On April 5, 2017, TASER announced that it had rebranded as Axon to reflect its expanded business. The company also announced an intent to offer free one-year trials of its body camera products and Evidence.com services to U.S. law enforcement agencies. While the Taser product line still contributes to a significant portion of its revenue, the company's technologies business had seen major gains.[22] As of 2017, they comprised a quarter of the company's business, while Axon cameras had a market share of 85% among police departments in the United States' major cities.[3] The rebranding was also intended to help distance the company from the negative stigma surrounding the Taser brand, with Smith acknowledging that they were "a bit of a distraction" when recruiting employees for its technology business.[3] In May 2018, Axon acquired competitor VieVu for $4.6 million in cash and $2.5 million in common stock.[23]

3. Prepare the key financial ratios which illustrate short-term solvency and long-term solvency. What is the capital structure of the company and how well the company uses its leverage ratios to increase the value of the firm?

Balance Sheet- All numbers in thousands 12/31/2021 12/31/2020 12/31/2019 Cash & cash equivalent $35,633 $15,544 $17,225 Marketable Securities, Total MA $7,218 $40,653 $17,853 Cash & Short-term Investments $42,851 $56,197 $35,078 Accounts receivable $32,082 $22,920 $14,688 Contract With Customer Asset Net Current $18,042 $6,395 Inventories $10,869 $8,996 $3,885 Other Current Assets $19,493 $6,395 $4,772 Prepaid Expense and Other Assets Current $5,654 $3,688 $3,487 Total Current Assets $110,949 $98,195 $61,909 Equipment/Property/Plant Net $13,846 $10,549 $4,377 Goodwill net $4,359 $2,521 $2,501 Intangible Assets $1,547 $945 $1,277 Long-term investments $3,123 $9,068 $4,550 Non-Current Note Receivables $1,126 $2,246 $3,160 Other Assets, Noncurrent $33,871 $14,579 $6,790 Total Assets $168,821 $138,102 $84,564 LIABILITIES Accounts Payable, Current AC $3,222 $2,414 $2,587 Accrued Liabilities, Current AC $10,371 $5,984 $4,500 Other Liabilities, Current $28,259 $17,235 $12,469 Current Liabilities $41,852 $25,633 $19,556 Contract With Customer Liability Current $26,559 $16,396 Contract With Customer Liability Noncurrent $18,572 $11,122 Total Current Liabilities $41,852 $25,633 $19,557 Deferred Compensation Liability, Classified, Noncurrent Liability $568 $473 $394 Liability for Uncertain Tax Positions, Noncurrent Liability $380 $450 $383 Other liabilities, Noncurrent $21,236 $13,920 $9,881 Deferred Income Tax Liabilities Net $0 $65 Total Liabilities $64,036 $40,477 $30,214 SHAREHOLDER'S EQUITY $64,036 $40,476 $30,215 Treasury Stock Value -$15,595 -$15,595 -$15,595 Additional Paid in Capital Common Stock $109,523 $96,216 $52,827 Retained Earnings / Accumulated Deficit $10,988 $16,990 $17,227 Other Equity -$132 $14 -$110 Total Stockholder's Equity $104,785 $97,626 $54,350 Liabilities & Stockholder's Equity $168,821 $138,102 $84,564 Axon Enterprise, Inc.

(AXON) Income Statement All numbers in thousands 12/31/2021 12/31/2020 12/31/2019 Total Revenue $863,381 $681,003 $530,860 Cost of Revenue $322,471 $264,672 $223,574 Gross Profit $540,910 $416,331 $307,286 Operating Expense $709,033 $430,481 $313,680 Selling General and Administrative $505,183 $301,207 $207,220 General & Administrative Expense $453,125 $268,743 $178,259 Salaries and Wages $378,888 $187,147 $126,923 Other G and A $74,237 $81,596 $51,336 Selling & Marketing Expense $52,058 $32,464 $28,961 Research & Development $194,026 $123,195 $100,721 Depreciation Amortization Depletion $9,824 $6,079 $5,739 Depreciation & amortization $9,824 $6,079 $5,739 Operating Income -$168,123 -$14,150 -$6,394 Net Non-Operating Interest Income Expense $26,748 $7,859 $8,464 Interest Income Non-Operating $26,748 $7,859 - Total Other Finance Cost -$26,748 -$7,859 -$8,464 Pretax Income -$141,375 -$6,291 $2,070 Tax Provision -$81,357 -$4,567 $1,188 Net Income -$60,018 -$1,724 $882 Diluted NI Available to Com Stockholders -$60,018 -$1,724 $882 Basic EPS -$1 $0 $0 Diluted EPS -$1 $0 $0 Basic Average Shares $66,191 $61,782 $59,190 Diluted Average Shares $66,191 $61,782 $60,018 Total Operating Income as Reported -$168,123 -$14,150 -$6,394 Total Expenses $1,031,504 $695,153 $537,254 Net Income from Continuing & Discontinued Operation -$60,018 -$1,724 $882 Normalized Income -$60,018 -$1,724 $882 Interest Income $26,748 $7,859 - Net Interest Income $26,748 $7,859 $8,464 EBIT -$168,123 -$14,150 -$6,394 EBITDA - - - Reconciled Cost of Revenue $313,601 $258,276 $217,952 Reconciled Depreciation $18,694 $12,475 $11,361 Net Income from Continuing Operation Net Minority Interest -$60,018 -$1,724 $882 Normalized EBITDA -$149,429 -$1,675 $4,967 Yahoo Finance Axon Enterprise, Inc.

(AXON) Statement of Cash Flows- All numbers in thousands 12/31/2021 12/31/2020 12/31/2019 Cash Flow from Continuing Operating Activities 124,494 38,481 65,673 Net Income from Continuing Operations -60,018 -1,724 882 Operating Gains Losses -22,797 2,042 2,609 Gain Loss on Sale of PPE 238 2,042 2,609 Gain Loss on Investment Securities -23,035 - - Depreciation & amortization 18,694 12,475 11,361 Deferred Income Tax -82,009 -15,857 -7,004 Provision & Write Off of Assets -214 1,302 - Stock based compensation 303,331 133,572 78,495 Other non-cash items 10,790 7,449 3,928 Change in working capital -43,283 -100,778 -24,598 Change in Receivables -205,769 -107,762 -38,830 Change in Inventory -18,272 -52,156 -4,903 Change in Prepaid Assets -40,158 -14,885 -9,845 Change in Payables and Accrued Expense 45,301 8,886 4,967 Change in Other Working Capital 175,615 65,139 24,013 Cash Flow from Continuing Operating Activities -43,283 Investing Cash Flow 252,556 -356,526 -240,737 Cash Flow from Continuing Investing Activities 252,556 -356,526 -240,737 Net PPE Purchase and Sale -49,843 -72,534 -15,939 Sale of PPE 43 95 0 Net Intangibles Purchase and Sale -392 -241 -404 Purchase of Intangibles -392 -241 -404 Net Business Purchase and Sale -22,393 -7,068 0 Net Investment Purchase and Sale 325,184 -276,683 -224,394 Purchase of Investment -407,979 -656,522 -354,477 Sale of Investment 733,163 379,839 130,083 Financing Cash Flow -174,181 299,265 -3,937 Cash Flow from Continuing Financing Activities -174,181 299,265 -3,937 Net Common Stock Issuance 105,514 306,779 0 Common Stock Issuance 105,514 306,779 0 Proceeds from Stock Option Exercised 51,614 295 114 Net Other Financing Charges -331,309 -7,809 -4,051 End Cash Position 356,438 155,551 172,355 Changes in Cash 202,869 -18,780 -179,001 Effect of Exchange Rate Changes -1,982 1,976 329 Beginning Cash Position 155,551 172,355 351,027 Income Tax Paid Supplemental Data - 10,893 - Capital Expenditure -50,278 -72,870 -16,343 Issuance of Capital Stock 105,514 306,779 0 Free Cash Flow 74,216 -34,389 49,330 Yahoo Finance