EXHIBIT 99.1

                    CERTAIN FACTORS TO CONSIDER IN CONNECTION
                         WITH FORWARD-LOOKING STATEMENTS

WE ARE MATERIALLY DEPENDENT ON ACCEPTANCE OF OUR PRODUCTS BY THE LAW ENFORCEMENT
AND CORRECTIONS MARKET, AND IF LAW ENFORCEMENT AND CORRECTIONS AGENCIES DO NOT
PURCHASE OUR PRODUCTS, OUR REVENUES WILL BE ADVERSELY AFFECTED AND WE MAY NOT BE
ABLE TO EXPAND INTO OTHER MARKETS.

A substantial number of law enforcement and corrections agencies may not
purchase our conducted energy, less-lethal weapons. In addition, if our products
are not widely accepted by the law enforcement and corrections market, we may
not be able to expand sales of our products into other markets. Law enforcement
and corrections agencies may be influenced by claims or perceptions that
conducted energy weapons are unsafe or may be used in an abusive manner. In
addition, earlier generation conducted energy weapons may have been perceived as
ineffective. Sales of our products to these agencies may also be delayed or
limited by these claims or perceptions.

WE SUBSTANTIALLY DEPEND ON SALES OF THE ADVANCED TASER, AND IF THIS PRODUCT IS
NOT WIDELY ACCEPTED, OUR GROWTH PROSPECTS WILL BE DIMINISHED.

In 2001 and 2000, we derived the majority of our revenues from sales of the
ADVANCED TASERs and related cartridges, and expect to depend on sales on this
product for the foreseeable future. A decrease in the prices of or demand for
this product line, or its failure to achieve broad market acceptance, would
significantly harm our growth prospects, operating results and financial
condition.

OUR BUSINESS IS DIFFICULT TO EVALUATE BECAUSE WE HAVE A LIMITED OPERATING
HISTORY IN THE LAW ENFORCEMENT AND CORRECTIONS MARKET AND HAVE BEEN FOCUSED ON
OUR CURRENT BUSINESS STRATEGY FOR ONLY TWO YEARS.

We revised our business strategy in late 1999 to concentrate on the law
enforcement and corrections market. Accordingly, we have a limited operating
history based on which you can evaluate our present business and future
prospects. We face risks and uncertainties relating to our ability to implement
our business plan successfully. Our prospects must be considered in light of the
risks, expenses and difficulties frequently encountered by newly-public
companies that have recently changed their business strategies. If we are
unsuccessful in addressing these risks and uncertainties, our business, results
of operations, financial condition and prospects will be materially harmed.

IF WE ARE UNABLE TO MANAGE OUR PROJECTED GROWTH, OUR GROWTH PROSPECTS MAY BE
LIMITED AND OUR FUTURE PROFITABILITY MAY BE ADVERSELY AFFECTED.

We intend to expand our sales and marketing programs and our manufacturing
capability. Rapid expansion may strain our managerial, financial and other
resources. If we are unable to manage our growth, our business, our operating
results and financial condition could be adversely affected. Our systems,
procedures, controls and management resources also may not be adequate to
support our future operations. We will need to continually improve our
operations, financial and other internal systems to manage our growth
effectively, and any failure to do so may lead to inefficiencies and
redundancies, and result in reduced growth prospects and profitability.

WE MAY FACE PERSONAL INJURY AND OTHER LIABILITY CLAIMS THAT HARM OUR REPUTATION
AND ADVERSELY AFFECT OUR SALES AND FINANCIAL CONDITION.

Our products are often used in aggressive confrontations that may result in
serious, permanent bodily injury to those involved. Our products may cause or be
associated with these injuries. A person injured in a confrontation or otherwise
in connection with the use of our products may bring legal action against us to
recover damages on the basis of theories including personal injury, wrongful
death, negligent design, dangerous product or inadequate warning. We may also be
subject to lawsuits involving allegations of misuse of our products.

If successful, personal injury, misuse and other claims could have a material
adverse effect on our operating results and financial condition. Although we
carry product liability insurance, significant litigation could also result in a
diversion of management's attention and resources, negative publicity and an
award of monetary damages in excess of our insurance coverage.

OUR FUTURE SUCCESS IS DEPENDENT ON OUR ABILITY TO EXPAND SALES THROUGH
DISTRIBUTORS AND OUR INABILITY TO RECRUIT NEW DISTRIBUTORS WOULD NEGATIVELY
AFFECT OUR SALES.

Our distribution strategy is to pursue sales through multiple channels with an
emphasis on independent distributors. Our inability to recruit and retain police
equipment distributors who can successfully sell our products would adversely
affect our sales. In addition, our arrangements with our distributors are
generally short-term. If we do not competitively price our products, meet the
requirements of our distributors or end-users, provide adequate marketing
support, or comply with the terms of our distribution arrangements, our
distributors may fail to aggressively market our products or may terminate their
relationships with us. These developments would likely have a material adverse
effect on our sales. Our reliance on the sales of our products by others also
makes it more difficult to predict our revenues, cash flow and operating
results.

WE EXPEND SIGNIFICANT RESOURCES IN ANTICIPATION OF A SALE DUE TO OUR LENGTHY
SALES CYCLE AND MAY RECEIVE NO REVENUE IN RETURN.

Generally, law enforcement and corrections agencies consider a wide range of
issues before committing to purchase our products, including product benefits,
training costs, the cost to use our products in addition to or in place of other
less-lethal products, product reliability and budget constraints. The length of
our sales cycle may range from 60 days to a year or more. We may incur
substantial selling costs and expend significant effort in connection with the
evaluation of our products by potential customers before they place an order. If
these potential customers do not purchase our products, we will have expended
significant resources and received no revenue in return.

MOST OF OUR END-USERS ARE SUBJECT TO BUDGETARY AND POLITICAL CONSTRAINTS THAT
MAY DELAY OR PREVENT SALES.

Most of our end-user customers are government agencies. These agencies often do
not set their own budgets and therefore have little control over the amount of
money they can spend. In addition, these agencies experience political pressure
that may dictate the manner in which they spend money. As a result, even if an
agency wants to acquire our products, it may be unable to purchase them due to
budgetary or political constraints. Some government agency orders may also be
canceled or substantially delayed due to budgetary, political or other
scheduling delays which frequently occur in connection the acquisition of
products by such agencies.

GOVERNMENT REGULATION OF OUR PRODUCTS MAY ADVERSELY AFFECT SALES.

Federal regulation of sales in the United States. Our weapons are not firearms
regulated by the Bureau of Alcohol, Tobacco and Firearms, but are consumer
products regulated by the United States Consumer Product Safety Commission.
Although there are currently no federal laws restricting sales of our weapons in
the United States, future federal regulation could adversely affect sales of our
products.

Federal regulation of international sales. Our weapons are controlled as a
"crime control" product by the United States Department of Commerce, or DOC, for
export directly from the United States. Consequently, we must obtain an export
license from the DOC for the export of our weapons from the United States other
than to Canada. Our inability to obtain DOC export licenses in a timely basis
for sales of our weapons to the majority of our international customers could
significantly and adversely affect our international sales.

State and local regulation. Our weapons are controlled, restricted or their use
prohibited by several state and local governments. Our weapons are banned from
consumer sale or use in seven states: New York, New Jersey, Rhode Island,
Michigan, Wisconsin, Massachusetts and Hawaii. Law enforcement use of our

products is also restricted in Michigan, New Jersey, and Rhode Island. Some
municipalities, including Omaha, Nebraska and Washington, D.C. also prohibit
consumer use of our products. Other jurisdictions may ban or restrict the sale
of our products and our product sales may be significantly affected by
additional state, county and city governmental regulation.

Foreign regulation. Certain foreign jurisdictions, including Japan, the United
Kingdom, Australia, Italy and Hong Kong, prohibit the sale of conducted energy
weapons, limiting our international sales opportunities.

IF WE ARE UNABLE TO PROTECT OUR INTELLECTUAL PROPERTY, WE MAY LOSE A COMPETITIVE
ADVANTAGE OR INCUR SUBSTANTIAL LITIGATION COSTS TO PROTECT OUR RIGHTS.

Our future success depends in part upon our proprietary technology. Our
protective measures, including a patent, trademarks and trade secret laws, may
prove inadequate to protect our proprietary rights. Our United States patent on
the construction of the gas cylinder used to store the compress nitrogen in our
cartridges expires in 2015. The holder of the patent on the process by which
compressed gases launch the probes in our cartridges has licensed the technology
covered by the patent for use in electronic weapons only to us and to two other
companies. This patent expires in 2009. The scope of any patent to which we have
or may obtain rights may not prevent others from developing and selling
competing products. The validity and breadth of claims covered in technology
patents involve complex legal and factual questions, and the resolution of such
claims may be highly uncertain, lengthy and expensive. In addition, our patents
may be held invalid upon challenge, others may claim rights in or ownership of
our patents.

WE ARE SUBJECT TO INTELLECTUAL PROPERTY INFRINGEMENT CLAIMS, WHICH WILL CAUSE US
TO INCUR LITIGATION COSTS AND DIVERT MANAGEMENT ATTENTION FROM OUR BUSINESS.

Any intellectual property infringement claims against us, with or without merit,
could be costly and time-consuming to defend and divert our management's
attention from our business. If our products were found to infringe a third
party's proprietary rights, we could be required to enter into royalty or
licensing agreements in order to be able to sell our products. Royalty and
licensing agreements, if required, may not be available on terms acceptable to
us or at all.

In early April 2001, a patent licensee sued us in the United District Court,
Central District of California. The lawsuit alleges that certain technology used
in the firing mechanism for our weapons infringes upon a patent for which the
licensee holds a license, and seeks injunctive relief and unspecified monetary
damages. An outcome that is adverse to us, costs associated with defending the
lawsuit, and the diversion of management's time and resources as a result of the
claim could harm our business and our financial condition.

COMPETITION IN THE LAW ENFORCEMENT AND CORRECTIONS MARKET COULD REDUCE OUR SALES
AND PREVENT US FROM ACHIEVING PROFITABILITY.

The law enforcement and corrections market is highly competitive. We face
competition from numerous larger, better capitalized and more widely known
companies that make other less-lethal weapons and products, as well as from a
small company that also sells conducted energy less-lethal weapons. Increased
competition may result in greater pricing pressure, lower gross margins and
reduced sales, and prevent us from achieving profitability.

DEFECTS IN OUR PRODUCTS COULD REDUCE DEMAND FOR OUR PRODUCTS AND RESULT IN A
LOSS OF SALES, DELAY IN MARKET ACCEPTANCE AND INJURY TO OUR REPUTATION.

Complex components and assemblies used in our products may contain undetected
defects that are subsequently discovered at any point in the life of the
product. In 2000, we recalled a series of ADVANCED TASERs due to a defective
component. In connection with the recall, we incurred expenses of approximately
$50,000. Defects in our products may result in a loss of sales, delay in market
acceptance, injury to our reputation and increased warranty costs.


OUR REVENUES AND OPERATING RESULTS MAY FLUCTUATE UNEXPECTEDLY FROM QUARTER TO
QUARTER, WHICH MAY CAUSE OUR STOCK PRICE TO DECLINE.

Our revenues and operating results have varied significantly in the past and may
vary significantly in the future due to various factors, including, but not
limited to: increased raw material expenses, changes in our operating expenses,
market acceptance of our products and services, regulatory changes that may
affect the marketability of our products, and budgetary cycles of municipal,
state and federal law enforcement and corrections agencies. As a result of these
other factors, we believe that period- to- period comparisons of our operating
results may not be meaningful in the new term and that you should not rely upon
our performance in a particular period as indicating of our performance in any
future period.

OUR DEPENDENCE ON THIRD PARTY SUPPLIERS FOR KEY COMPONENTS OF OUR WEAPONS COULD
DELAY SHIPMENT OF OUR PRODUCTS AND REDUCE OUR SALES.

We depend on certain domestic and foreign suppliers for the delivery of
components used in the assembly of our products. Our reliance on third-party
suppliers creates risks related to our potential inability to obtain an adequate
supply of components or subassemblies and reduced control over pricing and
timing of delivery of components and sub-assemblies. Specifically, we depend on
suppliers of sub-assemblies, machined parts, injection molded plastic parts,
printed circuit boards, customer wire fabrications and other miscellaneous
customer parts of our products. The final assembly of the cartridges used in the
firing of our weapons was prevented for four weeks beginning in November 2000 by
a supplier's receipt of defective wire used as a component in the cartridges. We
also do not have long-term agreements with any of our suppliers. Any
interruption of supply for any material components of our products could
significantly delay the shipment of our products and have a material adverse
effect on our revenues, profitability and financial condition.

FOREIGN CURRENCY FLUCTUATIONS MAY REDUCE OUR COMPETITIVENESS AND SALES IN
FOREIGN MARKETS.

The relative change in currency values creates fluctuations in product pricing
for potential international customers. These changes in foreign end-user costs
may result in lost orders and reduce the competitiveness of our products in
certain foreign markets. These changes may also negatively affect the financial
condition of some foreign customers and reduce or eliminate their future orders
of our products.

PENDING LITIGATION MAY SUBJECT US TO SIGNIFICANT LITIGATION COSTS AND DIVERT
MANAGEMENT ATTENTION FROM OUR BUSINESS.

A former distributor of our products has filed a lawsuit in the state of New
York asserting certain rights of exclusive sales representation with respect to
our products. The former distributor claims that he has the exclusive right to
market and sell our products to an extensive list of our current and potential
customers throughout the United States. The suit was dismissed in February 2001
for lack of personal jurisdiction of the New York court. This case is now
pending in the State of Arizona. In addition, in early April 2001, a patent
licensee sued us in the United Stated District Court, Central District of
California. The suit alleges that certain technology used in the firing
mechanism for our weapons infringes upon a patent for which the licensee hold a
license, and seeks injunctive relief and unspecified monetary damages. An
outcome that is adverse to us, costs associated with defending these lawsuits
and the diversion of our management's time and our resources as a result of
these claims could harm our business or financial condition.

USE OF ESTIMATES MAY DIFFER FROM ACTUAL FINANCIAL RESULTS.

The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.