Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 25, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'TASER INTERNATIONAL INC | ' |
Entity Central Index Key | '0001069183 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 51,863,702 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Current Assets: | ' | ' |
Cash and cash equivalents | $35,005,494 | $36,126,791 |
Short-term investments | 8,751,409 | 1,680,958 |
Accounts and notes receivable, net of allowance of $200,000 as of September 30, 2013 and December 31, 2012 | 20,093,295 | 18,101,240 |
Inventory, net | 12,289,360 | 10,993,209 |
Prepaid expenses and other current assets | 4,859,631 | 2,754,331 |
Deferred income tax assets, net | 9,450,523 | 9,395,987 |
Total current assets | 90,449,712 | 79,052,516 |
Property and equipment, net | 19,347,416 | 21,952,201 |
Deferred income tax assets, net | 10,397,208 | 11,605,812 |
Intangible assets, net | 3,360,355 | 3,317,169 |
Long-term investments | 4,580,049 | ' |
Other assets | 357,512 | 308,553 |
Total assets | 128,492,252 | 116,236,251 |
Current Liabilities: | ' | ' |
Accounts payable | 5,112,997 | 6,222,904 |
Accrued liabilities | 8,180,852 | 7,065,085 |
Current portion of deferred revenue | 6,317,899 | 4,287,305 |
Customer deposits | 1,077,622 | 500,018 |
Current portion of capital lease payable | 35,545 | 33,947 |
Total current liabilities | 20,724,915 | 18,109,259 |
Deferred revenue, net of current portion | 12,302,510 | 7,835,767 |
Liability for unrecorded tax benefits | 3,074,447 | 2,902,896 |
Other long-term liabilities | 169,116 | ' |
Long-term portion of capital lease payable | 76,423 | 103,283 |
Total liabilities | 36,347,411 | 28,951,205 |
Commitments and Contingencies | ' | ' |
Stockholders' Equity | ' | ' |
Preferred stock, $0.00001 par value per share; 25 million shares authorized; no shares at September 30, 2013 and December 31, 2012 | ' | ' |
Common stock, $0.00001 par value per share; 200 million shares authorized; 51,838,855 and 52,770,392 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 683 | 661 |
Additional paid-in capital | 128,623,101 | 111,661,393 |
Treasury stock at cost, 16,412,755 and 13,363,789 shares at September 30, 2013 and December 31, 2012, respectively | -92,202,810 | -67,203,043 |
Retained earnings | 55,752,014 | 42,883,067 |
Accumulated other comprehensive loss | -28,147 | -57,032 |
Total stockholders' equity | 92,144,841 | 87,285,046 |
Total liabilities and stockholders' equity | $128,492,252 | $116,236,251 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Statement Of Financial Position [Abstract] | ' | ' |
Allowance on accounts receivable | $200,000 | $200,000 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | ' | ' |
Preferred stock, shares outstanding | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 51,838,855 | 52,770,392 |
Common stock, shares outstanding | 51,838,855 | 52,770,392 |
Treasury stock, shares | 16,412,755 | 13,363,789 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $35,196,822 | $28,772,956 | $97,806,271 | $82,636,791 |
Cost of products sold and services delivered | 13,100,817 | 11,969,944 | 37,516,899 | 34,090,148 |
Gross margin | 22,096,005 | 16,803,012 | 60,289,372 | 48,546,643 |
Sales, general and administrative expenses | 12,775,980 | 9,539,996 | 34,898,005 | 26,798,629 |
Research and development expenses | 2,439,812 | 1,985,701 | 6,444,432 | 6,156,751 |
Litigation judgment recovery | ' | ' | ' | -2,200,000 |
Income from operations | 6,880,213 | 5,277,315 | 18,946,935 | 17,791,263 |
Interest and other income (expense), net | 34,891 | 11,418 | 30,807 | 25,545 |
Income before provision for income taxes | 6,915,104 | 5,288,733 | 18,977,742 | 17,816,808 |
Provision for income taxes | 1,801,512 | 1,611,861 | 6,108,795 | 6,893,872 |
Net income | 5,113,592 | 3,676,872 | 12,868,947 | 10,922,936 |
Income per common and common equivalent shares | ' | ' | ' | ' |
Basic | $0.10 | $0.07 | $0.25 | $0.19 |
Diluted | $0.10 | $0.07 | $0.24 | $0.19 |
Weighted average number of common and common equivalent shares outstanding | ' | ' | ' | ' |
Basic | 51,341,785 | 52,509,068 | 51,727,197 | 57,997,341 |
Diluted | 53,320,918 | 53,106,325 | 53,643,803 | 58,482,833 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' | ' |
Net income | 5,113,592 | 3,676,872 | 12,868,947 | 10,922,936 |
Foreign currency translation adjustments | 92,306 | 25,863 | 28,885 | 5,316 |
Comprehensive income | $5,205,898 | $3,702,735 | $12,897,832 | $10,928,252 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash Flows from Operating Activities: | ' | ' |
Net income | $12,868,947 | $10,922,936 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 4,036,337 | 5,113,989 |
(Gain) loss on write down / disposal of property and equipment, net | -29,160 | 179,533 |
Loss on disposal of intangibles | 112,980 | 125,605 |
Bond premium amortization | 174,255 | 27,977 |
Provision (recovery) for doubtful accounts | 1,711 | -124,519 |
Provision for excess and obsolete inventory | 279,184 | 236,819 |
Provision for warranty | 643,674 | 265,140 |
Stock-based compensation expense | 2,905,635 | 2,197,050 |
Litigation judgment recovery | ' | -2,200,000 |
Deferred income taxes | 5,211,841 | 2,886,003 |
Provision for unrecognized tax benefits | 171,551 | 224,152 |
Excess tax benefit from stock-based compensation | -4,057,773 | ' |
Change in assets and liabilities: | ' | ' |
Accounts and notes receivable | -1,993,766 | -2,646,621 |
Inventory | -1,575,335 | 817,110 |
Prepaids and other assets | -2,242,234 | -217,426 |
Accounts payable and accrued liabilities | -496,274 | 2,942,577 |
Deferred revenue | 6,497,337 | 2,593,512 |
Customer deposits | 577,604 | -85,674 |
Net cash provided by operating activities | 23,086,514 | 23,258,163 |
Cash Flows from Investing Activities: | ' | ' |
Purchases of investments | -18,449,755 | -6,235,399 |
Proceeds from call / maturity of investments | 6,625,000 | 8,137,561 |
Purchases of property and equipment | -1,174,420 | -887,609 |
Proceeds from disposal of fixed assets | 33,909 | ' |
Purchases of intangible assets | -271,144 | -337,863 |
Net cash provided by (used in) investing activities | -13,236,410 | 676,690 |
Cash Flows from Financing Activities: | ' | ' |
Repurchase of common stock | -24,999,767 | -19,995,950 |
Proceeds from options exercised | 10,219,289 | 730,473 |
Payroll tax payments for net-settled stock awards | -220,967 | ' |
Excess tax benefit from stock-based compensation | 4,057,773 | ' |
Payments on capital lease obligation | -25,262 | ' |
Net cash used in financing activities | -10,968,934 | -19,265,477 |
Effect of exchange rate change on cash and cash equivalents | -2,467 | -4,398 |
Net increase (decrease) in cash and cash equivalents | -1,121,297 | 4,664,978 |
Cash and cash equivalents, beginning of period | 36,126,791 | 21,300,733 |
Cash and cash equivalents, end of period | 35,005,494 | 25,965,711 |
Supplemental Disclosure: | ' | ' |
Cash paid for income taxes-net | 2,426,978 | 864,461 |
Non-Cash Transactions: | ' | ' |
Property and equipment purchases in accounts payable | $58,928 | $34,168 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||||||||||
Organization and Summary of Significant Accounting Policies | ' | ||||||||||||||||||||||||||||||||
1. Organization and Summary of Significant Accounting Policies | |||||||||||||||||||||||||||||||||
TASER International, Inc. (“TASER” or the “Company”) is a developer and manufacturer of advanced conducted electrical weapons (“CEWs”) and other electronic weapons designed for use in law enforcement, federal, military, corrections, private security and personal defense. In addition, the Company has developed full technology solutions for the capture, storage, management, sharing and analysis of video/audio evidence as well as other tactical capabilities for use in law enforcement. The Company sells its products worldwide through its direct sales force, distribution partners, online store and third-party resellers. The Company was incorporated in Arizona in September 1993, and reincorporated in Delaware in January 2001. The Company’s corporate headquarters and manufacturing facilities are located in Scottsdale, Arizona. The Company’s software development division facilities are located in Santa Barbara, California and Bellevue, Washington. | |||||||||||||||||||||||||||||||||
The accompanying consolidated financial statements include the accounts of the Company, and its wholly owned subsidiary, TASER International Europe SE (“TASER Europe”). TASER Europe was established in 2009 to facilitate sales and provide customer service to our customers in the European region. All material intercompany accounts, transactions, and profits have been eliminated. | |||||||||||||||||||||||||||||||||
a. Basis of presentation, preparation and use of estimates | |||||||||||||||||||||||||||||||||
These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information related to the Company’s organization, significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) has been condensed or omitted. The accounting policies followed in the preparation of these unaudited condensed consolidated financial statements are consistent with those followed in the Company’s annual consolidated financial statements for the year ended December 31, 2012, as filed on Form 10-K. In the opinion of management, these unaudited condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary to fairly state our financial position, results of operations and cash flows for the periods presented and the presentations and disclosures herein are adequate when read in conjunction with the Company’s Form 10-K for the year ended December 31, 2012. The results of operations for the three and nine months ended September 30, 2013 and 2012, are not necessarily indicative of the results to be expected for the full year (or any other period). Certain amounts have been reclassified to conform to the current-year presentation. | |||||||||||||||||||||||||||||||||
The preparation of these condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates in these consolidated financial statements include allowances for doubtful accounts receivable, inventory valuation reserves, product warranty reserves, valuations of long-lived assets, deferred income taxes and uncertain tax positions, stock-based compensation, contingencies and accrued litigation expenses. Actual results could differ from those estimates. | |||||||||||||||||||||||||||||||||
b. Segment information | |||||||||||||||||||||||||||||||||
The Company is 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”). Reportable segments are determined based on discrete financial information reviewed by the Company’s Chief Executive Officer who is the chief operating decision maker (the “CODM”) for the Company. The Company organizes and reviews operations based on products and services, and currently there are no operating business segments that are aggregated. The Company performs an annual analysis of its reportable segments. Additional information related to the Company’s segments is summarized in Note 12. | |||||||||||||||||||||||||||||||||
c. Geographic information and major customers | |||||||||||||||||||||||||||||||||
For the three and nine months ended September 30, 2013 and 2012, net sales by geographic area were as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
United States | $ | 31,483 | 89 | % | $ | 23,335 | 81 | % | $ | 86,036 | 88 | % | $ | 68,341 | 83 | % | |||||||||||||||||
Other Countries | 3,714 | 11 | 5,438 | 19 | 11,770 | 12 | 14,296 | 17 | |||||||||||||||||||||||||
Total | $ | 35,197 | 100 | % | $ | 28,773 | 100 | % | $ | 97,806 | 100 | % | $ | 82,637 | 100 | % | |||||||||||||||||
Sales to customers outside of the United States are typically denominated in U.S. dollars and are attributed to each country based on the shipping address of the distributor or customer. For the three and nine months ended September 30, 2013 and 2012, no individual country outside of the United States represented greater than 10% of total net sales. Sales in the international market generally are larger and occur more intermittently than in the domestic market due to the profile of the customer. | |||||||||||||||||||||||||||||||||
For the three months ended September 30, 2013, one distributor represented approximately 12.2% of total net sales. In the three months ended September 30, 2012, one distributor represented approximately 10.6% of total net sales. For the nine months ended September 30, 2013, one distributor represented approximately 12.1% of total net sales. For the nine months ended September 30, 2012, one distributor represented approximately 14.3% of total net sales. At September 30, 2013, the Company had receivables from four customers comprising approximately 16.5%, 13.9%, 10.9% and 10.4% of its aggregate accounts receivable balance, respectively. At December 31, 2012, the Company had a trade note receivable from one unaffiliated customer comprising 17.2% of the aggregate accounts receivable balance. | |||||||||||||||||||||||||||||||||
d. Income per common share | |||||||||||||||||||||||||||||||||
Basic income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the periods presented. Diluted income per share is calculated based on the weighted average number of common shares outstanding for the period plus the dilutive effect of stock options and restricted stock units using the treasury stock method. The calculation of the weighted average number of shares outstanding and income per share are as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Numerator for basic and diluted earnings per share: | |||||||||||||||||||||||||||||||||
Net income | $ | 5,113,592 | $ | 3,676,872 | $ | 12,868,947 | $ | 10,922,936 | |||||||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||||||
Weighted average shares outstanding—basic | 51,341,785 | 52,509,068 | 51,727,197 | 57,997,341 | |||||||||||||||||||||||||||||
Dilutive effect of stock-based awards | 1,979,133 | 597,257 | 1,916,606 | 485,492 | |||||||||||||||||||||||||||||
Diluted weighted average shares outstanding | 53,320,918 | 53,106,325 | 53,643,803 | 58,482,833 | |||||||||||||||||||||||||||||
Anti-dilutive stock-based awards excluded | 565,099 | 4,732,366 | 898,230 | 5,261,887 | |||||||||||||||||||||||||||||
Net income per common share: | |||||||||||||||||||||||||||||||||
Basic | $ | 0.1 | $ | 0.07 | $ | 0.25 | $ | 0.19 | |||||||||||||||||||||||||
Diluted | $ | 0.1 | $ | 0.07 | $ | 0.24 | $ | 0.19 | |||||||||||||||||||||||||
e. Revenue recognition | |||||||||||||||||||||||||||||||||
The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, title has transferred, the price is fixed and collectability is reasonably assured. Revenue arrangements with multiple deliverables are divided into separate units and revenue is allocated using the relative selling price method based upon vendor-specific objective evidence of selling price or third-party evidence of the selling prices if vendor-specific objective evidence of selling prices does not exist. If neither vendor-specific objective evidence nor third-party evidence exists, management uses its best estimate of selling price. | |||||||||||||||||||||||||||||||||
The Company sells its EVIDENCE.com & Video segment products separately, but in most instances the Company’s AXON equipment and EVIDENCE.com software-as-a-service are sold together. In these instances, customers typically purchase and pay for the AXON equipment and EVIDENCE.com services in advance, with the AXON equipment representing a deliverable that is provided to the customer at the time of sale, and EVIDENCE.com services provided over a specified service term, which has typically ranged from one to five years. The Company recognizes revenue for the AXON equipment at the time of the sale consistent with the discussion of multiple deliverable arrangements above. Revenue for EVIDENCE.com service is deferred at the time of the sale and recognized over the service period. At September 30, 2013 and December 31, 2012, approximately $3.7 million and $1.3 million of EVIDENCE.com revenue was deferred, respectively, and are being recognized over the applicable service terms. | |||||||||||||||||||||||||||||||||
The Company offers customers the right to purchase extended warranties that include additional services and coverage beyond the limited warranty for certain products. Revenue for extended warranty purchases is deferred at the time of sale and recognized over the warranty period commencing on the date of sale. Extended warranties range from one to five years. At September 30, 2013 and December 31, 2012, approximately $14.5 million and $10.8 million were deferred under this program, respectively. | |||||||||||||||||||||||||||||||||
Certain of the Company’s customers are charged shipping fees, which are recorded as a component of net sales. Sales tax collected on sales is netted against government remittances and thus, recorded on a net basis, with no income statement impact. Training revenue is recorded as the training is provided. | |||||||||||||||||||||||||||||||||
f. Warranty costs | |||||||||||||||||||||||||||||||||
The Company warrants its CEWs, StrikeLight, AXON cameras and Evidence Transfer Manager (“ETM”) from manufacturing defects on a limited basis for a period of one year after purchase and thereafter, will replace any defective unit for a fee. Estimated costs for the standard warranty are charged to cost of products sold and services delivered when revenue is recorded for the related product. Future warranty costs are estimated based on historical data related to returns and warranty costs on a quarterly basis and this rate is applied to current product sales. Historically, reserve amounts have been increased if management becomes aware of a component failure that could result in larger than anticipated returns from customers. The accrued warranty liability expense is reviewed quarterly to verify that it sufficiently reflects the remaining warranty obligations based on the anticipated expenditures over the balance of the warranty obligation period, and adjustments are made when actual warranty claim experience differs from estimates. Costs related to extended warranties are charged to cost of products sold and services delivered when incurred. | |||||||||||||||||||||||||||||||||
The reserve for warranty returns is included in accrued liabilities on the condensed consolidated balance sheets. The nine months ended September 30, 2013, includes additional expense due to a change in estimate for the AXON flex on-officer camera based on the analysis of return data for their first year of sales in addition to warranty expense relating to the launch of the X26P in the first quarter of 2013. Additional expense was also incurred due to the launch of the AXON body camera in the third quarter of 2013. The warranty expense for the nine months ended September 30, 2012, is net of a recovery due to a change in estimate for the X2 CEW warranty reserves based on the analysis of return data for their first year of sales. Changes in the Company’s estimated product warranty liabilities are as follows: | |||||||||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Balance, January 1, | $ | 483,721 | $ | 427,459 | |||||||||||||||||||||||||||||
Utilization of accrual | (419,351 | ) | (312,570 | ) | |||||||||||||||||||||||||||||
Warranty expense | 643,674 | 265,140 | |||||||||||||||||||||||||||||||
Balance, September 30, | $ | 708,044 | $ | 380,029 | |||||||||||||||||||||||||||||
g. Fair value of financial instruments | |||||||||||||||||||||||||||||||||
The Company uses the fair value framework, that prioritizes the inputs to valuation techniques, for measuring financial assets and liabilities measured on a recurring basis and for non-financial assets and liabilities when these items are remeasured. Under fair value measurement U.S. GAAP accounting standards, fair value is considered to be the exchange price in an orderly transaction between market participants to sell an asset or transfer a liability at the measurement date. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. The Company categorizes each of its fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: | |||||||||||||||||||||||||||||||||
• | Level 1 – Unadjusted quoted market prices in active markets for identical assets or liabilities. | ||||||||||||||||||||||||||||||||
• | Level 2 – Quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. | ||||||||||||||||||||||||||||||||
• | Level 3 – Unobservable inputs that are not corroborated by market data. | ||||||||||||||||||||||||||||||||
At September 30, 2013, the Company held cash, cash equivalents, and investments, which are typically comprised of money market mutual funds, certificates of deposit and high quality municipal and corporate bonds. Money market mutual funds are recorded at market value and are valued using Level 1 valuation techniques. All other instruments are recorded at amortized cost on the balance sheet based on management’s ability and intent to hold these instruments to maturity. The Company’s financial instruments also include accounts and notes receivable, accounts payable and accrued liabilities. Due to the short-term nature of these instruments, their fair values approximate their carrying values on the balance sheet. | |||||||||||||||||||||||||||||||||
h. Impairment of Long-Lived Assets | |||||||||||||||||||||||||||||||||
Management evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived assets and identifiable intangible assets may warrant revision or that the remaining balance of these assets may not be recoverable. Such circumstances could include, but are not limited to, a change in the product mix, a change in the way products are created, produced or delivered, or a significant change in the way products are branded and marketed. In performing the review for recoverability, management estimates the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. The amount of the impairment loss, if impairment exists, is calculated based on the excess of the carrying amounts of the assets over their estimated fair value computed using discounted cash flows. No impairment losses were recorded in the three or nine months ended September 30, 2013 and 2012. | |||||||||||||||||||||||||||||||||
i. Recently issued accounting guidance | |||||||||||||||||||||||||||||||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update (“ASU”) to standardize the balance sheet presentation of unrecognized tax benefits. This Update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The new guidance is effective for fiscal years beginning after December 15, 2013, and early adoption is allowed. The adoption of this guidance will result in an immaterial reclassification on the Company’s consolidated balance sheet. | |||||||||||||||||||||||||||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update (“ASU”) requiring entities to provide information about the amounts reclassified out of accumulated other comprehensive income (“OCI”) by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated OCI by the respective line items of net income, but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. The new guidance was effective for fiscal years beginning after December 15, 2012. The amendments do not change the current requirements for reporting net income or OCI in financial statements. The Company adopted this guidance during the first quarter of 2013. The adoption did not have an impact on the Company’s consolidated financial statements. | |||||||||||||||||||||||||||||||||
In July 2012, the FASB issued an ASU to simplify the impairment testing for indefinite-lived intangibles by allowing an entity to first assess qualitative factors, considering the totality of events and circumstances, to determine that it is more likely than not that the carrying amount of a reporting unit is less than its fair value. If it is not, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test. The new guidance was effective for annual and interim impairment tests for fiscal years beginning after September 15, 2012. The Company adopted this guidance during the first quarter of 2013. The adoption did not have a material impact on the Company’s consolidated financial statements. |
Cash_Cash_Equivalents_and_Inve
Cash, Cash Equivalents, and Investments | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Cash And Cash Equivalents [Abstract] | ' | ||||||||||||||||||||||||||||||||
Cash, Cash Equivalents, and Investments | ' | ||||||||||||||||||||||||||||||||
2. Cash, cash equivalents, and investments | |||||||||||||||||||||||||||||||||
Cash and cash equivalents include funds on hand and highly liquid investments purchased with an initial maturity of three months or less. Short-term investments include securities with an expected maturity date within one year of the balance sheet date that do not meet the definition of cash equivalent, and long-term investments are securities with an expected maturity date greater than one year. The Company typically invests in municipal and corporate bonds, as well as certificates of deposits, which, based on management’s intent and ability, are classified as held to maturity investments and are recorded at amortized cost. As of September 30, 2013, the Company believes that the gross unrealized losses on its investments are due to interest rate fluctuations. These investments are expected to be redeemed at par value, and because the Company will hold these investments to maturity, the Company does not consider these investments to be other than temporarily impaired at September 30, 2013. | |||||||||||||||||||||||||||||||||
The following is a summary of cash, cash equivalents and held-to-maturity investments by type at September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||
Gross | Gross | Gross | Gross | ||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Amortized | Unrealized | Unrealized | ||||||||||||||||||||||||||||
Cost | Gains | Losses | Fair Value | Cost | Gains | Losses | Fair Value | ||||||||||||||||||||||||||
Cash and money market funds | $ | 34,905,493 | $ | — | $ | — | $ | 34,905,493 | $ | 36,126,791 | $ | — | $ | — | $ | 36,126,791 | |||||||||||||||||
State and municipal obligations | 8,587,008 | 7,784 | (9 | ) | 8,594,783 | — | — | — | — | ||||||||||||||||||||||||
Corporate bonds | 2,962,150 | — | (8,557 | ) | 2,953,593 | 958 | — | — | 958 | ||||||||||||||||||||||||
Certificates of deposit | 1,882,301 | — | (40 | ) | 1,882,261 | 1,680,000 | — | (1,488 | ) | 1,678,512 | |||||||||||||||||||||||
Total cash, cash equivalents and investments | $ | 48,336,952 | $ | 7,784 | $ | (8,606 | ) | $ | 48,336,130 | $ | 37,807,749 | $ | — | $ | (1,488 | ) | $ | 37,806,261 | |||||||||||||||
The following table summarizes the classification of cash, cash equivalents and investments in the accompanying balance sheet: | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Cash | $ | 32,051,501 | $ | 19,811,735 | |||||||||||||||||||||||||||||
Cash equivalents | 2,953,993 | 16,315,056 | |||||||||||||||||||||||||||||||
Total cash and cash equivalents | 35,005,494 | 36,126,791 | |||||||||||||||||||||||||||||||
Short-term investments | 8,751,409 | 1,680,958 | |||||||||||||||||||||||||||||||
Long-term investments | 4,580,049 | — | |||||||||||||||||||||||||||||||
Total cash, cash equivalents and investments | $ | 48,336,952 | $ | 37,807,749 | |||||||||||||||||||||||||||||
The following table summarizes the amortized cost and fair value of the short-term and long-term investments held by the Company at September 30, 2013 by contractual maturity: | |||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||||||||||||||
Due in less than one year | $ | 8,751,409 | $ | 8,756,782 | |||||||||||||||||||||||||||||
Due after one year, through two years | 4,580,049 | 4,573,855 | |||||||||||||||||||||||||||||||
Total short-term and long-term investments | $ | 13,331,458 | $ | 13,330,637 | |||||||||||||||||||||||||||||
Inventory
Inventory | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory | ' | ||||||||
3. Inventory | |||||||||
Inventories are stated at the lower of cost or market. Cost is determined using the weighted average cost of raw materials, which approximates the first-in, first-out (“FIFO”) method, and includes allocations of manufacturing labor and overhead. Provisions are made to reduce potentially excess, obsolete or slow-moving inventories to their net realizable value. The reserve for excess and obsolete inventory decreased to $0.7 million at September 30, 2013, compared to $2.3 million at December 31, 2012. This decrease is attributable primarily to the disposal of the majority of the X3 CEW inventory that had been previously reserved. Inventories as of September 30, 2013 and December 31, 2012, consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 9,257,735 | $ | 9,689,172 | |||||
Work-in-process | 46,348 | 131,492 | |||||||
Finished goods | 3,681,059 | 3,492,167 | |||||||
Reserve for excess and obsolete inventory | (695,782 | ) | (2,319,622 | ) | |||||
Total inventory | $ | 12,289,360 | $ | 10,993,209 | |||||
Intangible_Assets
Intangible Assets | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Intangible Assets | ' | ||||||||||||||||||||||||||||
4. Intangible assets | |||||||||||||||||||||||||||||
Intangible assets consisted of the following at September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||
Gross | Net | ||||||||||||||||||||||||||||
Carrying | Accumulated | Carrying | Gross Carrying | Accumulated | Net Carrying | ||||||||||||||||||||||||
Useful Life | Amount | Amortization | Amount | Amount | Amortization | Amount | |||||||||||||||||||||||
Amortized: | |||||||||||||||||||||||||||||
Domain names | 5 Years | $ | 139,431 | $ | (112,763 | ) | $ | 26,668 | $ | 139,431 | $ | (103,840 | ) | $ | 35,591 | ||||||||||||||
Issued patents | 4 to 15 Years | 1,559,484 | (429,165 | ) | 1,130,319 | 1,528,955 | (362,032 | ) | 1,166,923 | ||||||||||||||||||||
Issued trademarks | 9 to 11 Years | 421,789 | (134,719 | ) | 287,070 | 362,106 | (101,561 | ) | 260,545 | ||||||||||||||||||||
Total amortized | 2,120,704 | (676,647 | ) | 1,444,057 | 2,030,492 | (567,433 | ) | 1,463,059 | |||||||||||||||||||||
Not amortized: | |||||||||||||||||||||||||||||
TASER trademark | 900,000 | 900,000 | 900,000 | 900,000 | |||||||||||||||||||||||||
Patents and trademarks pending | 1,016,298 | 1,016,298 | 954,110 | 954,110 | |||||||||||||||||||||||||
Total not amortized | 1,916,298 | 1,916,298 | 1,854,110 | 1,854,110 | |||||||||||||||||||||||||
Total intangible assets | $ | 4,037,002 | $ | (676,647 | ) | $ | 3,360,355 | $ | 3,884,602 | $ | (567,433 | ) | $ | 3,317,169 | |||||||||||||||
Amortization expense relative to intangible assets for the three and nine months ended September 30, 2013 was approximately $39,000 and $115,000, respectively. Amortization expense relative to intangible assets for the three and nine months ended September 30, 2012 was approximately $36,000 and $104,000, respectively. | |||||||||||||||||||||||||||||
Estimated amortization expense of intangible assets for the remaining three months of 2013, the next five years ended December 31, and thereafter is as follows: | |||||||||||||||||||||||||||||
2013 (remaining three months) | $ | 39,434 | |||||||||||||||||||||||||||
2014 | 156,818 | ||||||||||||||||||||||||||||
2015 | 148,068 | ||||||||||||||||||||||||||||
2016 | 140,997 | ||||||||||||||||||||||||||||
2017 | 137,424 | ||||||||||||||||||||||||||||
2018 | 127,828 | ||||||||||||||||||||||||||||
Thereafter | 693,488 | ||||||||||||||||||||||||||||
Total | $ | 1,444,057 | |||||||||||||||||||||||||||
Accrued_Liabilities
Accrued Liabilities | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Accrued Liabilities | ' | ||||||||
5. Accrued liabilities | |||||||||
Accrued liabilities consisted of the following at September 30, 2013 and December 31, 2012: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Accrued salaries and benefits | $ | 1,836,857 | $ | 2,416,268 | |||||
Accrued judgments and reserves | 3,050,000 | 2,090,000 | |||||||
Accrued warranty expense | 708,044 | 483,721 | |||||||
Accrued income and other taxes | 115,832 | 295,595 | |||||||
Other accrued expenses | 2,470,119 | 1,779,501 | |||||||
Accrued liabilities | $ | 8,180,852 | $ | 7,065,085 | |||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
6. Income taxes | |
Deferred Tax Assets | |
The net deferred income tax assets at September 30, 2013, include capitalized research and development costs, research and development tax credits, non-qualified stock-based compensation expense, deferred warranty revenue, warranty and inventory reserves, accrued vacation, and other items, partially offset by accelerated depreciation expense. The Company’s total current and long-term net deferred tax assets at September 30, 2013 are $19.8 million. | |
In preparing the Company’s condensed consolidated financial statements, management assesses the likelihood that its deferred tax assets will be realized from future taxable income. In evaluating the Company’s ability to recover its deferred income tax assets, management considers all available positive and negative evidence, including its operating results, ongoing tax planning and forecasts of future taxable income on a jurisdiction by jurisdiction basis. A valuation allowance is established if it is determined that it is more likely than not that some portion or all of the net deferred tax assets will not be realized. Management exercises significant judgment in determining its provisions for income taxes, its deferred tax assets and liabilities, and its future taxable income for purposes of assessing its ability to utilize any future tax benefit from its deferred tax assets. Although management believes that its tax estimates are reasonable, the ultimate tax determination involves significant judgments that could become subject to audit by tax authorities in the ordinary course of business, as well as the generation of sufficient future taxable income. Management has determined that it is more likely than not that future sales and profitability will allow for the utilization of the deferred tax assets. However, the deferred tax asset could be reduced or a valuation allowance could be recorded in the near-term if estimates of future taxable income during the carry forward period change. | |
The Company has completed research and development tax credit studies which identified approximately $7.8 million in tax credits for federal, Arizona and California income tax purposes related to the 2003 through 2013 tax years, net of the federal benefit on the Arizona and California R&D tax credits. Management has made the determination that it is more likely than not that the full benefit of the R&D tax credit will not be sustained on examination and recorded a liability for unrecognized tax benefits of $2.9 million as of September 30, 2013. In addition, management has accrued approximately $0.2 million for estimated uncertain tax positions related to certain state income tax liabilities. As of September 30, 2013, management does not expect the amount of the unrecognized tax benefit liability to increase or decrease significantly within the next 12 months. Should the unrecognized tax benefit of $3.1 million be recognized, the Company’s effective tax rate would be favorably impacted. | |
Effective Tax Rate | |
The Company’s overall effective tax rate for the nine months ended September 30, 2013 was 32.2%, which is below the federal statutory rate due to deductions related to disqualifying dispositions of Incentive Stock Options (“ISOs”) during the year, a credit for domestic production activities deduction, and a favorable 2012 return to provision adjustment taken in the third quarter of 2013. When an employee exercises ISOs and sells the related stock prior to the mandatory holding period, the associated expense becomes a reduction to the Company’s taxable income and represents a permanent benefit in the tax rate. The effect of these items on the federal tax rate was partially offset by the impact of state taxes and non-deductible expenses for items such as ISO book expense, meals and entertainment expense and lobbying fees. The Company’s estimated effective tax rate before discrete adjustments for the full year of 2013 is approximately 38.2%. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||
7. Stockholders’ equity | |||||||||||||||||
Stock Option Activity | |||||||||||||||||
At September 30, 2013, the Company had five stock-based compensation plans, four of which are described more fully in the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. On May 23, 2013, the Company’s stockholders approved a new stock incentive plan authorizing an additional 1.6 million shares for issuance under the Company’s Plans. There are approximately 2.3 million shares available for grant under the plans as of September 30, 2013. | |||||||||||||||||
Performance-based stock awards | |||||||||||||||||
The Company has issued performance-based stock options and performance-based restricted stock units (“RSUs”), the vesting of which is contingent upon the achievement of certain performance criteria related to the operating performance of the Company as well as successful and timely development and market acceptance of future product introductions. In addition, certain of the performance RSUs have additional service requirements subsequent to the achievement of the performance criteria. Compensation expense is recognized over the implicit service period (the longer of the period the performance condition is expected to be achieved or the required service period) based on management’s estimate of the probability of the performance criteria being satisfied, adjusted at each balance sheet date. | |||||||||||||||||
Restricted Stock Units | |||||||||||||||||
The following table summarizes RSU activity for the nine months ended September 30, 2013: | |||||||||||||||||
Weighted | |||||||||||||||||
Average | |||||||||||||||||
Grant- | |||||||||||||||||
Number of | Date Fair | Aggregate | |||||||||||||||
Units | Value | Intrinsic Value | |||||||||||||||
Units outstanding, beginning of period | 582,212 | $ | 5.42 | ||||||||||||||
Granted | 736,479 | 8.98 | |||||||||||||||
Released | (158,700 | ) | 5.39 | ||||||||||||||
Forfeited | (44,814 | ) | 7.24 | ||||||||||||||
Units outstanding, end of period | 1,115,177 | 7.71 | $ | 16,593,834 | |||||||||||||
Aggregate intrinsic value represents the Company’s closing stock price on the last trading day of the period, which was $14.88 per share, multiplied by the number of RSUs. As of September 30, 2013, there was $5.4 million in unrecognized compensation cost related to RSUs granted under our stock plans. We expect to recognize this cost over a weighted average period of 29 months. RSUs are released when vesting requirements are met. | |||||||||||||||||
In 2013, the Company granted approximately 149,000 performance-based RSUs (included in the table above). Of the approximately 227,000 performance-based RSUs outstanding as of September 30, 2013, the performance criteria have been met for approximately 85,000 units which will vest upon the completion of service requirements. | |||||||||||||||||
Stock Options | |||||||||||||||||
The following table summarizes stock option activity for the nine months ended September 30, 2013: | |||||||||||||||||
Average | |||||||||||||||||
Weighted | Remaining | ||||||||||||||||
Number of | Average | Contractual | Aggregate | ||||||||||||||
options | Exercise Price | Life (years) | Intrinsic Value | ||||||||||||||
Options outstanding, beginning of period | 6,321,076 | $ | 6.05 | ||||||||||||||
Granted | — | ||||||||||||||||
Exercised | (1,985,596 | ) | 5.14 | ||||||||||||||
Expired / forfeited | (132,288 | ) | 5.72 | ||||||||||||||
Options outstanding,end of period | 4,203,192 | 6.49 | 4.51 | $ | 35,702,302 | ||||||||||||
Exercisable at September 30, 2013 | 3,754,714 | 6.71 | 4.31 | 31,097,408 | |||||||||||||
Expected to vest after September 30, 2013 | 380,339 | 4.6 | 6.19 | 3,908,919 | |||||||||||||
Aggregate intrinsic value represents the difference between the exercise price of the underlying stock option awards and the closing market price of the Company’s common stock of $14.88 on September 30, 2013. The aggregate intrinsic value of options exercised for the three and nine months ended September 30, 2013 was approximately $5.3 million and $9.1 million, respectively. The aggregate intrinsic value of options exercised for the three and nine months ended September 30, 2012 was approximately $0.7 million and $1.6 million, respectively. As of September 30, 2013, total unrecognized stock-based compensation expense related to unvested stock options was approximately $0.3 million, which is expected to be recognized over a remaining weighted average period of approximately 9 months. Options expected to vest are presented net of expected forfeitures. | |||||||||||||||||
Included in the table above is approximately 0.4 million of performance-based options, including approximately 0.1 million for which performance conditions have been met. At September 30, 2013, there are approximately 0.3 million performance-based options outstanding for which the performance criteria have yet to be met. There is approximately $47,000 of remaining expense to be recognized relative to these performance based options as of September 30, 2013. | |||||||||||||||||
Share-Based Compensation Expense | |||||||||||||||||
The fair value of RSUs is estimated as the closing price of our common stock on the date of grant. When granted, the Company calculates the fair value of stock options using the Black-Scholes-Merton option pricing valuation model, which incorporates various assumptions including volatility, expected life and risk-free interest rates. No options were awarded during the nine month periods ended September 30, 2013 or September 30, 2012. The estimated fair value of stock-based compensation awards is amortized to expense on a straight-line basis over the service periods. As stock-based compensation expense recognized is based on awards ultimately expected to vest, it is reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company’s forfeiture rate was calculated based on its historical experience of awards which ultimately vested. | |||||||||||||||||
Share-based compensation was classified as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Cost of products sold | $ | 49,632 | $ | 38,085 | $ | 133,500 | $ | 133,977 | |||||||||
Sales, general and administrative expenses | 735,433 | 657,870 | 2,292,672 | 1,631,234 | |||||||||||||
Research and development expenses | 177,929 | 153,433 | 479,463 | 431,839 | |||||||||||||
Total share-based compensation | $ | 962,994 | $ | 849,388 | $ | 2,905,635 | $ | 2,197,050 | |||||||||
Total share-based compensation expense recognized in the statements of operations for the three months ended September 30, 2013 and 2012, included approximately $22,000 and $98,000, respectively, related to incentive stock options for which no tax benefit is recognized. Total share-based compensation expense recognized in the statements of operations for the nine months ended September 30, 2013 and 2012, included approximately $85,000 and $0.3 million, respectively, related to incentive stock options for which no tax benefit is recognized. | |||||||||||||||||
Issuer Purchases of Equity Securities | |||||||||||||||||
In February 2013, the Company announced that TASER’s Board of Directors authorized a stock repurchase program to acquire up to $25.0 million of the Company’s outstanding common stock subject to stock market conditions and corporate considerations. Under this program, which was completed in the second quarter of 2013, the Company purchased 3,048,966 common shares under this program for a total cost of approximately $25.0 million, or a weighted average cost of $8.20 per share. The weighted average cost includes the average price paid per share of $8.17, plus any applicable administrative costs for the transaction. The Company completed this buyback in the second quarter of 2013 and does not currently have an open stock repurchase program. |
Line_of_Credit
Line of Credit | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
Line of Credit | ' |
8. Line of credit | |
The Company has a $10.0 million revolving line of credit with a domestic bank. As of September 30, 2013, the Company had letters of credit outstanding of $0.6 million under the facility and available borrowing of $9.4 million. The line is secured by the Company’s accounts receivable and inventory, and bears interest at varying rates (currently LIBOR plus 1.5% to prime). The line of credit matures on June 30, 2015, and requires monthly payments of interest only. At September 30, 2013 and December 31, 2012, there were no borrowings under the line. The Company’s agreement with the bank requires it to comply with certain financial and other covenants including maintenance of minimum tangible net worth and a fixed charge coverage ratio. The ratio of total liabilities to tangible net worth can be no greater than 1:1, and the fixed charge coverage ratio can be no less than 1.25:1, based upon a trailing twelve-month period. At September 30, 2013, the Company’s tangible net worth ratio was 0.41:1 and its fixed charge coverage ratio was 3.77:1. Accordingly, the Company was in compliance with these covenants. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||||||||||||
9. Commitments and contingencies | |||||||||||||||||||||||||||
Product Litigation | |||||||||||||||||||||||||||
The Company is currently named as a defendant in 22 lawsuits in which the plaintiffs allege either wrongful death or personal injury in situations in which a TASER CEW was used (or present) by law enforcement officers in connection with arrests or during training exercises. In addition, three other product litigation matters in which the Company is involved are currently on appeal. While the facts vary from case to case, the product liability claims are typically based on an alleged product defect resulting in injury or death, usually involving a failure to warn, and the plaintiffs are seeking monetary damages. The Company is defending each of these lawsuits vigorously and does not expect these lawsuits to individually, or in the aggregate, materially affect our business, results of operations or financial condition. Primarily as the result of one significant product liability judgment against the Company (the Turner case, see below), the Company has exhausted its insurance coverage for the 2008 insurance policy year. If the Company is unsuccessful on its appeal of the Turner case and there are material judgments, settlements or costs relating to other cases in the 2008 policy year, the Company will not have insurance coverage to offset any such payments. The information throughout this Note is current through the filing date of this Quarterly Report on Form 10-Q. | |||||||||||||||||||||||||||
Turner (NC) lawsuit | |||||||||||||||||||||||||||
The Turner (NC) lawsuit was tried in July 2011 and resulted in a jury verdict of $10.0 million against the Company. The Company filed post-trial motions seeking judgment as a matter of law notwithstanding the verdict and in the alternative, a new trial or alternatively, a remittitur of the jury award. Based on this verdict, the Company recorded litigation judgment expense of $3.3 million in 2011. During March 2012, the Federal District Court for the Western District of North Carolina granted the Company’s motion for remittitur and ordered the reduction of the original jury award from $10.0 million to approximately $4.4 million after offsets. On April 20, 2012, the court issued an order which adjusted the award to $5.5 million. On May 4, 2012, the court issued another order which entered judgment in the amount of $5.5 million plus costs and post-judgment interest. Based on this action by the court, the Company reversed a portion of the previously accrued litigation judgment during the year ended December 31, 2012, which resulted in a benefit of $2.2 million during the nine months ended September 30, 2012, and leaving a reserve of $1.1 million as of September 30, 2012. The Company has appealed this verdict. The appeal is fully briefed and oral argument was held on September 19, 2013. As of September 30, 2013 and December 31, 2012, the reserve related to this case remained at $1.1 million. | |||||||||||||||||||||||||||
With respect to each of the pending lawsuits, the following table lists the name of plaintiff, the date the Company was served with process, the jurisdiction in which the case is pending, the type of claim and the status of the matter. | |||||||||||||||||||||||||||
Month | |||||||||||||||||||||||||||
Plaintiff | Served | Jurisdiction | Claim Type | Status | |||||||||||||||||||||||
Grable | 8-Aug | 6th Judicial Circuit Court, Pinellas County, FL | Training Injury | Discovery Phase | |||||||||||||||||||||||
Koon | 8-Dec | 17th Judicial Circuit Court, Broward County, FL | Training Injury | Discovery Phase | |||||||||||||||||||||||
Peppler | 9-Apr | 5th Judicial Circuit Court, Sumter City, FL | Training Injury | Discovery Phase | |||||||||||||||||||||||
Derbyshire | 9-Nov | Ontario, Canada Superior Court of Justice | Officer Injury | Discovery Phase | |||||||||||||||||||||||
Rich | 10-Feb | US District Court, NV | Wrongful Death | Trial scheduled December 2013 | |||||||||||||||||||||||
Thompson | 10-Mar | 11th Judicial Circuit Court, Miami-Dade County, FL | Suspect Injury During Arrest | Discovery Phase | |||||||||||||||||||||||
Doan | 10-Apr | The Queens Bench Alberta, Red Deer Judicial Dist. | Wrongful Death | Discovery Phase | |||||||||||||||||||||||
Shymko | 10-Dec | The Queens Bench, Winnipeg Centre, Manitoba | Wrongful Death | Pleading Phase | |||||||||||||||||||||||
Juran | 10-Dec | Hennepin County District Court, 4th Judicial District | Officer Injury | Discovery Phase | |||||||||||||||||||||||
Wilson | 11-May | US District Court, ED MO | Wrongful Death | Discovery Phase | |||||||||||||||||||||||
Ramsey | 12-Jan | 17th Judicial Circuit Court, Broward County Circuit Court, FL | Wrongful Death | Discovery Phase | |||||||||||||||||||||||
Duensing | 12-Feb | US District Court, NV | Suspect Injury During Arrest | Motion Phase | |||||||||||||||||||||||
Mitchell | 12-Apr | US District Court, ED MI | Wrongful Death | Discovery Phase, trial scheduled June 2014 | |||||||||||||||||||||||
Firman | 12-Apr | Ontario, Canada Superior Court of Justice | Wrongful Death | Pleading Phase | |||||||||||||||||||||||
Ricks | 12-May | US District Court, WD LA | Wrongful Death | Motion Phase | |||||||||||||||||||||||
Wingard | 12-Oct | US District Court, WD PA | Wrongful Death | Discovery Phase | |||||||||||||||||||||||
Manjares | 12-Nov | US District Court, ED WA | Suspect Injury During Arrest | Discovery Phase; trial scheduled July 2014 | |||||||||||||||||||||||
Miller | 13-Jan | New Castle County Superior Court, DE | Wrongful Death | Discovery Phase | |||||||||||||||||||||||
Salgado | 13-Feb | US District Court, SD FL | Wrongful Death | Stayed | |||||||||||||||||||||||
Armstrong | 13-Apr | General Court of Justice, Superior Div, Moore County, NC | Wrongful Death | Discovery Phase | |||||||||||||||||||||||
Barnes | 13-Apr | US District Court, WD PA | Wrongful Death | Discovery Phase | |||||||||||||||||||||||
Athetis | 9-May | Maricopa County Superior Court, AZ | Wrongful Death | Dismissal Pending | |||||||||||||||||||||||
In addition, other product litigation matters in which the Company is involved that are currently on appeal are listed below: | |||||||||||||||||||||||||||
Month | |||||||||||||||||||||||||||
Plaintiff | Served | Jurisdiction | Claim Type | Status | |||||||||||||||||||||||
Turner | 10-Feb | US District Court, ED NC | Wrongful death | Appeal fully briefed; Oral argument held on September 19, 2013 | |||||||||||||||||||||||
Bachtel | 11-Aug | 14th Judicial District Circuit Court, Randolph County, MO | Wrongful Death | Appeal fully briefed; date for Oral Argument has not been set | |||||||||||||||||||||||
Glowczenski | 4-Oct | US District Court, ED NY | Wrongful death | Notice of Appeal filed Septemebr 2013; opening brief is due January 2014 | |||||||||||||||||||||||
Cases that were dismissed or judgment entered during the third quarter of 2013 and through the filing date of this Quarterly Report on Form 10-Q are listed in the table below. Cases that were dismissed or judgment entered in prior fiscal quarters are not included in this table. | |||||||||||||||||||||||||||
Month | |||||||||||||||||||||||||||
Plaintiff | Served | Jurisdiction | Claim Type | Status | |||||||||||||||||||||||
Glowczenski | 4-Oct | US Disrict Court, ED NY | Wrongful Death | Court granted Motion for Summary Judgment in favor of TASER | |||||||||||||||||||||||
McCarthy | 12-Dec | US District Court, WD NC | Wrongful Death | Voluntary Dismissal | |||||||||||||||||||||||
Piskura | 10-May | US District Court, OH | Wrongful Death | Voluntary Dismissal | |||||||||||||||||||||||
The claims, and in some instances the defense, of each of these lawsuits have been submitted to the Company’s insurance carriers that maintained insurance coverage during the applicable periods. The Company continues to maintain product liability insurance coverage with varying limits and deductibles. The following table provides information regarding the Company’s product liability insurance. Remaining insurance coverage is based on information received from the Company’s insurance provider. | |||||||||||||||||||||||||||
Defense | Remaining | ||||||||||||||||||||||||||
Policy Start | Policy End | Insurance | Deductible | Costs | Insurance | Active Cases and Cases on | |||||||||||||||||||||
Policy Year | Date | Date | Coverage | Amount | Covered | Coverage | Appeal | ||||||||||||||||||||
2004 | 12/1/03 | 12/1/04 | $ | 2 | $ | 0.1 | N | $ | 2 | Glowczenski | |||||||||||||||||
2005 | 12/1/04 | 12/1/05 | 10 | 0.3 | Y | 7 | n/a | ||||||||||||||||||||
2006 | 12/1/05 | 12/1/06 | 10 | 0.3 | Y | 3.7 | n/a | ||||||||||||||||||||
2007 | 12/1/06 | 12/1/07 | 10 | 0.3 | Y | 8 | n/a | ||||||||||||||||||||
2008 | 12/1/07 | 12/15/08 | 10 | 0.5 | Y | — | Grable, Koon, Peppler, Rich, Turner | ||||||||||||||||||||
2009 | 12/15/08 | 12/15/09 | 10 | 1 | N | 10 | Athetis, Derbyshire | ||||||||||||||||||||
2010 | 12/15/09 | 12/15/10 | 10 | 1 | N | 10 | Thompson, Shymko, Doan, Juran | ||||||||||||||||||||
2011 | 12/15/10 | 12/15/11 | 10 | 1 | N | 10 | Wilson, Bachtel | ||||||||||||||||||||
Jan - Jun 2012 | 12/15/11 | 6/25/12 | 7 | 1 | N | 7 | Ramsey, Duensing, Mitchell, Firman, Ricks | ||||||||||||||||||||
Jul - Dec 2012 | 6/25/12 | 12/15/12 | 12 | 1 | N | 12 | Wingard, Manjares | ||||||||||||||||||||
2013 | 12/15/12 | 12/15/13 | 12 | 1 | N | 12 | Miller, Salgado, Barnes, Armstrong | ||||||||||||||||||||
The amount of the remaining insurance coverage for the 2008 policy year is shown based on what has actually been paid out on cases in that policy year or held for the appellate bond in Turner (NC). If the Company is not successful in its appeal related to the Turner (NC) lawsuit, the policy will be fully exhausted for that policy year and as a result, the Company will have no remaining insurance coverage for other cases relating to the 2008 policy year. See additional information related to the Turner (NC) lawsuit discussed above in this Note. | |||||||||||||||||||||||||||
Other Litigation | |||||||||||||||||||||||||||
In January 2011, the Company was served with a complaint in the matter of GEOTAG, Inc. v. TASER International, et. al. that was filed in the United States District Court for the Eastern District of Texas, Marshall Division, which alleges that a dealer geographical locator feature on TASER’s website infringes upon plaintiff’s US Patent No. 5,930,474. The complaint seeks a judgment of infringement, a permanent injunction against infringement, an award for damages, costs, expenses and prejudgment and post-judgment interest, and an award for enhanced damages and attorneys’ fees. TASER licensed this locator feature from a third party and has denied liability for infringement. This lawsuit is at the discovery phase and no trial date has been set. | |||||||||||||||||||||||||||
In July 2011, the Company filed a complaint against Karbon Arms, LLC for infringement of TASER’s U.S. Patent Nos. 7,800,885 and 7,782,592 in US District Court for the District of Delaware seeking damages, injunctive relief and an award of attorneys’ fees. Karbon Arms filed a counterclaim on July 18, 2011, alleging invalidity and non-infringement of four of TASER’s patents, tortuous interference with prospective contractual relations and for false advertising under the Lanham Act. TASER thereafter filed counter-counterclaims for infringement of U.S. Patent Nos. 7,602,597 and 6,999,295. This lawsuit is in the motion phase, a Markman hearing was held, and a trial date has been set for January 2014. | |||||||||||||||||||||||||||
In February 2012, the Company was served with a complaint in the matter of AA & Saba Consultants, Inc. v. TASER International, Inc. that was filed in the Superior Court for the County of Maricopa, Arizona, which alleges that the Company breached a contract by unilaterally terminating a distributor agreement between the Company and plaintiff without good cause. The complaint seeks an award for damages, costs, expenses and attorneys’ fees. TASER filed a counterclaim for breach of contract and fraud. This lawsuit is at the discovery phase and motions for summary judgment have been filed, with a trial date set for February 2014. The Company has made a settlement offer of $0.8 million to AA & SABA Consultants, Inc. which offer was not accepted and the offer was withdrawn. The Company has recorded the amount of the offer as an estimated liability. | |||||||||||||||||||||||||||
General | |||||||||||||||||||||||||||
From time to time, the Company is notified that it may be a party to a lawsuit or that a claim is being made against it. It is the Company’s policy to not disclose the specifics of any claim or threatened lawsuit until the summons and complaint are actually served on the Company. After carefully assessing the claim, and assuming we determine that we are not at fault or we disagree with the damages or relief demanded, we vigorously defend and pursue any lawsuit filed against or by the Company. Although we do not expect the outcome in any pending individual case to be material, the outcome of any litigation is inherently uncertain and there can be no assurance that any expense, liability or damages that may ultimately result from the resolution of these matters will be covered by our insurance or will not be in excess of amounts provided by insurance coverage and will not have a material adverse effect on our business, operating results or financial condition. The Company may settle a lawsuit in situations where a settlement can be obtained for nuisance value and for an amount that is expected to be less than the cost of defending a lawsuit. A small number of police officer training injury lawsuits have been settled by the Company for significantly less than the cost of litigation. As a general rule, it is the Company’s policy not to settle suspect injury or death cases. Rare exceptions have been made where the settlement economics are beneficial to the Company. On occasion, the Company’s insurance company has settled such lawsuits over the Company’s objection where the risk is over the Company’s liability insurance deductibles. Due to the confidentiality of our litigation strategy and the confidentiality agreements that are executed in the event of a settlement, the Company does not identify or comment on which specific lawsuits have been settled or the amount of any settlement. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
10. Related party transactions | |
Consulting Services | |
The Company engages Mark Kroll, a member of the Board of Directors, to provide consulting services. Expenses relating to these services for the three and nine months ended September 30, 2013 were approximately $59,000 and $125,000, respectively. Expenses relating to these services for the three and nine months ended September 30, 2012 were approximately $39,000 and $141,000, respectively. At September 30, 2013 and December 31, 2012, the Company had accrued liabilities for these services of approximately $37,000 and $6,000, respectively. |
Employee_Benefit_Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2013 | |
Compensation And Retirement Disclosure [Abstract] | ' |
Employee Benefit Plans | ' |
11. Employee benefit plans | |
The Company has a defined contribution profit sharing 401(k) plan for eligible employees, which is qualified under Sections 401(a) and 401(k) of the Internal Revenue Code of 1986, as amended. Employees are entitled to make tax-deferred contributions of up to the maximum allowed by law of their eligible compensation. In addition, during the third quarter of 2013, the Company implemented a non-qualified deferred compensation plan for certain executives, key employees and non-employee directors through which participants may elect to postpone the receipt and taxation of a portion of their compensation, including stock-based compensation, received from the Company. | |
Contributions to the plans are made by both the employee and the Company. Company contributions are based on the level of employee contributions and are immediately vested. The Company’s matching contributions to the 401(k) plan for the three months and nine months ended September 30, 2013, were approximately $188,000 and $520,000, respectively. The Company’s matching contributions to the to the 401(k) plan for the three and nine months ended September 30, 2012, were approximately $131,000 and $392,000, respectively. The Company expects to make matching contributions to the non-qualified deferred compensation plan related to the three month period ended September 30, 2013, of approximately $6,000. Future matching or profit sharing contributions to the plans are at the Company’s sole discretion. |
Segment_Data
Segment Data | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Segment Reporting [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 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. |
Subsequent_Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
13. Subsequent event | |
On October 7, 2013, the Company entered into a definitive agreement to acquire Familiar, Inc. (“Familiar”) for $1.3 million in cash and 107,749 shares of common stock. The number of common shares issued as part of the acquisition was determined by dividing $1.4 million by a value of $13.33 per share. Familiar’s employees include application designers and engineers experienced in digital video management. The Familiar employees will conduct research and development initiatives for mobility technologies in law enforcement, focused specifically on new revenue opportunities within the EVIDENCE.com & Video segment. The Company will not continue to develop or market products and services previously provided by Familiar. |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||||||||||
Basis of Presentation, Preparation and Use of Estimates | ' | ||||||||||||||||||||||||||||||||
a. Basis of presentation, preparation and use of estimates | |||||||||||||||||||||||||||||||||
These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information related to the Company’s organization, significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) has been condensed or omitted. The accounting policies followed in the preparation of these unaudited condensed consolidated financial statements are consistent with those followed in the Company’s annual consolidated financial statements for the year ended December 31, 2012, as filed on Form 10-K. In the opinion of management, these unaudited condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary to fairly state our financial position, results of operations and cash flows for the periods presented and the presentations and disclosures herein are adequate when read in conjunction with the Company’s Form 10-K for the year ended December 31, 2012. The results of operations for the three and nine months ended September 30, 2013 and 2012, are not necessarily indicative of the results to be expected for the full year (or any other period). Certain amounts have been reclassified to conform to the current-year presentation. | |||||||||||||||||||||||||||||||||
The preparation of these condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates in these consolidated financial statements include allowances for doubtful accounts receivable, inventory valuation reserves, product warranty reserves, valuations of long-lived assets, deferred income taxes and uncertain tax positions, stock-based compensation, contingencies and accrued litigation expenses. Actual results could differ from those estimates. | |||||||||||||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||||||||||||
b. Segment information | |||||||||||||||||||||||||||||||||
The Company is 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”). Reportable segments are determined based on discrete financial information reviewed by the Company’s Chief Executive Officer who is the chief operating decision maker (the “CODM”) for the Company. The Company organizes and reviews operations based on products and services, and currently there are no operating business segments that are aggregated. The Company performs an annual analysis of its reportable segments. Additional information related to the Company’s segments is summarized in Note 12. | |||||||||||||||||||||||||||||||||
Geographic Information and Major Customers | ' | ||||||||||||||||||||||||||||||||
c. Geographic information and major customers | |||||||||||||||||||||||||||||||||
For the three and nine months ended September 30, 2013 and 2012, net sales by geographic area were as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
United States | $ | 31,483 | 89 | % | $ | 23,335 | 81 | % | $ | 86,036 | 88 | % | $ | 68,341 | 83 | % | |||||||||||||||||
Other Countries | 3,714 | 11 | 5,438 | 19 | 11,770 | 12 | 14,296 | 17 | |||||||||||||||||||||||||
Total | $ | 35,197 | 100 | % | $ | 28,773 | 100 | % | $ | 97,806 | 100 | % | $ | 82,637 | 100 | % | |||||||||||||||||
Sales to customers outside of the United States are typically denominated in U.S. dollars and are attributed to each country based on the shipping address of the distributor or customer. For the three and nine months ended September 30, 2013 and 2012, no individual country outside of the United States represented greater than 10% of total net sales. Sales in the international market generally are larger and occur more intermittently than in the domestic market due to the profile of the customer. | |||||||||||||||||||||||||||||||||
For the three months ended September 30, 2013, one distributor represented approximately 12.2% of total net sales. In the three months ended September 30, 2012, one distributor represented approximately 10.6% of total net sales. For the nine months ended September 30, 2013, one distributor represented approximately 12.1% of total net sales. For the nine months ended September 30, 2012, one distributor represented approximately 14.3% of total net sales. At September 30, 2013, the Company had receivables from four customers comprising approximately 16.5%, 13.9%, 10.9% and 10.4% of its aggregate accounts receivable balance, respectively. At December 31, 2012, the Company had a trade note receivable from one unaffiliated customer comprising 17.2% of the aggregate accounts receivable balance. | |||||||||||||||||||||||||||||||||
Income Per Common Share | ' | ||||||||||||||||||||||||||||||||
d. Income per common share | |||||||||||||||||||||||||||||||||
Basic income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the periods presented. Diluted income per share is calculated based on the weighted average number of common shares outstanding for the period plus the dilutive effect of stock options and restricted stock units using the treasury stock method. The calculation of the weighted average number of shares outstanding and income per share are as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Numerator for basic and diluted earnings per share: | |||||||||||||||||||||||||||||||||
Net income | $ | 5,113,592 | $ | 3,676,872 | $ | 12,868,947 | $ | 10,922,936 | |||||||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||||||
Weighted average shares outstanding—basic | 51,341,785 | 52,509,068 | 51,727,197 | 57,997,341 | |||||||||||||||||||||||||||||
Dilutive effect of stock-based awards | 1,979,133 | 597,257 | 1,916,606 | 485,492 | |||||||||||||||||||||||||||||
Diluted weighted average shares outstanding | 53,320,918 | 53,106,325 | 53,643,803 | 58,482,833 | |||||||||||||||||||||||||||||
Anti-dilutive stock-based awards excluded | 565,099 | 4,732,366 | 898,230 | 5,261,887 | |||||||||||||||||||||||||||||
Net income per common share: | |||||||||||||||||||||||||||||||||
Basic | $ | 0.1 | $ | 0.07 | $ | 0.25 | $ | 0.19 | |||||||||||||||||||||||||
Diluted | $ | 0.1 | $ | 0.07 | $ | 0.24 | $ | 0.19 | |||||||||||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||||||||||||||||||
e. Revenue recognition | |||||||||||||||||||||||||||||||||
The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, title has transferred, the price is fixed and collectability is reasonably assured. Revenue arrangements with multiple deliverables are divided into separate units and revenue is allocated using the relative selling price method based upon vendor-specific objective evidence of selling price or third-party evidence of the selling prices if vendor-specific objective evidence of selling prices does not exist. If neither vendor-specific objective evidence nor third-party evidence exists, management uses its best estimate of selling price. | |||||||||||||||||||||||||||||||||
The Company sells its EVIDENCE.com & Video segment products separately, but in most instances the Company’s AXON equipment and EVIDENCE.com software-as-a-service are sold together. In these instances, customers typically purchase and pay for the AXON equipment and EVIDENCE.com services in advance, with the AXON equipment representing a deliverable that is provided to the customer at the time of sale, and EVIDENCE.com services provided over a specified service term, which has typically ranged from one to five years. The Company recognizes revenue for the AXON equipment at the time of the sale consistent with the discussion of multiple deliverable arrangements above. Revenue for EVIDENCE.com service is deferred at the time of the sale and recognized over the service period. At September 30, 2013 and December 31, 2012, approximately $3.7 million and $1.3 million of EVIDENCE.com revenue was deferred, respectively, and are being recognized over the applicable service terms. | |||||||||||||||||||||||||||||||||
The Company offers customers the right to purchase extended warranties that include additional services and coverage beyond the limited warranty for certain products. Revenue for extended warranty purchases is deferred at the time of sale and recognized over the warranty period commencing on the date of sale. Extended warranties range from one to five years. At September 30, 2013 and December 31, 2012, approximately $14.5 million and $10.8 million were deferred under this program, respectively. | |||||||||||||||||||||||||||||||||
Certain of the Company’s customers are charged shipping fees, which are recorded as a component of net sales. Sales tax collected on sales is netted against government remittances and thus, recorded on a net basis, with no income statement impact. Training revenue is recorded as the training is provided. | |||||||||||||||||||||||||||||||||
Warranty Costs | ' | ||||||||||||||||||||||||||||||||
f. Warranty costs | |||||||||||||||||||||||||||||||||
The Company warrants its CEWs, StrikeLight, AXON cameras and Evidence Transfer Manager (“ETM”) from manufacturing defects on a limited basis for a period of one year after purchase and thereafter, will replace any defective unit for a fee. Estimated costs for the standard warranty are charged to cost of products sold and services delivered when revenue is recorded for the related product. Future warranty costs are estimated based on historical data related to returns and warranty costs on a quarterly basis and this rate is applied to current product sales. Historically, reserve amounts have been increased if management becomes aware of a component failure that could result in larger than anticipated returns from customers. The accrued warranty liability expense is reviewed quarterly to verify that it sufficiently reflects the remaining warranty obligations based on the anticipated expenditures over the balance of the warranty obligation period, and adjustments are made when actual warranty claim experience differs from estimates. Costs related to extended warranties are charged to cost of products sold and services delivered when incurred. | |||||||||||||||||||||||||||||||||
The reserve for warranty returns is included in accrued liabilities on the condensed consolidated balance sheets. The nine months ended September 30, 2013, includes additional expense due to a change in estimate for the AXON flex on-officer camera based on the analysis of return data for their first year of sales in addition to warranty expense relating to the launch of the X26P in the first quarter of 2013. Additional expense was also incurred due to the launch of the AXON body camera in the third quarter of 2013. The warranty expense for the nine months ended September 30, 2012, is net of a recovery due to a change in estimate for the X2 CEW warranty reserves based on the analysis of return data for their first year of sales. Changes in the Company’s estimated product warranty liabilities are as follows: | |||||||||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Balance, January 1, | $ | 483,721 | $ | 427,459 | |||||||||||||||||||||||||||||
Utilization of accrual | (394,592 | ) | (312,570 | ) | |||||||||||||||||||||||||||||
Warranty expense | 618,915 | 265,140 | |||||||||||||||||||||||||||||||
Balance, September 30, | $ | 708,044 | $ | 380,029 | |||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||||||||||||||||
g. Fair value of financial instruments | |||||||||||||||||||||||||||||||||
The Company uses the fair value framework, that prioritizes the inputs to valuation techniques, for measuring financial assets and liabilities measured on a recurring basis and for non-financial assets and liabilities when these items are remeasured. Under fair value measurement U.S. GAAP accounting standards, fair value is considered to be the exchange price in an orderly transaction between market participants to sell an asset or transfer a liability at the measurement date. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. The Company categorizes each of its fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: | |||||||||||||||||||||||||||||||||
• | Level 1 – Unadjusted quoted market prices in active markets for identical assets or liabilities. | ||||||||||||||||||||||||||||||||
• | Level 2 – Quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. | ||||||||||||||||||||||||||||||||
• | Level 3 – Unobservable inputs that are not corroborated by market data. | ||||||||||||||||||||||||||||||||
At September 30, 2013, the Company held cash, cash equivalents, and investments, which are typically comprised of money market mutual funds, certificates of deposit and high quality municipal and corporate bonds. Money market mutual funds are recorded at market value and are valued using Level 1 valuation techniques. All other instruments are recorded at amortized cost on the balance sheet based on management’s ability and intent to hold these instruments to maturity. The Company’s financial instruments also include accounts and notes receivable, accounts payable and accrued liabilities. Due to the short-term nature of these instruments, their fair values approximate their carrying values on the balance sheet. | |||||||||||||||||||||||||||||||||
Impairment of Long-Lived Assets | ' | ||||||||||||||||||||||||||||||||
h. Impairment of Long-Lived Assets | |||||||||||||||||||||||||||||||||
Management evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived assets and identifiable intangible assets may warrant revision or that the remaining balance of these assets may not be recoverable. Such circumstances could include, but are not limited to, a change in the product mix, a change in the way products are created, produced or delivered, or a significant change in the way products are branded and marketed. In performing the review for recoverability, management estimates the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. The amount of the impairment loss, if impairment exists, is calculated based on the excess of the carrying amounts of the assets over their estimated fair value computed using discounted cash flows. No impairment losses were recorded in the three or nine months ended September 30, 2013 and 2012. | |||||||||||||||||||||||||||||||||
Recently Issued Accounting Guidance | ' | ||||||||||||||||||||||||||||||||
i. Recently issued accounting guidance | |||||||||||||||||||||||||||||||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update (“ASU”) to standardize the balance sheet presentation of unrecognized tax benefits. This Update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The new guidance is effective for fiscal years beginning after December 15, 2013, and early adoption is allowed. The adoption of this guidance will result in an immaterial reclassification on the Company’s consolidated balance sheet. | |||||||||||||||||||||||||||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update (“ASU”) requiring entities to provide information about the amounts reclassified out of accumulated other comprehensive income (“OCI”) by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated OCI by the respective line items of net income, but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. The new guidance was effective for fiscal years beginning after December 15, 2012. The amendments do not change the current requirements for reporting net income or OCI in financial statements. The Company adopted this guidance during the first quarter of 2013. The adoption did not have an impact on the Company’s consolidated financial statements. | |||||||||||||||||||||||||||||||||
In July 2012, the FASB issued an ASU to simplify the impairment testing for indefinite-lived intangibles by allowing an entity to first assess qualitative factors, considering the totality of events and circumstances, to determine that it is more likely than not that the carrying amount of a reporting unit is less than its fair value. If it is not, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test. The new guidance was effective for annual and interim impairment tests for fiscal years beginning after September 15, 2012. The Company adopted this guidance during the first quarter of 2013. The adoption did not have a material impact on the Company’s consolidated financial statements. |
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||||||||||
Net Sales by Geographic Area | ' | ||||||||||||||||||||||||||||||||
For the three and nine months ended September 30, 2013 and 2012, net sales by geographic area were as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
United States | $ | 31,483 | 89 | % | $ | 23,335 | 81 | % | $ | 86,036 | 88 | % | $ | 68,341 | 83 | % | |||||||||||||||||
Other Countries | 3,714 | 11 | 5,438 | 19 | 11,770 | 12 | 14,296 | 17 | |||||||||||||||||||||||||
Total | $ | 35,197 | 100 | % | $ | 28,773 | 100 | % | $ | 97,806 | 100 | % | $ | 82,637 | 100 | % | |||||||||||||||||
Weighted Average Number of Shares Outstanding and Income Per Share | ' | ||||||||||||||||||||||||||||||||
The calculation of the weighted average number of shares outstanding and income per share are as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Numerator for basic and diluted earnings per share: | |||||||||||||||||||||||||||||||||
Net income | $ | 5,113,592 | $ | 3,676,872 | $ | 12,868,947 | $ | 10,922,936 | |||||||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||||||
Weighted average shares outstanding—basic | 51,341,785 | 52,509,068 | 51,727,197 | 57,997,341 | |||||||||||||||||||||||||||||
Dilutive effect of stock-based awards | 1,979,133 | 597,257 | 1,916,606 | 485,492 | |||||||||||||||||||||||||||||
Diluted weighted average shares outstanding | 53,320,918 | 53,106,325 | 53,643,803 | 58,482,833 | |||||||||||||||||||||||||||||
Anti-dilutive stock-based awards excluded | 565,099 | 4,732,366 | 898,230 | 5,261,887 | |||||||||||||||||||||||||||||
Net income per common share: | |||||||||||||||||||||||||||||||||
Basic | $ | 0.1 | $ | 0.07 | $ | 0.25 | $ | 0.19 | |||||||||||||||||||||||||
Diluted | $ | 0.1 | $ | 0.07 | $ | 0.24 | $ | 0.19 | |||||||||||||||||||||||||
Summary of Changes in Estimated Product Warranty Liabilities | ' | ||||||||||||||||||||||||||||||||
Changes in the Company’s estimated product warranty liabilities are as follows: | |||||||||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Balance, January 1, | $ | 483,721 | $ | 427,459 | |||||||||||||||||||||||||||||
Utilization of accrual | (419,351 | ) | (312,570 | ) | |||||||||||||||||||||||||||||
Warranty expense | 643,674 | 265,140 | |||||||||||||||||||||||||||||||
Balance, September 30, | $ | 708,044 | $ | 380,029 | |||||||||||||||||||||||||||||
Cash_Cash_Equivalents_and_Inve1
Cash, Cash Equivalents, and Investments (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Cash And Cash Equivalents [Abstract] | ' | ||||||||||||||||||||||||||||||||
Summary of Cash, Cash Equivalents and Held-to-Maturity Investments by Type | ' | ||||||||||||||||||||||||||||||||
The following is a summary of cash, cash equivalents and held-to-maturity investments by type at September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||
Gross | Gross | Gross | Gross | ||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Amortized | Unrealized | Unrealized | ||||||||||||||||||||||||||||
Cost | Gains | Losses | Fair Value | Cost | Gains | Losses | Fair Value | ||||||||||||||||||||||||||
Cash and money market funds | $ | 34,905,493 | $ | — | $ | — | $ | 34,905,493 | $ | 36,126,791 | $ | — | $ | — | $ | 36,126,791 | |||||||||||||||||
State and municipal obligations | 8,587,008 | 7,784 | (9 | ) | 8,594,783 | — | — | — | — | ||||||||||||||||||||||||
Corporate bonds | 2,962,150 | — | (8,557 | ) | 2,953,593 | 958 | — | — | 958 | ||||||||||||||||||||||||
Certificates of deposit | 1,882,301 | — | (40 | ) | 1,882,261 | 1,680,000 | — | (1,488 | ) | 1,678,512 | |||||||||||||||||||||||
Total cash, cash equivalents and investments | $ | 48,336,952 | $ | 7,784 | $ | (8,606 | ) | $ | 48,336,130 | $ | 37,807,749 | $ | — | $ | (1,488 | ) | $ | 37,806,261 | |||||||||||||||
Summarized Classification of Short Term and Long Term Investments | ' | ||||||||||||||||||||||||||||||||
The following table summarizes the classification of cash, cash equivalents and investments in the accompanying balance sheet: | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Cash | $ | 32,051,501 | $ | 19,811,735 | |||||||||||||||||||||||||||||
Cash equivalents | 2,953,993 | 16,315,056 | |||||||||||||||||||||||||||||||
Total cash and cash equivalents | 35,005,494 | 36,126,791 | |||||||||||||||||||||||||||||||
Short-term investments | 8,751,409 | 1,680,958 | |||||||||||||||||||||||||||||||
Long-term investments | 4,580,049 | — | |||||||||||||||||||||||||||||||
Total cash, cash equivalents and investments | $ | 48,336,952 | $ | 37,807,749 | |||||||||||||||||||||||||||||
Summary of Amortized Cost and Fair Value of Short-term and Long-term Investments | ' | ||||||||||||||||||||||||||||||||
The following table summarizes the amortized cost and fair value of the short-term and long-term investments held by the Company at September 30, 2013 by contractual maturity: | |||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||||||||||||||
Due in less than one year | $ | 8,751,409 | $ | 8,756,782 | |||||||||||||||||||||||||||||
Due after one year, through two years | 4,580,049 | 4,573,855 | |||||||||||||||||||||||||||||||
Total short-term and long-term investments | $ | 13,331,458 | $ | 13,330,637 | |||||||||||||||||||||||||||||
Inventory_Tables
Inventory (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories as of September 30, 2013 and December 31, 2012, consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 9,257,735 | $ | 9,689,172 | |||||
Work-in-process | 46,348 | 131,492 | |||||||
Finished goods | 3,681,059 | 3,492,167 | |||||||
Reserve for excess and obsolete inventory | (695,782 | ) | (2,319,622 | ) | |||||
Total inventory | $ | 12,289,360 | $ | 10,993,209 | |||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Intangible Assets | ' | ||||||||||||||||||||||||||||
Intangible assets consisted of the following at September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||
Gross | Net | ||||||||||||||||||||||||||||
Carrying | Accumulated | Carrying | Gross Carrying | Accumulated | Net Carrying | ||||||||||||||||||||||||
Useful Life | Amount | Amortization | Amount | Amount | Amortization | Amount | |||||||||||||||||||||||
Amortized: | |||||||||||||||||||||||||||||
Domain names | 5 Years | $ | 139,431 | $ | (112,763 | ) | $ | 26,668 | $ | 139,431 | $ | (103,840 | ) | $ | 35,591 | ||||||||||||||
Issued patents | 4 to 15 Years | 1,559,484 | (429,165 | ) | 1,130,319 | 1,528,955 | (362,032 | ) | 1,166,923 | ||||||||||||||||||||
Issued trademarks | 9 to 11 Years | 421,789 | (134,719 | ) | 287,070 | 362,106 | (101,561 | ) | 260,545 | ||||||||||||||||||||
Total amortized | 2,120,704 | (676,647 | ) | 1,444,057 | 2,030,492 | (567,433 | ) | 1,463,059 | |||||||||||||||||||||
Not amortized: | |||||||||||||||||||||||||||||
TASER trademark | 900,000 | 900,000 | 900,000 | 900,000 | |||||||||||||||||||||||||
Patents and trademarks pending | 1,016,298 | 1,016,298 | 954,110 | 954,110 | |||||||||||||||||||||||||
Total not amortized | 1,916,298 | 1,916,298 | 1,854,110 | 1,854,110 | |||||||||||||||||||||||||
Total intangible assets | $ | 4,037,002 | $ | (676,647 | ) | $ | 3,360,355 | $ | 3,884,602 | $ | (567,433 | ) | $ | 3,317,169 | |||||||||||||||
Estimated Amortization Expense of Intangible Assets | ' | ||||||||||||||||||||||||||||
Estimated amortization expense of intangible assets for the remaining three months of 2013, the next five years ended December 31, and thereafter is as follows: | |||||||||||||||||||||||||||||
2013 (remaining three months) | $ | 39,434 | |||||||||||||||||||||||||||
2014 | 156,818 | ||||||||||||||||||||||||||||
2015 | 148,068 | ||||||||||||||||||||||||||||
2016 | 140,997 | ||||||||||||||||||||||||||||
2017 | 137,424 | ||||||||||||||||||||||||||||
2018 | 127,828 | ||||||||||||||||||||||||||||
Thereafter | 693,488 | ||||||||||||||||||||||||||||
Total | $ | 1,444,057 | |||||||||||||||||||||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Accrued Liabilities | ' | ||||||||
Accrued liabilities consisted of the following at September 30, 2013 and December 31, 2012: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Accrued salaries and benefits | $ | 1,836,857 | $ | 2,416,268 | |||||
Accrued judgments and reserves | 3,050,000 | 2,090,000 | |||||||
Accrued warranty expense | 708,044 | 483,721 | |||||||
Accrued income and other taxes | 115,832 | 295,595 | |||||||
Other accrued expenses | 2,470,119 | 1,779,501 | |||||||
Accrued liabilities | $ | 8,180,852 | $ | 7,065,085 | |||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Summary of Restricted Stock Unit Activity | ' | ||||||||||||||||
The following table summarizes RSU activity for the nine months ended September 30, 2013: | |||||||||||||||||
Weighted | |||||||||||||||||
Average | |||||||||||||||||
Grant- | |||||||||||||||||
Number of | Date Fair | Aggregate | |||||||||||||||
Units | Value | Intrinsic Value | |||||||||||||||
Units outstanding, beginning of period | 582,212 | $ | 5.42 | ||||||||||||||
Granted | 736,479 | 8.98 | |||||||||||||||
Released | (158,700 | ) | 5.39 | ||||||||||||||
Forfeited | (44,814 | ) | 7.24 | ||||||||||||||
Units outstanding, end of period | 1,115,177 | 7.71 | $ | 16,593,834 | |||||||||||||
Summary of the Company's Stock Options | ' | ||||||||||||||||
The following table summarizes stock option activity for the nine months ended September 30, 2013: | |||||||||||||||||
Average | |||||||||||||||||
Weighted | Remaining | ||||||||||||||||
Number of | Average | Contractual | Aggregate | ||||||||||||||
options | Exercise Price | Life (years) | Intrinsic Value | ||||||||||||||
Options outstanding, beginning of period | 6,321,076 | $ | 6.05 | ||||||||||||||
Granted | — | ||||||||||||||||
Exercised | (1,985,596 | ) | 5.14 | ||||||||||||||
Expired / forfeited | (132,288 | ) | 5.72 | ||||||||||||||
Options outstanding,end of period | 4,203,192 | 6.49 | 4.51 | $ | 35,702,302 | ||||||||||||
Exercisable at September 30, 2013 | 3,754,714 | 6.71 | 4.31 | 31,097,408 | |||||||||||||
Expected to vest after September 30, 2013 | 380,339 | 4.6 | 6.19 | 3,908,919 | |||||||||||||
Reported Share-Based Compensation | ' | ||||||||||||||||
Share-based compensation was classified as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Cost of products sold | $ | 49,632 | $ | 38,085 | $ | 133,500 | $ | 133,977 | |||||||||
Sales, general and administrative expenses | 735,433 | 657,870 | 2,292,672 | 1,631,234 | |||||||||||||
Research and development expenses | 177,929 | 153,433 | 479,463 | 431,839 | |||||||||||||
Total share-based compensation | $ | 962,994 | $ | 849,388 | $ | 2,905,635 | $ | 2,197,050 | |||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Loss Contingencies | ' | ||||||||||||||||||||||||||
With respect to each of the pending lawsuits, the following table lists the name of plaintiff, the date the Company was served with process, the jurisdiction in which the case is pending, the type of claim and the status of the matter. | |||||||||||||||||||||||||||
Month | |||||||||||||||||||||||||||
Plaintiff | Served | Jurisdiction | Claim Type | Status | |||||||||||||||||||||||
Grable | 8-Aug | 6th Judicial Circuit Court, Pinellas County, FL | Training Injury | Discovery Phase | |||||||||||||||||||||||
Koon | 8-Dec | 17th Judicial Circuit Court, Broward County, FL | Training Injury | Discovery Phase | |||||||||||||||||||||||
Peppler | 9-Apr | 5th Judicial Circuit Court, Sumter City, FL | Training Injury | Discovery Phase | |||||||||||||||||||||||
Derbyshire | 9-Nov | Ontario, Canada Superior Court of Justice | Officer Injury | Discovery Phase | |||||||||||||||||||||||
Rich | 10-Feb | US District Court, NV | Wrongful Death | Trial scheduled December 2013 | |||||||||||||||||||||||
Thompson | 10-Mar | 11th Judicial Circuit Court, Miami-Dade County, FL | Suspect Injury During Arrest | Discovery Phase | |||||||||||||||||||||||
Doan | 10-Apr | The Queens Bench Alberta, Red Deer Judicial Dist. | Wrongful Death | Discovery Phase | |||||||||||||||||||||||
Shymko | 10-Dec | The Queens Bench, Winnipeg Centre, Manitoba | Wrongful Death | Pleading Phase | |||||||||||||||||||||||
Juran | 10-Dec | Hennepin County District Court, 4th Judicial District | Officer Injury | Discovery Phase | |||||||||||||||||||||||
Wilson | 11-May | US District Court, ED MO | Wrongful Death | Discovery Phase | |||||||||||||||||||||||
Ramsey | 12-Jan | 17th Judicial Circuit Court, Broward County Circuit Court, FL | Wrongful Death | Discovery Phase | |||||||||||||||||||||||
Duensing | 12-Feb | US District Court, NV | Suspect Injury During Arrest | Motion Phase | |||||||||||||||||||||||
Mitchell | 12-Apr | US District Court, ED MI | Wrongful Death | Discovery Phase, trial scheduled June 2014 | |||||||||||||||||||||||
Firman | 12-Apr | Ontario, Canada Superior Court of Justice | Wrongful Death | Pleading Phase | |||||||||||||||||||||||
Ricks | 12-May | US District Court, WD LA | Wrongful Death | Motion Phase | |||||||||||||||||||||||
Wingard | 12-Oct | US District Court, WD PA | Wrongful Death | Discovery Phase | |||||||||||||||||||||||
Manjares | 12-Nov | US District Court, ED WA | Suspect Injury During Arrest | Discovery Phase; trial scheduled July 2014 | |||||||||||||||||||||||
Miller | 13-Jan | New Castle County Superior Court, DE | Wrongful Death | Discovery Phase | |||||||||||||||||||||||
Salgado | 13-Feb | US District Court, SD FL | Wrongful Death | Stayed | |||||||||||||||||||||||
Armstrong | 13-Apr | General Court of Justice, Superior Div, Moore County, NC | Wrongful Death | Discovery Phase | |||||||||||||||||||||||
Barnes | 13-Apr | US District Court, WD PA | Wrongful Death | Discovery Phase | |||||||||||||||||||||||
Athetis | 9-May | Maricopa County Superior Court, AZ | Wrongful Death | Dismissal Pending | |||||||||||||||||||||||
Summary of Other Litigation Matters | ' | ||||||||||||||||||||||||||
In addition, other product litigation matters in which the Company is involved that are currently on appeal are listed below: | |||||||||||||||||||||||||||
Month | |||||||||||||||||||||||||||
Plaintiff | Served | Jurisdiction | Claim Type | Status | |||||||||||||||||||||||
Turner | 10-Feb | US District Court, ED NC | Wrongful death | Appeal fully briefed; Oral argument held on September 19, 2013 | |||||||||||||||||||||||
Bachtel | 11-Aug | 14th Judicial District Circuit Court, Randolph County, MO | Wrongful Death | Appeal fully briefed; date for Oral Argument has not been set | |||||||||||||||||||||||
Glowczenski | 4-Oct | US District Court, ED NY | Wrongful death | Notice of Appeal filed Septemebr 2013; opening brief is due January 2014 | |||||||||||||||||||||||
Summary of Cases Dismissed or Judgment Entered | ' | ||||||||||||||||||||||||||
Cases that were dismissed or judgment entered during the third quarter of 2013 and through the filing date of this Quarterly Report on Form 10-Q are listed in the table below. Cases that were dismissed or judgment entered in prior fiscal quarters are not included in this table. | |||||||||||||||||||||||||||
Month | |||||||||||||||||||||||||||
Plaintiff | Served | Jurisdiction | Claim Type | Status | |||||||||||||||||||||||
Glowczenski | 4-Oct | US Disrict Court, ED NY | Wrongful Death | Court granted Motion for Summary Judgment in favor of TASER | |||||||||||||||||||||||
McCarthy | 12-Dec | US District Court, WD NC | Wrongful Death | Voluntary Dismissal | |||||||||||||||||||||||
Piskura | 10-May | US District Court, OH | Wrongful Death | Voluntary Dismissal | |||||||||||||||||||||||
Information Regarding the Company's Insurance Coverage | ' | ||||||||||||||||||||||||||
The following table provides information regarding the Company’s product liability insurance. Remaining insurance coverage is based on information received from the Company’s insurance provider. | |||||||||||||||||||||||||||
Defense | Remaining | ||||||||||||||||||||||||||
Policy Start | Policy End | Insurance | Deductible | Costs | Insurance | Active Cases and Cases on | |||||||||||||||||||||
Policy Year | Date | Date | Coverage | Amount | Covered | Coverage | Appeal | ||||||||||||||||||||
2004 | 12/1/03 | 12/1/04 | $ | 2 | $ | 0.1 | N | $ | 2 | Glowczenski | |||||||||||||||||
2005 | 12/1/04 | 12/1/05 | 10 | 0.3 | Y | 7 | n/a | ||||||||||||||||||||
2006 | 12/1/05 | 12/1/06 | 10 | 0.3 | Y | 3.7 | n/a | ||||||||||||||||||||
2007 | 12/1/06 | 12/1/07 | 10 | 0.3 | Y | 8 | n/a | ||||||||||||||||||||
2008 | 12/1/07 | 12/15/08 | 10 | 0.5 | Y | — | Grable, Koon, Peppler, Rich, Turner | ||||||||||||||||||||
2009 | 12/15/08 | 12/15/09 | 10 | 1 | N | 10 | Athetis, Derbyshire | ||||||||||||||||||||
2010 | 12/15/09 | 12/15/10 | 10 | 1 | N | 10 | Thompson, Shymko, Doan, Juran | ||||||||||||||||||||
2011 | 12/15/10 | 12/15/11 | 10 | 1 | N | 10 | Wilson, Bachtel | ||||||||||||||||||||
Jan - Jun 2012 | 12/15/11 | 6/25/12 | 7 | 1 | N | 7 | Ramsey, Duensing, Mitchell, Firman, Ricks | ||||||||||||||||||||
Jul - Dec 2012 | 6/25/12 | 12/15/12 | 12 | 1 | N | 12 | Wingard, Manjares | ||||||||||||||||||||
2013 | 12/15/12 | 12/15/13 | 12 | 1 | N | 12 | Miller, Salgado, Barnes, Armstrong |
Segment_Data_Tables
Segment Data (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Summary of Operational Information Relative to the Company's Reportable Segments | ' | ||||||||||||||||||||||||
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 |
Organization_and_Summary_of_Si3
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | |
Segment | Minimum [Member] | Maximum [Member] | Other Countries [Member] | Other Countries [Member] | Other Countries [Member] | Other Countries [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Distributor One [Member] | Distributor One [Member] | Distributor Two [Member] | Distributor Three [Member] | Distributor Four [Member] | TASER C2 [Member] | Evidence.Com & Video [Member] | Evidence.Com & Video [Member] | Extended Product Warranty [Member] | Extended Product Warranty [Member] | Extended Product Warranty [Member] | Extended Product Warranty [Member] | ||||
Customer | Customer | Customer | Customer | Minimum [Member] | Maximum [Member] | |||||||||||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments of company | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregated operating segments | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of customer outside the united states | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum percentage of total sales represented by one customer | 10.00% | 10.00% | 10.00% | 10.00% | ' | ' | ' | ' | ' | ' | 12.20% | 10.60% | 12.10% | 14.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts and notes receivable by customers one | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16.50% | 17.20% | 13.90% | 10.90% | 10.40% | ' | ' | ' | ' | ' | ' | ' |
Deferred revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,700,000 | $1,300,000 | $14,500,000 | $10,800,000 | ' | ' |
Service term for services purchased | ' | ' | ' | ' | '1 year | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of extended warranty after expiration of standard warranty | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '5 years |
Standard warranty period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' |
Impairment losses | $0 | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Organization_and_Summary_of_Si4
Organization and Summary of Significant Accounting Policies - Net Sales by Geographic Area (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales by Geographic Area | $35,196,822 | $28,772,956 | $97,806,271 | $82,636,791 |
Percentage of Net sales by Geographic Area | 100.00% | 100.00% | 100.00% | 100.00% |
United States [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales by Geographic Area | 31,483,000 | 23,335,000 | 86,036,000 | 68,341,000 |
Percentage of Net sales by Geographic Area | 89.00% | 81.00% | 88.00% | 83.00% |
Other Countries [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales by Geographic Area | $3,714,000 | $5,438,000 | $11,770,000 | $14,296,000 |
Percentage of Net sales by Geographic Area | 11.00% | 19.00% | 12.00% | 17.00% |
Organization_and_Summary_of_Si5
Organization and Summary of Significant Accounting Policies - Weighted Average Number of Shares Outstanding and Income Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Numerator for basic and diluted earnings per share: | ' | ' | ' | ' |
Net income | $5,113,592 | $3,676,872 | $12,868,947 | $10,922,936 |
Denominator: | ' | ' | ' | ' |
Weighted average shares outstanding-basic | 51,341,785 | 52,509,068 | 51,727,197 | 57,997,341 |
Dilutive effect of stock-based awards | 1,979,133 | 597,257 | 1,916,606 | 485,492 |
Diluted weighted average shares outstanding | 53,320,918 | 53,106,325 | 53,643,803 | 58,482,833 |
Anti-dilutive stock-based awards excluded | 565,099 | 4,732,366 | 898,230 | 5,261,887 |
Net income per common share: | ' | ' | ' | ' |
Basic | $0.10 | $0.07 | $0.25 | $0.19 |
Diluted | $0.10 | $0.07 | $0.24 | $0.19 |
Organization_and_Summary_of_Si6
Organization and Summary of Significant Accounting Policies - Summary of Changes in Estimated Product Warranty Liabilities (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ' |
Balance, beginning of period | $483,721 | $427,459 |
Utilization of accrual | -419,351 | -312,570 |
Warranty expense | 643,674 | 265,140 |
Balance, end of period | $708,044 | $380,029 |
Cash_Cash_Equivalents_and_Inve2
Cash, Cash Equivalents, and Investments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Cash and Cash Equivalents [Line Items] | ' |
Initial maturities period of cash and cash equivalents | '3 months |
Maturities period of Long-term investments and securities | '1 year |
Maximum [Member] | ' |
Cash and Cash Equivalents [Line Items] | ' |
Maturities period of Short-term investments and securities | '1 year |
Cash_Cash_Equivalents_and_Inve3
Cash, Cash Equivalents, and Investments - Summary of Cash, Cash Equivalents and Held-to-Maturity Investments by Type (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Amortized Cost | $48,336,952 | $37,807,749 |
Gross Unrealized Gains | 7,784 | ' |
Gross Unrealized Losses | -8,606 | -1,488 |
Fair Value | 48,336,130 | 37,806,261 |
Cash and Money Market Funds [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Amortized Cost | 34,905,493 | 36,126,791 |
Gross Unrealized Gains | ' | ' |
Gross Unrealized Losses | ' | ' |
Fair Value | 34,905,493 | 36,126,791 |
State and Municipal Obligations [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Amortized Cost | 8,587,008 | ' |
Gross Unrealized Gains | 7,784 | ' |
Gross Unrealized Losses | -9 | ' |
Fair Value | 8,594,783 | ' |
Corporate Bonds [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Amortized Cost | 2,962,150 | 958 |
Gross Unrealized Gains | ' | ' |
Gross Unrealized Losses | -8,557 | ' |
Fair Value | 2,953,593 | 958 |
Certificates of Deposit [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Amortized Cost | 1,882,301 | 1,680,000 |
Gross Unrealized Gains | ' | ' |
Gross Unrealized Losses | -40 | -1,488 |
Fair Value | $1,882,261 | $1,678,512 |
Cash_Cash_Equivalents_and_Inve4
Cash, Cash Equivalents, and Investments - Summarized Classification of Short Term and Long Term Investments (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
Investments Schedule [Abstract] | ' | ' | ' | ' |
Cash | $32,051,501 | $19,811,735 | ' | ' |
Cash equivalents | 2,953,993 | 16,315,056 | ' | ' |
Total cash and cash equivalents | 35,005,494 | 36,126,791 | 25,965,711 | 21,300,733 |
Short-term investments | 8,751,409 | 1,680,958 | ' | ' |
Long-term investments | 4,580,049 | ' | ' | ' |
Total cash, cash equivalents and investments | $48,336,952 | $37,807,749 | ' | ' |
Cash_Cash_Equivalents_and_Inve5
Cash, Cash Equivalents, and Investments - Summary of Amortized Cost and Fair Value of Short-term and Long-term Investments (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Due in less than one year | $8,751,409 | $1,680,958 |
Due after one year, through two years | 4,580,049 | ' |
Amortized Cost [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Due in less than one year | 8,751,409 | ' |
Due after one year, through two years | 4,580,049 | ' |
Total short-term and long-term investments | 13,331,458 | ' |
Fair Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Due in less than one year | 8,756,782 | ' |
Due after one year, through two years | 4,573,855 | ' |
Total short-term and long-term investments | $13,330,637 | ' |
Inventory_Additional_Informati
Inventory - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Inventory Disclosure [Abstract] | ' | ' |
Reserve for excess and obsolete inventory | $695,782 | $2,319,622 |
Inventory_Inventories_Detail
Inventory - Inventories (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $9,257,735 | $9,689,172 |
Work-in-process | 46,348 | 131,492 |
Finished goods | 3,681,059 | 3,492,167 |
Reserve for excess and obsolete inventory | -695,782 | -2,319,622 |
Total inventory | $12,289,360 | $10,993,209 |
Intangible_Assets_Intangible_A
Intangible Assets - Intangible Assets (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Not amortized intangible assets, Carrying Amount | $1,916,298 | $1,854,110 |
Amortized intangible assets, Gross Carrying Amount | 2,120,704 | 2,030,492 |
Intangible assets, Gross Carrying Amount | 4,037,002 | 3,884,602 |
Accumulated Amortization | -676,647 | -567,433 |
Net Carrying Amount | 1,444,057 | 1,463,059 |
Intangible assets, net carrying amount | 3,360,355 | 3,317,169 |
TASER Trademark [Member] | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Not amortized intangible assets, Carrying Amount | 900,000 | 900,000 |
Patents and Trademarks Pending [Member] | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Not amortized intangible assets, Carrying Amount | 1,016,298 | 954,110 |
Domain Names [Member] | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Amortized intangible assets, Useful Life | '5 years | ' |
Amortized intangible assets, Gross Carrying Amount | 139,431 | 139,431 |
Accumulated Amortization | -112,763 | -103,840 |
Net Carrying Amount | 26,668 | 35,591 |
Issued Patents [Member] | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Amortized intangible assets, Gross Carrying Amount | 1,559,484 | 1,528,955 |
Accumulated Amortization | -429,165 | -362,032 |
Net Carrying Amount | 1,130,319 | 1,166,923 |
Issued Trademarks [Member] | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Amortized intangible assets, Gross Carrying Amount | 421,789 | 362,106 |
Accumulated Amortization | -134,719 | -101,561 |
Net Carrying Amount | $287,070 | $260,545 |
Minimum [Member] | Issued Patents [Member] | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Amortized intangible assets, Useful Life | '4 years | ' |
Minimum [Member] | Issued Trademarks [Member] | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Amortized intangible assets, Useful Life | '9 years | ' |
Maximum [Member] | Issued Patents [Member] | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Amortized intangible assets, Useful Life | '15 years | ' |
Maximum [Member] | Issued Trademarks [Member] | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Amortized intangible assets, Useful Life | '11 years | ' |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Amortization expense | $39,000 | $36,000 | $115,000 | $104,000 |
Intangible_assets_Estimated_Am
Intangible assets - Estimated Amortization Expense of Intangible Assets (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' |
2013 (remaining three months) | $39,434 | ' |
2014 | 156,818 | ' |
2015 | 148,068 | ' |
2016 | 140,997 | ' |
2017 | 137,424 | ' |
2018 | 127,828 | ' |
Thereafter | 693,488 | ' |
Net Carrying Amount | $1,444,057 | $1,463,059 |
Accrued_Liabilities_Accrued_Li
Accrued Liabilities - Accrued Liabilities (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
Payables And Accruals [Abstract] | ' | ' | ' | ' |
Accrued salaries and benefits | $1,836,857 | $2,416,268 | ' | ' |
Accrued judgments and reserves | 3,050,000 | 2,090,000 | ' | ' |
Accrued warranty expense | 708,044 | 483,721 | 380,029 | 427,459 |
Accrued income and other taxes | 115,832 | 295,595 | ' | ' |
Other accrued expenses | 2,470,119 | 1,779,501 | ' | ' |
Accrued liabilities | $8,180,852 | $7,065,085 | ' | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Line Items] | ' | ' |
Total current and long term deferred tax assets | $19,800,000 | ' |
Research and development tax credit studies | 7,800,000 | ' |
Liability for unrecognized tax benefits | 3,074,447 | 2,902,896 |
Effective tax rate, before discrete period adjustments | 32.20% | ' |
Anticipated annual income tax rate | 38.20% | ' |
Federal [Member] | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' |
Liability for unrecognized tax benefits | 2,900,000 | ' |
State [Member] | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' |
Liability for unrecognized tax benefits | $200,000 | ' |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||||||||
23-May-13 | Feb. 28, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | |
Plans | Restricted Stock [Member] | Restricted Stock [Member] | Performance Based Restricted Stock Unit [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Performance Based Stock Options [Member] | Incentive Stock Options [Member] | Incentive Stock Options [Member] | Incentive Stock Options [Member] | Incentive Stock Options [Member] | Repurchase of Equity [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option available for future grants | ' | ' | ' | 2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stock based compensation plans | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock incentive plan | 1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value price per share | ' | ' | ' | ' | $14.88 | ' | ' | $14.88 | ' | $14.88 | ' | ' | ' | ' | ' | ' | ' |
Unrecognized stock-based compensation cost | ' | ' | ' | ' | $5,400,000 | ' | ' | $300,000 | ' | $300,000 | ' | ' | ' | ' | ' | ' | ' |
Weighted average period | ' | ' | ' | ' | '29 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate units of performance restricted stock granted | ' | ' | ' | ' | ' | ' | 149,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate units outstanding | ' | ' | ' | ' | 1,115,177 | 582,212 | 227,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance criteria met for approximate units | ' | ' | ' | ' | 158,700 | ' | 85,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercised, aggregate intrinsic value | ' | ' | ' | ' | ' | ' | ' | 5,300,000 | 700,000 | 9,100,000 | 1,600,000 | ' | ' | ' | ' | ' | ' |
Weighted average vesting period | ' | ' | ' | '9 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance-based stock options Cumulative Granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' |
Performance-based stock options condition met | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' |
Unvested performance options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' |
Fair value of Unvested performance options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47,000 | ' | ' | ' | ' | ' |
Incremental stock option expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,000 | 98,000 | ' | ' | ' |
Total share-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85,000 | 300,000 | ' |
Outstanding common stock repurchase program Authorized Amount | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares repurchased | ' | ' | 3,048,966 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional stock repurchase program authorized amount | ' | ' | $25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average cost of repurchase per share | ' | ' | $8.17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8.20 |
Stockholders_Equity_Summary_of
Stockholders' Equity - Summary of Restricted Stock Unit Activity (Detail) (Restricted Stock [Member], USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Units outstanding, beginning of year | 582,212 |
Number of Units, Granted | 736,479 |
Number of Units, Released | -158,700 |
Number of Units, Forfeited | -44,814 |
Number of Units outstanding, end of year | 1,115,177 |
Weighted Average Grant Date Fair Value, Units outstanding, beginning of period | $5.42 |
Weighted Average Grant Date Fair Value, Granted | $8.98 |
Weighted Average Grant Date Fair Value, Released | $5.39 |
Weighted Average Grant Date Fair Value, Forfeited | $7.24 |
Weighted Average Grant Date Fair Value, Units outstanding, end of period | $7.71 |
Aggregate intrinsic value, Units outstanding, beginning of period | ' |
Aggregate intrinsic value, Granted | ' |
Aggregate intrinsic value, Released | ' |
Aggregate intrinsic value, Forfeited | ' |
Aggregate intrinsic value, Units outstanding, end of period | $16,593,834 |
Stockholders_Equity_Summary_of1
Stockholders' Equity - Summary of the Company's Stock Options (Detail) (Employee Stock Option [Member], USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Employee Stock Option [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of options, Options outstanding, beginning of period | 6,321,076 |
Number of options, Granted | ' |
Number of options, Exercised | -1,985,596 |
Number of options, Expired / forfeited | -132,288 |
Number of options, Options outstanding, end of period | 4,203,192 |
Number of options, Options exercisable, end of period | 3,754,714 |
Number of options, Options expected to vest, end of period | 380,339 |
Weighted average exercise price, Options outstanding, beginning of period | $6.05 |
Weighted average exercise price, Granted | ' |
Weighted average exercise price, Exercised | $5.14 |
Weighted average exercise price, Expired / forfeited | $5.72 |
Weighted average exercise price, Options outstanding, end of period | $6.49 |
Weighted average exercise price, Options exercisable, end of period | $6.71 |
Weighted average exercise price, Options expected to vest, end of period | $4.60 |
Weighted Average Remaining Contractual Life (years), Options outstanding, end of period | '4 years 6 months 4 days |
Weighted Average Remaining Contractual Life (years), Options exercisable, end of period | '4 years 3 months 22 days |
Weighted Average Remaining Contractual Life (years), Options expected to vest, end of period | '6 years 2 months 9 days |
Aggregate intrinsic value, Options outstanding, end of period | $35,702,302 |
Aggregate intrinsic value, Options exercisable, end of period | 31,097,408 |
Aggregate intrinsic value, Options expected to vest, end of period | $3,908,919 |
Stockholders_Equity_Reported_S
Stockholders' Equity - Reported Share-Based Compensation (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share-based compensation | $962,994 | $849,388 | $2,905,635 | $2,197,050 |
Cost of Products Sold [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share-based compensation | 49,632 | 38,085 | 133,500 | 133,977 |
Sales, General and Administrative Expenses [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share-based compensation | 735,433 | 657,870 | 2,292,672 | 1,631,234 |
Research and Development Expenses [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share-based compensation | $177,929 | $153,433 | $479,463 | $431,839 |
Line_of_Credit_Additional_Info
Line of Credit - Additional Information (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Debt Disclosure [Abstract] | ' | ' |
Total availability under line of credit agreement | $10,000,000 | ' |
Letters of credit outstanding amount | 600,000 | ' |
Available borrowing under letter of credit | 9,400,000 | ' |
Varying Interest on Line of credit agreement | 'LIBOR plus 1.5% to prime | ' |
Line of credit interest rate | 1.50% | ' |
Maturity date of line of credit | 30-Jun-15 | ' |
Line of credit facility amount outstanding | $0 | $0 |
Maximum ratio of total liabilities to tangible net worth | 11 | ' |
Minimum required fixed coverage charge ratio | 1.25 | ' |
Period used for calculating ratios | '12 months | ' |
Company's tangible net worth ratio | 0.41 | ' |
Fixed coverage charge ratio | 3.77 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 9 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2012 | Jul. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | 4-May-12 | Apr. 20, 2012 | |
Litigation | Turner [Member] | Turner [Member] | Turner [Member] | Turner [Member] | Turner [Member] | Turner [Member] | Turner [Member] | Turner [Member] | ||
Lawsuits | ||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of lawsuits against Company | 22 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of product litigation matters on appeal | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Jury decision against company | ' | ' | ' | $10,000,000 | ' | ' | ' | ' | ' | ' |
Litigation judgment | ' | ' | ' | ' | ' | 3,300,000 | ' | ' | ' | ' |
Jury award value | ' | ' | 4,400,000 | ' | ' | ' | ' | ' | ' | ' |
Jury decision against company which adjusted to award | ' | ' | ' | ' | ' | ' | ' | ' | 5,500,000 | 5,500,000 |
Benefit on reversal of accrued litigation | ' | 2,200,000 | ' | ' | 2,200,000 | ' | ' | ' | ' | ' |
Benefit on reversal of accrued litigation leaving a reserve | ' | ' | ' | ' | 1,100,000 | ' | 1,100,000 | 1,100,000 | ' | ' |
Amount of settlement offer | $800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Loss Contingencies (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Grable [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Grable |
Month Served | 'Aug-08 |
Jurisdiction | '6th Judicial Circuit Court, Pinellas County, FL |
Claim Type | 'Training Injury |
Status | 'Discovery Phase |
Koon [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Koon |
Month Served | 'Dec-08 |
Jurisdiction | '17th Judicial Circuit Court, Broward County, FL |
Claim Type | 'Training Injury |
Status | 'Discovery Phase |
Peppler [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Peppler |
Month Served | 'Apr-09 |
Jurisdiction | '5th Judicial Circuit Court, Sumter City, FL |
Claim Type | 'Training Injury |
Status | 'Discovery Phase |
Derbyshire [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Derbyshire |
Month Served | 'Nov-09 |
Jurisdiction | 'Ontario, Canada Superior Court of Justice |
Claim Type | 'Officer Injury |
Status | 'Discovery Phase |
Rich [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Rich |
Month Served | 'Feb-10 |
Jurisdiction | 'US District Court, NV |
Claim Type | 'Wrongful Death |
Status | 'Trial scheduled December 2013 |
Thompson [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Thompson |
Month Served | 'Mar-10 |
Jurisdiction | '11th Judicial Circuit Court, Miami-Dade County, FL |
Claim Type | 'Suspect Injury During Arrest |
Status | 'Discovery Phase |
Doan [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Doan |
Month Served | 'Apr-10 |
Jurisdiction | 'The Queens Bench Alberta, Red Deer Judicial Dist. |
Claim Type | 'Wrongful Death |
Status | 'Discovery Phase |
Shymko [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Shymko |
Month Served | 'Dec-10 |
Jurisdiction | 'The Queens Bench, Winnipeg Centre, Manitoba |
Claim Type | 'Wrongful Death |
Status | 'Pleading Phase |
Juran [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Juran |
Month Served | 'Dec-10 |
Jurisdiction | 'Hennepin County District Court, 4th Judicial District |
Claim Type | 'Officer Injury |
Status | 'Discovery Phase |
Wilson [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Wilson |
Month Served | 'May-11 |
Jurisdiction | 'US District Court, ED MO |
Claim Type | 'Wrongful Death |
Status | 'Discovery Phase |
Ramsey [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Ramsey |
Month Served | 'Jan-12 |
Jurisdiction | '17th Judicial Circuit Court, Broward County Circuit Court, FL |
Claim Type | 'Wrongful Death |
Status | 'Discovery Phase |
Duensing [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Duensing |
Month Served | 'Feb-12 |
Jurisdiction | 'US District Court, NV |
Claim Type | 'Suspect Injury During Arrest |
Status | 'Motion Phase |
Mitchell [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Mitchell |
Month Served | 'Apr-12 |
Jurisdiction | 'US District Court, ED MI |
Claim Type | 'Wrongful Death |
Status | 'Discovery Phase, trial scheduled June 2014 |
Firman [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Firman |
Month Served | 'Apr-12 |
Jurisdiction | 'Ontario, Canada Superior Court of Justice |
Claim Type | 'Wrongful Death |
Status | 'Pleading Phase |
Ricks [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Ricks |
Month Served | 'May-12 |
Jurisdiction | 'US District Court, WD LA |
Claim Type | 'Wrongful Death |
Status | 'Motion Phase |
Wingard [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Wingard |
Month Served | 'Oct-12 |
Jurisdiction | 'US District Court, WD PA |
Claim Type | 'Wrongful Death |
Status | 'Discovery Phase |
Manjares [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Manjares |
Month Served | 'Nov-12 |
Jurisdiction | 'US District Court, ED WA |
Claim Type | 'Suspect Injury During Arrest |
Status | 'Discovery Phase; trial scheduled July 2014 |
Miller [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Miller |
Month Served | 'Jan-13 |
Jurisdiction | 'New Castle County Superior Court, DE |
Claim Type | 'Wrongful Death |
Status | 'Discovery Phase |
Salgado [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Salgado |
Month Served | 'Feb-13 |
Jurisdiction | 'US District Court, SD FL |
Claim Type | 'Wrongful Death |
Status | 'Stayed |
Armstrong [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Armstrong |
Month Served | 'Apr-13 |
Jurisdiction | 'General Court of Justice, Superior Div, Moore County, NC |
Claim Type | 'Wrongful Death |
Status | 'Discovery Phase |
Barnes [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Barnes |
Month Served | 'Apr-13 |
Jurisdiction | 'US District Court, WD PA |
Claim Type | 'Wrongful Death |
Status | 'Discovery Phase |
Athetis [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Athetis |
Month Served | 'May-09 |
Jurisdiction | 'Maricopa County Superior Court, AZ |
Claim Type | 'Wrongful Death |
Status | 'Dismissal Pending |
Commitments_and_Contingencies_3
Commitments and Contingencies - Summary of Other Litigation Matters (Detail) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
Turner [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Plaintiff | ' | 'Turner |
Month Served | ' | 'Feb-10 |
Jurisdiction | ' | 'US District Court, ED NC |
Claim Type | ' | 'Wrongful death |
Status | ' | 'Appeal fully briefed; Oral argument held on September 19, 2013 |
Bachtel [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Plaintiff | ' | 'Bachtel |
Month Served | ' | 'Aug-11 |
Jurisdiction | ' | '14th Judicial District Circuit Court, Randolph County, MO |
Claim Type | ' | 'Wrongful Death |
Status | ' | 'Appeal fully briefed; date for Oral Argument has not been set |
Glowczenski [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Plaintiff | 'Glowczenski | 'Glowczenski |
Month Served | 'Oct-04 | 'Oct-04 |
Jurisdiction | 'US District Court, ED NY | 'US District Court, ED NY |
Claim Type | 'Wrongful Death | 'Wrongful death |
Status | 'Court granted Motion for Summary Judgment in favor of TASER | 'Notice of Appeal filed Septemebr 2013; opening brief is due January 2014 |
Commitments_and_Contingencies_4
Commitments and Contingencies - Summary of Cases Dismissed or Judgment Entered (Detail) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
Glowczenski [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Plaintiff | 'Glowczenski | 'Glowczenski |
Month Served | 'Oct-04 | 'Oct-04 |
Jurisdiction | 'US District Court, ED NY | 'US District Court, ED NY |
Claim Type | 'Wrongful Death | 'Wrongful death |
Status | 'Court granted Motion for Summary Judgment in favor of TASER | 'Notice of Appeal filed Septemebr 2013; opening brief is due January 2014 |
McCarthy [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Plaintiff | 'McCarthy | ' |
Month Served | 'Dec-12 | ' |
Jurisdiction | 'US District Court, WD NC | ' |
Claim Type | 'Wrongful Death | ' |
Status | 'Voluntary Dismissal | ' |
Piskura [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Plaintiff | 'Piskura | ' |
Month Served | 'May-10 | ' |
Jurisdiction | 'US District Court, OH | ' |
Claim Type | 'Wrongful Death | ' |
Status | 'Voluntary Dismissal | ' |
Commitments_and_Contingencies_5
Commitments and Contingencies - Information Regarding the Company's Insurance Coverage (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
2004 [Member] | ' |
Guarantees And Letters Of Credit [Line Items] | ' |
Policy Year | '2004 |
Policy Start Date | 1-Dec-03 |
Policy End Date | 1-Dec-04 |
Insurance Coverage | $2 |
Deductible Amount | 0.1 |
Defense Costs Covered | 'N |
Remaining Insurance Coverage | 2 |
Active Cases and Cases on Appeal | 'Glowczenski |
2005 [Member] | ' |
Guarantees And Letters Of Credit [Line Items] | ' |
Policy Year | '2005 |
Policy Start Date | 1-Dec-04 |
Policy End Date | 1-Dec-05 |
Insurance Coverage | 10 |
Deductible Amount | 0.3 |
Defense Costs Covered | 'Y |
Remaining Insurance Coverage | 7 |
Active Cases and Cases on Appeal | 'n/a |
2006 [Member] | ' |
Guarantees And Letters Of Credit [Line Items] | ' |
Policy Year | '2006 |
Policy Start Date | 1-Dec-05 |
Policy End Date | 1-Dec-06 |
Insurance Coverage | 10 |
Deductible Amount | 0.3 |
Defense Costs Covered | 'Y |
Remaining Insurance Coverage | 3.7 |
Active Cases and Cases on Appeal | 'n/a |
2007 [Member] | ' |
Guarantees And Letters Of Credit [Line Items] | ' |
Policy Year | '2007 |
Policy Start Date | 1-Dec-06 |
Policy End Date | 1-Dec-07 |
Insurance Coverage | 10 |
Deductible Amount | 0.3 |
Defense Costs Covered | 'Y |
Remaining Insurance Coverage | 8 |
Active Cases and Cases on Appeal | 'n/a |
2008 [Member] | ' |
Guarantees And Letters Of Credit [Line Items] | ' |
Policy Year | '2008 |
Policy Start Date | 1-Dec-07 |
Policy End Date | 15-Dec-08 |
Insurance Coverage | 10 |
Deductible Amount | 0.5 |
Defense Costs Covered | 'Y |
Remaining Insurance Coverage | ' |
Active Cases and Cases on Appeal | 'Grable, Koon, Peppler, Rich, Turner |
2009 [Member] | ' |
Guarantees And Letters Of Credit [Line Items] | ' |
Policy Year | '2009 |
Policy Start Date | 15-Dec-08 |
Policy End Date | 15-Dec-09 |
Insurance Coverage | 10 |
Deductible Amount | 1 |
Defense Costs Covered | 'N |
Remaining Insurance Coverage | 10 |
Active Cases and Cases on Appeal | 'Athetis, Derbyshire |
2010 [Member] | ' |
Guarantees And Letters Of Credit [Line Items] | ' |
Policy Year | '2010 |
Policy Start Date | 15-Dec-09 |
Policy End Date | 15-Dec-10 |
Insurance Coverage | 10 |
Deductible Amount | 1 |
Defense Costs Covered | 'N |
Remaining Insurance Coverage | 10 |
Active Cases and Cases on Appeal | 'Thompson, Shymko, Doan, Juran |
2011 [Member] | ' |
Guarantees And Letters Of Credit [Line Items] | ' |
Policy Year | '2011 |
Policy Start Date | 15-Dec-10 |
Policy End Date | 15-Dec-11 |
Insurance Coverage | 10 |
Deductible Amount | 1 |
Defense Costs Covered | 'N |
Remaining Insurance Coverage | 10 |
Active Cases and Cases on Appeal | 'Wilson, Bachtel |
Jan - Jun 2012 [Member] | ' |
Guarantees And Letters Of Credit [Line Items] | ' |
Policy Start Date | 15-Dec-11 |
Policy End Date | 25-Jun-12 |
Insurance Coverage | 7 |
Deductible Amount | 1 |
Defense Costs Covered | 'N |
Remaining Insurance Coverage | 7 |
Active Cases and Cases on Appeal | 'Ramsey, Duensing, Mitchell, Firman, Ricks |
Jan - Jun 2012 [Member] | Minimum [Member] | ' |
Guarantees And Letters Of Credit [Line Items] | ' |
Policy Month Year | '2012-01 |
Jan - Jun 2012 [Member] | Maximum [Member] | ' |
Guarantees And Letters Of Credit [Line Items] | ' |
Policy Month Year | '2012-06 |
Jul - Dec 2012 [Member] | ' |
Guarantees And Letters Of Credit [Line Items] | ' |
Policy Start Date | 25-Jun-12 |
Policy End Date | 15-Dec-12 |
Insurance Coverage | 12 |
Deductible Amount | 1 |
Defense Costs Covered | 'N |
Remaining Insurance Coverage | 12 |
Active Cases and Cases on Appeal | 'Wingard, Manjares |
Jul - Dec 2012 [Member] | Minimum [Member] | ' |
Guarantees And Letters Of Credit [Line Items] | ' |
Policy Month Year | '2012-07 |
Jul - Dec 2012 [Member] | Maximum [Member] | ' |
Guarantees And Letters Of Credit [Line Items] | ' |
Policy Month Year | '2012-12 |
2013 [Member] | ' |
Guarantees And Letters Of Credit [Line Items] | ' |
Policy Year | '2013 |
Policy Start Date | 15-Dec-12 |
Policy End Date | 15-Dec-13 |
Insurance Coverage | 12 |
Deductible Amount | 1 |
Defense Costs Covered | 'N |
Remaining Insurance Coverage | $12 |
Active Cases and Cases on Appeal | 'Miller, Salgado, Barnes, Armstrong |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (Consulting Services [Member], USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Consulting Services [Member] | ' | ' | ' | ' | ' |
Related Party Transaction Due From To Related Party [Line Items] | ' | ' | ' | ' | ' |
Outstanding payables due to related party | $37,000 | ' | $37,000 | ' | $6,000 |
Transaction expenses incurred by parent company | $59,000 | $39,000 | $125,000 | $141,000 | ' |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Compensation And Retirement Disclosure [Abstract] | ' | ' | ' | ' |
Company's expected contributions to the plan | $6,000 | ' | ' | ' |
Company's contributions to the plan | $188,000 | $131,000 | $520,000 | $392,000 |
Segment_Data_Additional_Inform
Segment Data - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of reportable segments of company | 2 |
Segment_Data_Summary_of_Operat
Segment Data - Summary of Operational Information Relative to the Company's Reportable Segments (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Sales Information [Line Items] | ' | ' | ' | ' |
Product sales | $34,730,265 | $28,613,527 | $96,755,347 | $82,239,187 |
Service revenue | 466,557 | 159,429 | 1,050,924 | 397,604 |
Net sales | 35,196,822 | 28,772,956 | 97,806,271 | 82,636,791 |
Cost of products sold | 12,803,690 | 10,855,276 | 35,974,812 | 30,781,354 |
Cost of services delivered | 297,127 | 1,114,668 | 1,542,087 | 3,308,794 |
Gross margin | 22,096,005 | 16,803,012 | 60,289,372 | 48,546,643 |
Sales, general & administrative | 12,775,980 | 9,539,996 | 34,898,005 | 26,798,629 |
Research & development | 2,439,812 | 1,985,701 | 6,444,432 | 6,156,751 |
Litigation judgment recovery | ' | ' | ' | -2,200,000 |
Income (loss) from operations | 6,880,213 | 5,277,315 | 18,946,935 | 17,791,263 |
Purchases of property and equipment | 335,425 | 285,307 | 1,174,420 | 887,609 |
Purchases of intangible assets | 68,951 | 85,876 | 271,144 | 337,863 |
Depreciation and amortization | 1,088,071 | 1,718,546 | 4,036,337 | 5,113,989 |
Taser Weapons [Member] | Operating Segments [Member] | ' | ' | ' | ' |
Sales Information [Line Items] | ' | ' | ' | ' |
Product sales | 31,626,484 | 27,085,180 | 89,901,959 | 78,774,581 |
Service revenue | ' | ' | ' | ' |
Net sales | 31,626,484 | 27,085,180 | 89,901,959 | 78,774,581 |
Cost of products sold | 10,906,999 | 9,673,370 | 31,534,576 | 28,068,676 |
Cost of services delivered | ' | ' | ' | ' |
Gross margin | 20,719,485 | 17,411,810 | 58,367,383 | 50,705,905 |
Sales, general & administrative | 11,130,971 | 8,618,250 | 30,622,109 | 24,373,401 |
Research & development | 1,160,400 | 1,043,607 | 3,126,589 | 2,806,043 |
Litigation judgment recovery | ' | ' | ' | -2,200,000 |
Income (loss) from operations | 8,428,114 | 7,749,953 | 24,618,685 | 25,726,461 |
Purchases of property and equipment | 229,965 | 217,092 | 827,896 | 530,383 |
Purchases of intangible assets | 66,844 | 76,148 | 260,431 | 322,337 |
Depreciation and amortization | 1,025,164 | 1,054,239 | 2,997,848 | 3,336,403 |
EVIDENCE.com & Video [Member] | Operating Segments [Member] | ' | ' | ' | ' |
Sales Information [Line Items] | ' | ' | ' | ' |
Product sales | 3,103,781 | 1,528,347 | 6,853,388 | 3,464,606 |
Service revenue | 466,557 | 159,429 | 1,050,924 | 397,604 |
Net sales | 3,570,338 | 1,687,776 | 7,904,312 | 3,862,210 |
Cost of products sold | 1,896,691 | 1,181,906 | 4,440,236 | 2,712,678 |
Cost of services delivered | 297,127 | 1,114,668 | 1,542,087 | 3,308,794 |
Gross margin | 1,376,520 | -608,798 | 1,921,989 | -2,159,262 |
Sales, general & administrative | 1,645,009 | 921,746 | 4,275,896 | 2,425,228 |
Research & development | 1,279,412 | 942,094 | 3,317,843 | 3,350,708 |
Litigation judgment recovery | ' | ' | ' | ' |
Income (loss) from operations | -1,547,901 | -2,472,638 | -5,671,750 | -7,935,198 |
Purchases of property and equipment | 105,460 | 68,215 | 346,524 | 357,226 |
Purchases of intangible assets | 2,107 | 9,728 | 10,713 | 15,526 |
Depreciation and amortization | $62,907 | $664,307 | $1,038,489 | $1,777,586 |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (Familiar, Inc. [Member], Subsequent Event [Member], USD $) | Oct. 07, 2013 |
In Millions, except Share data, unless otherwise specified | |
Familiar, Inc. [Member] | Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Business acquisition, acquire in cash | $1.30 |
Business acquisition, acquire in shares of common stock | 107,749 |
Business acquisition, value for shares issued | $1.40 |
Business acquisition, value for per shares | $13.33 |