##### 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 April 3, 2010
 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
(State or other jurisdiction of 
incorporation or organization)
    
    77-0158076
(IRS Employer
Identification No.)
 460 Ward Drive,
Santa Barbara, California 93111-2356
 (805) 690-4500
 
  þ o
  o o
  Large Accelerated Filer o
    
    Accelerated Filer o
    
    Non-Accelerated Filer o
    
    Smaller reporting company þ(
Do not check if a smaller reporting company)
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##### 



SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS
    
    
    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
    
    
    20ITEM 4. Controls and Procedures
    
    
    20PART II  OTHER INFORMATIONITEM 1. Legal Proceedings
    
    
    21ITEM 1A. Risk Factors
    
    
    21ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    21ITEM 3. Defaults Upon Senior Securities
    
    
    21ITEM 4. Reserved
    
    
    21ITEM 5. Other Information
    
    
    22ITEM 6. Exhibits
    
    
    22SIGNATURES
    
    
    23EX-31.1EX-31.2EX-32.1EX-32.2
  i




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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. We claim the protection of the safe harbor contained in the Private Securities Litigation
Reform Act of 1995 for these forward looking statements. 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 have tried, wherever
possible, to identify forward-looking statements by terminology such as may, will, could,
should, expects, anticipates, intends, plans, believes, seeks, estimates and other
comparable terminology.
 We caution investors that any forward-looking statements presented in this Report, or that 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 cash and a history of losses;
    
    limited number of potential customers;
    
    limited number of suppliers for some of our components;
    
    no significant backlog from quarter to quarter;
    
    our market is characterized by rapidly advancing technology;
    
    fluctuations in product demand from quarter to quarter can be significant;
    
    the impact of competitive filter products, technologies and pricing;
    
    manufacturing capacity constraints and difficulties; and
    
    general economic conditions, such as the current worldwide recession.
 For further discussion of these and other factors see, Managements Discussion and Analysis
of Financial Condition and Results of Operations and Risk Factors in our Annual Report on Form
10-K for 2009.
 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.
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##### Table of Contents



PART I
 FINANCIAL INFORMATION
 
 Item 1. Financial Statements.
 SUPERCONDUCTOR TECHNOLOGIES INC.
 
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
  Three Months EndedApril 3, 2010
    
    
    March 28, 2009Net revenues:Commercial product revenues
    
    $
    2,334,000
    
    
    $
    1,131,000Government and other contract revenues
    
    
    1,081,000
    
    
    
    546,000Total net revenues
    
    
    3,415,000
    
    
    
    1,677,000Costs and expenses:Cost of commercial product revenues
    
    
    2,386,000
    
    
    
    1,797,000Cost of government and other contract revenue
    
    
    774,000
    
    
    
    569,000Research and development
    
    
    1,010,000
    
    
    
    1,084,000Selling, general and administrative
    
    
    1,783,000
    
    
    
    1,723,000Total costs and expenses
    
    
    5,953,000
    
    
    
    5,173,000Loss from operations
    
    
    (2,538,000
    )
    
    
    (3,496,000
    )Other Income and Expense:Noncontrolling interest in joint venture
    
    
    
    
    
    
    (50,000
    )Adjustments to fair value of derivatives
    
    
    42,000
    
    
    
    Interest income
    
    
    1,000
    
    
    
    13,000Interest expense
    
    
    (7,000
    )
    
    
    (9,000
    )Net loss
    
    $
    (2,502,000
    )
    
    $
    (3,542,000
    )Basic and diluted loss per common share
    
    $
    (0.11
    )
    
    $
    (0.20
    )Basic and diluted weighted average number of
common shares outstanding
    
    
    21,808,816
    
    
    
    17,869,030
  2




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SUPERCONDUCTOR TECHNOLOGIES INC.
 
 CONDENSED CONSOLIDATED BALANCE SHEETS
 April 3,
    
    
    December 31,2010
    
    
    2009(Unaudited)
    
    
    (See Note)ASSETSCurrent Assets:Cash and cash equivalents
    
    $
    8,535,000
    
    
    $
    10,365,000Accounts receivable, net
    
    
    742,000
    
    
    
    462,000Inventory, net
    
    
    2,265,000
    
    
    
    2,644,000Prepaid expenses and other current assets
    
    
    261,000
    
    
    
    445,000Total Current Assets
    
    
    11,803,000
    
    
    
    13,916,000Property and equipment, net of accumulated depreciation of
$21,309,000 and $21,076,000, respectively
    
    
    1,678,000
    
    
    
    1,832,000Patents, licenses and purchased technology, net of accumulated amortization
of $2,407,000 and $2,384,000, respectively
    
    
    2,206,000
    
    
    
    2,163,000Other assets
    
    
    205,000
    
    
    
    215,000Total Assets
    
    $
    15,892,000
    
    
    $
    18,126,000LIABILITIES AND STOCKHOLDERS EQUITYCurrent Liabilities:Accounts payable
    
    $
    810,000
    
    
    $
    467,000Accrued expenses
    
    
    937,000
    
    
    
    671,000Fair value of warrant derivative
    
    
    129,000
    
    
    
    171,000Current portion of capitalized lease obligations
    
    
    45,000
    
    
    
    50,000Total Current Liabilities
    
    
    1,921,000
    
    
    
    1,359,000Other long term liabilities
    
    
    571,000
    
    
    
    526,000Total Liabilities
    
    
    2,492,000
    
    
    
    1,885,000Commitments and contingencies-Notes 6 and 7Stockholders Equity:Preferred stock, $.001 par value, 2,000,000 shares authorized,
611,523 shares issued and outstanding
    
    
    1,000
    
    
    
    1,000Common stock, $.001 par value, 250,000,000 shares authorized,
22,404,513 and 22,512,033 shares issued and outstanding, respectively
    
    
    23,000
    
    
    
    23,000Capital in excess of par value
    
    
    241,543,000
    
    
    
    241,882,000Accumulated deficit
    
    
    (228,167,000
    )
    
    
    (225,665,000
    )Total Stockholders Equity
    
    
    13,400,000
    
    
    
    16,241,000Total Liabilities and Stockholders Equity
    
    $
    15,892,000
    
    
    $
    18,126,000
   3




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SUPERCONDUCTOR TECHNOLOGIES INC.
 
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
  Three Months EndedApril 3, 2010
    
    
    March 28, 2009CASH FLOWS FROM OPERATING ACTIVITIES:Net loss
    
    $
    (2,502,000
    )
    
    $
    (3,542,000
    )Adjustments to reconcile net loss to net cash used for
operating activities:Depreciation and amortization
    
    
    258,000
    
    
    
    404,000Stock-based compensation expense
    
    
    234,000
    
    
    
    260,000Provision for excess and obsolete inventories
    
    
    90,000
    
    
    
    12,000Noncontrolling interest in joint venture
    
    
    
    
    
    
    50,000Fair value of derivatives
    
    
    (42,000
    )
    
    
    Changes in assets and liabilities:Accounts receivable
    
    
    (280,000
    )
    
    
    (187,000
    )Inventory
    
    
    289,000
    
    
    
    246,000Prepaid expenses and other current assets
    
    
    185,000
    
    
    
    65,000Patents and licenses
    
    
    (66,000
    )
    
    
    (26,000
    )Other assets
    
    
    9,000
    
    
    
    6,000Accounts payable and accrued expenses
    
    
    648,000
    
    
    
    232,000Net cash used in operating activities
    
    
    (1,177,000
    )
    
    
    (2,480,000
    )CASH FLOWS FROM INVESTING ACTIVITIES:Purchases of property and equipment
    
    
    (80,000
    )
    
    
    (25,000
    )Investment in joint venture
    
    
    
    
    
    
    14,000Net cash used in investing activities
    
    
    (80,000
    )
    
    
    (11,000
    )CASH FLOWS FROM FINANCING ACTIVITIES:Repurchase of common shares for withholding obligations
    
    
    (573,000
    )
    
    
    Net cash used in financing activities
    
    
    (573,000
    )
    
    
    Net decrease in cash and cash equivalents
    
    
    (1,830,000
    )
    
    
    (2,491,000
    )Cash and cash equivalents at beginning of period
    
    
    10,365,000
    
    
    
    7,568,000Cash and cash equivalents at end of period
    
    $
    8,535,000
    
    
    $
    5,077,000
  4




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




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Principles of Consolidation
  Cash and Cash Equivalents
  Accounts Receivable
  Revenue Recognition
    Shipping and Handling Fees and Costs
  Warranties
  Guarantees
  6




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Research and Development Costs
  Inventories
  Property and Equipment
  Patents, Licenses and Purchased Technology
  Long-Lived Assets
   Other Investments
  7




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Loss Contingencies
  Income Taxes
  Marketing Costs
  Net Loss Per Share
  Stock-based Compensation
    8




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Three months endedApril 3, 2010
    
    
    March 28, 2009Cost of Revenue
    
    $
    5,000
    
    
    $
    7,000Research and development
    
    
    56,000
    
    
    
    65,000Selling, general and administrative
    
    
    173,000
    
    
    
    188,000Total stock-based compensation expense
    
    $
    234,000
    
    
    $
    260,000
 Use of Estimates
  Fair Value of Financial Instruments
  Comprehensive Income (Loss)
  Segment Information
  Certain Risks and Uncertainties
     9




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Recent Accounting Pronouncements
   3. Short Term Borrowings
   4. Stockholders Equity
  Convertible
    
    
    
    
    
    
    
    
    
    
    Capital inPreferred Stock
    
    
    Common Stock
    
    
    Excess of
    
    
    AccumulatedShares
    
    
    Amount
    
    
    Shares
    
    
    Amount
    
    
    Par Value
    
    
    Deficit
    
    
    TotalBalance at December 31, 2009
    
    
    611,523
    
    
    $
    1,000
    
    
    
    22,512,033
    
    
    $
    23,000
    
    
    $
    241,882,000
    
    
    
    ($225,665,000
    )
    
    $
    16,241,000Cancellation of common stock
    
    
    
    
    
    
    
    
    
    
    (538
    )Repurchase of common stock
to satisfy withholding
obligations
    
    
    
    
    
    
    
    
    
    
    (181,982
    )
    
    
    
    
    
    
    (573,000
    )
    
    
    
    
    
    
    (573,000
    )Issuance of awards and
stock based compensation
    
    
    
    
    
    
    
    
    
    
    75,000
    
    
    
    
    
    
    
    234,000
    
    
    
    
    
    
    
    234,000Net loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,502,000
    )
    
    
    (2,502,000
    )Balance at April 3, 2010
    
    
    611,523
    
    
    $
    1,000
    
    
    
    22,404,513
    
    
    $
    23,000
    
    
    $
    241,543,000
    
    
    $
    (228,167,000
    )
    
    $
    13,400,000
 Stock Options
    10




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##### Table of Contents



Weighted Average
    
    
    Number of Options
    
    
    Weighted AverageNumber of Shares
    
    
    Price Per Share
    
    
    Exercise Price
    
    
    Exercisable
    
    
    Exercise PriceBalance at December 31, 2009
    
    
    1,144,876
    
    
    $
    1.43 - $493.75
    
    
    $
    20.16
    
    
    
    970,703
    
    
    $
    22.96Granted
    
    
    
    
    
    
    
    
    
    
    Exercised
    
    
    
    
    
    
    
    
    
    
    Canceled
    
    
    (164,581
    )
    
    $
    10.00 - $493.75
    
    
    $
    81.06Balance at April 3, 2010
    
    
    980,295
    
    
    $
    1.43 - $356.25
    
    
    $
    9.93
    
    
    
    857,177
    
    
    $
    10.73
  Restricted Stock Awards
   Warrants
  Common SharesCurrentlyTotal
    
    
    Exercisable
    
    
    Price per Share
    
    
    Expiration DateWarrants related to August 2005
financing608,237
    
    
    
    608,237
    
    
    $
    6.25
    
    
    August 16, 2010*  **Warrants related to April 2004 financing
    
    
    10,000
    
    
    
    10,000
    
    
    $
    18.50
    
    
    April 28, 2011*Total
    
    
    618,237
    
    
    
    618,237
 
 *
    
    The terms of these warrants contain net exercise provisions, under which holders can elect
to receive common stock equal to the difference between the exercise price and the sale
price for common shares on the exercise date or the date immediately preceding the exercise
date instead of paying the exercise price in cash.**
    
    These warrants contain special anti-dilution adjustment provisions relating to the price
of other issuances. Under the issuances in 2009, the exercise price of these warrants was
adjusted to $6.25.  11




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##### Table of Contents



5. Earnings Per Share
   April 3, 2010
    
    
    March 28, 2009Outstanding stock options
    
    
    980,295
    
    
    
    1,215,005Outstanding stock awards
    
    
    567,999
    
    
    
    855,998Outstanding warrants
    
    
    618,237
    
    
    
    352,466Total
    
    
    2,166,531
    
    
    
    2,423,469
 6. Commitments and Contingencies
 Operating Leases
   Patents and Licenses
   Year ending December 31,
    
    Licenses
    
    
    Operating LeasesRemainder of 2010
    
    $
    175,000
    
    
    $
    988,0002011
    
    
    175,000
    
    
    
    1,338,0002012
    
    
    175,000
    
    
    
    1,369,0002013
    
    
    175,000
    
    
    
    1,401,0002014
    
    
    180,000
    
    
    
    1,442,000Thereafter
    
    
    930,000
    
    
    
    2,884,000Total payments
    
    $
    1,810,000
    
    
    $
    9,422,000
 7. Contractual Guarantees and Indemnities
  Warranties
  Intellectual Property Indemnities
 12




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##### Table of Contents



Director and Officer Indemnities and Contractual Guarantees
   General Contractual Indemnities/Products Liability
  Short Term Borrowings
 See
Note 3Short Term Borrowings.
 8. Details of Certain Financial Statement Components and Supplemental Disclosures of Cash Flow
Information and Non-Cash Activities
 Balance Sheet Data
 April 3, 2010
    
    
    December 31, 2009Accounts receivable:Accounts receivable-trade
    
    $
    292,000
    
    
    $
    204,000United States government accounts receivable-billed
    
    
    459,000
    
    
    
    269,000Less: allowance for doubtful accounts
    
    
    (9,000
    )
    
    
    (11,000
    )$
    742,000
    
    
    $
    462,000
 April 3, 2010
    
    
    December 31, 2009Inventories:Raw materials
    
    $
    1,770,000
    
    
    $
    2,010,000Work-in-process
    
    
    690,000
    
    
    
    543,000Finished goods
    
    
    717,000
    
    
    
    919,000Less inventory reserve
    
    
    (912,000
    )
    
    
    (828,000
    )$
    2,265,000
    
    
    $
    2,644,000
 13




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##### Table of Contents



April 3, 2010
    
    
    December 31, 2009Property and Equipment:Equipment
    
    $
    15,823,000
    
    
    $
    15,743,000Leasehold improvements
    
    
    6,760,000
    
    
    
    6,761,000Furniture and fixtures
    
    
    404,000
    
    
    
    404,00022,987,000
    
    
    
    22,908,000Less: accumulated depreciation and amortization
    
    
    (21,309,000
    )
    
    
    (21,076,000
    )$
    1,678,000
    
    
    $
    1,832,000
  April 3, 2010
    
    
    December 31, 2009Patents and Licenses:Patents pending
    
    $
    1,186,000
    
    
    $
    1,118,000Patents issued
    
    
    1,139,000
    
    
    
    1,141,000Less accumulated amortization
    
    
    (495,000
    )
    
    
    (477,000
    )Net patents issued
    
    
    644,000
    
    
    
    664,000Licenses Pending
    
    
    19,000
    
    
    
    18,000Licenses Issued
    
    
    563,000
    
    
    
    563,000Less accumulated amortization
    
    
    (206,000
    )
    
    
    (200,000
    )Net licenses
    
    
    357,000
    
    
    
    363,000Purchased technology
    
    
    1,706,000
    
    
    
    1,706,000Less accumulated amortization
    
    
    (1,706,000
    )
    
    
    (1,706,000
    )Net purchased technology
    
    
    
    
    
    
    $
    2,206,000
    
    
    $
    2,163,000
  April 3, 2010
    
    
    December 31, 2009Accrued Expenses and Other Long Term
Liabilities:Salaries Payable
    
    $
    284,000
    
    
    $
    107,000Compensated Absences
    
    
    376,000
    
    
    
    397,000Compensation related
    
    
    63,000
    
    
    
    39,000Warranty reserve
    
    
    291,000
    
    
    
    255,000Deferred rent
    
    
    398,000
    
    
    
    384,000Other
    
    
    269,000
    
    
    
    236,0001,681,000
    
    
    
    1,418,000Less current portion
    
    
    1,110,000
    
    
    
    (892,000
    )Long term portion
    
    $
    571,000
    
    
    $
    526,000
 14




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##### Table of Contents



For the three months ended,April 3, 2010
    
    
    March 28, 2009Warranty Reserve Activity:Beginning balance
    
    $
    255,000
    
    
    $
    261,000Additions
    
    
    42,000
    
    
    
    7,000Deductions
    
    
    (6,000
    )
    
    
    (13,000
    )Ending balance
    
    $
    291,000
    
    
    $
    255,000
 
 Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
 General
  Our Proprietary Technology
  
    
    8 patents for technologies directed toward producing thin-film materials and
structures. We have developed a proprietary state of the art manufacturing process for
producing HTS thin-films of the highest quality.
 
    
    32 patents for cryogenic and non-microwave circuit designs. The expertise of our
highly qualified team has allowed us to design and fabricate extremely small,
high-performance circuits including RF signal filters.
 
    
    17 patents covering cryogenics, packaging and systems. Our proprietary and
patented cryogenic packaging innovation provides us with a significant competitive
advantage in maintaining our HTS materials at their critical temperatures.
 
    
    1 patent covering other superconducting technologies.
   
    
    Wireless Networks. Our current commercial products help maximize the performance of
wireless telecommunications networks by improving the quality of uplink signals from
mobile wireless devices. Our products increase capacity utilization, lower dropped and
blocked calls, extend coverage, and enable higher wireless data throughput  all while
reducing capital and operating costs. We are leveraging our unique filtering
technology to pursue wireless business on multiple fronts: capturing wireless business
with tier one U.S. wireless carriers for the LTE (Long Term Evolution) 4G network build
out, and developing our advanced reconfigurable filtering technology, which has the
potential to drastically reduce the size and cost of mobile devices.
 15




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##### Table of Contents




    
    Superconducting Power Applications. We are adapting our unique HTS materials
deposition techniques to deliver energy efficient, cost-effective and high performance
2G HTS wire technology for next generation power applications. A variety of large,
high potential, initial target markets have been identified for our 2G HTS wire
including: energy (wind turbines, smart grid), industrial (motors, generators) and
healthcare (MRI) applications. To accelerate development and manufacturing processes
for our 2G HTS wire, we are partnering with HTS industry leaders, United States
National Labs and the Department of Energy. In August 2009, we renewed our two year
Cooperative Research and Development Agreement with Los Alamos National Laboratory.
These technological interchanges will help us meet the technical challenges and
performance metrics for both high performance and cost effective 2G HTS wire.
 
    
    Government Products. As the worldwide leader in developing tunable HTS filter
systems for military applications, we continue to be a crucial partner in the U.S.
governments future success. Our high-performance HTS filter systems have been proven
to increase the detection range, reduce interference, and in some cases, detect signals
that were previously undetectable with conventional technology. Currently, we actively
participate in the development of technologies for application in military
communications, signals intelligence, and electronic warfare.
 Risk Factors
 Our Business Model
  Government Contracts
  Commercial Applications
 e
 
    
    SuperLink, a highly compact and reliable receiver front-end HTS wireless
filter system to eliminate out-of-band interference for wireless base stations,
combining filters with a proprietary cryogenic cooler and a cooled low-noise
amplifier.
 
    
    AmpLink, a ground-mounted unit for wireless base stations which includes a
high-performance amplifier and up to six dual duplexers.
 
    
    SuperPlex, a high-performance multiplexer that provides extremely low
insertion loss and excellent cross-band isolation designed to eliminate the need for
additional base station antennas and reduce infrastructure costs.
 Risk Factors
 16




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##### Table of Contents



Joint Ventures
 Risk Factors
 Licenses
  Critical Accounting Policies and Estimates
   Backlog
  Results of Operations
 Quarter Ended April 3, 2010 compared to the Quarter Ended March 28, 2009
   17




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##### Table of Contents



For the quarters endedApril 3, 2010
    
    
    March 28, 2009(Dollars in thousands)Net commercial product sales
    
    $
    2,334
    
    
    
    100.0
    %
    
    $
    1,131
    
    
    
    100.0
    %Total cost of commercial product sales
    
    
    2,386
    
    
    
    102.2
    %
    
    
    1,797
    
    
    
    158.9
    %Gross loss
    
    $
    (52
    )
    
    
    (2.2
    %)
    
    $
    (666
    )
    
    
    (58.9
    %)
       18




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##### Table of Contents



Liquidity and Capital Resources
 Cash Flow Analysis
     Financing Activities
    Contractual Obligations and Commercial Commitments
  Capital Expenditures
  Future Liquidity
  19




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##### Table of Contents



Net Operating Loss Carryforward
 ,
   Recent Accounting Pronouncements
   
 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.
  20




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##### Table of Contents



PART II  OTHER INFORMATION
 
 Item 1. Legal Proceedings.
  
 Item 1A. Risk Factors.
  
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
  Total Number of Shares
    
    
    Average Price Paid PerPeriod
    
    Purchased
    
    
    ShareJanuary 1-30, 2010
    
    
    181,982
    (1)
    
    $
    3.15January 31-February 27, 2010
    
    
    
    
    
    $
    February 28-April 3, 2010
    
    
    
    
    
    $
    Total
    
    
    181,982
    
    
    $
    3.15
 
 (1)
    
    Shares surrendered to us by employees to satisfy tax withholding obligations that arose upon
the vesting of restricted stock awards. These repurchases were not made pursuant to publicly
announced plans or programs. 
 Item 3. Defaults Upon Senior Securities.
  
 Item 4. Reserved
 21




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##### Table of Contents



Item 5. Other Information.
  
 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 CFO 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 CFO 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:  May 5, 2010
    /s/ William J. BuchananWilliam J. BuchananController/s/ Jeffrey A. QuiramJeffrey A. QuiramPresident and Chief Executive Officer 23