##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-Q
 
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended June 30, 2007
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission File Number 0-21074
 SUPERCONDUCTOR TECHNOLOGIES INC.
  Delaware
    
    77-0158076(State or other jurisdiction of
    
    (IRS Employerincorporation or organization)
    
    Identification No.)
 460 Ward Drive,
Santa Barbara, California 93111-2356
 (805) 690-4500
 
  þ o
  o o þ
 o þ




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##### 



SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS
    
    
    1WHERE YOU CAN FIND MORE INFORMATION
    
    
    1PART I  FINANCIAL INFORMATIONITEM 1. Financial StatementsCondensed Consolidated Statement of Operations
    
    
    2Condensed Consolidated Balance Sheets
    
    
    3Condensed Consolidated Statement of Cash Flows
    
    
    4Notes to Unaudited Interim Condensed Consolidated Financial Statements.
    
    
    5ITEM 2. Managements Discussion and Analysis of
Financial Condition and Results of Operations
    
    
    15ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    21ITEM 4. Disclosure Controls and Procedures
    
    
    21PART II  OTHER INFORMATIONITEM 1. Legal Proceedings
    
    
    22ITEM 1A. Risk Factors
    
    
    22ITEM 2. Unregistered Sales of Equity Securities
    
    
    22ITEM 4. Submission of Matters to a Vote of Security Holders
    
    
    22ITEM 5. Other Information
    
    
    22ITEM 6. Exhibits
    
    
    22SIGNATURE
    
    
    23EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1EXHIBIT 32.2




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##### Table of Contents



SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
 This Report contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. You can find many (but not all) of these statements by looking for words such as
approximates, believes, expects, anticipates, estimates, intends, plans would,
may or other similar expressions in this Report. Our forward-looking statements relate to future
events or our future performance and include, but are not limited to, statements concerning our
business strategy, future commercial revenues, market growth, capital requirements, new product
introductions, expansion plans and the adequacy of our funding. Other statements contained in this
report that are not historical facts are also forward-looking statements.
 We claim the protection of the safe harbor contained in the Private Securities Litigation
Reform Act of 1995. We caution investors that any forward-looking statements presented in this
Report, or which we may make orally or in writing from time to time, are based on the beliefs of,
assumptions made by, and information currently available to, us. Such statements are based on
assumptions and the actual outcome will be affected by known and unknown risks, trends,
uncertainties and factors that are beyond our control or ability to predict. Although we believe
that our assumptions are reasonable, they are not guarantees of future performance and some will
inevitably prove to be incorrect. As a result, our actual future results can be expected to differ
from our expectations, and those differences may be material. Accordingly, investors should use
caution in relying on past forward-looking statements, which are based on known results and trends
at the time they are made, to anticipate future results or trends.
 Some of the risks and uncertainties that may cause our actual results, performance or
achievements to differ materially from those expressed or implied by forward-looking statements
include the following: limited assets and a history of losses; needs for additional capital;
limited number of potential customers; limited number of suppliers for some of our components; no
significant backlog from quarter to quarter; significant fluctuations in product demand from
quarter to quarter; and rapidly advancing technology. For further discussion of these and other
factors see Part I, Item 2, Managements Discussion and Analysis of Financial Condition and
Results of Operations and Part II, Item 1A. Risk Factors in this Report and in our 2006 Annual
Report on Form 10-K .
 This Report and all subsequent written and oral forward-looking statements attributable
to us or any person acting on our behalf are expressly qualified in their entirety by the
cautionary statements contained or referred to in this section. We do not undertake any obligation
to release publicly any revisions to our forward-looking statements to reflect events or
circumstances after the date of this Report.
 
 WHERE YOU CAN FIND MORE INFORMATION
  1




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##### Table of Contents



PART I
 FINANCIAL INFORMATION
 
 Item 1. Financial Statements.
 SUPERCONDUCTOR TECHNOLOGIES INC.
 
 CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
  Three Months Ended
    
    
    Six Months EndedJuly 1, 2006
    
    
    June 30, 2007
    
    
    July 1, 2006
    
    
    June 30, 2007Net revenues:Net commercial product revenues
    
    $
    3,932,000
    
    
    $
    3,653,000
    
    
    $
    8,422,000
    
    
    $
    7,187,000Government and other contract revenues
    
    
    1,088,000
    
    
    
    1,032,000
    
    
    
    1,430,000
    
    
    
    1,681,000Sub license royalties
    
    
    1,000
    
    
    
    
    
    
    
    9,000
    
    
    
    Total net revenues
    
    
    5,021,000
    
    
    
    4,685,000
    
    
    
    9,861,000
    
    
    
    8,868,000Costs and expenses:Cost of commercial product revenues
    
    
    3,658,000
    
    
    
    3,228,000
    
    
    
    7,516,000
    
    
    
    7,130,000Contract research and development
    
    
    703,000
    
    
    
    607,000
    
    
    
    1,007,000
    
    
    
    1,055,000Other research and development
    
    
    630,000
    
    
    
    813,000
    
    
    
    1,931,000
    
    
    
    1,725,000Selling, general and administrative
    
    
    2,678,000
    
    
    
    2,043,000
    
    
    
    5,395,000
    
    
    
    3,941,000Goodwill impairment charge
    
    
    20,107,000
    
    
    
    
    
    
    
    20,107,000
    
    
    
    Total costs and expenses
    
    
    27,776,000
    
    
    
    6,691,000
    
    
    
    35,956,000
    
    
    
    13,851,000Loss from operations
    
    
    (22,755,000
    )
    
    
    (2,006,000
    )
    
    
    (26,095,000
    )
    
    
    (4,983,000
    )Interest income
    
    
    107,000
    
    
    
    35,000
    
    
    
    234,000
    
    
    
    86,000Interest expense
    
    
    (11,000
    )
    
    
    (11,000
    )
    
    
    (24,000
    )
    
    
    (22,000
    )Net loss
    
    $
    (22,659,000
    )
    
    $
    (1,982,000
    )
    
    $
    (25,885,000
    )
    
    $
    (4,919,000
    )Basic and diluted loss per common share
    
    $
    (1.82
    )
    
    $
    (0.16
    )
    
    $
    (2.07
    )
    
    $
    (0.39
    )Weighted average number of common
shares outstanding
    
    
    12,483,367
    
    
    
    12,483,367
    
    
    
    12,483,367
    
    
    
    12,483,367
  2




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SUPERCONDUCTOR TECHNOLOGIES INC.
 
 CONDENSED CONSOLIDATED BALANCE SHEETS
 December 31,
    
    
    June 30,2006
    
    
    2007(See Note)
    
    
    (Unaudited)ASSETSCurrent Assets:Cash and cash equivalents
    
    $
    5,487,000
    
    
    $
    2,912,000Accounts receivable, net
    
    
    1,535,000
    
    
    
    2,201,000Inventory, net
    
    
    5,978,000
    
    
    
    3,884,000Prepaid expenses and other current assets
    
    
    507,000
    
    
    
    485,000Total Current Assets
    
    
    13,507,000
    
    
    
    9,482,000Property and equipment, net of accumulated depreciation of
$18,599,000 and $19,598,000, respectively
    
    
    5,770,000
    
    
    
    4,795,000Patents, licenses and purchased technology, net of accumulated amortization
of $1,391,000 and $1,556,000, respectively
    
    
    2,405,000
    
    
    
    2,313,000Other assets
    
    
    222,000
    
    
    
    209,000Total Assets
    
    $
    21,904,000
    
    
    $
    16,799,000LIABILITIES AND STOCKHOLDERS EQUITYCurrent Liabilities:Accounts payable
    
    $
    1,725,000
    
    
    $
    1,671,000Accrued expenses
    
    
    1,610,000
    
    
    
    1,284,000Current portion of capitalized lease obligations and long term debt
    
    
    14,000
    
    
    
    15,000Total Current Liabilities
    
    
    3,349,000
    
    
    
    2,970,000Other long term liabilities
    
    
    604,000
    
    
    
    594,000Total Liabilities
    
    
    3,953,000
    
    
    
    3,564,000Commitments and contingencies-Notes 8 and 9Stockholders Equity:Preferred stock, $.001 par value, 2,000,000 shares authorized,
none issued and outstanding
    
    
    
    
    
    
    Common stock, $.001 par value, 250,000,000 shares
authorized, 12,483,367 shares issued and outstanding
    
    
    12,000
    
    
    
    12,000Capital in excess of par value
    
    
    208,825,000
    
    
    
    209,001,000Notes receivable from stockholder net
    
    
    (27,000
    )
    
    
    Accumulated deficit
    
    
    (190,859,000
    )
    
    
    (195,778,000
    )Total Stockholders Equity
    
    
    17,951,000
    
    
    
    13,235,000Total Liabilities and Stockholders Equity
    
    $
    21,904,000
    
    
    $
    16,799,000
   3
    Table of Contents   SUPERCONDUCTOR TECHNOLOGIES INC.
 
 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
  Six Months EndedJuly 1, 2006
    
    
    June 30, 2007CASH FLOWS FROM OPERATING ACTIVITIES:Net loss
    
    $
    (25,885,000
    )
    
    $
    (4,919,000
    )Adjustments to reconcile net loss to net cash used in
operating activities:Depreciation and amortization
    
    
    1,365,000
    
    
    
    1,212,000Non-cash impairment charge
    
    
    20,107,000
    
    
    
    Warrants-Options
    
    
    101,000
    
    
    
    176,000Provision for excess and obsolete inventories
    
    
    180,000
    
    
    
    160,000Reserve for impairment of note and interest receivable from Stockholder
    
    
    34,000
    
    
    
    (583,000
    )Changes in assets and liabilities:Accounts receivable
    
    
    1,076,000
    
    
    
    (666,000
    )Inventory
    
    
    (2,345,000
    )
    
    
    1,934,000Prepaid expenses and other current assets
    
    
    213,000
    
    
    
    676,000Patents, licenses and purchased technology
    
    
    (101,000
    )
    
    
    (92,000
    )Other assets
    
    
    100,000
    
    
    
    (13,000
    )Accounts payable, accrued expenses and other long- term liabilities
    
    
    (589,000
    )
    
    
    (379,000
    )Net cash used in operating activities
    
    
    (5,744,000
    )
    
    
    (2,494,000
    )CASH FLOWS FROM INVESTING ACTIVITIES:Proceeds from the sale of property and equipment
    
    
    
    
    
    
    25,000Purchases of property and equipment
    
    
    (170,000
    )
    
    
    (96,000
    )Net cash used in investing activities
    
    
    (170,000
    )
    
    
    (71,000
    )CASH FLOWS FROM FINANCING ACTIVITIES:Payments on long-term obligations
    
    
    (9,000
    )
    
    
    (10,000
    )Net cash used in financing activities
    
    
    (9,000
    )
    
    
    (10,000
    )Net decrease in cash and cash equivalents
    
    
    (5,923,000
    )
    
    
    (2,575,000
    )Cash and cash equivalents at beginning of period
    
    
    13,018,000
    
    
    
    5,487,000Cash and cash equivalents at end of period
    
    $
    7,095,000
    
    
    $
    2,912,000
  4




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SUPERCONDUCTOR TECHNOLOGIES INC.
 
 NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 UNAUDITED
 1. General
     2. Summary of Significant Accounting Policies
 Basis of Presentation
     Principles of Consolidation
 5




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Cash and Cash Equivalents
  Accounts Receivable
  Revenue Recognition
    Warranties
 Use of Estimates
 Guarantees
  Research and Development Costs
  6




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Inventories
  Property and Equipment
  Patents, Licenses and Purchased Technology
  Long-Lived Assets
  Loss Contingencies
  Income Taxes
 Accounting for Uncertainty in
Income Taxes  An Interpretation of FASB Statement No. 109
 Marketing Costs
  7




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Net Loss Per Share
  Stock-based Compensation
   Three months ended
    
    Six months endedJuly 1, 2006
    
    June 30, 2007
    
    July 1, 2006
    
    June 30, 2007Expected life in years
    
    
    4.0
    
    
    
    4.0
    
    
    
    4.0
    
    
    
    4.0Risk free interest rate
    
    
    4.85
    %
    
    
    4.95
    %
    
    
    4.82
    %
    
    
    4.80
    %Expected volatility
    
    
    95
    %
    
    
    95
    %
    
    
    95
    %
    
    
    95
    %Dividend yield
    
    
    0
    %
    
    
    0
    %
    
    
    0
    %
    
    
    0
    %
  Use of Estimates
  Fair Value of Financial Instruments
  Comprehensive Income (Loss)
  Segment Information
  8




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##### Table of Contents



Certain Risks and Uncertainties
     Recent Accounting Pronouncements
   3. Short Term Borrowings
   4. Notes Receivable From Stockholder
  9




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5. Stockholders Equity
 Stock Options
    Weighted
    
    
    
    
    
    WeightedAverage
    
    Number of
    
    AverageNumber of
    
    
    
    
    
    Exercise
    
    Options
    
    ExerciseShares
    
    Price Per Share
    
    Price
    
    Exercisable
    
    PriceBalance at December 31, 2006
    
    
    1,154,941
    
    
    $
    1.43 - $493.75
    
    
    $
    38.33
    
    
    
    1,067,296
    
    
    $
    41.13Granted
    
    
    5,300
    
    
    $
    1.79 - $    2.11
    
    
    $
    1.88Exercised
    
    
    
    
    
    
    
    
    
    
    Canceled
    
    
    (32,583
    )
    
    $
    8.00 - $295.00
    
    
    $
    37.80Balance at June 30, 2007
    
    
    1,127,658
    
    
    $
    1.43 - $493.75
    
    
    $
    38.13
    
    
    
    1,063,808
    
    
    $
    40.19
  Restricted Stock Awards
   Warrants
  10




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##### Table of Contents



Common SharesTotal and
    
    PriceCurrently
    
    perExercisable
    
    Share
    
    Expiration DateWarrants related to issuance of common stock
    
    
    140,658
    
    
    $
    11.90
    
    
    December 17, 2007*116,279
    
    
    
    29.00
    
    
    June 24, 2008*342,466
    
    
    
    11.10
    
    
    August 16, 2010Warrants related to April 2004 Bridge Loans
    
    
    69,549
    
    
    
    13.30
    
    
    April 28, 2011* **10,000
    
    
    
    18.50
    
    
    April 28, 2011*Warrants assumed in connection with the Conductus,
    
    
    109,500
    
    
    
    45.83
    
    
    September 27, 2007Inc. acquisition
    
    
    600
    
    
    
    312.50
    
    
    September 1, 2007Total
    
    
    789,052
 
 *
    
    The terms of these warrants contain net exercise provisions, wherein instead of a cash
exercise holders can elect to receive common stock equal to the difference between the
exercise price and the average closing sale price for common shares over 10-30 days
immediately preceding the exercise date.**
    
    These warrants contain anti-dilution adjustment provisions. 6. Legal Proceedings
 Settlement of Litigation
  7. Earnings Per Share
  8. Commitments and Contingencies
 Operating Leases
   Capital Leases
  Patents and Licenses
  11




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##### Table of Contents



OperatingYear ending December 31,
    
    Licenses
    
    
    Leases
    
    
    Capital LeasesRemainder of 2007
    
    $
    150,000
    
    
    $
    633,000
    
    
    $
    4,0002008
    
    
    150,000
    
    
    
    1,304,000
    
    
    
    2009
    
    
    150,000
    
    
    
    1,349,000
    
    
    
    2010
    
    
    150,000
    
    
    
    1,396,000
    
    
    
    2011
    
    
    150,000
    
    
    
    1,313,000
    
    
    
    Thereafter
    
    
    1,200,000
    
    
    
    
    
    
    
    Total payments
    
    $
    1,950,000
    
    
    $
    5,995,000
    
    
    $
    4,000Less: amount representing
interest
    
    
    
    
    
    
    
    
    
    
    Present value of minimum lease
    
    
    
    
    
    
    
    
    
    
    4,000Less current portion
    
    
    
    
    
    
    
    
    
    
    (4,000
    )Long term portion
    
    
    
    
    
    
    
    
    
    $
    
 9. Contractual Guarantees and Indemnities
  Warranties
  Intellectual Property Indemnities
  Director and Officer Indemnities and Contractual Guarantees
   12




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General Contractual Indemnities/Products Liability
  Short Term Borrowings
  Contractual Contingency
  10. Details of Certain Financial Statement Components and Supplemental Disclosures of Cash Flow
Information and Non-Cash Activities
 Balance Sheet Data
 December 31,
    
    
    June 30,2006
    
    
    2007Accounts receivable:Accounts receivable-trade
    
    $
    1,117,000
    
    
    $
    1,612,000U.S. government accounts receivable-billed
    
    
    493,000
    
    
    
    664,000Less: allowance for doubtful accounts
    
    
    (75,000
    )
    
    
    (75,000
    )$
    1,535,000
    
    
    $
    2,201,000
 December 31,
    
    
    June 30,2006
    
    
    2007Inventories:Raw materials
    
    $
    2,368,000
    
    
    $
    1,863,000Work-in-process
    
    
    716,000
    
    
    
    528,000Finished goods
    
    
    4,261,000
    
    
    
    2,799,000Less inventory reserve
    
    
    (1,367,000
    )
    
    
    (1,306,000
    )$
    5,978,000
    
    
    $
    3,884,000
 December 31,
    
    
    June 30,2006
    
    
    2007Property and Equipment:Equipment
    
    $
    17,186,000
    
    
    $
    17,210,000Leasehold improvements
    
    
    6,732,000
    
    
    
    6,732,000Furniture and fixtures
    
    
    451,000
    
    
    
    451,00024,369,000
    
    
    
    24,393,000Less: accumulated depreciation and amortization
    
    
    (18,599,000
    )
    
    
    (19,598,000
    )$
    5,770,000
    
    
    $
    4,795,000
 13




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##### Table of Contents



December 31,
    
    

June 30,2006
    
    
    2007Patents and Licenses:Patents pending
    
    $
    628,000
    
    
    $
    630,000Patents issued
    
    
    899,000
    
    
    
    970,000Less accumulated amortization
    
    
    (286,000
    )
    
    
    (315,000
    )Net patents issued
    
    
    613,000
    
    
    
    655,000Licenses
    
    
    563,000
    
    
    
    563,000Less accumulated amortization
    
    
    (100,000
    )
    
    
    (117,000
    )Net licenses
    
    
    463,000
    
    
    
    446,000Purchased technology
    
    
    1,706,000
    
    
    
    1,706,000Less accumulated amortization
    
    
    (1,005,000
    )
    
    
    (1,124,000
    )Net purchased technology
    
    
    701,000
    
    
    
    582,000$
    2,405,000
    
    
    $
    2,313,000
  December 31,
    
    
    June 30,2006
    
    
    2007Accrued Expenses and Other Long Term

Liabilities:Salaries Payable
    
    $
    287,000
    
    
    $
    348,000Compensated Absences
    
    
    379,000
    
    
    
    442,000Compensation related
    
    
    299,000
    
    
    
    143,000Warranty reserve
    
    
    428,000
    
    
    
    451,000Lease abandonment costs
    
    
    8,000
    
    
    
    Product line exit costs
    
    
    319,000
    
    
    
    Deferred Rent
    
    
    390,000
    
    
    
    383,000Other
    
    
    104,000
    
    
    
    128,0002,214,000
    
    
    
    1,895,000Less current portion
    
    
    (1,610,000
    )
    
    
    (1,301,000
    )Long term portion
    
    $
    604,000
    
    
    $
    594,000
 For the six months ended,July 1,
    
    
    June 30,2006
    
    
    2007Warranty Reserve Activity:Beginning balance
    
    $
    491,000
    
    
    $
    428,000Additions
    
    
    68,000
    
    
    
    51,000Deductions
    
    
    (170,000
    )
    
    
    (28,000
    )Ending balance
    
    $
    389,000
    
    
    $
    451,000
 14




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##### Table of Contents



For the six months ended,July 1,
    
    
    June 30,2006
    
    
    2007Lease Abandonment Costs:Beginning balance
    
    $
    225,000
    
    
    $
    8,000Additions
    
    
    
    
    
    
    Deductions
    
    
    (217,000
    )
    
    
    (8,000
    )Ending balance
    
    $
    8,000
    
    
    
    Product Line Exit Costs:Beginning balance
    
    $
    402,000
    
    
    $
    319,000Additions
    
    
    
    
    
    
    Deductions
    
    
    (83,000
    )
    
    
    (319,000
    )Ending balance
    
    $
    319,000
    
    
    
    Severance Costs:Beginning balance
    
    $
    32,000
    
    
    
    Additions
    
    
    81,000
    
    
    
    Deductions
    
    
    (113,000
    )
    
    
    Ending balance
    
    
    
    
    
    
    
 
 Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
 General
     SuperLink
  AmpLink
  SuperPlex
  15




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Recent Developments
 Settlement of Litigation
  U.S. Air Force Contract
  Critical Accounting Policies and Estimates
    16




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17




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##### Table of Contents



Backlog
  Results of Operations
 Quarter and six months ended June 30, 2007 as compared to the quarter and six months ended July 1,
2006
       Three Months Ended
    
    
    Six Months EndedDollars in thousands
    
    July 1, 2006
    
    
    June 30, 2007
    
    
    July 1, 2006
    
    
    June 30, 2007Net commercial product sales
    
    $
    3,932
    
    
    
    100
    %
    
    $
    3,653
    
    
    
    100
    %
    
    $
    8,422
    
    
    
    100
    %
    
    $
    7,187
    
    
    
    100
    %Cost of commercial product sales
    
    
    3,658
    
    
    
    93
    %
    
    
    3,228
    
    
    
    88
    %
    
    
    7,516
    
    
    
    89
    %
    
    
    7,130
    
    
    
    99
    %Gross profit
    
    $
    274
    
    
    
    7
    %
    
    $
    425
    
    
    
    12
    %
    
    $
    906
    
    
    
    11
    %
    
    $
    57
    
    
    
    1
    %
  18




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##### Table of Contents



Settlement of Litigation
    Liquidity and Capital Resources
 Cash Flow Analysis
      Financing Activities
   19




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##### Table of Contents



Contractual Obligations and Commercial Commitments
  
    
    Capital Lease Obligations.Our capital lease obligations are for property and equipment
and total $4,000 at June 30, 2007.
    
    Operating Lease Obligations.Our operating lease obligations consist of a facility
lease in Santa Barbara, California, several copier leases and a forklift lease.
    
    Patents and Licenses.We have entered into various licensing agreements requiring
royalty payments ranging from 0.13% to 2.5% of specified product sales. Some of these
agreements contain provisions for the payment of guaranteed or minimum royalty amounts.
Typically, the licensor can terminate our license if we fail to pay minimum annual
royalties.
    
    Purchase Commitments.In the normal course of business, we incur purchase obligations
with vendors and suppliers for the purchase of inventory, as well as other goods and
services. These obligations are generally evidenced by purchase orders that contain the
terms and conditions associated with the purchase arrangements. We are committed to accept
delivery of such material pursuant to the purchase orders subject to various contract
provisions which allow us to delay receipt of such orders or cancel orders beyond certain
agreed upon lead times. Cancellations may result in cancellation costs payable by us.
 Capital Expenditures
  Future Liquidity
     Net Operating Loss Carryforward
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##### Table of Contents



Recent Accounting Requirements
   Forward-Looking Statements
 Risk Factors
 
 Item 3. Quantitative and Qualitative Disclosures About Market Risk.
 Managements Discussion and Analysis of
Financial Condition and Results of Operations  Market Risk
 
 Item 4. Controls and Procedures.
 Evaluation of Disclosure Controls and Procedures
   Changes in Internal Controls
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##### Table of Contents



PART II
 OTHER INFORMATION
 
 Item 1. Legal Proceedings.
 Settlement of Litigation
  Routine Litigation
  
 Item 1A. Risk Factors.
  
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
   
 Item 4. Submission of Matters to a Vote of Security Holders.
  
 Item 5. Other Information.
 (a) Additional Disclosures.
  (b) Stockholder Nominations.
  
 Item 6. Exhibits.
 Number
    
    Description of Document31.1
    
    Statement of CEO Pursuant to 302 of the Sarbanes-Oxley Act of 2002 (*)31.2
    
    Statement of Principal Financial Officer Pursuant to 302 of the
Sarbanes-Oxley Act of 2002 (*)32.1
    
    Statement of CEO Pursuant to 906 of the Sarbanes-Oxley Act of 2002 (*)32.2
    
    Statement of Principal Financial Officer Pursuant to 906 of the
Sarbanes-Oxley Act of 2002 (*)
 
 *
    
    Filed herewith. 22




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##### Table of Contents



SIGNATURES
  SUPERCONDUCTOR TECHNOLOGIES INC
 Dated: August 09, 2007
    
    /s/ William J. BuchananWilliam J. BuchananController (Principal Financial Officer)/s/ Jeffrey A. QuiramJeffrey A. QuiramPresident and Chief Executive Officer
 23