13. 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 video business, which includes the TASER Cam, AXON video products and EVIDENCE.com (the “EVIDENCE.com & Video” segment). The Company includes only revenues and costs directly attributable to the EVIDENCE.com & Video segment in that segment. Included in EVIDENCE.com & Video segment costs are costs of sales for both products and services, overhead allocation based on direct labor, selling expense for the video sales team, video product management expenses, video trade shows and related expenses, and research and development for products included in the EVIDENCE.com & Video segment. All other costs are included in the TASER Weapons segment. The CODM does not review assets by segment as part of the financial information provided; therefore, no asset information is provided in the following tables.

Information relative to the Company’s reportable segments is as follows (in thousands):


	Three Months Ended June 30, 2014							Three Months Ended June 30, 2013
	TASER		EVIDENCE.com					TASER		EVIDENCE.com
	Weapons		& Video			Total		Weapons		& Video			Total
Product sales	$	32,675	$	3,593		$	36,268	$	30,272	$	1,570		$	31,842
Service revenue		—		907			907		—		333			333

Net sales		32,675		4,500			37,175		30,272		1,903			32,175

Cost of products sold		10,663		2,760			13,423		10,410		1,356			11,766
Cost of services delivered		—		538			538		—		667			667

Gross margin		22,012		1,202			23,214		19,862		(120	)		19,742
Sales, general and administrative expenses		10,901		2,646			13,547		9,418		1,523			10,941
Research and development expenses		793		2,662			3,455		976		1,016			1,992

Income (loss) from operations	$	10,318	$	(4,106	)	$	6,212	$	9,468	$	(2,659	)	$	6,809

Purchases of property and equipment	$	336	$	87		$	423	$	344	$	112		$	456
Purchases of intangible assets		42		—			42		90		9			99
Depreciation and amortization		990		115			1,105		974		556			1,530

	Six Months Ended June 30, 2014							Six Months Ended June 30, 2013
	TASER		EVIDENCE.com					TASER		EVIDENCE.com
	Weapons		& Video			Total		Weapons		& Video			Total
Product sales	$	65,150	$	6,631		$	71,781	$	58,275	$	3,750		$	62,025
Service revenue		—		1,579			1,579		—		584			584

Net sales		65,150		8,210			73,360		58,275		4,334			62,609

Cost of products sold		21,581		5,416			26,997		20,627		2,544			23,171
Cost of services delivered		—		941			941		—		1,245			1,245

Gross margin		43,569		1,853			45,422		37,648		545			38,193
Sales, general and administrative expenses		22,190		5,103			27,293		19,491		2,631			22,122
Research and development expenses		1,610		5,451			7,061		1,966		2,039			4,005

Income (loss) from operations	$	19,769	$	(8,701	)	$	11,068	$	16,191	$	(4,125	)	$	12,066

Purchases of property and equipment	$	1,033	$	189		$	1,222	$	598	$	241		$	839
Purchases of intangible assets		109		—			109		195		7			202
Depreciation and amortization		2,068		199			2,267		1,972		976			2,948