<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 September 30, 2005

[ ]  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 October 28, 2005.

     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 September 30, 2005 (unaudited)
                 and December 31, 2004                                              3 - 4

              Statements of Operations For the Three Months and Nine Months
                 Ended September 30, 2005 and 2004  (unaudited)                       5

              Statements of Cash Flows For the Three Months and Nine Months
                 Ended September 30, 2005 and 2004 (unaudited)                      6 - 7

              Notes to Financial Statements (unaudited)                            8 - 14

           Item 2. Management's Discussion and Analysis of Financial
                      Condition and Results of Operations.                         15 - 21

           Item 3. Controls and Procedures                                           21

PART II.   OTHER INFORMATION

           Item 1. Legal Proceedings.                                                N/A

           Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.      22

           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.                                                         22

           Signatures.                                                               23
</TABLE>


                                        2
<PAGE>
                          PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                        SUPERCONDUCTIVE COMPONENTS, INC.

                                 BALANCE SHEETS

                                     ASSETS

<TABLE>
<CAPTION>
                                                                   SEPTEMBER 30,   DECEMBER 31,
                                                                        2005           2004
                                                                   -------------   ------------
                                                                    (UNAUDITED)
<S>                                                                <C>             <C>
CURRENT ASSETS
   Cash                                                             $   210,344        47,095
   Cash, restricted for equipment                                            --       142,968
   Accounts and notes receivable
      Trade, less allowance for doubtful accounts of $22,663 and        286,964       167,394
         $33,176 respectively
      Employees                                                              --           100
   Inventories                                                          597,501       535,171
   Prepaid expenses                                                      32,351        12,626
                                                                    -----------    ----------
         Total current assets                                         1,127,160       905,354
                                                                    -----------    ----------

PROPERTY AND EQUIPMENT,
AT COST
   Machinery and equipment                                            2,207,705     2,143,791
   Furniture and fixtures                                                23,643        22,586
   Leasehold improvements                                               284,072       280,791
   Construction in progress                                              25,944        52,048
                                                                    -----------    ----------
                                                                      2,541,364     2,499,216
   Less accumulated depreciation                                     (1,789,171)   (1,641,356)
                                                                    -----------    ----------
                                                                        752,193       857,860
                                                                    -----------    ----------

OTHER ASSETS
   Deposit                                                                8,755         8,755
   Intangibles                                                           34,754        37,070
                                                                    -----------    ----------
         Total other assets                                              43,509        45,825
                                                                    -----------    ----------
TOTAL ASSETS                                                        $ 1,922,862     1,809,039
                                                                    ===========    ==========
</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,
                                                                                   2005           2004
                                                                              -------------   ------------
                                                                               (UNAUDITED)
<S>                                                                           <C>             <C>
CURRENT LIABILITIES
   Capital lease obligation, current portion                                   $    26,677    $    33,522
   Capital lease obligation, shareholder, current portion                           68,428         68,428
   Note payable shareholders, current portion                                      564,197        252,886
   Accounts payable                                                                424,260        230,097
   Accounts payable, shareholders                                                    7,920          7,920
   Accrued contract expenses                                                       177,301        318,939
   Accrued personal property taxes                                                  41,007         47,671
   Accrued interest, shareholders                                                   64,952         31,891
   Deferred contract revenue                                                         8,072         83,739
   Accrued expenses                                                                 82,090        113,043
                                                                               -----------    -----------
      Total current liabilities                                                  1,464,904      1,188,136
                                                                               -----------    -----------

CAPITAL LEASE OBLIGATION, NET OF
   CURRENT PORTION                                                                  20,807         38,935
                                                                               -----------    -----------

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                                                       328,664        309,776
   Common stock, no par value, authorized 15,000,000 shares;
      2,507,360 and 2,439,360 shares issued and outstanding, respectively        7,677,653      7,541,653
   Additional paid-in capital                                                      559,675        558,674
   Accumulated deficit                                                          (8,128,841)    (7,828,135)
                                                                               -----------    -----------
                                                                                   437,151        581,968
                                                                               -----------    -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                     $ 1,922,862    $ 1,809,039
                                                                               ===========    ===========
</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, 2005 AND 2004 AND
                  NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                             THREE MONTHS ENDED        NINE MONTHS ENDED
                                          -----------------------   -----------------------
                                             2005         2004         2005         2004
                                          ----------   ----------   ----------   ----------
<S>                                       <C>          <C>          <C>          <C>
SALES REVENUE                             $  953,494   $  366,072   $2,064,122   $1,422,716
CONTRACT RESEARCH REVENUE                     67,717       84,766      245,683      199,061
                                          ----------   ----------   ----------   ----------
                                           1,021,211      450,838    2,309,805    1,621,777
                                          ----------   ----------   ----------   ----------

COST OF SALES REVENUE                        736,336      387,197    1,586,752    1,250,228
COST OF CONTRACT RESEARCH                     67,717       91,607      245,683      214,738
                                          ----------   ----------   ----------   ----------
                                             804,053      478,804    1,832,435    1,464,966
                                          ----------   ----------   ----------   ----------

GROSS MARGIN                                 217,158      (27,966)     477,370      156,811

GENERAL AND ADMINISTRATIVE EXPENSES          171,973      174,601      544,177      667,601

SALES AND PROMOTIONAL EXPENSES                56,584       51,942      167,518      185,112
                                          ----------   ----------   ----------   ----------

LOSS FROM OPERATIONS                         (11,399)    (254,509)    (234,325)    (695,902)
                                          ----------   ----------   ----------   ----------

OTHER INCOME (EXPENSE)
   Interest income                               803          849        1,473        1,599
   Interest expense                          (27,193)      (2,132)     (67,402)     (19,778)
   Debt Conversion Expense                        --           --           --     (175,362)
   Gain (loss) on disposal of equipment           --           40          250       (2,141)
   Miscellaneous, net                           (234)        (457)        (702)      (1,372)
                                          ----------   ----------   ----------   ----------
                                             (26,624)      (1,700)     (66,381)    (197,054)
                                          ----------   ----------   ----------   ----------

LOSS BEFORE PROVISION FOR INCOME TAX         (38,023)    (256,209)    (300,706)    (892,956)

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

NET LOSS                                     (38,023)    (256,209)    (300,706)    (892,956)

DIVIDENDS ON PREFERRED STOCK                  (6,297)      (6,296)     (18,889)     (18,888)
                                          ----------   ----------   ----------   ----------
LOSS APPLICABLE TO COMMON SHARES          $  (44,320)  $ (262,505)  $ (319,595)  $ (911,844)
                                          ==========   ==========   ==========   ==========

EARNINGS PER SHARE - BASIC AND DILUTED
(Note 2)

NET LOSS PER COMMON SHARE BEFORE
   DIVIDENDS ON PREFERRED STOCK
   Basic                                  $    (0.02)  $    (0.11)  $    (0.12)  $    (0.42)
                                          ==========   ==========   ==========   ==========
   Diluted                                $    (0.02)  $    (0.11)  $    (0.12)  $    (0.42)
                                          ==========   ==========   ==========   ==========

NET LOSS PER COMMON SHARE AFTER
   DIVIDENDS ON PREFERRED STOCK
   Basic                                  $    (0.02)  $    (0.11)  $    (0.13)  $    (0.43)
                                          ==========   ==========   ==========   ==========
   Diluted                                $    (0.02)  $    (0.11)  $    (0.13)  $    (0.43)
                                          ==========   ==========   ==========   ==========

WEIGHTED AVERAGE SHARES OUTSTANDING
   Basic                                   2,467,686    2,434,947    2,448,906    2,137,667
                                          ==========   ==========   ==========   ==========
   Diluted                                 2,467,686    2,434,947    2,448,906    2,137,667
                                          ==========   ==========   ==========   ==========
</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, 2005 AND 2004

                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                    2005        2004
                                                                                 ---------   ---------
<S>                                                                              <C>         <C>
CASH FLOWS FROM OPERATING ACTIVITIES
   Net loss                                                                      $(300,706)  $(892,956)
                                                                                 ---------   ---------
   Adjustments to reconcile net loss to net cash used in operating activities:
      Depreciation and accretion                                                   151,798     153,265
      Amortization                                                                   2,316       2,316
      Warrants issued for consulting                                                    --      35,586
      Debt conversion expense                                                           --     175,362
      (Gain) loss on disposal of equipment                                            (250)      2,141
      Inventory reserve                                                             (9,968)     (6,057)
      Provision for doubtful accounts                                               10,513      18,000
      Changes in operating assets and liabilities:
         (Increase) decrease in assets:
            Accounts receivable                                                   (129,983)    (21,331)
            Inventories                                                            (52,361)    (57,527)
            Prepaid expenses                                                       (19,725)     18,629
            Other assets                                                                --        (891)
         Increase (decrease) in liabilities:
            Accounts payable                                                       194,163      36,319
            Accrued expenses and deferred revenue                                 (193,145)    295,577
                                                                                 ---------   ---------
               Total adjustments                                                   (46,642)    651,389
                                                                                 ---------   ---------
                  Net cash used by operating activities                           (347,348)   (241,567)
                                                                                 ---------   ---------
CASH FLOWS FROM INVESTING ACTIVITIES
   Proceeds on sale of equipment                                                       250       1,602
   Purchases of property and equipment                                             (43,648)   (424,546)
                                                                                 ---------   ---------
                  Net cash used in investing activities                            (43,398)   (422,944)
                                                                                 ---------   ---------
CASH FLOWS FROM FINANCING ACTIVITIES
   Proceeds from note payable, shareholders                                        300,000     150,000
   Principal payments on notes payable, shareholders                                    --    (150,000)
   Proceeds from exercise of common stock options                                       --       3,500
   Proceeds from sale of common stock                                              136,000     707,115
   Principal payments on capital lease obligations                                 (24,973)    (29,136)
                                                                                 ---------   ---------
                  Net cash provided by financing activities                        411,027     681,479
                                                                                 ---------   ---------
</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, 2005 AND 2004

<TABLE>
<CAPTION>
                                                             2005       2004
                                                           --------   --------
<S>                                                        <C>        <C>
NET INCREASE IN CASH                                       $ 20,281   $ 16,968

CASH - Beginning of period                                  190,063    266,940
                                                           --------   --------
CASH - End of period                                       $210,344   $283,908
                                                           ========   ========

SUPPLEMENTAL DISCLOSURES OF CASH
   FLOW INFORMATION
   Cash paid during the years for:
      Interest, net                                        $  3,140   $  4,055
      Income taxes                                         $     --   $     --

SUPPLEMENTAL DISCLOSURES OF NONCASH
   FINANCING ACTIVITIES

   Property and equipment was purchased by capital lease   $     --   $ 46,494

   Note payable converted to equity                        $     --   $729,700

   Accrued interest converted to equity                    $     --   $ 25,491
</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 fiscal year ended December 31, 2004. 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/CONTRACT FUNDING

     The Company received a grant of $517,935 in 2004 from the Ohio Department
     of Development's Third Frontier Action Fund (TFAF) for the purchase of
     equipment related to the grant's purpose. Additionally, the Company
     received $27,500 as part of its contract with the Department of Energy for
     the purchase of equipment related to the contract's purpose. The Company
     has elected to record the funds disbursed as a contra asset; therefore, the
     assets are not reflected in the Company's financial statements. As assets
     are purchased, the liability initially created when the cash was received
     is reduced with no revenue being recognized or fixed asset recorded on the
     balance sheet. At September 30, 2005, the Company has disbursed the entire
     $545,435. The grant and contract both provide that as long as the Company
     performs in compliance with the grant/contract, the Company retains the
     rights to the equipment. Management states that the Company will be in
     compliance with the requirements and, therefore, will retain the equipment
     at the end of the contract/grant.


                                        8
<PAGE>
                        SUPERCONDUCTIVE COMPONENTS, INC.

                          NOTES TO FINANCIAL STATEMENTS

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

     STOCK BASED COMPENSATION

     The Company's pro forma information for the nine months ended September 30,
     2005 and 2004 in accordance with the provisions of SFAS No. 123,
     "Accounting for Stock-Based Compensation" is provided below. For purposes
     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 2005 and 2004 results as reported to the results had the
     Company adopted the expense recognition provisions of SFAS #123.

<TABLE>
<CAPTION>
                                        September 30,   September 30,
                                             2005            2004
                                        -------------   -------------
<S>                                     <C>             <C>
Net loss applicable to common shares:
As reported                               $(319,595)      $(911,844)
Stock-based compensation, net of tax         (9,514)         (4,678)
                                          ---------       ---------
Pro forma net loss under SFAS #123        $(329,109)      $(916,522)

Basic and diluted loss per share:
As reported                               $   (0.13)      $   (0.43)
Pro forma under SFAS #123                 $   (0.13)      $   (0.43)
</TABLE>

     For the periods ended September 30, 2005 and 2004, there was no stock-based
     employee compensation cost included in the determination of net loss as
     reported.

NOTE 3. INVENTORY

     Inventory is comprised of the following:

<TABLE>
<CAPTION>
                    SEPTEMBER 30,   DECEMBER 31,
                         2005           2004
                    -------------   ------------
                     (unaudited)
<S>                 <C>             <C>
Raw materials         $ 339,586      $ 340,148
Work-in-progress        190,909        142,390
Finished goods          172,568        168,163
Inventory reserve      (105,562)      (115,530)
                      ---------      ---------
                      $ 597,501      $ 535,171
                      =========      =========
</TABLE>


                                        9
<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, 2005:

<TABLE>
<CAPTION>
 GRANT DATE     # OPTIONS GRANTED   OPTION PRICE
 ----------     -----------------   ------------
<S>             <C>                 <C>
March 7, 2005         90,000            $2.40
</TABLE>

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, 2005 and 2004, 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,
                          ----------------------------   ---------------------------
                               2005         2004              2005         2004
                            ----------   ----------        ----------   ----------
<S>                       <C>            <C>             <C>            <C>
Loss applicable
   to common shares         $  (44,320)  $ (262,505)       $ (319,595)  $ (911,844)
                            ==========   ==========        ==========   ==========

Weighted average
   common shares
   outstanding - basic       2,467,686    2,434,947         2,448,906    2,137,667

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

Weighted average
   shares outstanding -
   diluted                   2,467,686    2,434,947         2,448,906    2,137,667
                            ==========   ==========        ==========   ==========
</TABLE>


                                       10
<PAGE>
                        SUPERCONDUCTIVE COMPONENTS, INC.

                          NOTES TO FINANCIAL STATEMENTS

NOTE 6. CAPITAL REQUIREMENTS

     The Company's accumulated deficit since inception was $8,128,841
     (unaudited) at September 30, 2005. 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.

     As of September 30, 2005, cash on-hand was $210,344. Management believes,
     based on anticipated financing and forecasted sales and expenses, that
     funding will be adequate to sustain operations through December 2005.
     During 2004 the Company raised additional funds through offerings of debt
     and equity. The Company received debt financing of $250,000 in 2004. In
     2004, the Company received $517,935 from the State of Ohio's Third Frontier
     Action Fund to purchase capital equipment required to commercialize the
     Company's Lithium Thin Film Battery sputtering target-manufacturing
     process. At September 30, 2005, these funds had been expended.

     In 2004, the Company, in a private placement to eight accredited investors
     sold 300,084 shares of its common stock, without par value, at a purchase
     price of $2.40 per share. The total offering price paid in cash was
     $720,200. As part of the private placement, the accredited investors also
     received warrants to purchase 60,017 shares of the Company's common stock,
     without par value, at a purchase price of $2.88 per share. Because the
     Company completed equity financing of at least $500,000 prior to June 30,
     2004, the principal and accrued interest totaling $754,846 due on
     convertible promissory notes issued on June 30, 2003, converted to 314,519
     shares of common stock, without par value, at a conversion rate of $2.40
     per share. As part of the conversion, the holders of the convertible
     promissory notes also received warrants to purchase an aggregate of 62,901
     shares of the Company's common stock, without par value, at a purchase
     price of $2.88 per share.

     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 is 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. On November 3,
     2004, $100,000 was drawn on the loan. An additional $50,000 was drawn on
     the loan on January 7, 2005 and also on April 1, 2005. The loan balance
     (principal and accrued interest) was repaid in October 2005.


                                       11
<PAGE>
                        SUPERCONDUCTIVE COMPONENTS, INC.

                          NOTES TO FINANCIAL STATEMENTS

NOTE 6. CAPITAL REQUIREMENTS (CONTINUED)

     In April of 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 of 10% accrued and compounded monthly. On April 14, 2005,
     $100,000 was drawn on this loan. $100,000 was also drawn on the loan on May
     20, 2005. 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 to 104,555 shares of
     common stock, without par value, at a conversion rate of $2.00 per share.
     As part of the conversion, the director also received warrants to purchase
     an aggregate of 26,139 shares of the Company's common stock, without par
     value, at a purchase price of $3.00 per share.

     In the third quarter of 2005, the Company, in a private placement to three
     accredited investors sold 68,000 shares of its common stock, without par
     value, at a purchase price of $2.00 per share. The total offering price
     paid in cash was $136,000. As part of the private placement, the accredited
     investors also received warrants to purchase 17,000 shares of the Company's
     common stock, without par value, at a purchase price of $3.00 per share
     exercisable until October 2010.

     Through October 14 of the fourth quarter of 2005, the Company, in a private
     placement to four accredited investors sold 625,000 shares of its common
     stock, without par value, at a purchase price of $2.00 per share. The total
     offering price paid in cash was $1,250,000. As part of the private
     placement, the accredited investors also received warrants to purchase
     156,250 shares of the Company's common stock, without par value, at a
     purchase price of $3.00 per share exercisable until October 2010.

     During October 2005, the Company entered into an agreement with the Estate
     of Edward R. Funk. The Company was indebted to the Estate in the amount of
     $188,411.71. The Estate agreed to cancel $188,000 of the indebtedness in
     exchange for 94,000 shares of common stock and warrants to purchase an
     additional 23,500 shares of common stock at $3.00 per share exercisable
     until October 2010. The Company transferred to the Estate $411.71 in full
     satisfaction of the remaining amount of the indebtedness.

     Also, during October 2005, the Company entered into an agreement with the
     Estate of Ingeborg V. Funk. The Company was indebted to the Estate in the
     amount of $100,980.21. The Estate agreed to cancel $100,000 of the
     indebtedness in exchange for 50,000 shares of common stock and warrants to
     purchase an additional 12,500 shares of common stock at $3.00 per share
     exercisable until October 2010. The Company transferred to the Estate
     $980.21 in full satisfaction of the remaining amount of the indebtedness.

     In addition, during October 2005, the Company entered into an agreement
     with Porter, Wright, Morris & Arthur LLP (PWMA). The Company is indebted to
     PWMA for legal services rendered by PWMA to the Company. PWMA agreed to
     cancel $90,000 of the indebtedness 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.

     The Company has incurred substantial operating losses through September 30,
     2005, and numerous factors make it necessary for the Company to seek
     additional capital. In order to


                                       12
<PAGE>
                        SUPERCONDUCTIVE COMPONENTS, INC.

                          NOTES TO FINANCIAL STATEMENTS

NOTE 6. CAPITAL REQUIREMENTS (CONTINUED)

     support the initiatives envisioned in its business plan, it will need to
     raise additional funds through the sale of assets, public or private
     financing, collaborative relationships or other arrangements. The Company's
     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.

NOTE 7. LEGAL PROCEEDINGS

     On October 29, 2004 a complaint was filed in the Franklin County Court of
     Common Pleas against the Company by Mr. Cavin Carmell, dba University Area
     Rentals ("University Area Rentals"). The complaint alleges that the Company
     left its former leased premises in disrepair and violated the terms of its
     lease. The case is in the latter stages of discovery and trial is set for
     May 2006. Based upon the discovery provided by University Area Rentals, an
     estimate of damages claimed is between $50,000 and $60,000. The Company has
     been vigorously defending itself against the claim.

NOTE 8. SUBSEQUENT EVENT

     Subsequent to September 30, 2005, the Company, in a private placement to
     four accredited investors sold 625,000 shares of its common stock, without
     par value, at a purchase price of $2.00 per share. The total offering price
     paid in cash was $1,250,000. As part of the private placement, the
     accredited investors also received warrants to purchase 156,250 shares of
     the Company's common stock, without par value, at a purchase price of $3.00
     per share exercisable until October 2010.

     During October 2005, the Company entered into an agreement with the Estates
     of Edward R. Funk and Ingeborg V. Funk. The Company was indebted to the
     Estates in the amount of $289,391.92. The Estates agreed to cancel $288,000
     of the indebtedness in exchange for 144,000 shares of common stock and
     warrants to purchase an additional 36,000 shares of common stock at $3.00
     per share exercisable until October 2010. The Company transferred to the
     Estates a total of $1,391.92 in full satisfaction of the remaining amount
     of the indebtedness.

     Also, during October 2005, the Company entered into an agreement with
     Porter, Wright, Morris & Arthur LLP (PWMA). The Company is indebted to PWMA
     for legal services rendered by PWMA to the Company. PWMA agreed to cancel
     $90,000 of the indebtedness 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.


                                       13
<PAGE>
                        SUPERCONDUCTIVE COMPONENTS, INC.

                          NOTES TO FINANCIAL STATEMENTS

NOTE 8. SUBSEQUENT EVENT (CONTINUED)

     In April of 2005, a director agreed to provide a $200,000 secured loan to
     the Company for working capital. $100,000 was drawn on this loan on April
     14, 2005 and also on May 20, 2005. 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 to
     104,555 shares of common stock, without par value, at a conversion rate of
     $2.00 per share. As part of the conversion, the director also received
     warrants to purchase an aggregate of 26,139 shares of the Company's common
     stock, without par value, at a purchase price of $3.00 per share.

     In November of 2004, the same director agreed to loan the Company up to
     $200,000 for working capital, to be drawn by the Company in increments of
     $50,000. 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. On November 3, 2004, $100,000 was drawn on the loan. An additional
     $50,000 was drawn on the loan on January 7, 2005 and also on April 1, 2005.
     The loan balance (principal and accrued interest) was repaid in October
     2005.


                                       14
<PAGE>
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.

     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 significant 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 September 30, 2005, the Company had revenues of
     $1,021,211. This represented the highest revenue quarter since the first
     quarter of 2001. This was an increase of $307,676, or 43.1%, over the
     second quarter of 2005 and $446,152, or 77.6%, over the first quarter of
     2005. This amount also represents an increase of $570,373, or 126.5%, over
     the third quarter of 2004. For the nine months ended September 30, 2005 the
     Company had revenues of


                                       15
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
     OF OPERATIONS (CONTINUED)

     $2,309,805. This amount exceeds the total revenues for each of the years of
     2004 and 2003. For the nine months ended September 30, 2005, the Company
     incurred a net loss applicable to common shares of $319,595 compared to a
     net loss of $911,844 for the same period in 2004. Included in 2004 were
     non-cash expenses totaling $210,948.

     During 2004 the Company relocated its manufacturing to a new, modern
     facility. During this relocation the Company had significant down time. The
     Company was quoting long lead times prior to, during and shortly after the
     move. These long lead times contributed to a reduction in orders. The
     Company's shipments have increased in 2005, as the Company has been able to
     provide product with more reasonable lead times. The Company expects gross
     margins to improve as sales grow. In addition, the Company expects
     improvement in its gross margins as the sales mix moves to higher margin
     products. The thin film battery market is poised for significant growth
     beginning in early 2006.

     The Company achieved ISO 9001:2000 certification during the second quarter
     of 2005. This immediately resulted in the return of a major customer.
     Orders received in the three months ended September 30, 2005 were
     $1,004,000 - highest since the third quarter of 2002. Orders in the nine
     months ended September 30, 2005 of $2,484,000 exceeded the orders received
     through the same date in 2004 by $740,000. This amount also exceeded the
     total orders received for the entire year of 2004 of $2,019,000 by
     $465,000.

     During 2005, the Company has received equity funding of $1,386,000 as part
     of a private placement to accredited investors. $136,000 was received
     during the third quarter and $1,250,000 was received in October. This
     totaled to 693,000 shares of common stock issued. In addition, $587,110 of
     indebtedness was converted to 293,555 shares of common stock during
     October. These transactions increased outstanding shares of common stock
     from 2,439,360 at December 31, 2004 to 3,425,915 shares at October 28,
     2005.

     The Company received notification 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, is for the nine months ending March 26,
     2006. Revenues of $13,945 were recognized during the third quarter of 2005
     for this award.

     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 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, 2004 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


                                       16
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
     OF OPERATIONS (CONTINUED)

     assessment of the collectibility of specific customer accounts and the
     aging of the accounts receivable. We use the percentage of completion
     method to account for contracts based on hours incurred, estimated hours to
     complete and costs incurred with estimates to complete.

     Revenue from product sales is recognized upon shipment to customers.
     Provisions for discounts and returns are provided for in the period the
     Company ships the discounted item or the period the Company agrees to the
     return. Deferred revenues represent cash received in advance of the
     contract revenues earned. Revenue from contract research provided for third
     parties is recognized on the percentage of completion method.

     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.

     NINE MONTHS ENDED SEPTEMBER 30, 2005 (UNAUDITED) COMPARED TO NINE MONTHS
     ENDED SEPTEMBER 30, 2004 (UNAUDITED):

     REVENUES

     Revenues for the nine months ended September 30, 2005 were $2,309,805
     compared to $1,621,777, an increase of $688,028 or 42.4% from the nine
     months ended September 30, 2004.

     Product revenues increased to $2,064,122 in 2005 from $1,422,716 in 2004 or
     an increase of 45.1%. The increase in revenues for the first nine months is
     due to the return of two major customers and the addition of new customers.

     Contract research revenues were $245,683 in 2005 as compared to $199,061 in
     2004. The increase was due to increased 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. Revenues of $231,738
     and $181,376 from this grant are included in the first nine months of
     revenues for 2005 and 2004, respectively. The Company has been granted a no
     cost extension until November 30, 2005 to allow the Company's partners to
     complete their work.

     GROSS MARGIN

     Gross margin in 2005 was $477,370 or 20.7% of total revenue compared to
     $156,811 or 9.7% in 2004. Gross margin on product revenue was 23.1% in 2005
     versus 12.1% in 2004. The increase was due to higher sales, which resulted
     from increased production that led to improved operating efficiencies.
     Gross margin on contract research revenue was 0.0% and (7.9%) for the nine


                                       17
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
     OF OPERATIONS (CONTINUED)

     months ended September 30, 2005 and 2004, respectively. The negative margin
     in 2004 was due to the Company's cost share of a contract that was
     reimbursed at 50% and that ended in 2004.

     SELLING EXPENSE

     Selling expense in 2005 decreased to $167,518 from $185,112 in 2004, a
     decline of 9.5%. This was primarily due to a decrease in expenses related
     to trade shows.

     GENERAL AND ADMINISTRATIVE EXPENSE

     General and administrative expense in 2005 decreased to $544,177 from
     $667,601 in 2004, or 18.5%. The decrease was due primarily to the
     relocation of the Company's facility that took place in 2004, of which
     $73,508 was expensed for this purpose. Non-employee stock warrants were
     granted as compensation for consulting services, for which $35,586 was
     expensed in 2004.

     RESEARCH AND DEVELOPMENT EXPENSE

     Internal research and development costs are expensed as incurred. Internal
     research and development costs for 2005 were $(16,310) compared to $5,382
     in 2004. Internal research and development costs decreased due to an
     increase in contract research expenses, which resulted in internal expenses
     being absorbed by the grant into cost of goods sold for contract research.

     INTEREST EXPENSE

     Interest expense was $67,402 and $19,778 for the nine months ended
     September 30, 2005 and 2004, respectively. Interest expense to related
     parties was $64,263 and $14,291 for the nine months ended September 30,
     2005 and 2004, respectively. The increase was primarily due to the interest
     incurred as a result of the notes payable to a director.

     LOSS APPLICABLE TO COMMON SHARES

     BASIC

     Loss applicable to common shares was $319,595 and $911,844 for the nine
     months ended September 30, 2005 and 2004, respectively. Net loss per common
     share based on the loss applicable to common shares for the nine months
     ended September 30, 2005 and 2004 was $0.13 and $0.43, respectively. The
     loss applicable to common shares includes the net loss from operations and
     Series B preferred stock dividends. The net loss per common share from
     operations was $0.12 and $0.42 for the nine months ended September 30, 2005
     and 2004, respectively.

     Dividends on the Series B preferred stock accrue at 10% annually on the
     outstanding shares. Dividends on the Series B preferred stock totaled
     $18,889 and $18,888 for the nine months ended September 30, 2005 and 2004,
     respectively.

     Basic loss per common share for the nine months ended September 30, 2005,
     was $0.13 per share with 2,448,906 weighted average common shares
     outstanding as compared to $0.43 per share and 2,137,667 weighted average
     common shares outstanding for the nine months ended September 30, 2004.


                                       18
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
     OF OPERATIONS (CONTINUED)

     DILUTED

     Diluted loss per common share for the nine months ended September 30, 2005
     was $0.13 per share with 2,448,906 average common shares outstanding as
     compared to $0.43 per share and 2,137,667 weighted average common shares
     outstanding for the nine months ended September 30, 2004. For the nine
     months ended September 30, 2005 and 2004, all outstanding common stock
     equivalents are anti-dilutive due to the net loss.

     LIQUIDITY AND WORKING CAPITAL

     At September 30, 2005, working capital was $(337,744) compared to
     $(108,778) at September 30, 2004. The decrease was due to a reduction in
     cash from operations, as well as a reduction in cash restricted for
     equipment purchases for the TFAF grant in the amount of $150,469. Also, an
     increase in notes payable, shareholders, reduced working capital. The
     Company used cash from operations of approximately $347,000 and $242,000
     for the nine months ended September 30, 2005 and September 30, 2004,
     respectively. Significant non-cash items including depreciation, accretion
     and amortization, warrants issued for consulting, debt conversion expense,
     inventory reserve on excess and obsolete inventory, and allowance for
     doubtful accounts were approximately $155,000 and $378,000, respectively,
     for the nine months ended September 30, 2005 and 2004. Accounts receivable,
     inventory and prepaids increased in excess of increases in accounts payable
     and accrued expenses by approximately $201,000 for the nine months ended
     September 30, 2005. Accounts payable and accrued expenses increased in
     excess of increases in accounts receivable, inventory and prepaids by
     approximately $271,000 for the nine months ended September 30, 2004.

     For investing activities, the Company used cash of approximately $43,000
     and $423,000, for the nine months ended September 30, 2005 and September
     30, 2004, respectively. The amounts invested were used to purchase
     machinery and equipment for increased production capacity and for leasehold
     improvements for the new facility. Proceeds on sale of equipment totaled
     $250 and $1,602 for the nine months ended September 30, 2005 and September
     30, 2004, respectively.

     For financing activity for the nine months ended September 30, 2005, the
     Company provided cash of approximately $411,000. Cash payments to third
     parties for capital lease obligations approximated $25,000. Proceeds from
     notes payable totaled $300,000. Proceeds from sale of common stock were
     $136,000.

     For financing activity for the nine months ended September 30, 2004, the
     Company provided cash of approximately $681,000. Cash payments to third
     parties for capital lease obligations approximated $29,000; proceeds from
     notes payable totaled $150,000. Net proceeds from sale of common stock was
     $707,000 and proceeds from the exercise of stock options totaled $3,500.
     Cash payments for notes payable were $150,000.

     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.


                                       19
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
     OF OPERATIONS (CONTINUED)

     However, the Company cannot be certain that it will be successful in
     efforts to raise additional funds.

     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 is 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. On November 3,
     2004, $100,000 was drawn on the loan. An additional $50,000 was drawn on
     the loan on January 7, 2005 and also on April 1, 2005. The loan balance
     (principal and accrued interest) was repaid in October 2005.

     In April of 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 of 10% accrued and compounded monthly. On April 14, 2005,
     $100,000 was drawn on this loan. $100,000 was also drawn on the loan on May
     20, 2005. 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 to 104,555 shares of
     common stock, without par value, at a conversion rate of $2.00 per share.
     As part of the conversion, the director also received warrants to purchase
     an aggregate of 26,139 shares of the Company's common stock, without par
     value, at a purchase price of $3.00 per share.

     During October 2005, the Company entered into an agreement with the Estate
     of Edward R. Funk. The Company was indebted to the Estate in the amount of
     $188,411.71. The Estate agreed to cancel $188,000 of the indebtedness in
     exchange for 94,000 shares of common stock and warrants to purchase an
     additional 23,500 shares of common stock at $3.00 per share exercisable
     until October 2010. The Company transferred to the Estate $411.71 in full
     satisfaction of the remaining amount of the indebtedness.

     Also, during October 2005, the Company entered into an agreement with the
     Estate of Ingeborg V. Funk. The Company was indebted to the Estate in the
     amount of $100,980.21. The Estate agreed to cancel $100,000 of the
     indebtedness in exchange for 50,000 shares of common stock and warrants to
     purchase an additional 12,500 shares of common stock at $3.00 per share
     exercisable until October 2010. The Company transferred to the Estate
     $980.21 in full satisfaction of the remaining amount of the indebtedness.

     In addition, during October 2005, the Company entered into an agreement
     with Porter, Wright, Morris & Arthur LLP (PWMA). The Company is indebted to
     PWMA for legal services rendered by PWMA to the Company. PWMA agreed to
     cancel $90,000 of the indebtedness 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.

     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


                                       20
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
     OF OPERATIONS (CONTINUED)

     caption "Risk Factors" in the Company's Form 10-KSB filed with the
     Securities and Exchange Commission on March 31, 2005, 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.

     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 $8,128,841 (unaudited) at September 30, 2005.

     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.


                                       21
<PAGE>
                           PART II. OTHER INFORMATION

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

     To obtain funding for the payment of debt and other payables, and for
     capital equipment and general working capital, the Company entered into
     Subscription Agreements with various accredited investors (the "Investors")
     from August 2, 2005 to October 14, 2005, for the sale of investment units
     (the "Units"), with each Unit consisting of (i) 1,000 shares of the
     Company's common stock without par value (the "Common Stock"), and (ii) a
     warrant to purchase 250 shares of Common Stock at $3.00 per share until
     October 14, 2010 (the "Warrants"). The Company offered the Units to
     accredited investors as defined in Rule 501(a) of Regulation D promulgated
     under the Securities Act of 1933, as amended (the "Act"), at a price of
     $2,000 per Unit.

     The Investors purchased an aggregate of $1,973,110 in Units representing
     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 the
     Investors in exchange for the purchase of 693 Units representing (i)
     693,000 shares of Common Stock, and (ii) warrants to purchase an additional
     173,250 shares of Common Stock. The Company sold an additional 293.6 Units
     representing (i) 293,555 shares of Common Stock, and (ii) warrants to
     purchase an additional 73,389 shares of Common Stock, in exchange for the
     cancellation of an aggregate $587,110 of indebtedness of the Company held
     by four Investors.

     The Company granted the Investors registration rights with respect to the
     Common Stock and the shares of Common Stock underlying the Warrants.
     Pursuant to the terms of the Subscription Agreements, the Company must
     prepare and file with the Securities and Exchange Commission a registration
     statement covering the shares of Common Stock and the shares of Common
     Stock underlying the Warrants. The Company also granted the Investors
     piggyback registration rights with respect to the Common Stock and shares
     of Common Stock underlying the Warrants.

     The Company offered and sold the securities to the Investors in a private
     placement transaction made in reliance upon exemptions from registration
     pursuant to Section 4(2) under the Act and Rule 506 promulgated thereunder.
     Each of the Investors is an accredited investor as defined in Rule 501 of
     Regulation D promulgated under the Act.

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 October 28, 2005, entitled "Superconductive
            Components, Inc. Reports Improved Third Quarter Results"
</TABLE>


                                       22
<PAGE>
                                   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: October 28, 2005                  /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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