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 September 30, 2003

[ ] 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)

              OHIO                                            31-0121318
(State or other jurisdiction of                            (I.R.S. Employer
 incorporation or organization)                           Identification No.)

                  1145 CHESAPEAKE AVENUE, COLUMBUS, OHIO 43212
          (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)

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 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
                                                       ---     ---

         State the number of shares outstanding of each of the registrant's
classes of common equity, as of the latest practicable date: 1,823,256 shares of
Common Stock, without par value, were outstanding at October 31, 2003.
<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 September 30, 2003  (unaudited)
                           and December 31, 2002                                                   3 - 4

                      Statements of Operations For the Three Months and Nine Months
                           Ended September 30, 2003 and 2002  (unaudited)                            5

                      Statements of Cash Flows For the Three Months and Nine Months
                           Ended September 30, 2003 and 2002 (unaudited)                           6 - 7

                      Notes to Financial Statements (unaudited)                                    8 - 12


         Item 2.  Management's Discussion and Analysis or Plan of Operation.                      13 - 21

         Item 3.  Controls and Procedures.                                                          22

PART II. OTHER INFORMATION

         Item 1.  Legal Proceedings.                                                                N/A

         Item 2.  Changes in 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.                                                 23

         Signatures.                                                                                23
</TABLE>
<PAGE>


                          PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                        SUPERCONDUCTIVE COMPONENTS, INC.

                                 BALANCE SHEETS

                                     ASSETS
                                     ------

<TABLE>
<CAPTION>

                                                                    SEPTEMBER 30,     DECEMBER 31,
                                                                         2003             2002
                                                                         ----             ----
                                                                    (UNAUDITED)
<S>                                                                 <C>               <C>
CURRENT ASSETS
  Cash                                                              $   393,499       $    48,908
  Accounts and notes receivable
    Trade, less allowance for doubtful accounts of $22,000 and
                 $18,000 respectively                                   204,703           170,038
    Contract receivable                                                      --            71,087
    Related party receivables                                             2,739             4,368
    Employees                                                             7,712            11,985
    Other                                                                   135               733
 Inventories                                                            642,766           655,432
 Prepaid expenses                                                         5,495            33,934
                                                                    -----------       -----------
       Total current assets                                           1,257,049           996,485
                                                                    -----------       -----------

PROPERTY AND EQUIPMENT,
 AT COST
  Machinery and equipment                                             2,027,484         2,312,869
  Furniture and fixtures                                                 22,124            22,124
  Leasehold improvements                                                347,349           347,349
                                                                    -----------       -----------
                                                                      2,396,957         2,682,342
  Less accumulated depreciation                                      (1,787,172)       (2,068,246)
                                                                    -----------       -----------
                                                                        609,785           614,096
                                                                    -----------       -----------

OTHER ASSETS
  Deposit                                                                 7,864                --
  Intangibles                                                            40,931            43,247
                                                                    -----------       -----------
       Total other assets                                                48,795            43,247
                                                                    -----------       -----------

TOTAL ASSETS                                                        $ 1,915,629       $ 1,653,828
                                                                    ===========       ===========
</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>

                                                                                  SEPTEMBER 30,      DECEMBER 31,
                                                                                      2003               2002
                                                                                      ----               ----
                                                                                   (UNAUDITED)
<S>                                                                                <C>               <C>
CURRENT LIABILITIES
 Capital lease obligation, current portion                                         $    35,260       $    40,144
 Capital lease obligation, shareholder, current portion                                 66,357            48,171
 Note payable shareholders, current portion                                            118,000            82,000
 Accounts payable                                                                      236,518           329,693
 Accounts payable, shareholders                                                          7,920             7,920
 Accrued contract expenses                                                              54,223            21,143
 Accrued personal property taxes                                                        44,185            54,002
 Accrued interest, shareholders                                                         30,689            20,638
 Accrued expenses                                                                       82,169            42,836
                                                                                   -----------       -----------
  Total current liabilities                                                            675,321           646,547
                                                                                   -----------       -----------

CAPITAL LEASE OBLIGATION, NET OF
 CURRENT PORTION                                                                        36,989            63,721
                                                                                   -----------       -----------

CAPITAL LEASE OBLIGATION, SHAREHOLDER, NET OF
 CURRENT PORTION                                                                         2,071            20,257
                                                                                   -----------       -----------

NOTE PAYABLE SHAREHOLDERS, NET OF CURRENT
 PORTION                                                                               779,625            86,270
                                                                                   -----------       -----------

REDEEMABLE CONVERTIBLE PREFERRED
 STOCK (Series A)
10% cumulative, nonvoting, no par value, $1,000 stated value, liquidation and
  mandatory redemption at stated value per share plus unpaid and accumulated
  dividends of $278.20 per share                                                            --           121,770
                                                                                   -----------       -----------

COMMITMENTS AND CONTINGENCIES                                                               --                --
                                                                                   -----------       -----------

SHAREHOLDERS' EQUITY
Convertible preferred stock, Series B, 10% cumulative,
  nonvoting, no par value, $10 stated value, optional
  redemption at 103%                                                                   349,668           335,492
Common stock, no par value, authorized 15,000,000
  shares; 1,823,256 shares issued and outstanding                                    6,378,216         6,378,216
Additional paid-in capital                                                              (5,184)            8,992
Accumulated deficit                                                                 (6,301,077)       (6,007,437)
                                                                                   -----------       -----------
                                                                                       421,623           715,263
                                                                                   -----------       -----------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                         $ 1,915,629       $ 1,653,828
                                                                                   ===========       ===========
</TABLE>

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


                                      - 4 -
<PAGE>


                        SUPERCONDUCTIVE COMPONENTS, INC.

                            STATEMENTS OF OPERATIONS

               THREE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002 AND
                  NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
                  ---------------------------------------------
                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                       THREE MONTHS ENDED                  NINE MONTHS ENDED
                                                    2003               2002              2003              2002
                                                    ----               ----              ----              ----
<S>                                              <C>               <C>               <C>               <C>
SALES REVENUE                                    $   489,710       $   794,803       $ 1,676,863       $ 2,151,396
CONTRACT RESEARCH REVENUE                            119,020            68,376           217,511           211,909
                                                 -----------       -----------       -----------       -----------
                                                     608,730           863,179         1,894,374         2,363,305
                                                 -----------       -----------       -----------       -----------

COST OF SALES REVENUE                                387,168           518,479         1,300,768         1,470,482
COST OF CONTRACT RESEARCH                            107,259            71,544           124,928           210,005
                                                 -----------       -----------       -----------       -----------
                                                     494,427           590,023         1,425,696         1,680,487
                                                 -----------       -----------       -----------       -----------

GROSS MARGIN                                         114,303           273,156           468,678           682,818

GENERAL AND ADMINISTRATIVE EXPENSES                  156,871           200,983           573,186           644,065

SALES AND PROMOTIONAL EXPENSES                        58,210            63,088           155,784           157,576
                                                 -----------       -----------       -----------       -----------

INCOME (LOSS) FROM OPERATIONS                       (100,778)            9,085          (260,292)         (118,823)
                                                 -----------       -----------       -----------       -----------

OTHER INCOME (EXPENSE)
  Interest, net                                      (10,232)           (6,679)          (21,514)          (15,689)
  Insurance proceeds                                      --                --                --            39,083
  Miscellaneous, net                                     528              (428)            4,052            (1,284)
                                                 -----------       -----------       -----------       -----------
                                                      (9,704)           (7,107)          (17,462)           22,110
                                                 -----------       -----------       -----------       -----------

INCOME (LOSS) BEFORE INCOME TAX                     (110,482)            1,978          (277,754)          (96,713)

INCOME TAX EXPENSE                                        --                --                --                --
                                                 -----------       -----------       -----------       -----------

NET INCOME (LOSS) BEFORE CUMULATIVE EFFECT
 OF A CHANGE IN ACCOUNTING                          (110,482)            1,978          (277,754)          (96,713)

CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING               --                --           (15,886)               --
                                                 -----------       -----------       -----------       -----------

NET INCOME (LOSS)                                   (110,482)            1,978          (293,640)          (96,713)

DIVIDENDS ON PREFERRED STOCK                            (405)           (6,061)          (14,175)          (24,781)

ACCRETION OF REDEEMABLE CONVERTIBLE
 PREFERRED (SERIES A)                                     --                --                --            (6,469)
                                                 -----------       -----------       -----------       -----------

LOSS APPLICABLE TO COMMON SHARES                 $  (110,887)      $    (4,083)      $  (307,815)      $  (127,963)
                                                 ===========       ===========       ===========       ===========

EARNINGS PER SHARE - BASIC AND DILUTIVE
 (Note 2)

NET INCOME (LOSS) PER COMMON SHARE BEFORE
 CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING
  Basic                                          $     (0.06)      $      0.00       $     (0.15)      $     (0.05)
                                                 ===========       ===========       ===========       ===========
  Dilutive                                       $     (0.06)      $      0.00       $     (0.15)      $     (0.05)
                                                 ===========       ===========       ===========       ===========

NET LOSS PER COMMON SHARE AFTER CUMULATIVE
 EFFECT OF A CHANGE IN ACCOUNTING
  Basic                                          $     (0.06)      $     (0.00)      $     (0.17)      $     (0.07)
                                                 ===========       ===========       ===========       ===========
  Dilutive                                       $     (0.06)      $     (0.00)      $     (0.17)      $     (0.07)
                                                 ===========       ===========       ===========       ===========

WEIGHTED AVERAGE SHARES OUTSTANDING
  Basic                                            1,823,256         1,823,256         1,823,256         1,823,256
                                                 ===========       ===========       ===========       ===========
  Dilutive                                         1,823,256         1,823,256         1,823,256         1,823,256
                                                 ===========       ===========       ===========       ===========
</TABLE>

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


                                      - 5 -
<PAGE>


                      SUPERCONDUCTIVE COMPONENTS, INC.

                          STATEMENTS OF CASH FLOWS

                NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002

                                 (UNAUDITED)

<TABLE>
<CAPTION>

                                                                                      2003            2002
                                                                                      ----            ----
<S>                                                                                <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net loss                                                                         $(293,640)      $ (96,713)
                                                                                   ---------       ---------
  Adjustments to reconcile net loss to net cash used in operating activities:
    Depreciation                                                                     165,627         174,165
    Amortization and accretion                                                         2,316           2,228
    Cumulative effect of a change in accounting                                       15,886              --
    Gain on sale of equipment                                                         (5,425)             --
    Inventory reserve                                                                (30,608)             --
    Provision for doubtful accounts                                                   (4,000)          4,000
    Changes in operating assets and liabilities:
      (Increase) decrease in assets:
        Accounts receivable                                                           46,922         (72,596)
        Inventories                                                                   43,275          12,850
        Prepaid expenses                                                              28,439         (36,691)
        Other assets                                                                  (7,864)         (2,227)
      Increase (decrease) in liabilities:
        Accounts payable                                                             (93,175)        119,982
        Accrued expenses                                                              50,189        (142,349)
                                                                                   ---------       ---------
          Total adjustments                                                          211,582          59,362
                                                                                   ---------       ---------
              Net cash used in operating activities                                  (82,058)        (37,351)
                                                                                   ---------       ---------

CASH FLOWS FROM INVESTING ACTIVITIES
  Proceeds on sale of equipment                                                        5,425              --
  Purchases of property and equipment                                               (147,160)        (56,232)
                                                                                   ---------       ---------
              Net cash used in investing activities                                 (141,735)        (56,232)
                                                                                   ---------       ---------

CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from note payable, shareholders                                           600,000          50,000
  Principal payments on capital lease obligations                                    (31,616)        (30,846)
                                                                                   ---------       ---------
              Net cash provided by financing activities                              568,384          19,154
                                                                                   ---------       ---------
</TABLE>

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


                                      - 6 -
<PAGE>


                        SUPERCONDUCTIVE COMPONENTS, INC.

                      STATEMENTS OF CASH FLOWS (CONTINUED)

                  NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
                  ---------------------------------------------

                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                                       2003           2002
                                                                       ----           ----
<S>                                                                 <C>            <C>
NET INCREASE (DECREASE) IN CASH                                       344,591        (74,429)

CASH - Beginning of period                                             48,908        118,083
                                                                    ---------      ---------

CASH - End of period                                                $ 393,499      $  43,654
                                                                    =========      =========

SUPPLEMENTAL DISCLOSURES OF CASH
 FLOW INFORMATION
  Cash paid during the years for:
    Interest, net                                                   $   5,836          8,699
    Income taxes                                                    $      --             --

SUPPLEMENTAL DISCLOSURES OF NONCASH
 FINANCING ACTIVITIES
   In second quarter 2003, $121,770 of Redeemable Convertible
    Preferred stock, Series A, was converted to Notes Payable,
    Shareholders

   In second quarter 2003, $7,585 of accrued interest
    was transferred to Notes Payable Shareholders

   Machinery & Equipment and expenses for asset retirement
    obligations of $30,043 are accrued
</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, lens and optical
                  coatings, research, electronics and functional 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 fiscal year ended December 31,
                  2002. 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.

                  Effective January 1, 2003, the Company implemented SFAS 143 -
                  "Accounting for Asset Retirement Obligations". This statement
                  addresses financial accounting and reporting for obligations
                  associated with the retirement of tangible long-lived assets
                  and the associated asset retirement costs.

NOTE 3.           INVENTORY

                  Inventory is comprised of the following:

                                            SEPTEMBER 30,       DECEMBER 31,
                                                2003                2002
                                            -------------       ------------
                                            (unaudited)
                  Raw materials              $ 417,417           $ 459,784
                  Work-in-progress             136,039             145,838
                  Finished goods               184,825             175,933
                  Inventory reserve            (95,515)           (126,123)
                                             ---------           ---------
                                             $ 642,766           $ 655,432
                                             =========           =========


                                     - 8 -
<PAGE>


                        SUPERCONDUCTIVE COMPONENTS, INC.

                          NOTES TO FINANCIAL STATEMENTS

NOTE 4.           COMMON STOCK AND STOCK OPTIONS

                  The following options were granted under the 1995 Stock Option
                  Plan during the nine months ended September 30, 2003:

                        GRANT DATE           # OPTIONS GRANTED    OPTION PRICE
                        ----------           -----------------    ------------

                      January 16, 2003              35,000             $1.00

NOTE 5.           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 September 30, 2003 and 2002, 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 Sept. 30,    Nine months ended Sept. 30,

                                                  2003            2002            2003            2002
                                                  ----            ----            ----            ----
<S>                                           <C>             <C>             <C>             <C>
                  Income (loss) applicable
                   to common shares           $  (110,887)    $    (4,083)    $  (307,815)    $  (127,963)
                                              ===========     ===========     ===========     ===========

                  Weighted average
                   common shares
                   outstanding - basic          1,823,256       1,823,256       1,823,256       1,823,256

                  Effect of dilutions -
                   stock options                       --              --              --              --
                                              -----------     -----------     -----------     -----------

                  Weighted average
                   shares outstanding -
                   diluted                      1,823,256       1,823,256       1,823,256       1,823,256
                                              ===========     ===========     ===========     ===========
</TABLE>

NOTE 6.           REDEEMABLE CONVERTIBLE PREFERRED STOCK (SERIES A)

                  Effective June 30, 2003, all 99 shares of the Series A
                  redeemable convertible preferred stock ($99,000), accrued
                  dividends ($22,770) and accrued interest ($7,585) were
                  converted to notes payable. The principal sum and any accrued
                  and unpaid interest on the notes shall be payable in full on
                  June 30, 2006. The holders of the notes may convert all or a
                  portion of the principal sum and any accrued and unpaid
                  interest owing on the


                                      - 9-
<PAGE>


                        SUPERCONDUCTIVE COMPONENTS, INC.

                          NOTES TO FINANCIAL STATEMENTS

                  notes into shares of common stock at any time after the first
                  anniversary of the issuance of the notes. Interest will be
                  based upon the Prime Commercial Rate on the date of the Notes
                  and subsequently on the last business day of the preceding
                  calendar year. If, within one year of the date of the issuance
                  of the notes, the Company obtains non-bank equity financing in
                  the amount of at least $500,000, then the unpaid portion of
                  the principal sum and any accrued and unpaid interest
                  automatically shall convert into shares of common stock. The
                  Company also issued 26,302 warrants to the holders of the
                  notes to purchase shares of common stock for the price of
                  $1.00 per Warrant Share.

NOTE 7.           ASSET RETIREMENT OBLIGATION

                  Property and equipment are stated at cost including the
                  expected present value of future obligations to provide for
                  their retirement. Depreciation and amortization are provided
                  using the straight-line method over the estimated useful lives
                  of the assets.

                  Included in machinery and equipment is various production
                  equipment which, per the Company's building lease, is required
                  to be removed upon termination of the lease. Included in
                  current liabilities in the accompanying balance sheet is the
                  asset retirement obligation that represents the expected
                  present value of the liability to remove this equipment. There
                  are no assets that are legally restricted for purposes of
                  settling this asset retirement obligation.

                  Changes in asset retirement obligation for the nine months
                  ended September 30, 2003:

                           Liability, beginning of year                $      0
                               Liabilities incurred prior to 2003
                                  recorded in first quarter              27,158
                               Liabilities incurred through Sept 30       2,885
                               Liabilities settled                            0
                               Accretion expense                              0
                               Revisions in cash flow estimates               0
                                                                       --------
                           Liability, end of quarter                   $ 30,043
                                                                       ========

                  Pro forma income statement effect for the nine months ended
                  September 30, 2002:

                           Net loss as reported                      $(127,963)
                           Additional depreciation expense                 136
                           Additional accretion expense                      0
                                                                     ----------
                           Net loss restated retroactive for
                            change in accounting                     $(128,099)
                                                                     =========

                           Net loss per common share
                            as reported                              $   (0.07)

                           Net loss per common share
                            restated retroactive for
                            change in accounting                     $   (0.07)


                                     - 10 -
<PAGE>


                        SUPERCONDUCTIVE COMPONENTS, INC.

                          NOTES TO FINANCIAL STATEMENTS

NOTE 8.           NOTES PAYABLE SHAREHOLDERS AND COMMON STOCK WARRANTS

                  The Company recently completed two private financing
                  transactions including (i) the issuance of convertible
                  promissory notes in the aggregate amount of $600,000 and
                  122,000 warrants to purchase shares of common stock in
                  exchange for $600,000 in cash and (ii) the redemption of the
                  Company's entire $129,770 obligation on its Series A
                  redeemable convertible preferred stock in exchange for
                  convertible promissory notes in the aggregate amount of
                  $129,770, which represented the face amount of the preferred
                  stock plus accrued and unpaid dividends and interest, and
                  26,302 warrants to purchase shares of common stock. Four
                  present shareholders invested the $600,000 of new money in the
                  Company. $500,000 in cash and the redemption of the Series A
                  redeemable preferred stock was received and recorded on June
                  30, 2003. $100,000 in cash was received and recorded on July
                  1, 2003.

                  The principal and interest on the $729,770 of new convertible
                  promissory notes are payable June 30, 2006. Interest shall be
                  based upon the prime commercial rate on the date of the notes
                  and subsequently on the last business day of the preceding
                  calendar year. If the Company completes an equity financing
                  for at least $500,000 prior to June 30, 2004, the notes shall
                  automatically convert to common stock at the same per share
                  price as the equity financing and thereafter the notes shall
                  convert to common stock at the option of the holders at $2.00
                  per share. The Company used $100,000 of the note proceeds to
                  pay off its bank line of credit which terminated on June 30,
                  2003, and plans to use approximately $300,000 to finance its
                  move to a new facility and approximately $200,000 for general
                  corporate purposes.

NOTE 9.           INCENTIVE STOCK OPTION PLANS

                  The Company's pro forma information for the nine months ended
                  September 30, 2003 and 2002 in accordance with the provisions
                  of FASB #123 is provided below. For purpose of pro forma
                  disclosures, stock-based compensation is amortized to expense
                  on a straight-line basis over the vesting period. The
                  following table compares the results as reported for the nine
                  months ended September 30, 2003 and 2002 to the results had
                  the Company adopted the expense recognition provisions of FASB
                  #123.

<TABLE>
<CAPTION>

                                                            Sept. 30,       Sept. 30,
                                                               2003            2002
                                                               ----            ----
<S>                                                        <C>             <C>
                  Net loss applicable to common shares:
                           As reported                     $  (307,815)    $  (127,963)
                           Pro forma under SFAS #123          (311,552)       (129,600)
                  Basic and diluted loss per share:
                           As reported                     $     (0.17)    $     (0.07)
                           Pro forma under SFAS #123             (0.17)          (0.07)
                  Diluted loss per share:
                           As reported                     $     (0.17)    $     (0.07)
                           Pro forma under SFAS #123       $     (0.17)          (0.07)
</TABLE>


                                     - 11 -
<PAGE>


                        SUPERCONDUCTIVE COMPONENTS, INC.

                          NOTES TO FINANCIAL STATEMENTS

NOTE 10.          CAPITAL REQUIREMENT; RISK OF CURTAILMENT OF BUSINESS
                  OPERATIONS

                  Our accumulated deficit since inception was $6,301,077
                  (unaudited) at September 30, 2003. The Company has financed
                  the losses primarily from: (i) several private offerings of
                  debt and equity securities; (ii) additional investments and
                  loans by our major shareholders; and (iii) a private offering
                  of common stock and warrants to purchase common stock in
                  October 2000. The Company expects to continue to incur
                  significant operating and net losses in 2003, and it is
                  possible that the Company will never be able to sustain or
                  develop the revenue levels necessary to attain profitability.

                  As of September 30, 2003, cash on-hand was $393,499. During
                  the first nine months of 2003 the Company used $82,000 in cash
                  from operations. The Company believes, based on currently
                  available financing and forecasted sales and expenses, that
                  funding will be adequate to sustain operations through
                  December 2003. The Company recently completed two private
                  financing transactions as detailed in Note 8.


                                     - 12 -
<PAGE>


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR
         PLAN OF OPERATION

         (B) MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATION

         SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM
         ACT OF 1995

         The matters discussed in this quarterly report on Form 10-QSB include
         certain 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. 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.

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

         RESULTS OF OPERATIONS

         To date, the Company has received revenue predominantly from commercial
         sales, government research contracts and non-government research
         contracts. The Company has incurred cumulative losses of $6,301,077
         from inception to September 30, 2003.

         NINE MONTHS ENDED SEPTEMBER 30, 2003 (UNAUDITED) COMPARED TO NINE
         MONTHS ENDED SEPTEMBER 30, 2002 (UNAUDITED):

         REVENUES

                  Revenues for the nine months ended September 30, 2003 were
         $1,894,374 compared to $2,363,305 for the nine months ended September
         30, 2002, a decrease of $468,931 or 19.8%.


                                     - 13 -
<PAGE>


         Product revenues decreased to $1,676,863 for the nine months ended
         September 30, 2003, from $2,151,396 for the comparable period in 2002
         or a decrease of 22.1%. The decline in revenues for the first nine
         months of 2003 was due to lower product shipments as a result of the
         weak U.S. economy. The Company has intensified its marketing efforts by
         increasing the number of manufacturers representatives representing the
         Company. A sales consultant was also added to the organization in June
         2003.

         Contract research revenues were $217,511 for the nine months ended
         September 30, 2003 as compared to $211,909 for the nine months ended
         September 30, 2002. The increase is due to a Phase II SBIR grant from
         the Department of Energy. The Company was awarded an interim contract
         for $105,592. The entire amount was recognized as revenue during the
         first nine months of 2003. The complete Phase II SBIR program is valued
         at $623,612 and was awarded to the Company in September 2003. The
         project runs through June 2005.

         In October 2003 the Company and its project partner received a
         $1,175,321 award from the Third Frontier Action Fund. This fund is
         administered by the Ohio Department of Development to expand the
         state's high-tech research capabilities and create new jobs. This award
         is to scale-up manufacturing processes to produce materials to be used
         in lithium thin-film batteries. The Company's portion of the award is
         approximately $600,000, which will be used to purchase manufacturing
         equipment.

         The Company is a member of a team led by Oxford Instruments
         Superconducting Technology, which was awarded a grant from the
         Department of Energy Superconductivity Partnership Initiative (SPI)
         Program. Revenues of $67,474 were recognized in the first nine months
         of 2003.

         GROSS MARGIN

         Total gross margin for the nine months ended September 30, 2003 was
         $468,678 or 24.7% of total revenue compared to $682,818, or 28.9% of
         total revenue for the nine months ended September 30, 2002. Gross
         margin on product revenue was 22.4% for the nine months ended September
         30, 2003 versus 31.6% for the nine months ended September 30, 2002. The
         decrease was due to lower sales as well as the product mix. Gross
         margin on contract research revenue was 42.6% for the nine months ended
         September 30, 2003 and 0.9% for the nine months ended September 30,
         2002. The increase was due to the completion of the SBIR Phase I, the
         recently awarded SBIR Phase II and the addition of the Oxford SPI
         program. Included in the revenues of the Oxford SPI program was
         approximately $44,000 that was received for the purchase of machinery
         and equipment. This contributed directly to the gross margin.

         SELLING EXPENSE

         Selling expense for the nine months ended September 30, 2003 decreased
         to $155,784 from $157,576 for the comparable period in 2002, a decrease
         of 1.1%. The decrease was due to lower commission costs, wages, and
         travel expenses. The savings were offset by the addition of a sales
         consultant.


                                     - 14 -
<PAGE>


         GENERAL AND ADMINISTRATIVE EXPENSE

         General and administrative expense for the nine months ended September
         30, 2003 decreased to $573,186 from $644,065 or a 11.0% decrease from
         the comparable period of 2002. The decrease in these costs was due to a
         reduction in administrative staff.

         RESEARCH AND DEVELOPMENT EXPENSE

         Internal research and development costs are expensed as incurred.
         Research and development costs for the nine months ended September 30,
         2003 were $63,764 compared to $9,875 for the nine months ended
         September 30, 2002. Internal research and development costs increased
         due to a decrease in contract research revenues earlier in the year
         which are used to offset these expenses. The SBIR programs received in
         the second half of 2003 will help offset these costs during the
         remainder of this year.

         INTEREST EXPENSE

         Interest expense was $23,472 for the nine months ended September 30,
         2003 compared to $19,509 for the nine months ended September 30, 2002.
         Interest expense to related parties was $17,636 and $10,985 for the
         nine months ended September 30, 2003, and September 30, 2002,
         respectively. The increase was due to the accrued interest incurred as
         a result of the Series A preferred stock and the financing completed in
         July 2003.

         INCOME (LOSS) APPLICABLE TO COMMON SHARES

         BASIC

         Net loss per common share based on the loss applicable to common shares
         for the nine months ended September 30, 2003 and 2002, was $0.17 and
         $0.07, respectively. The loss applicable to common shares includes the
         net loss from operations, Series A and B preferred stock dividends, the
         accretion of Series A preferred stock and the cumulative effect of the
         change in accounting. The net loss per common share before cumulative
         effect of a change in accounting was $0.15 and $0.05 for the nine
         months ended September 30, 2003 and 2002, respectively. The difference
         between the net loss per common share before cumulative effect of a
         change in accounting and the loss applicable to common shares of $0.02
         and $0.02 for the nine months ended September 30, 2003 and 2002,
         respectively, was a result of the preferred position that the preferred
         shareholders have in comparison to the common shareholders and the
         cumulative effect of the change in accounting.

         Dividends on the Series A and B preferred stock accrue at 10% annually
         on the outstanding shares. Dividends on the Series A preferred stock
         totaled $0 for the nine months ended September 30, 2003 and $4,126 for
         the nine months ended September 30, 2002. The 99 shares of Series A
         were redeemable at May 31, 2002 and the Company began accruing interest
         expense June 1, 2002 until the stock was exchanged for convertible
         promissory notes on June 30, 2003. Dividends on the Series B preferred
         stock totaled $14,175 and $20,655 for the nine months ended September
         30, 2003 and 2002 respectively.


                                     - 15 -
<PAGE>


         The accretion of Series A preferred stock represents issue costs of
         $70,277 that were netted against the proceeds of Series A preferred
         stock. The issue costs were amortized over the payout period of seven
         years of income (loss) applicable to common shares and additional
         paid-in capital. The accretion totaled $0 for the first nine months of
         2003 and $6,469 for the first nine months of 2002.

         Basic loss per common share for the nine months ended September 30,
         2003, was $0.17 per share with 1,823,256 average common shares
         outstanding as compared to $0.07 per share and 1,823,256 weighted
         average common shares outstanding for the nine months ended September
         30, 2002.

         DILUTED

         Diluted loss per common share for the nine months ended September 30,
         2003 was $0.17 per share with 1,823,256 average common shares
         outstanding as compared to $0.07 per share and 1,823,256 weighted
         average common shares outstanding for the nine months ended September
         30, 2002. For the nine months ended September 30, 2003 and 2002, all
         outstanding common stock equivalents are anti-dilutive due to the net
         loss.

         LIQUIDITY AND WORKING CAPITAL

         At September 30, 2003, working capital was $581,728 compared to
         $689,131 at September 30, 2002. The Company utilized cash from
         operations for the nine months ended September 30, 2003, of
         approximately $82,000. The Company utilized cash from operations for
         the nine months ended September 30, 2002, of approximately $37,000.
         Significant non-cash items including depreciation, inventory reserve on
         excess and obsolete inventory, allowance for doubtful accounts and the
         cumulative effect of the change in accounting were approximately
         $156,000 and $180,000, respectively, for the nine months ended
         September 30, 2003 and 2002. Overall, accounts receivable, inventory,
         and prepaids decreased in excess of decreases in accounts payable and
         accrued expenses by approximately $63,000 for the nine months ended
         September 30, 2003. Accounts receivable, inventory, and prepaids
         increased in excess of increases in accounts payable and accrued
         expenses by approximately $121,000 for the nine months ended September
         30, 2002, as a result of timing of receipt of inventory versus required
         scheduled payments on this inventory and increased prepaid expenses.

         For investing activities, the Company used cash of approximately
         $142,000 and $56,000, for the nine months ended September 30, 2003 and
         September 30, 2002, respectively. The amounts invested were used to
         purchase machinery and equipment for increased production capacity.
         Proceeds on sale of equipment totaled $5,425 and $0 for the nine months
         ended September 30, 2003 and September 30, 2002, respectively.

         For financing activity for the nine months ended September 30, 2003,
         the Company provided cash of approximately $568,000. Cash payments to
         third parties for capital lease obligations approximated $32,000.
         Proceeds from notes payables from shareholders were $600,000.


                                     - 16 -
<PAGE>


         For financing activity for the nine months ended September 30, 2002,
         the Company provided cash of approximately $19,000. Cash payments to
         third parties for capital lease obligations approximated $31,000;
         proceeds from notes payable from shareholders totaled $50,000.

         While certain major shareholders of the Company have advanced funds in
         the form of 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 new funds.

         The Company recently completed two private financing transactions
         including (i) the issuance of convertible promissory notes in the
         aggregate amount of $600,000 and 122,000 warrants to purchase shares of
         common stock in exchange for $600,000 in cash and (ii) the redemption
         of the Company's entire $129,770 obligation on its Series A redeemable
         convertible preferred stock in exchange for convertible promissory
         notes in the aggregate amount of $129,770, which represented the face
         amount of the preferred stock plus accrued and unpaid dividends and
         interest, and 26,302 warrants to purchase shares of common stock. Four
         present shareholders invested the $600,000 of new money in the Company.
         $500,000 in cash and the redemption of the Series A redeemable
         preferred stock was received and recorded on June 30, 2003. $100,000 in
         cash was received and recorded on July 1, 2003.

         The principal and interest on the $729,770 of new convertible
         promissory notes are payable June 30, 2006. If the Company completes an
         equity financing for at least $500,000 prior to June 30, 2004, the
         notes shall automatically convert to common stock at the same per share
         price as the equity financing and thereafter the notes shall convert to
         common stock at the option of the holders at $2.00 per share.

         The Company used $100,000 of the note proceeds to pay off its bank line
         of credit which terminated on June 30, 2003, and plans to use
         approximately $300,000 to finance its move to a new facility and
         approximately $200,000 for general corporate purposes.

         CRITICAL ACCOUNTING POLICIES

         The preparation of financial statements and related disclosures in
         conformity with accounting principles generally accepted in the United
         States of America 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,
         2002, 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 doubtful accounts, inventory
         allowances, property and equipment depreciable lives, patents and
         licenses useful lives, asset retirement obligations 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


                                     - 17 -
<PAGE>


         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. Cost estimates for removal from and
         repair of the current leased building or a change in timing of the
         relocation could impact the estimate. 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.

         OFF BALANCE SHEET ARRANGEMENTS

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

         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 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 the following risks and speculative factors inherent
         in and affecting the business of the Company and an investment in the
         Company's common stock.

         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 $6,301,077 (unaudited) at September 30, 2003.

         We have financed the losses primarily from: (i) several private
         offerings of debt and equity securities; (ii) additional investments
         and loans by our major shareholders; and (iii) a private offering of
         common stock and warrants to purchase common stock in October 2000. We
         cannot assure you, however, that we will be able to raise additional
         capital in the future to fund our operations. We expect to continue to
         incur significant operating and net losses in 2003, and it is possible
         that we will never be able to sustain or develop the revenue levels
         necessary to attain profitability.

         WE HAVE LIMITED MARKETING AND SALES CAPABILITIES.

         To successfully market our products, we must continue to develop
         appropriate marketing, sales, technical, customer service and
         distribution capabilities, or enter into agreements with third parties
         to provide these services. Our failure to develop these capabilities or
         obtain third-party agreements could adversely affect us.

         OUR SUCCESS DEPENDS ON OUR ABILITY TO RETAIN KEY MANAGEMENT PERSONNEL.

         Our success depends in large part on our ability to attract and retain
         highly qualified management, administrative, manufacturing, sales, and
         research and development personnel. Due to the specialized nature of
         our business, it may be difficult to locate and hire qualified
         personnel. The loss of services of one of our executive officers or
         other key personnel, or our failure to attract and retain other
         executive officers or key personnel, could have a material adverse
         effect on our business, operating results and financial condition.
         Although the Company has been successful in planning for and retaining
         highly capable and qualified successor management in the past, there
         can be no assurance that it will be able to do so in the future.

         WE NEED ADDITIONAL CAPITAL, WHICH MAY REDUCE THE VALUE OF OUR COMMON
         STOCK.

         Although the Company was successful in completing financings in the
         aggregate amount of $729,770 in June 2003 and July 2003, numerous
         factors remain which make it necessary for the Company to seek
         additional capital. In order to support the initiatives envisioned in
         our business plan, we will need to raise additional funds through the
         sale of assets, public or private financing, collaborative
         relationships or other arrangements. Our ability to raise additional
         financing depends on many factors beyond our control,


                                     - 18 -
<PAGE>


         including the state of capital markets, the market price of our common
         stock and the development or prospects for development of competitive
         products by others. Because our 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 to us or may be available only on terms
         that would result in further dilution to the current owners of our
         common stock.

         OUR COMPETITORS HAVE FAR GREATER FINANCIAL AND OTHER RESOURCES THAN WE
         HAVE.

         The market for Thin Film Materials is a substantial market with
         significant competition in both ceramic and metal materials. While we
         believe that our products enjoy certain competitive advantages in
         design, function, quality, and availability, considerable competition
         exists from well-established firms such as a division of Praxair's
         Surface Science Technology group as well as MCR, Johnson Matthey, Pure
         Tech and CERAC, all of which have more resources than we have.

         In addition, a significant portion of our business is in the very
         competitive market for sputtering targets made of ceramics, metals and
         alloys. We face substantial competition in this area from companies
         with far greater financial and other resources than we have. We cannot
         assure you that developments by others will not render our products or
         technologies obsolete or less competitive.

         GOVERNMENT CONTRACTS MAY BE TERMINATED OR SUSPENDED FOR NONCOMPLIANCE
         OR OTHER EVENTS BEYOND OUR CONTROL.

         The government may cancel virtually all of our government contracts
         which are terminable at the option of the government. While we have
         complied with applicable government rules and regulations and contract
         provisions in the past, we could fail to comply in the future.
         Noncompliance with government procurement regulations or contract
         provisions could result in the termination of government contracts. The
         termination of our significant government contracts or the adoption of
         new or modified procurement regulations or practices could adversely
         affect us.

         Inventions conceived or actually reduced to practice under a government
         contract generally result in the government obtaining a royalty-free,
         non-exclusive license to practice the invention. Similarly,
         technologies developed in whole or in part at government expense
         generally result in the government obtaining unlimited rights to use,
         duplicate or disclose technical data produced under the contract. These
         licenses and rights may result in a loss of potential revenues or the
         disclosure of our proprietary information, either of which could
         adversely affect us.

         OUR REVENUES DEPEND ON PATENTS AND PROPRIETARY RIGHTS THAT MAY NOT BE
         ENFORCEABLE.

         We rely on a combination of patent and trademark law, license
         agreements, internal procedures and nondisclosure agreements to protect
         our intellectual property. These may be invalidated, circumvented or
         challenged. In addition, the laws of some foreign countries in which
         our products may be produced or sold do not protect our intellectual
         property rights to the same extent as the laws of the United States.
         Our failure to protect our proprietary information could adversely
         affect us.

                                     - 19 -
<PAGE>

         RIGHTS WE HAVE TO PATENTS AND PENDING PATENT APPLICATIONS MAY BE
         CHALLENGED.

         We have received from the United States Patent and Trademark Office a
         patent for Fine-Particle Bi-Sr-Ca-Cu-O Having High Phase Purity made by
         a Chemical Precipitation and Low-Pressure Calcination method, and have
         also received a patent for a new process to join two individual
         strongly linked super-conductors utilizing a melt processing technique.
         In addition, in the future we may submit additional patent applications
         covering various applications. The patent application we filed and
         patent applications that we may file in the future may not result in
         patents being issued, and any patents issued may not afford meaningful
         protection against competitors with similar technology, and may be
         challenged by third parties. Because U.S. patent applications are
         maintained in secret until patents are issued, and because publications
         of discoveries in the scientific or patent literature tend to lag
         behind actual discoveries by several months, we may not be the first
         creator of inventions covered by issued patents or pending patent
         applications or the first to file patent applications for such
         inventions. Moreover, other parties may independently develop
         similar technologies, duplicate our technologies or, if patents are
         issued to us or rights licensed by us, design around the patented
         aspects of any technologies we developed or licensed. We may have to
         participate in interference proceedings declared by the U.S. Patent and
         Trademark Office to determine the priority of inventions, which could
         result in substantial costs. Litigation may also be necessary to
         enforce any patents held by or issued to us or to determine the scope
         and validity of others' proprietary rights, which could result in
         substantial costs.

         THE RAPID RATE OF INVENTIONS AND DISCOVERIES IN THE SUPERCONDUCTIVITY
         FIELD HAS RAISED MANY UNRESOLVED PATENT ISSUES THAT MAY NEGATIVELY
         AFFECT OUR BUSINESS.

         The claims in granted patents often overlap and there are disputes
         involving rights to inventions claimed in pending patent applications.
         As a result, the patent situation in the high temperature
         superconductor field is unusually complex. It is possible that there
         will be patents held by third parties relating to our products or
         technology. We may need to acquire licenses to design around or
         successfully contest the validity or enforceability of those patents.
         It is also possible that because of the number and scope of patents
         pending or issued, we may be required to obtain multiple licenses in
         order to use a single material. If we are required to obtain multiple
         licenses, our costs will increase. Furthermore, licenses may not be
         available on commercially reasonable terms or at all. The likelihood of
         successfully contesting the validity or enforceability of those patents
         is also uncertain; and, in any event, we could incur substantial costs
         in defending the validity or scope of our patents or challenging the
         patents of others.

         THE RAPID TECHNOLOGICAL CHANGES OF OUR INDUSTRY MAY ADVERSELY AFFECT US
         IF WE DO NOT KEEP PACE WITH ADVANCING TECHNOLOGY.

         The Thin Film Market is characterized by rapidly advancing technology.
         Our success depends on our ability to keep pace with advancing
         technology, processes and industry standards. To date, we have focused
         our development efforts on powders and targets. We intend to continue
         to develop and integrate advances in the thin film coatings industry.
         However, our development efforts may be rendered obsolete by research
         efforts and technological advances made by others, and materials other
         than those we currently use may prove more advantageous.

         DEVELOPMENT STAGE OF OUR PRODUCTS AND UNCERTAINTY REGARDING DEVELOPMENT
         OF MARKETS

         Some of our products are in the early stages of commercialization and
         we believe that it will be several years before products will have
         significant commercial end-use applications, and that significant
         additional development work may be necessary to improve the commercial
         feasibility and acceptance of its products. There can be no assurance
         that we will be able to commercialize any of the products currently
         under development.

         To date, there has been no widespread commercial use of High
         Temperature Superconductive (HTS) products. Additionally, the market
         for the Thin Film Battery materials is still in its nascent stages.

         THE MARKET FOR OUR COMMON STOCK IS LIMITED, AND AS SUCH OUR
         SHAREHOLDERS MAY HAVE DIFFICULTY RESELLING THEIR SHARES WHEN DESIRED OR
         AT ATTRACTIVE MARKET PRICES.

         Our stock price and our listing may make it more difficult for our
         shareholders to resell shares when desired or at attractive prices.
         From April 2000 until September 2001, our common stock traded on the
         National Quotation Bureau (the "pink sheets"). In September 2001, our
         stock once again began trading on The Over the Counter Bulletin Board
         ("OTC Bulletin Board"). Nevertheless, our common stock has continued to
         trade in low volumes and at low prices. Some investors view low-priced
         stocks as unduly speculative and therefore not appropriate candidates
         for investment. Many institutional investors have internal policies
         prohibiting the purchase or maintenance of positions in low-priced
         stocks. This has the effect of limiting the pool of potential
         purchasers of our common stock at present price levels. Shareholders
         may find greater percentage spreads between bid and asked prices, and


                                     - 20 -
<PAGE>

         more difficulty in completing transactions and higher transaction costs
         when buying or selling our common stock than they would if our stock
         were listed on a major stock exchange, such as The New York Stock
         Exchange or The NASDAQ National Market.

         Additionally, the market prices for securities of superconductive
         material companies have been volatile throughout the Company's
         existence. Most of the companies are traded over the counter through
         the National Quotation Bureau or National Association of Securities
         Dealers Automated Quotation System. Historical trading characteristics
         for public companies in this industry include limited market support,
         low trading volume, and wide spreads (on a percentage basis) between
         the bid and ask prices. Announcements regarding product developments,
         technological advances, significant customer orders, and financial
         results significantly influence per share prices.

         OUR COMMON STOCK IS SUBJECT TO THE SECURITIES AND EXCHANGE COMMISSION'S
         "PENNY STOCK" REGULATIONS, WHICH LIMITS THE LIQUIDITY OF COMMON STOCK
         HELD BY OUR SHAREHOLDERS.

         Based on its trading price, our common stock is considered a "penny
         stock" for purposes of federal securities laws, and therefore is
         subject to regulations, which affect the ability of broker-dealers to
         sell the Company's securities. Broker-dealers who recommend a "penny
         stock" to persons (other than established customers and accredited
         investors) must make a special written suitability determination and
         receive the purchaser's written agreement to a transaction prior to
         sale.

         As long as the penny stock regulations apply to our common stock, it
         may be difficult to trade such stock because compliance with the
         regulations can delay and/or preclude certain trading transactions.
         Broker-dealers may be discouraged from effecting transactions in our
         common stock because of the sales practice and disclosure requirements
         for penny stock. This could adversely effect the liquidity and/or price
         of our common stock, and impede the sale of our common stock in the
         secondary market.

         OUR ARTICLES OF INCORPORATION AUTHORIZE US TO ISSUE ADDITIONAL SHARES
         OF STOCK.

         We are authorized to issue up to 15,000,000 shares of common stock,
         which may be issued by our board of directors for such consideration,
         as they may consider sufficient without seeking shareholders approval.
         The issuance of additional shares of common stock in the future will
         reduce the proportionate ownership and voting power of current
         shareholders.

         Our Articles of Incorporation also authorize us to issue up to 260,000
         shares of preferred stock. The issuance of preferred stock in the
         future could create additional securities which would have dividend and
         liquidation preferences prior in right to the outstanding shares of
         common stock. These provisions could also impede a non-negotiated
         change in control.

         WE HAVE NOT PAID DIVIDENDS ON OUR COMMON STOCK IN THE PAST AND DO NOT
         EXPECT TO DO SO IN THE FUTURE.

         We cannot assure you that our operations will result in sufficient
         revenues to enable us to operate at profitable levels or to generate
         positive cash flow sufficient to pay dividends. We have never paid
         dividends on our common shares in the past and do not expect to do so
         in the foreseeable future.

         WE MAY HAVE DIFFICULTY RAISING ADDITIONAL CAPITAL, WHICH COULD DEPRIVE
         US OF NECESSARY RESOURCES.

         We require substantial capital resources to maintain existing
         operations.


                                     - 21 -
<PAGE>


ITEM 3.  CONTROLS AND PROCEDURES

         As of the end of the period covered by this report, the Company's
management carried out an evaluation, with the participation of the Company's
principal executive officer and principal financial officer, of the
effectiveness 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 that evaluation, the Company's principal executive officer and
principal financial officer concluded that the Company's disclosure controls and
procedures were effective as of the end of the period covered by this report. It
should be noted that the design of any system of controls is based in part under
certain assumptions about the likelihood of future events, and there can be no
assurance that any design will succeed in achieving its stated goals under all
potential future conditions, regardless of how remote.

         There were no changes in the Company's internal controls over financial
reporting that occurred during the Company's most recent fiscal quarter that
have materially affected, or are reasonably likely to materially affect, the
Company's internal control over financial reporting


                                     - 22 -
<PAGE>


                           PART II. OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

         (A)      EXHIBITS.

                  10(a)    Department of Energy Award dated January 17, 2003.

                  10(b)    Department of Energy Award dated June 24, 2003.

                  10(c)    Department of Energy Award dated September 29, 2003.

                  31.1     Rule 13a - 14(a) Certification of Principal Executive
                           Officer.

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

                  32.1     Certification of Chief Executive Officer pursuant to
                           18 U.S.C. Section 1350.

                  32.2     Certification of Chief Financial Officer pursuant to
                           18 U.S.C. Section 1350.

         (B)      REPORTS ON FORM 8-K.

                  Report on Form 8-K, dated July 7, 2003, regarding the
completion of the June 2003 financings (Items 5 and 7).


                                   SIGNATURES

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


                                    SUPERCONDUCTIVE COMPONENTS, INC.


Date:  November 11, 2003            /s/ Daniel Rooney
                                    --------------------------------------------
                                    Daniel Rooney, President and Chief Executive
                                    Officer
                                    (Principal Executive Officer)


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


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