<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

(Mark One)

[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
     OF 1934

     For the quarterly period ended March 31, 2006

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
     OF 1934

     For the transition period from __________ to __________

                        Commission file number: 0-31641

                        SUPERCONDUCTIVE COMPONENTS, INC.
             (Exact name of registrant as specified in its charter)

<TABLE>
<S>                                                          <C>
             OHIO                                                 31-1210318
(State or other jurisdiction of                                (I.R.S. Employer
 incorporation or organization)                              Identification No.)
</TABLE>

                    2839 CHARTER STREET, COLUMBUS, OHIO 43228
          (Address of principal executive offices, including zip code)

                                 (614) 486-0261
              (Registrant's telephone number, including area code)

                                 NOT APPLICABLE
             (Former name, former address and former fiscal year, if
                           changed since last report)

     Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12
months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to the filing requirements for at least the
past 90 days. YES  X  NO
                  ---    ---

     Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act). YES     NO  X
                                                ---    ---

     State the number of shares outstanding of each of the registrant's classes
of common equity, as of the latest practicable date: 3,425,915 shares of Common
Stock, without par value, were outstanding at April 30, 2006.

     Transitional Small Business Disclosure Format (Check one): YES     NO  X
                                                                    ---    ---

<PAGE>

                                   FORM 10-QSB

                        SUPERCONDUCTIVE COMPONENTS, INC.

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                        PAGE NO.
                                                                        --------
<S>                                                                     <C>
PART I. FINANCIAL INFORMATION

   Item 1. Financial Statements.

              Balance Sheets as of March 31, 2006 (unaudited) and
                 December 31, 2005                                           3

              Statements of Operations For the Three Months Ended
                 March 31, 2006 and 2005 (unaudited)                         5

              Statements of Cash Flows For the Three Months Ended
                 March 31, 2006 and 2005 (unaudited)                         6

              Notes to Financial Statements (unaudited)                      8

   Item 2. Management's Discussion and Analysis of Financial
              Condition and Results of Operations.                          12

   Item 3. Controls and Procedures                                          18

PART II. OTHER INFORMATION

   Item 1. Legal Proceedings.                                              N/A

   Item 2. Changes in Securities and Small Business Issuer Purchases
              of Equity Securities.                                        N/A

   Item 3. Defaults Upon Senior Securities.                                N/A

   Item 4. Submission of Matters to a Vote of Security Holders.            N/A

   Item 5. Other Information.                                              N/A

   Item 6. Exhibits and Reports on Form 8-K.                                19

   Signatures.                                                              19
</TABLE>


                                        2
<PAGE>

                          PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                        SUPERCONDUCTIVE COMPONENTS, INC.

                                 BALANCE SHEETS

                                     ASSETS

<TABLE>
<CAPTION>
                                                                MARCH 31,    DECEMBER 31,
                                                                   2006          2005
                                                               -----------   ------------
                                                               (UNAUDITED)
<S>                                                            <C>           <C>
CURRENT ASSETS
   Cash                                                        $ 1,069,912   $ 1,161,369
   Accounts receivable
      Trade, less allowance for doubtful accounts of $25,000       353,298       243,130
      Contract                                                      38,923        50,710
      Employees                                                         74           290
      Other                                                         14,801        13,459
   Inventories                                                     543,560       584,140
   Prepaid expenses                                                 27,239        11,748
                                                               -----------   -----------
      Total current assets                                       2,047,807     2,064,846
                                                               -----------   -----------
PROPERTY AND EQUIPMENT, AT COST
   Machinery and equipment                                       2,368,257     2,221,298
   Furniture and fixtures                                           23,643        23,643
   Leasehold improvements                                          289,315       284,072
   Construction in progress                                          9,175       101,075
                                                               -----------   -----------
                                                                 2,690,390     2,630,088
   Less accumulated depreciation                                (1,850,374)   (1,814,959)
                                                               -----------   -----------
                                                                   840,016       815,129
                                                               -----------   -----------
OTHER ASSETS
   Deposit                                                          18,677        10,765
   Intangibles                                                      33,210        33,982
                                                               -----------   -----------
      Total other assets                                            51,887        44,747
                                                               -----------   -----------
TOTAL ASSETS                                                   $ 2,939,710   $ 2,924,722
                                                               ===========   ===========
</TABLE>

   The accompanying notes are an integral part of these financial statements.


                                        3

<PAGE>

                        SUPERCONDUCTIVE COMPONENTS, INC.

                                 BALANCE SHEETS

                      LIABILITIES AND SHAREHOLDERS' EQUITY

<TABLE>
<CAPTION>
                                                                MARCH 31,    DECEMBER 31,
                                                                   2006          2005
                                                               -----------   ------------
                                                               (UNAUDITED)
<S>                                                            <C>           <C>
CURRENT LIABILITIES
   Capital lease obligation, current portion                   $    38,099   $    39,949
   Accounts payable                                                353,599       295,640
   Accrued contract expenses                                       167,505       145,104
   Accrued personal property taxes                                  36,431        35,000
   Accrued expenses and other                                      128,658       105,773
                                                               -----------   -----------
      Total current liabilities                                    724,292       621,466
                                                               -----------   -----------
CAPITAL LEASE OBLIGATION, NET OF CURRENT PORTION                    67,854        71,381
                                                               -----------   -----------
COMMITMENTS AND CONTINGENCIES                                           --            --
                                                               -----------   -----------
SHAREHOLDERS' EQUITY
   Convertible preferred stock, Series B, 10% cumulative,
      nonvoting, no par value, $10 stated value, optional
      redemption at 103%; 25,185 issued and outstanding            341,258       334,961
   Common stock, no par value, authorized 15,000,000 shares;
      3,425,915 shares issued and outstanding                    9,010,217     9,047,550
   Additional paid-in capital                                    1,004,421     1,010,719
   Accumulated deficit                                          (8,208,332)   (8,161,355)
                                                               -----------   -----------
                                                                 2,147,564     2,231,875
                                                               -----------   -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                     $ 2,939,710   $ 2,924,722
                                                               ===========   ===========
</TABLE>

   The accompanying notes are an integral part of these financial statements.


                                        4
<PAGE>

                        SUPERCONDUCTIVE COMPONENTS, INC.

                            STATEMENTS OF OPERATIONS

                   THREE MONTHS ENDED MARCH 31, 2006 AND 2005
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                            2006         2005
                                         ----------   ----------
<S>                                      <C>          <C>
SALES REVENUE                            $1,158,531   $  486,626
CONTRACT RESEARCH REVENUE                    42,092       88,433
                                         ----------   ----------
                                          1,200,623      575,059
                                         ----------   ----------
COST OF SALES REVENUE                       910,243      380,470
COST OF CONTRACT RESEARCH                    17,407       37,735
                                         ----------   ----------
                                            927,650      418,205
                                         ----------   ----------
GROSS MARGIN                                272,973      156,854
GENERAL AND ADMINISTRATIVE EXPENSES         212,730      186,019
RESEARCH AND DEVELOPMENT EXPENSES            47,176       42,068
SALES AND PROMOTIONAL EXPENSES               68,103       52,522
                                         ----------   ----------
LOSS FROM OPERATIONS                        (55,036)    (123,755)
                                         ----------   ----------
OTHER INCOME (EXPENSE)
   Interest income                           10,795          344
   Interest expense                          (2,024)     (15,522)
   Gain on disposal of equipment                 --          250
   Miscellaneous, net                          (712)        (234)
                                         ----------   ----------
                                              8,059      (15,162)
                                         ----------   ----------
LOSS BEFORE PROVISION FOR INCOME TAX        (46,977)    (138,917)
INCOME TAX EXPENSE                               --           --
                                         ----------   ----------
NET LOSS                                    (46,977)    (138,917)
DIVIDENDS ON PREFERRED STOCK                 (6,296)      (6,296)
                                         ----------   ----------
LOSS APPLICABLE TO COMMON SHARES         $  (53,273)  $ (145,213)
                                         ==========   ==========
EARNINGS PER SHARE - BASIC AND DILUTED
(Note 2)
NET LOSS PER COMMON SHARE BEFORE
   DIVIDENDS ON PREFERRED STOCK
   Basic                                 $    (0.01)  $    (0.06)
                                         ==========   ==========
   Diluted                               $    (0.01)  $    (0.06)
                                         ==========   ==========
NET LOSS PER COMMON SHARE AFTER
   DIVIDENDS ON PREFERRED STOCK
   Basic                                 $    (0.02)  $    (0.06)
                                         ==========   ==========
   Diluted                               $    (0.02)  $    (0.06)
                                         ==========   ==========
WEIGHTED AVERAGE SHARES OUTSTANDING
   Basic                                  3,425,915    2,439,360
                                         ==========   ==========
   Diluted                                3,425,915    2,439,360
                                         ==========   ==========
</TABLE>

The accompanying notes are an integral part of these financial statements.


                                        5

<PAGE>

                        SUPERCONDUCTIVE COMPONENTS, INC.

                            STATEMENTS OF CASH FLOWS

                   THREE MONTHS ENDED MARCH 31, 2006 AND 2005

                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                       2006        2005
                                                                     --------   ---------
<S>                                                                  <C>        <C>
CASH FLOWS FROM OPERATING ACTIVITIES
   Net loss                                                          $(46,977)  $(138,917)
                                                                     --------   ---------
   Adjustments to reconcile net loss to net cash
      provided by (used in) operating activities:
      Depreciation and accretion                                       50,242      52,914
      Amortization                                                        772         772
      Gain on disposal of equipment                                        --        (250)
      Inventory reserve                                                    --      (9,920)
      Provision for doubtful accounts                                      --       8,176
      Changes in operating assets and liabilities:
      (Increase) decrease in assets:
         Accounts receivable                                          (99,507)    (69,249)
         Inventories                                                   40,580     (12,046)
         Prepaid expenses                                             (15,491)    (22,453)
         Other assets                                                  (7,912)         --
      Increase (decrease) in liabilities:
         Accounts payable                                              57,960      83,569
         Accrued expenses and deferred revenue                         45,888     (66,592)
                                                                     --------   ---------
            Total adjustments                                          72,532     (35,079)
                                                                     --------   ---------
               Net cash provided by (used in) operating activities     25,555    (173,996)
                                                                     --------   ---------
CASH FLOWS FROM INVESTING ACTIVITIES
   Proceeds on sale of equipment                                           --         250
   Purchases of property and equipment                                (65,922)    (14,966)
                                                                     --------   ---------
               Net cash used in investing activities                  (65,922)    (14,716)
                                                                     --------   ---------
CASH FLOWS FROM FINANCING ACTIVITIES
   Proceeds from note payable                                              --      50,000
   Payments related to registration of common stock                   (37,333)         --
   Principal payments on capital lease obligations                    (13,757)     (8,215)
                                                                     --------   ---------
               Net cash (used in) provided by financing activities    (51,090)     41,785
                                                                     --------   ---------
</TABLE>

   The accompanying notes are an integral part of these financial statements.


                                        6

<PAGE>

                        SUPERCONDUCTIVE COMPONENTS, INC.

                      STATEMENTS OF CASH FLOWS (CONTINUED)

                   THREE MONTHS ENDED MARCH 31, 2006 AND 2005

<TABLE>
<CAPTION>
                                                          2006         2005
                                                       ----------   ---------
<S>                                                    <C>          <C>
NET DECREASE IN CASH                                   $  (91,457)  $(146,927)
CASH - Beginning of period                              1,161,369     190,063
                                                       ----------   ---------
CASH - End of period                                   $1,069,912   $  43,136
                                                       ==========   =========
SUPPLEMENTAL DISCLOSURES OF CASH
   FLOW INFORMATION
   Cash paid during the years for:
      Interest, net                                    $    2,024   $   1,156
      Income taxes                                     $       --   $      --
SUPPLEMENTAL DISCLOSURES OF NONCASH
   FINANCING ACTIVITIES
   Property and equipment purchased by capital lease   $    8,380   $      --
</TABLE>

   The accompanying notes are an integral part of these financial statements.


                                        7
<PAGE>

                        SUPERCONDUCTIVE COMPONENTS, INC.
                          NOTES TO FINANCIAL STATEMENTS

NOTE 1. BUSINESS ORGANIZATION AND PURPOSE

     Superconductive Components, Inc. (the "Company") is an Ohio corporation
     that was incorporated in May 1987. The Company was formed to develop,
     manufacture and sell materials using superconductive principles. Operations
     have since been expanded to include the manufacture and sale of
     non-superconductive materials. The Company's domestic and international
     customer base is primarily in the thin film battery, high temperature
     superconductor, photonics and optical coatings industries.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     The accompanying unaudited financial statements have been prepared in
     accordance with accounting principles generally accepted in the United
     States of America for interim financial information and with instructions
     to Form 10-QSB and Article 10 of Regulation S-X. Accordingly, they do not
     include all of the information and footnotes required by accounting
     principles generally accepted in the United States of America for complete
     financial statements. In the opinion of management, all adjustments
     considered necessary for fair presentation of the results of operations for
     the periods presented have been included. The financial statements should
     be read in conjunction with the audited financial statements and the notes
     thereto for the year ended December 31, 2005. Interim results are not
     necessarily indicative of results for the full year.

     The preparation of financial statements in conformity with accounting
     principles generally accepted in the United States of America requires
     management to make estimates and assumptions that affect the reported
     amounts of 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.

     EQUIPMENT PURCHASED WITH GRANT FUNDING

     In 2004, the Company received funds of $517,935 from the Ohio Department of
     Development's Third Frontier Action Fund (TFAF) for the purpose of
     equipment related to the grant's purpose. The Company elected to record the
     funds received as a liability; therefore, the equipment is not reflected in
     the Company's financial statements. As equipment was purchased, the
     liability initially created when the cash was received was reduced with no
     revenue recognized or equipment recorded on the balance sheet. In 2005 the
     Company purchased equipment in the amount of $25,945 that was reimbursed by
     TFAF in the first quarter of 2006. As of March 31, 2006, the Company had
     disbursed the entire amount received. The grant provides that as long as
     the Company performs in compliance with the grant, the Company retains the
     rights to the equipment. Management anticipates that the Company will be in
     compliance with the requirements and, therefore, expects to retain the
     equipment at the end of the grant.


                                        8

<PAGE>

                        SUPERCONDUCTIVE COMPONENTS, INC.
                          NOTES TO FINANCIAL STATEMENTS

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

     RECLASSIFICATION

     Certain amounts in the prior year financial statements pertaining to
     research and development have been reclassified to conform to the current
     year presentation.

     STOCK BASED COMPENSATION

     During 2005 the Company accounted for stock based compensation using the
     intrinsic value method prescribed in APB Opinion #25, "Accounting for Stock
     Issued to Employees." The Financial Accounting Standards Board issued
     Statement of Financial Accounting Standard #123, "Accounting for Stock
     Based Compensation" (SFAS #123), which established accounting and
     disclosure requirements using a fair value based methodology. SFAS #123
     allowed the intrinsic value method to be used, and required disclosure of
     the impact to the financial statements of utilizing the intrinsic value
     versus the fair value based method on a pro forma basis, as set forth in
     the table below. For stock based compensation to non-employees, the Company
     utilizes the fair value method as provided for in SFAS #123.

     The Company's pro forma information for the three months ended March 31,
     2005, in accordance with the provisions of SFAS #123 is provided below. For
     purposes of pro forma disclosures, stock based compensation was amortized
     to expense on a straight-line basis over the vesting period.

<TABLE>
<CAPTION>
                                           2005
                                        ---------
<S>                                     <C>
Net loss applicable to
   common shares:
   As reported                          $(145,213)
   Stock-based compensation, net of
      tax for pro forma                    (3,171)
                                        ---------
   Pro forma net loss under SFAS #123   $(148,384)
   Basic and diluted loss per share:
      As reported                       $   (0.06)
      Pro forma under SFAS #123         $   (0.06)
</TABLE>

     For the three months ended March 31, 2005, there was no stock based
     employee compensation cost included in the determination of net loss as
     reported.

     Recently Issued Accounting Standards - In December 2004, the FASB issued
     SFAS #123 (Revised), "Shared Based Payment" (SFAS #123R). SFAS #123R
     replaced SFAS #123, and superseded APB Opinion #25. The Company adopted
     SFAS #123R effective January 1, 2006. SFAS #123R requires compensation
     costs related to share based payment transactions to be recognized in the
     financial statements. Compensation costs will be recognized over the
     vesting period of the award. In December 2005, all stock options were fully
     vested and therefore, there was no stock based compensation expense in the
     first quarter of 2006.


                                        9

<PAGE>

                        SUPERCONDUCTIVE COMPONENTS, INC.
                          NOTES TO FINANCIAL STATEMENTS

NOTE 3. INVENTORY

     Inventory is comprised of the following:

<TABLE>
<CAPTION>
                     MARCH 31,    DECEMBER 31,
                        2006          2005
                    -----------   ------------
                    (unaudited)
<S>                 <C>           <C>
Raw materials        $288,137       $286,089
Work-in-progress      192,943        201,441
Finished goods        151,741        185,871
Inventory reserve     (89,261)       (89,261)
                     --------       --------
                     $543,560       $584,140
                     ========       ========
</TABLE>

NOTE 4. EARNINGS PER SHARE

     Basic income (loss) per share is calculated as income available to common
     stockholders divided by the weighted average of common shares outstanding.
     Diluted earnings per share is calculated as diluted income (loss) available
     to common stockholders divided by the diluted weighted average number of
     common shares. Diluted weighted average number of common shares has been
     calculated using the treasury stock method for Common Stock equivalents,
     which includes Common Stock issuable pursuant to stock options and Common
     Stock warrants. At March 31, 2006 and 2005, all Common Stock options and
     warrants are anti-dilutive due to the net loss. The following is provided
     to reconcile the earnings per share calculations:

<TABLE>
<CAPTION>
                          Three months ended March 31,
                          ----------------------------
                                2006         2005
                             ----------   ----------
<S>                       <C>             <C>
Loss applicable
   to common shares          $  (53,273)  $ (145,213)
                             ==========   ==========
Weighted average
   common shares
   outstanding - basic        3,425,915    2,439,360
Effect of dilutions -
   stock options                     --           --
                             ----------   ----------
Weighted average
   shares outstanding -
   diluted                    3,425,915    2,439,360
                             ==========   ==========
</TABLE>

NOTE 5. CAPITAL REQUIREMENTS

     The Company's accumulated deficit since inception was $8,208,332
     (unaudited) at March 31, 2006. The losses have been financed primarily from
     additional investments and loans by major shareholders and private
     offerings of common stock and warrants to purchase common stock in 2004 and
     2005. The Company cannot assure that it will be able to raise additional
     capital in the future to fund its operations.


                                       10

<PAGE>

                        SUPERCONDUCTIVE COMPONENTS, INC.
                          NOTES TO FINANCIAL STATEMENTS

NOTE 5. CAPITAL REQUIREMENTS (CONTINUED)

     As of March 31, 2006, cash on-hand was $1,069,912. Management believes,
     based on forecasted sales and expenses, that funding will be adequate to
     sustain operations at least through March 31, 2007. During 2005 the Company
     raised additional funds through offerings of debt and equity. The Company
     received debt financing of $300,000 in 2005. Of this $300,000 received,
     $100,000 was repaid to the lender and $200,000 was converted to the
     Company's common stock.

     In November of 2004 a director agreed to loan the Company up to $200,000
     for working capital, to be drawn by the Company in increments of $50,000.
     The interest rate was Huntington National Bank's prime rate plus 2%, which
     accrued and compounded monthly. The loan was secured by the Company's
     assets and perfected by the filing of a UCC-1 financing statement. For each
     $50,000 increment drawn on the loan the director received 5,000 warrants to
     purchase the Company's common stock, without par value, at a purchase price
     of $2.50 per share and exercisable until November 1, 2009. The loan was
     drawn on the following schedule: November 3, 2004, $100,000; January 7,
     2005, $50,000; and April 1, 2005, $50,000. The loan balance (principal and
     accrued interest) was repaid in October 2005 and the UCC-1 financing
     statement was terminated.

     In April of 2005, the same director who agreed to provide a loan to the
     Company in November 2004, agreed to provide an additional $200,000
     convertible secured loan to the Company for working capital. The interest
     rate of 10% accrued and compounded monthly. The loan was drawn on the
     following schedule: April 14, 2005, $100,000; and May 20, 2005, $100,000.
     Because the Company completed equity financing of at least $500,000 during
     the fourth quarter of 2005, the principal and accrued interest totaling
     $209,110 automatically converted on the same basis as the new financing to
     104,555 shares of common stock ($2.00 per share) and warrants to purchase
     an aggregate of 26,139 shares of the Company's common stock at a purchase
     price of $3.00 per share exercisable until October 2010.

     In the fourth quarter of 2005, the Company completed a private placement to
     accredited investors. The investors purchased 986,555 shares of common
     stock at a price of $2.00 per share and warrants to purchase an additional
     246,639 shares of common stock at $3.00 per share until October 14, 2010.
     The Company received $1,386,000 in cash from certain investors for 693,000
     shares of common stock and warrants to purchase 173,250 shares of Common
     Stock. Four other investors cancelled indebtedness owed by the Company in
     the aggregate amount of $587,110 in exchange for 293,555 shares of common
     stock and warrants to purchase 73,389 shares of common stock. The
     indebtedness cancelled was as follows: (i) the Estate of Edward R. Funk
     cancelled indebtedness of $188,411.71 in exchange for 94,000 shares of
     common stock, warrants to purchase 23,500 shares of common stock at $3.00
     per share exercisable until October 2010, and payment of $411.71; (ii) the
     Estate of Ingeborg V. Funk cancelled $100,980.21 of indebtedness in
     exchange for 50,000 shares of common stock, warrants to purchase 12,500
     shares of common stock at $3.00 per share exercisable until October 2010,
     and payment of $980.21; (iii) Porter, Wright, Morris & Arthur LLP (PWMA)
     cancelled $90,000 of indebtedness for legal fees in exchange for 45,000
     shares of common stock and warrants to purchase an additional 11,250 shares
     of common stock at $3.00 per share exercisable until October 2010; and (iv)
     a director cancelled $209,110 of a secured loan in exchange for 104,555
     shares of common stock and warrants to purchase an additional 26,139 shares
     of common stock at $3.00 per share exercisable until October 2010 (as
     described in preceding paragraph).


                                       11

<PAGE>

                        SUPERCONDUCTIVE COMPONENTS, INC.
                          NOTES TO FINANCIAL STATEMENTS

NOTE 5. CAPITAL REQUIREMENTS (CONTINUED)

     The Company has incurred substantial operating losses through March 31,
     2006, and numerous factors may make it necessary for the Company to seek
     additional capital. In order to support the initiatives envisioned in its
     business plan, it may need to raise additional funds through public or
     private financing, collaborative relationships or other arrangements. Its
     ability to raise additional financing depends on many factors beyond its
     control, including the state of capital markets, the market price of its
     common stock and the development or prospects for development of
     competitive products by others. Because the common stock is not listed on a
     major stock exchange, many investors may not be willing or allowed to
     purchase it or may demand steep discounts. The necessary additional
     financing may not be available or may be available only on terms that would
     result in further dilution to the current owners of the common stock.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
     OF OPERATIONS

     The following discussion should be read in conjunction with the Financial
     Statements and Notes contained herein.

     The following section contains forward-looking statements within the
     meaning of the Private Securities Litigation Reform Act of 1995. Any
     statements that express, or involve discussions as to expectations,
     beliefs, plans, objectives, assumptions or future events or performance
     (often, but not always, through the use of words or phrases such as will
     likely result, are expected to, will continue, is anticipated, estimated,
     projection, outlook) are not statements of historical fact and may be
     forward looking. Forward-looking statements involve estimates, assumptions
     and uncertainties that could cause actual results to differ materially from
     those expressed in the forward-looking statements. These forward-looking
     statements are based largely on the Company's expectations and are subject
     to a number of risks and uncertainties, including but not limited to
     economic, competitive, regulatory, growth strategies, available financing
     and other factors discussed elsewhere in this report and in other documents
     filed by the Company with the Securities and Exchange Commission. Many of
     these factors are beyond the Company's control. Actual results could differ
     materially from the forward-looking statements made. In light of these
     risks and uncertainties, there can be no assurance that the results
     anticipated in the forward-looking information contained in this report
     will, in fact, occur.

     Any forward-looking statement speaks only as of the date on which such
     statement is made, and the Company undertakes no obligation to update any
     forward-looking statement or statements to reflect events or circumstances
     after the date on which such statements are made or reflect the occurrence
     of unanticipated events, unless necessary to prevent such statements from
     becoming misleading. New factors emerge from time to time and it is not
     possible for management to predict all factors, nor can it assess the
     impact of each such factor on the business or the extent to which any
     factor, or combination of factors, may cause actual results to differ
     materially from those contained in any forward-looking statements.


                                       12

<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
     OF OPERATIONS (CONTINUED)

     Overview

     Superconductive Components, Inc. ("SCI" or the "Company"), an Ohio
     corporation, was incorporated in 1987, to develop, manufacture and market
     products based on or incorporating high temperature superconductive ("HTS")
     materials. The Company presents itself to the market as SCI Engineered
     Materials, an operating unit of Superconductive Components, Inc. The
     Company views its business as supplying ceramic and metal materials to a
     variety of industrial applications including: HTS, Photonics/Optical, and
     Thin Film Batteries. The production and sale of HTS materials was the
     initial focus of the Company's operations and these materials continue to
     be a part of the Company's development efforts. Photonics/Optical currently
     represents the Company's largest market for its materials. Thin Film
     Battery materials is a developing market where manufacturers of batteries
     use these materials to produce very small power supplies, with small
     quantities of stored energy.

     Executive Summary

     For the three months ended March 31, 2006, the Company had revenues of
     $1,200,623. This represented the highest quarterly revenue for the Company
     and was the third consecutive quarter of revenues in excess of $1,000,000.
     This was an increase of $625,564, or 108.8%, over the three months ended
     March 31, 2005 and was the sixth consecutive quarter showing a revenue
     increase. Revenues for the twelve-month period ending March 31, 2006 were
     $4,082,746. The first quarter of 2006 included $1,158,531 in product
     revenue, which was the second consecutive quarter that product revenue
     exceeded $1,000,000. For the three months ended March 31, 2006, the Company
     incurred a net loss applicable to common shares of $53,273 compared to a
     net loss of $145,213 for the same period in 2005. EBITDA (Earnings Before
     Interest, Taxes, Deprecation and Amortization) was ($4,021) during the
     three months ending March 31, 2006 versus ($70,069) during the same period
     last year.

     The Company achieved ISO 9001:2000 certification during the second quarter
     of 2005. This immediately resulted in the return of a major customer and
     helped to increase the Company's customer base in 2005. Orders received in
     the first quarter of 2006 were $1,274,000, which was $544,000, or 74.5%
     more than the first quarter of 2005. Orders received for the twelve-month
     period ending March 31, 2006 were $4,004,000.

     The Company received notification in 2005 from the Department of Energy of
     a Notice of Financial Assistance Award that will provide support for Phase
     I of an SBIR entitled "Feasibility of Cost Effective, Long Length, BSCCO
     2212 Round Wires, for Very High Field Magnets Beyond 12 Tesla at 4.2
     Kelvin." The award, in an amount of $99,793, has been completed. The
     Company has submitted the final report and has applied for a Phase II SBIR
     for this project. Revenues of $42,092 were recognized during the first
     quarter of 2006 for this award. $57,701 in revenues was recognized in the
     second half of 2005.


                                       13

<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
     OF OPERATIONS (CONTINUED)

     RESULTS OF OPERATIONS

     CRITICAL ACCOUNTING POLICIES

     The preparation of financial statements and related disclosures in
     conformity with accounting principles generally accepted in the United
     States requires management to make judgments, assumptions and estimates
     that affect the amounts reported in the Financial Statements and
     accompanying notes. Note 2 to the Financial Statements in the Annual Report
     on Form 10-KSB for the year ended December 31, 2005 describes the
     significant accounting policies and methods used in the preparation of the
     Financial Statements. Estimates are used for, but not limited to,
     accounting for the allowance for doubtful accounts, inventory allowances,
     property and equipment depreciable lives, patents and licenses useful
     lives, and assessing changes in which impairment of certain long-lived
     assets may occur. Actual results could differ from these estimates. The
     following critical accounting policies are impacted significantly by
     judgments, assumptions and estimates used in the preparation of the
     Financial Statements. The allowance for doubtful accounts is based on our
     assessment of the collectibility of specific customer accounts and the
     aging of the accounts receivable. If there is a deterioration of a major
     customer's credit worthiness or actual defaults are higher than our
     historical experience, our estimates of the recoverability of amounts due
     us could be adversely affected. Inventory purchases and commitments are
     based upon future demand forecasts. If there is a sudden and significant
     decrease in demand for our products or there is a higher risk of inventory
     obsolescence because of rapidly changing technology and customer
     requirements, we may be required to increase our inventory allowances and
     our gross margin could be adversely affected. Depreciable and useful lives
     estimated for property and equipment, licenses and patents are based on
     initial expectations of the period of time these assets and intangibles
     will provide benefit to our Company. Changes in circumstances related to a
     change in our business, change in technology or other factors could result
     in these assets becoming impaired, which could adversely affect the value
     of these assets.

     THREE MONTHS ENDED MARCH 31, 2006 (UNAUDITED) COMPARED TO THREE MONTHS
     ENDED MARCH 31, 2005 (UNAUDITED):

     REVENUES

     Revenues for the three months ended March 31, 2006 were $1,200,623 compared
     to $575,059, for the same period last year, an increase of $625,564 or
     108.8%.

     Product revenues increased to $1,158,531 in 2006 from $486,626 in 2005, or
     an increase of 138.1%. The increase in revenues for the first three months
     of 2006 was due to the return of a major customer and the addition of
     another major customer following the second quarter 2005 ISO 9001:2000
     certification. Also, the addition of other new customers throughout the
     past twelve months helped to increase revenues.

     Contract research revenues were $42,092 in 2006 as compared to $88,433 in
     2005. The decrease was due to the completion of work performed on a Phase
     II Small Business Innovation Research grant for $523,612 from the
     Department of Energy that was awarded in 2003. This award was to develop an
     advanced method to manufacture continuous reacted lengths of High Tc
     Superconductor: Bismuth Strontium Calcium Copper Oxide - 2212 Wire. The
     work on this contract was completed in 2005. Revenues of $0 and $88,433
     from this grant were included in first quarter 2006 and 2005 revenues,
     respectively.


                                       14

<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
     OF OPERATIONS (CONTINUED)

     The Company received notification in 2005 from the Department of Energy of
     a Notice of Financial Assistance Award in the amount of $99,793. This award
     provided support for Phase I of an SBIR entitled "Feasibility of Cost
     Effective, Long Length, BSCCO 2212 Round Wires, for Very High Field Magnets
     Beyond 12 Tesla at 4.2 Kelvin." The work on the contract has been completed
     and the Company has submitted the final report and has applied for a Phase
     II SBIR for this project. Revenues of $42,092 were recognized during 2006
     for this award. $57,701 in revenues was recognized in the second half of
     2005.

     GROSS MARGIN

     Total gross margin in 2006 was $272,973 or 22.7% of total revenue compared
     to $156,854 or 27.3% in 2005. Gross margin on product revenue was 21.4% in
     2006 versus 21.8% in 2005. The slight decrease was due to product mix of
     higher value product with lower gross margins. Gross margin on contract
     research revenue was 58.6% and 57.3% for the three months ended March 31,
     2006 and 2005, respectively.

     SELLING EXPENSE

     Selling expense in 2006 increased to $68,103 from $52,522 in 2005, an
     increase of 29.7%. The increase was due to the implementation of an
     incentive compensation program.

     GENERAL AND ADMINISTRATIVE EXPENSE

     General and administrative expense in 2006 increased to $212,730 from
     $186,019 in 2005, or 14.4%. The increase was due to higher public relations
     and legal expenses and the implementation of an incentive compensation
     program.

     RESEARCH AND DEVELOPMENT EXPENSE

     Research and development costs are expensed as incurred. Research and
     development costs for 2006 were $47,176 compared to $42,068 in 2005, an
     increase of 12.1%. The increase was due to higher wages and implementation
     of an incentive compensation program.

     INTEREST EXPENSE

     Interest expense was $2,024 and $15,522 for the three months ended March
     31, 2006 and 2005, respectively. Interest expense to related parties was $0
     and $14,366 for the three months ended March 31, 2006, and March 31, 2005,
     respectively. The decrease was due to the elimination of interest expense
     to related parties on a note that was repaid and another note that
     converted to equity in October of 2005.

     LOSS APPLICABLE TO COMMON SHARES

     Loss applicable to common shares was $53,273 and $145,213 for the three
     months ended March 31, 2006 and 2005, respectively. Net loss per common
     share based on the loss applicable to common shares for the three months
     ended March 31, 2006 and 2005 was $0.02 and $0.06, respectively. The loss
     applicable to common shares includes the net loss from operations and the
     accretion of Series B preferred stock dividends. The net loss per common
     share before dividends


                                       15

<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
     OF OPERATIONS (CONTINUED)

     on preferred stock was $0.01 and $0.06 for the three months ended March 31,
     2006 and 2005, respectively. For the three months ended March 31, 2006 and
     2005, all outstanding common stock equivalents are anti-dilutive due to the
     net loss.

     Dividends on the Series B preferred stock accrue at 10% annually on the
     outstanding shares. Dividends on the Series B preferred stock totaled
     $6,296 for the three months ended March 31, 2006 and 2005.

     LIQUIDITY AND WORKING CAPITAL

     At March 31, 2006, working capital was $1,323,515 compared to $(382,528) at
     March 31, 2005. The increase was due to an increase in cash from the
     private placement in the fourth quarter of 2005 as well as a reduction in
     capital lease obligations and obligations due to a note
     payable-shareholder. The Company provided cash from operations of
     approximately $26,000 for the three months ended March 31, 2006. The
     Company used cash from operations of approximately $174,000 for the three
     months ended March 31, 2005. Significant non-cash items including
     depreciation, accretion and amortization, inventory reserve on excess and
     obsolete inventory, and allowance for doubtful accounts were approximately
     $51,000 and $52,000, respectively, for the three months ended March 31,
     2006 and 2005. Accounts receivable, inventory, prepaid expenses and other
     assets increased approximately $82,000 for the three months ended March 31,
     2006 as compared to approximately $104,000 for the same period in 2005.
     Accounts payable and accrued expenses and other increased approximately
     $104,000 for the three months ended March 31, 2006 versus approximately
     $17,000 for the first three months of 2005.

     The Company used cash of approximately $66,000 and $15,000 for investing
     activities for the three months ended March 31, 2006 and March 31, 2005,
     respectively. The amounts invested were used to purchase machinery and
     equipment for increased production capacity, new product lines and for
     leasehold improvements for the new facility. Proceeds on sale of equipment
     totaled $0 and $250 for the three months ended March 31, 2006 and March 31,
     2005, respectively.

     The Company used cash of approximately $51,000 for financing activities
     during the three months ended March 31, 2006. Cash payments to third
     parties for capital lease obligations approximated $14,000. Cash payments
     for services provided for the registration of common stock were $37,333.
     The Company incurred a new lease of $8,380 for a forklift.

     The Company provided cash of approximately $42,000 for financing activities
     for the three months ended March 31, 2005. Cash payments to third parties
     for capital lease obligations approximated $8,000. Proceeds from note
     payable totaled $50,000.

     While certain major shareholders of the Company have advanced funds in the
     form of secured debt, subordinated debt, accounts payable and guaranteeing
     bank debt in the past, there is no commitment by these individuals to
     continue funding the Company or guaranteeing bank debt in the future. The
     Company will continue to seek new financing or equity financing
     arrangements. However, the Company cannot be certain that it will be
     successful in efforts to raise additional funds.

     In November 2004, a director agreed to loan the Company up to $200,000 for
     working capital, to be drawn by the Company in increments of $50,000. The
     interest rate was Huntington National Bank's prime rate plus 2%, accruing
     and compounding monthly. The loan was secured by a first


                                       16

<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
     OF OPERATIONS (CONTINUED)

     lien on substantially all of the Company's assets. For each $50,000
     increment drawn on the loan, the director received 5,000 warrants to
     purchase the Company's common stock at a purchase price of $2.50 per share
     exercisable until November 1, 2009. The loan was drawn based on the
     following schedule: November 3, 2004, $100,000, January 7, 2005, $50,000;
     and April 1, 2005, $50,000. The entire loan balance (principal and accrued
     interest) was repaid in October 2005.

     In April 2005, the same director who agreed to provide a secured loan for
     $200,000 to the Company in November 2004, agreed to provide an additional
     $200,000 secured loan to the Company for working capital. The interest rate
     was 10%, accruing and compounding monthly. On April 14, 2005, $100,000 was
     drawn on this loan. $100,000 was also drawn on the loan on May 20, 2005. By
     the terms of the loan, because the Company completed an equity financing of
     at least $500,000 during 2005, the principal and accrued interest on this
     loan totaling $209,110 automatically converted on the same basis as the new
     financing to 104,555 shares of common stock ($2.00 per share) and warrants
     to purchase an aggregate of 26,139 shares of the Company's common stock at
     a purchase price of $3.00 per share exercisable until October 2010.

     In the fourth quarter of 2005, the Company completed a private placement to
     accredited investors. The investors purchased 986,555 shares of common
     stock at a price of $2.00 per share and warrants to purchase an additional
     246,639 shares of common stock at $3.00 per share until October 14, 2010.
     The Company received $1,386,000 in cash from certain investors for 693,000
     shares of common stock and warrants to purchase 173,250 shares of Common
     Stock. Four other investors cancelled indebtedness owed by the Company in
     the aggregate amount of $587,110 in exchange for 293,555 shares of common
     stock and warrants to purchase 73,389 shares of common stock. The
     indebtedness cancelled was as follows: (i) the Estate of Edward R. Funk
     cancelled indebtedness of $188,411.71 in exchange for 94,000 shares of
     common stock, warrants to purchase 23,500 shares of common stock at $3.00
     per share exercisable until October 2010, and payment of $411.71; (ii) the
     Estate of Ingeborg V. Funk cancelled $100,980.21 of indebtedness in
     exchange for 50,000 shares of common stock, warrants to purchase 12,500
     shares of common stock at $3.00 per share exercisable until October 2010,
     and payment of $980.21; (iii) Porter, Wright, Morris & Arthur LLP (PWMA)
     cancelled $90,000 of indebtedness for legal fees in exchange for 45,000
     shares of common stock and warrants to purchase an additional 11,250 shares
     of common stock at $3.00 per share exercisable until October 2010; and (iv)
     a director cancelled $209,110 of a secured loan in exchange for 104,555
     shares of common stock and warrants to purchase an additional 26,139 shares
     of common stock at $3.00 per share exercisable until October 2010 (as
     described in preceding paragraph).

     RISK FACTORS

     The Company desires to take advantage of the "safe harbor" provisions of
     the Private Securities Litigation Reform Act of 1995. The following
     factors, as well as the factors listed under the caption "Risk Factors" in
     the Company's Form 10-KSB filed with the Securities and Exchange Commission
     on March 27, 2006, have affected or could affect the Company's actual
     results and could cause such results to differ materially from those
     expressed in any forward-looking statements made by the Company. Investors
     should consider carefully these risks and speculative factors inherent in
     and affecting the business of the Company and an investment in the
     Company's common stock.


                                       17

<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
     OF OPERATIONS (CONTINUED)

     We have experienced significant operating losses in the past and may
     continue to do so in the future.

     We commenced business in May of 1987. Our accumulated deficit since
     inception was $8,208,332 (unaudited) at March 31, 2006.

     We have financed the losses primarily from additional investments and loans
     by our major shareholders and a private offering of common stock and
     warrants to purchase common stock in 2004 and 2005. We cannot assure you,
     however, that we will be able to raise additional capital in the future to
     fund our operations.

     Off Balance Sheet Arrangements

     The Company has no off balance sheet arrangements including special purpose
     entities.

ITEM 3. CONTROLS AND PROCEDURES

     As of the end of the period covered by this report, the Company's Chief
     Executive Officer and Chief Financial Officer evaluated the effectiveness
     of the design and operation of the Company's disclosure controls and
     procedures (as defined in Rules 13a-15(e) and 15d-15(e) promulgated under
     the Securities Exchange Act of 1934). Based upon this evaluation, the Chief
     Executive Officer and Chief Financial Officer concluded that the disclosure
     controls and procedures were effective as of the period covered by this
     report in ensuring that information required to be disclosed by the Company
     in the reports that it files or submits under the Securities and Exchange
     Act of 1934, as amended, is recorded, processed, summarized and reported
     within the time period specified by the Securities and Exchange
     Commission's rules and forms.

     Additionally, there were no changes in the Company's internal controls that
     could materially affect the Company's disclosure controls and procedures
     subsequent to the date of their evaluation, nor were there any material
     deficiencies or material weaknesses in the Company's internal controls. As
     a result, no corrective actions were required or undertaken.


                                       18

<PAGE>

                           PART II. OTHER INFORMATION

ITEM 6. EXHIBITS.

<TABLE>
<S>    <C>
31.1   Rule 13a-14(a) Certification of Principal Executive Officer.

31.2   Rule 13a-14(a) Certification of Principal Financial Officer.

32.1   Section 1350 Certification of Principal Executive Officer.

32.2   Section 1350 Certification of Principal Financial Officer.

99.1   Press Release dated May 8, 2006, entitled "Superconductive Components,
       Inc. Reports Record First Quarter Revenues."
</TABLE>

                                   SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
     Registrant has duly caused this report to be signed on its behalf by the
     undersigned thereunto duly authorized.

                                        SUPERCONDUCTIVE COMPONENTS, INC.


Date: May 8, 2006                       /s/ Daniel Rooney
                                        ----------------------------------------
                                        Daniel Rooney, President and Chief
                                        Executive Officer
                                        (Principal Executive Officer)


                                        /s/ Gerald S. Blaskie
                                        ----------------------------------------
                                        Gerald S. Blaskie, Vice President and
                                        Chief Financial Officer
                                        (Principal Financial Officer)


                                       19