13. Segment data

The Company’s operations are comprised of two reportable segments: the manufacture and 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 September 30, 2014							Three Months Ended September 30, 2013
	TASER		EVIDENCE.com					TASER		EVIDENCE.com
	Weapons		& Video			Total		Weapons		& Video			Total
Product sales	$	40,010	$	3,181		$	43,191	$	31,627	$	3,103		$	34,730
Service revenue		—		1,158			1,158		—		467			467

Net sales		40,010		4,339			44,349		31,627		3,570			35,197

Cost of products sold		12,443		2,695			15,138		10,908		1,896			12,804
Cost of services delivered		—		498			498		—		297			297

Gross margin		27,567		1,146			28,713		20,719		1,377			22,096
Sales, general and administrative expenses		10,028		2,413			12,441		11,131		1,645			12,776
Research and development expenses		1,050		2,709			3,759		1,160		1,279			2,439

Income (loss) from operations	$	16,489	$	(3,976	)	$	12,513	$	8,428	$	(1,547	)	$	6,881

Purchases of property and equipment	$	803	$	41		$	844	$	230	$	105		$	335
Purchases of intangible assets		14		2			16		67		2			69
Depreciation and amortization		1,010		91			1,101		1,025		63			1,088

	Nine Months Ended September 30, 2014							Nine Months Ended September 30, 2013
	TASER		EVIDENCE.com					TASER		EVIDENCE.com
	Weapons		& Video			Total		Weapons		& Video			Total
Product sales	$	105,160	$	9,812		$	114,972	$	89,902	$	6,853		$	96,755
Service revenue		—		2,737			2,737		—		1,051			1,051

Net sales		105,160		12,549			117,709		89,902		7,904			97,806

Cost of products sold		34,024		8,111			42,135		31,535		4,440			35,975
Cost of services delivered		—		1,439			1,439		—		1,542			1,542

Gross margin		71,136		2,999			74,135		58,367		1,922			60,289
Sales, general and administrative expenses		32,218		7,516			39,734		30,622		4,276			34,898
Research and development expenses		2,660		8,160			10,820		3,126		3,318			6,444

Income (loss) from operations	$	36,258	$	(12,677	)	$	23,581	$	24,619	$	(5,672	)	$	18,947

Purchases of property and equipment	$	1,836	$	230		$	2,066	$	828	$	346		$	1,174
Purchases of intangible assets		123		2			125		260		11			271
Depreciation and amortization		3,078		290			3,368		2,998		1,038			4,036