Not sure about them having another filter supplier, but I was under the impression that the REAL ecig and smokers option cig just used their own standard filter and that they were scouting filter manufacturers in order to add more quality to the existing device; they received a large sample of the filters from AHN and they have been testing it late 2009 early 2010 to analyze the viability for mass production (just my assumptions I have no idea but I thought this was the case).
If it is the case that the only SFIO ecigs in existence to date necessarily have filters solely from AHN then yes, a record of only 20K filter (hence 20K ecigs) would be a concern but I don't think this is the case. I thought that this partnership with AHN was just a trial to see if having a premium (patent pending) filter on the SFIO ecig would boost product quality.
I doubt that SFIOs 2009/2010 revenues are capped based on 20K AHN filter units; if it is we have a major issue.
On another note, the 'Smokers Option' branding is owned by Reynolds of NASCO of which has a distribution agreement with SFIO for marketing and distribution of the 'device'; so NASCO owns the 'Smokers Option' brand but SFIO provides the device and NASCO markets and sells it through their distributors (contractors, vending machines, gas stations, online orders, etc) and the revs are split somehow between the two companies. So Im not all that concerned about SFIO the company not yet having a web site with a shopping cart; though it would be a nice easy low cost way to give NASCO and other distributors more business (which would obviously kick more profits back to SFIO) by selling the device directly from the manufacturer (for instance you can buy OEM Sony products from their site, not just Best Buy but it costs slightly more).
As for the patent, Ive always pointed out that SFIO just simply has only an application for a patent, not an actual patent for the ecig; though there is a Swiss patent in existence. The only ecig patent that truly exists with the US Patent Office is with Dr Hon Lik of DGTLF (Ruyan HK:329) which allegedly will come back up for online trading Jan 12 2011. Really the only concern I have at this point is if Ruyan begins to go after (legally) other ecig manufacturers for using similar technology now that they are the sole owners of the USA ecig patent; though it will be years before they would start actually getting any US based companies shut down via patent infringement, though they have already successfully shut down a few in mainland China because of their existing Chinese ecig patents.
All I know is, if SFIO can make enough with their existing dist channels to cover their 2M liabilities either from 2010 revs or 2011 revs, then this company will have a very bright future and the stock price will shoot up, otherwise we have serious issues as other ecig companies fight aggresively in this relatively new market to gain share. All the while, don't be fooled by the manipulation in this stock, it is preyed upon by MMs because of the low volume because it is still not widely known.
GLTA
AI
