,951		76,148			9,728			85,876
Depreciation and amortization		1,025,164		62,907			1,088,071		1,054,239			664,307			1,718,546

	Nine Months Ended September 30, 2013							Nine Months Ended September 30, 2012
	TASER		EVIDENCE.com					TASER			EVIDENCE.com
	Weapons		& Video			Total		Weapons			& Video			Total
Product sales	$	89,901,959	$	6,853,388		$	96,755,347	$	78,774,581		$	3,464,606		$	82,239,187
Service revenue		—		1,050,924			1,050,924		—			397,604			397,604

Net sales		89,901,959		7,904,312			97,806,271		78,774,581			3,862,210			82,636,791

Cost of products sold		31,534,576		4,440,236			35,974,812		28,068,676			2,712,678			30,781,354
Cost of services delivered		—		1,542,087			1,542,087		—			3,308,794			3,308,794

Gross margin		58,367,383		1,921,989			60,289,372		50,705,905			(2,159,262	)		48,546,643
Sales, general & administrative		30,622,109		4,275,896			34,898,005		24,373,401			2,425,228			26,798,629
Research & development		3,126,589		3,317,843			6,444,432		2,806,043			3,350,708			6,156,751
Litigation judgment recovery		—		—			—		(2,200,000	)		—			(2,200,000	)

Income (loss) from operations	$	24,618,685	$	(5,671,750	)	$	18,946,935	$	25,726,461		$	(7,935,198	)	$	17,791,263

Purchases of property and equipment	$	827,896	$	346,524		$	1,174,420	$	530,383		$	357,226		$	887,609
Purchases of intangible assets		260,431		10,713			271,144		322,337			15,526			337,863
Depreciation and amortization		2,997,848		1,038,489			4,036,337		3,336,403			1,777,586			5,113,989

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.