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

                                   FORM 10-QSB

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

         For the quarterly period ended March 31, 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 April 30, 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 March 31, 2003  (unaudited)
                           and December 31, 2002                                                   3 - 4

                      Statements of Operations For the Three Months
                           Ended March 31, 2003 and 2002  (unaudited)                                5

                      Statements of Cash Flows For the Three Months
                           Ended March 31, 2003 and 2002 (unaudited)                               6 - 7

                      Notes to Financial Statements (unaudited)                                   8 - 11


         Item 2.  Management's Discussion and Analysis of Financial
                      Condition and Results of Operations.                                       12 - 21

         Item 3.  Controls and Procedures                                                           21

PART II. OTHER INFORMATION

         Item 1.  Legal Proceedings.                                                               N/A

         Item 2.  Changes in Securities and Use of Proceeds.                                       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.                                                 22

         Signatures                                                                                 22

         Certifications of CEO and CFO.                                                          23 - 24

</TABLE>


                                      -2-
<PAGE>



                        SUPERCONDUCTIVE COMPONENTS, INC.

                                 BALANCE SHEETS

                                     ASSETS
                                     ------


<TABLE>
<CAPTION>

                                                                  MARCH 31,     DECEMBER 31,
                                                                    2003           2002
                                                                 -----------    -----------
                                                                 (UNAUDITED)
<S>                                                              <C>            <C>

CURRENT ASSETS
  Cash                                                           $   111,414    $    48,908
  Accounts and notes receivable
    Trade, less allowance for doubtful accounts of $15,000 and
       $18,000 respectively                                          219,865        170,038
    Contract receivable                                                2,471         71,087
    Related party receivables                                          4,589          4,368
    Employees                                                         11,078         11,985
    Other                                                                725            733
 Inventories                                                         627,270        655,432
 Prepaid expenses                                                     21,314         33,934
                                                                 -----------    -----------
       Total current assets                                          998,726        996,485
                                                                 -----------    -----------

PROPERTY AND EQUIPMENT,
 AT COST
  Machinery and equipment                                          2,331,717      2,312,869
  Furniture and fixtures                                              22,124         22,124
  Leasehold improvements                                             347,349        347,349
                                                                 -----------    -----------
                                                                   2,701,190      2,682,342
  Less accumulated depreciation                                   (2,095,342)    (2,068,246)
                                                                 -----------    -----------
                                                                     605,848        614,096
                                                                 -----------    -----------

OTHER ASSETS
  Intangibles                                                         42,475         43,247
                                                                 -----------    -----------

TOTAL ASSETS                                                     $ 1,647,049    $ 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>

                                                                                   MARCH 31,    DECEMBER 31,
                                                                                     2003           2002
                                                                                     ----           ----
                                                                                  (UNAUDITED)
<S>                                                                               <C>            <C>

CURRENT LIABILITIES
  Capital lease obligation, current portion                                       $    37,869    $    40,144
  Capital lease obligation, shareholder, current portion                               54,142         48,171
  Note payable shareholders, current portion                                           94,000         82,000
  Accounts payable                                                                    309,130        329,693
  Accounts payable, shareholders                                                        7,920          7,920
  Accrued contract expenses                                                            78,358         21,143
  Accrued personal property taxes                                                      67,501         54,002
  Accrued interest, shareholder                                                        24,932         20,638
  Accrued expenses                                                                     89,701         42,836
                                                                                  -----------    -----------
        Total current liabilities                                                     763,553        646,547
                                                                                  -----------    -----------

CAPITAL LEASE OBLIGATION, NET OF
 CURRENT PORTION                                                                       55,005         63,721
                                                                                  -----------    -----------

CAPITAL LEASE OBLIGATION, SHAREHOLDER, NET OF
 CURRENT PORTION                                                                       14,286         20,257
                                                                                  -----------    -----------

NOTE PAYABLE SHAREHOLDERS, NET OF CURRENT
 PORTION                                                                               74,270         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        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%                             342,378        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                                                            2,106          8,992
  Accumulated deficit                                                              (6,104,535)    (6,007,437)
                                                                                  -----------    -----------
                                                                                      618,165        715,263
                                                                                  -----------    -----------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                        $ 1,647,049    $ 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 MARCH 31, 2003 AND 2002
                   ------------------------------------------
                                   (UNAUDITED)

                                                        2003            2002
                                                        ----            ----

SALES REVENUE                                       $   624,546     $   714,148
CONTRACT RESEARCH REVENUE                                33,333          69,231
                                                    -----------     -----------
                                                        657,879         783,379
                                                    -----------     -----------

COST OF SALES REVENUE                                   475,328         527,778
COST OF CONTRACT RESEARCH                                33,333          69,231
                                                    -----------     -----------
                                                        508,661         597,009
                                                    -----------     -----------

GROSS MARGIN                                            149,218         186,370

GENERAL AND ADMINISTRATIVE EXPENSES                     179,070         212,607

SALES AND PROMOTIONAL EXPENSES                           48,256          41,513
                                                    -----------     -----------

LOSS FROM OPERATIONS                                    (78,108)        (67,750)
                                                    -----------     -----------

OTHER INCOME (EXPENSE)
  Interest, net                                          (5,846)         (4,156)
  Miscellaneous, net                                      2,742            (428)
                                                    -----------     -----------
                                                         (3,104)         (4,584)
                                                    -----------     -----------

LOSS BEFORE INCOME TAX                                  (81,212)        (72,334)

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

NET LOSS BEFORE CUMULATIVE EFFECT OF A
 CHANGE IN ACCOUNTING                                   (81,212)        (72,334)

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

NET LOSS                                                (97,098)        (72,334)

DIVIDENDS ON PREFERRED STOCK                             (6,885)         (9,360)

ACCRETION OF REDEEMABLE CONVERTIBLE
 PREFERRED (SERIES A)                                        --          (3,881)
                                                    -----------     -----------

LOSS APPLICABLE TO COMMON SHARES                    $  (103,983)    $   (85,575)
                                                    ===========     ===========

EARNINGS PER SHARE - BASIC AND DILUTIVE
 (Note 2)

NET LOSS PER COMMON SHARE BEFORE CUMULATIVE
 EFFECT OF A CHANGE IN ACCOUNTING
  Basic                                             $     (0.04)    $     (0.04)
                                                    ===========     ===========
  Dilutive                                          $     (0.04)    $     (0.04)
                                                    ===========     ===========

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

WEIGHTED AVERAGE SHARES OUTSTANDING
  Basic                                               1,823,256       1,823,256
                                                    ===========     ===========
  Dilutive                                            1,823,256       1,823,256
                                                    ===========     ===========

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

                                       -5-


<PAGE>



                        SUPERCONDUCTIVE COMPONENTS, INC.

                            STATEMENTS OF CASH FLOWS

                   THREE MONTHS ENDED MARCH 31, 2003 AND 2002
                   ------------------------------------------

                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                                       2003        2002
                                                                       ----        ----
<S>                                                                 <C>          <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income (loss)                                                 $ (97,098)   $ (72,334)
                                                                    ---------    ---------
  Adjustments to reconcile net income (loss) to net cash
   used in operating activities:
    Depreciation                                                       58,709       60,922
    Amortization and accretion                                          1,600          743
    Cumulative effect of a change in accounting                        15,886           --
    Gain on sale of equipment                                          (3,200)          --
    Inventory reserve                                                 (19,837)          --
    Provision for doubtful accounts                                     3,000       (3,000)
    Changes in operating assets and liabilities:
      (Increase) decrease in assets:
        Accounts receivable                                            16,483       12,876
        Inventories                                                    47,999      (19,067)
        Prepaid expenses                                               12,620      (33,694)
        Other assets                                                       --         (537)
      Increase (decrease) in liabilities:
        Accounts payable                                              (20,562)       2,138
        Accrued expenses                                               93,487        1,464
                                                                    ---------    ---------
          Total adjustments                                           206,185       21,845
                                                                    ---------    ---------
              Net cash provided by (used in) operating activities     109,087      (50,489)
                                                                    ---------    ---------

CASH FLOWS FROM INVESTING ACTIVITIES
  Proceeds on sale of equipment                                         3,200           --
  Purchases of property and equipment                                 (38,790)     (21,504)
                                                                    ---------    ---------
              Net cash used in investing activities                   (35,590)     (21,504)
                                                                    ---------    ---------

CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from note payable, shareholders                                 --       50,000
  Principal payments on capital lease obligations                     (10,991)     (10,061)
                                                                    ---------    ---------
              Net cash provided by (used in) financing activities     (10,991)      39,939
                                                                    ---------    ---------

</TABLE>





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

                                       -6-


<PAGE>



                        SUPERCONDUCTIVE COMPONENTS, INC.

                      STATEMENTS OF CASH FLOWS (CONTINUED)

                   THREE MONTHS ENDED MARCH 31, 2003 AND 2002
                   ------------------------------------------

                                   (UNAUDITED)

                                                         2003            2002
                                                         ----            ----
NET INCREASE (DECREASE) IN CASH                          62,506        (117,421)

CASH - Beginning of period                               48,908         202,406
                                                      ---------       ---------

CASH - End of period                                  $ 111,414       $  84,985
                                                      =========       =========

SUPPLEMENTAL DISCLOSURES OF CASH
 FLOW INFORMATION
  Cash paid during the years for:
    Interest, net                                     $   1,552           5,671
    Income taxes                                      $      --              --












   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:


                                        MARCH 31,           DECEMBER 31,
                                          2003                  2002
                                       ----------           ------------
                                      (unaudited)

                  Raw materials        $ 429,154             $ 459,784
                  Work-in-progress       139,995               145,838
                  Finished goods         164,407               175,933
                  Inventory reserve     (106,286)             (126,123)
                                       ---------             ---------
                                       $ 627,270             $ 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 three months ended March 31, 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 March 31, 2003 all Common Stock options and
                  warrants had an exercise price above the fair market value of
                  the Company's Common Stock, and accordingly, no effect of
                  dilution is recorded for such Common Stock equivalents. The
                  following is provided to reconcile the earnings per share
                  calculations:

                                                  Three months ended March 31,
                                                       2003          2002
                                                       ----          ----
                  Income (loss) applicable
                   to common shares               $  (103,983)   $   (85,575)
                                                  ===========    ===========

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

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

                  Weighted average
                   shares outstanding -
                   diluted                          1,823,256      1,823,256
                                                  ===========    ===========

NOTE 6.           REDEEMABLE CONVERTIBLE PREFERRED STOCK (SERIES A)

                  Effective May 31, 2002, the 99 shares of Series A redeemable
                  convertible preferred stock ($99,000) and accrued dividends
                  ($22,770) became fully redeemable by the Company. At March 31,
                  2003, the Company still owes the total outstanding balance of
                  $121,770. Management is working with the shareholder to
                  negotiate repayment terms. Management expects to have a
                  resolution prior to the end of the second quarter of 2003.
                  However, due to the Company's current capital position and its
                  prospects for obtaining additional financing in the near
                  future, there can be no assurance that a resolution to this
                  issue will be reached by that time.

                                       -9-

<PAGE>


                        SUPERCONDUCTIVE COMPONENTS, INC.

                          NOTES TO FINANCIAL STATEMENTS

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 for the quarter ended March 31,
                  2003:

                           Liability, beginning of year                $      0
                               Liabilities incurred prior to 2003
                                recorded in first quarter                27,158
                               Liabilities incurred in first quarter        400
                               Liabilities settled                            0
                               Accretion expense                            828
                               Revisions in cash flow estimates               0
                                                                       --------
                           Liability, end of quarter                   $ 28,386
                                                                       ========

                  Pro forma income statement effect for the quarter ended March
                  31, 2002:


                           Net loss as reported                        $(85,575)
                           Additional depreciation expense                   45
                           Additional accretion expense                     211
                           Net loss restated retroactive for
                            change in accounting                       $(85,831)
                                                                       ========

                           Net loss per common share
                            as reported                                $  (0.05)

                           Net loss per common share
                            restated retroactive for
                            change in accounting                       $  (0.05)



                                      -10-
<PAGE>


                        SUPERCONDUCTIVE COMPONENTS, INC.

                          NOTES TO FINANCIAL STATEMENTS

NOTE 8.           CAPITAL REQUIREMENTS; RISK OF CURTAILMENT OF BUSINESS
                  OPERATIONS


                  Our accumulated deficit since inception was $6,104,535
                  (unaudited) at March 31, 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.

                  As of March 31, 2003, our cash on-hand was $111,414 with an
                  additional $100,000 available to the Company through a line of
                  credit. During the first quarter of 2003, the Company provided
                  $109,000 in cash to fund our operations. We believe, based on
                  currently available financing and forecasted sales and
                  expenses, that our funding will be adequate to sustain
                  operations through December 2003. During the first quarter of
                  2003 we have attempted to raise additional funds through
                  further offerings of debt or equity; however, to date, we have
                  not been successful in our efforts. 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. We believe that unless additional financing is
                  arranged, we would likely have to significantly curtail our
                  current business operations and may be forced to liquidate the
                  Company. We must ultimately achieve profitability from our
                  current product line for our business model to succeed. We do
                  not believe that we will be able to achieve profitability from
                  our current product line until the fourth quarter of 2003,
                  based on our current projections. In the absence of
                  significant revenue from our product line, we believe that we
                  will need to arrange financing of at least $180,000 by
                  December 2003 in order to sustain our operations at current
                  levels into 2004. However, we cannot assure you that
                  subsequent additional financings will be available to us on a
                  timely basis or that the additional capital that we require
                  will be available on acceptable terms, if at all. The terms of
                  a subsequent financing may involve the authorization of
                  additional shares of our common stock that may result in a
                  significant dilution, a change of control and/or require
                  stockholder approval. We have been, and continue to be,
                  actively engaged in seeking additional financing in a variety
                  of venues and formats and we continue to impose actions
                  designed to minimize our operating losses. If additional
                  financing is not available when required or is not available
                  on acceptable terms, or we are unable to arrange some other
                  suitable strategic opportunity, we will be in significant
                  financial jeopardy and we may be unable to continue our
                  operations at current levels, or at all.

                  The Company has incurred substantial operating losses through
                  March 31, 2003, and numerous factors, including a need to
                  secure new facilities for the Company's operations in the near
                  future, makes 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, 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.

                                      -11-



<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.

         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,
         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.

                                      -12-

<PAGE>


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

         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. Cost estimates for
         removal 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.

         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 $6,104,535
         from inception to March 31, 2003.

         THREE MONTHS ENDED MARCH 31, 2003 (UNAUDITED) COMPARED TO THREE MONTHS
         ENDED MARCH 31, 2002 (UNAUDITED):

         REVENUES

         Revenues for the three months ended March 31, 2003 were $657,879
         compared to $783,379, a decrease of $125,500 or 16.0% from the three
         months ended March 31, 2002.

         Product revenues decreased to $624,546 in 2003 from $714,148 in 2002 or
         a decrease of 12.5%. The decline in revenues for the first three months
         is due to lower product shipments as a result of the weak U.S. economy.
         The Company intends to intensify its marketing efforts by increasing
         the number of manufacturers representatives representing the Company.
         Also, a sales manager is expected to be added to the organization in
         2003.

         Contract research revenues were $33,333 in 2003 as compared to $69,231
         in 2002. The decrease is due to a Phase II SBIR grant from the National
         Science Foundation that expired in 2002. Revenues of $69,231 from this
         grant are included in 2002 revenues.

         The Company was awarded a $100,000 Phase I SBIR from the Department of
         Energy in May 2002. This grant began in August 2002 and $33,333 of
         revenue was recognized in the first quarter of 2003.

         The Company became a member of a team led by Oxford Instruments
         Superconducting Technology, which was awarded a grant from the
         Department of Energy Superconductivity Partnership Initiative Program.
         This program began in the fourth quarter of 2002. Expenses of $4,900
         were incurred in the first quarter.

                                      -13-

<PAGE>


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

         GROSS MARGIN

         Total gross margin in 2003 was $149,218 or 22.7% of total revenue
         compared to $186,370 or 23.8% in 2002. Gross margin on product revenue
         was 23.9% in 2003 versus 26.1% in 2002. The decrease was due to lower
         sales as well as the product mix. Gross margin on contract research
         revenue was 0.0% for 2003 and 2002.

         SELLING EXPENSE

         Selling expense in 2003 increased to $48,256 from $41,513 in 2002, an
         increase of 16.2%. The increase was due to increased commission costs
         and increased trade show attendance.

         GENERAL AND ADMINISTRATIVE EXPENSE

         General and administrative expense in 2003 decreased to $179,070 from
         $212,607 or a 15.8% decrease. The decrease in these costs was due to a
         reduction in administrative staff. In addition, 2002 expenses include
         consulting services for management assistance, which totaled $12,491.

         RESEARCH AND DEVELOPMENT EXPENSE

         Internal research and development costs are expensed as incurred.
         Research and development costs for 2003 were $17,028 compared to $(351)
         in 2002. Internal research and development costs increased due to a
         decrease in contract research revenues, which are used to offset these
         expenses.

         INTEREST EXPENSE

         Interest expense was $6,439 for the three months ended March 31, 2003
         compared to $5,671 for the three months ended March 31, 2002. Interest
         expense to related parties was $4,294 and $2,763 for the three months
         ended March 31, 2003, and March 31, 2002, respectively. The increase is
         due to the accrued interest incurred as a result of the Series A
         preferred stock.

         INCOME (LOSS) APPLICABLE TO COMMON SHARES

         BASIC

         Net loss per common share based on the loss applicable to common shares
         for the three months ended March 31, 2003 and 2002 was $0.06 and $0.05,
         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 from operations was
         $0.04 and $0.04 for the three months ended March 31, 2003 and 2002,
         respectively. The difference between the net loss from operations and

                                      -14-

<PAGE>


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

         the loss applicable to common shares of $0.02 and $0.01 for the three
         months ended March 31, 2003 and 2002, respectively, is 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 three months ended March 31, 2003 and $2,475 for the
         three months ended March 31, 2002. Dividends on the Series B preferred
         stock totaled $6,885 for each period.

         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 three months of
         2003 and $3,881 for the first three months of 2002.

         Basic loss per common share for the three months ended March 31, 2003,
         was $0.04 per share with 1,823,256 average common shares outstanding as
         compared to $0.05 per share and 1,823,256 weighted average common
         shares outstanding for the three months ended March 31, 2002.

         DILUTED

         Diluted loss per common share for the three months ended March 31, 2003
         was $0.06 per share with 1,823,256 average common shares outstanding as
         compared to $0.05 per share and 1,823,256 weighted average common
         shares outstanding for the three months ended March 31, 2002. For the
         three months ended March 31, 2003 and 2002, all outstanding common
         stock equivalents are anti-dilutive due to the net loss.

         LIQUIDITY AND WORKING CAPITAL

         At March 31, 2003, working capital was $235,173 compared to $681,663 at
         March 31, 2002. The Company provided cash from operations for the three
         months ended March 31, 2003, of approximately $109,000. The Company
         utilized cash from operations for the three months ended March 31,
         2002, of approximately $50,000. 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 $56,000 and $62,000, respectively, for
         the three months ended March 31, 2003 and 2002. Overall, accounts
         payable and accrued expenses increased in excess of decreases in
         accounts receivable, inventory and prepaids by approximately $150,000
         for the three months ended March 31, 2003. Accounts receivable,
         inventory, and prepaids increased in excess of increases in accounts
         payable and accrued expenses by approximately $37,000 for the three
         months ended March 31, 2002, as a result of timing of receipt of
         inventory versus required scheduled payments on this inventory and
         increased prepaid expenses.

                                      -15-

<PAGE>


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

         For investing activities, the Company used cash of approximately
         $36,000 and $22,000, for the three months ended March 31, 2003 and
         March 31, 2002, respectively. The amounts invested were used to
         purchase machinery and equipment for increased production capacity.
         Proceeds on sale of equipment totaled $3,200 and $0 for the three
         months ended March 31, 2003 and March 31, 2002, respectively.

         For financing activity for the three months ended March 31, 2003, the
         Company utilized cash of approximately $11,000. Cash payments to third
         parties for capital lease obligations approximated $11,000.

         For financing activity for the three months ended March 31, 2002, the
         Company provided cash of approximately $40,000. Cash payments to third
         parties for capital lease obligations approximated $10,000; proceeds
         from notes payable from shareholders totaled $50,000.

         Series A redeemable convertible preferred stock and accrued dividends
         in the amount of $121,770 is outstanding at March 31, 2003 and was due
         May 31, 2002. Management is working with the shareholder to negotiate
         repayment terms. Management expects to have a resolution prior to the
         end of the second quarter of 2003. However, due to the Company's
         current capital position and its prospects for obtaining additional
         financing in the near future, there can be no assurance that a
         resolution to this issue will be reached by that time.


         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 anticipates, based on currently available financing and
         forecasted sales and expenses, that funding for the Company's
         operations will be adequate to sustain operations through December
         2003. During the first quarter of 2003, the Company has attempted to
         raise additional funds through further offerings of debt or equity;
         however, to date, these efforts have been unsuccessful. Unless
         additional financing is arranged, the Company will have to
         significantly curtail its current business operations and may be forced
         to liquidate.

         In the absence of significant revenue from our product line, the
         Company must arrange financing of at least $180,000 by December 2003 in
         order to sustain its operations at current levels into 2004. In order
         to succeed, the Company must ultimately achieve profitability from our
         current product line. It is unlikely that the Company will be able to
         achieve profitability from its current product line until the fourth
         quarter of 2003.

         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.

                                      -16-

<PAGE>

         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 $6,104,535 (unaudited) at March 31, 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.

         If we are unable to obtain additional funds we may have to
         significantly curtail the scope of our operations or liquidate the
         Company.

         As of March 31, 2003, our cash on-hand was $111,414 with an additional
         $100,000 available to the Company through a line of credit. During the
         first quarter of 2003, the Company provided $109,000 in cash to fund
         our operations. We believe, based on currently available financing and
         forecasted sales and expenses, that our funding will be adequate to
         sustain operations through December 2003. During the first quarter of
         2003 we have attempted to raise additional funds through further
         offerings of debt or equity; however, to date, we have not been
         successful in our efforts. 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. We believe that unless additional financing is
         arranged, we would likely have to significantly curtail our current
         business operations and may be forced to liquidate the Company. We must
         ultimately achieve profitability from our current product line for our
         business model to succeed. We do not believe that we will be able to
         achieve profitability from our current product line until the fourth
         quarter of 2003, based on our current projections. In the absence of
         significant revenue from our product line, we believe that we will need
         to arrange financing of at least $180,000 by December 2003 in order to
         sustain our operations at current levels into 2004. However, we cannot
         assure you that subsequent additional financings will be available to
         us on a timely basis or that the additional capital that we require
         will be available on acceptable terms, if at all. The terms of a
         subsequent financing may involve the authorization of additional shares
         of our common stock that may result in a significant dilution, a change
         of control and/or require stockholder approval. We have been, and
         continue to be, actively engaged in seeking additional financing in a
         variety of venues and formats and we continue to impose actions
         designed to minimize our operating losses. If additional financing is
         not available when required or is not available on acceptable terms, or
         we are unable to arrange some other suitable strategic opportunity, we
         will be in significant financial jeopardy and we may be unable to
         continue our operations at current levels, or at all.

         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.

                                      -17-

<PAGE>


         We need additional capital, which may reduce the value of our common
         stock.

         The Company has incurred substantial operating losses through March 31,
         2003, and numerous factors, including a need to secure new facilities
         for the Company's operations in the near future, makes 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, 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.

                                      -18-

<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 the Company's Products and Uncertainty Regarding
         Development of Markets

         Some of the Company's products are in the early stages of
         commercialization and the Company believes 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 the Company 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.


                                      -19-
<PAGE>

         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
         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.

                                      -20-

<PAGE>

         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 and to secure new manufacturing facilities.

         OFF BALANCE SHEET ARRANGEMENTS

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

ITEM 3.     CONTROLS AND PROCEDURES

         (a) Within the 90 days prior to the date of this report, the Company
         carried out an evaluation, under the supervision and with the
         participation of the Company's management, including the Chief
         Executive Officer along with the Chief Financial Officer, of the
         effectiveness of the design and operation of the disclosure controls
         and procedures pursuant to Exchange Act Rule 13a-14. Based upon that
         evaluation, the Company's Chief Executive Officer along with the Chief
         Financial Officer concluded that the Company's disclosure controls and
         procedures are effective in timely alerting them to material
         information relating to the Company required to be included in the
         Company's periodic SEC filings.

         (b) There have been no significant changes in the Company's internal
         controls or in other factors that could significantly affect internal
         controls subsequent to the date the Chief Executive Officer and the
         Chief Financial Officer carried out this evaluation.

                                      -21-

<PAGE>


                           PART II. OTHER INFORMATION

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

         (A)   EXHIBITS.

               99(a) Certification of CEO under Section 906 of Sarbanes-Oxley
                     Act of 2002.

               99(b) Certification of CFO under Section 906 of Sarbanes-Oxley
                     Act of 2002.

         (B)   REPORTS ON FORM 8-K.

               None.

                                   SIGNATURES

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

                                    SUPERCONDUCTIVE COMPONENTS, INC.


Date:  May 15, 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)

                                      -22-

<PAGE>


                                  CERTIFICATION

I, Daniel Rooney, certify that:

         1.       I have reviewed this quarterly report on Form 10-QSB of
                  Superconductive Components, Inc.;

         2.       Based on my knowledge, this quarterly report does not contain
                  any untrue statement of a material fact or omit to state a
                  material fact necessary to make the statements made, in light
                  of the circumstances under which such statements were made,
                  not misleading with respect to the period covered by this
                  quarterly report;

         3.       Based on my knowledge, the financial statements, and other
                  financial information included in this quarterly report,
                  fairly present in all material respects the financial
                  condition, results of operations and cash flows of the
                  registrant as of, and for, the periods presented in this
                  quarterly report;

         4.       The registrant's other certifying officers and I are
                  responsible for establishing and maintaining disclosure
                  controls and procedures (as defined in Exchange Act Rules
                  13a-14 and 15d-14) for the registrant and we have:

                  a)       designed such disclosure controls and procedures to
                           ensure that material information relating to the
                           registrant, including its consolidated subsidiaries,
                           is made known to us by others within those entities,
                           particularly during the period in which this
                           quarterly report is being prepared;

                  b)       evaluated the effectiveness of the registrant's
                           disclosure controls and procedures as of a date
                           within 90 days prior to the filing date of this
                           quarterly report (the "Evaluation Date"); and

                  c)       presented in this quarterly report our conclusions
                           about the effectiveness of the disclosure controls
                           and procedures based on our evaluation as of the
                           Evaluation Date;

         5.       The registrant's other certifying officers and I have
                  disclosed, based on our most recent evaluation, to the
                  registrant's auditors and the audit committee of registrant's
                  board of directors (or persons performing the equivalent
                  function):

                  a)       all significant deficiencies in the design or
                           operation of internal controls which could adversely
                           affect the registrant's ability to record, process,
                           summarize and report financial data and have
                           identified for the registrant's auditors any material
                           weaknesses in internal controls; and

                  b)       any fraud, whether or not material, that involves
                           management or other employees who have a significant
                           role in the registrant's internal controls; and

         6.       The registrant's other certifying officers and I have
                  indicated in this quarterly report whether or not there were
                  significant changes in internal controls or in other factors
                  that could significantly affect internal controls subsequent
                  to the date of our most recent evaluation, including any
                  corrective actions with regard to significant deficiencies and
                  material weaknesses.

Date: May 15, 2003

                                           /s/ Daniel Rooney
                                           -----------------------------------
                                           Daniel Rooney
                                           President and Chief Executive Officer

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<PAGE>


                                  CERTIFICATION

I, Gerald S. Blaskie, certify that:

         1.       I have reviewed this quarterly report on Form 10-QSB of
                  Superconductive Components, Inc.;

         2.       Based on my knowledge, this quarterly report does not contain
                  any untrue statement of a material fact or omit to state a
                  material fact necessary to make the statements made, in light
                  of the circumstances under which such statements were made,
                  not misleading with respect to the period covered by this
                  quarterly report;

         3.       Based on my knowledge, the financial statements, and other
                  financial information included in this quarterly report,
                  fairly present in all material respects the financial
                  condition, results of operations and cash flows of the
                  registrant as of, and for, the periods presented in this
                  quarterly report;

         4.       The registrant's other certifying officers and I are
                  responsible for establishing and maintaining disclosure
                  controls and procedures (as defined in Exchange Act Rules
                  13a-14 and 15d-14) for the registrant and we have:

                  a)       designed such disclosure controls and procedures to
                           ensure that material information relating to the
                           registrant, including its consolidated subsidiaries,
                           is made known to us by others within those entities,
                           particularly during the period in which this
                           quarterly report is being prepared;

                  b)       evaluated the effectiveness of the registrant's
                           disclosure controls and procedures as of a date
                           within 90 days prior to the filing date of this
                           quarterly report (the "Evaluation Date"); and

                  c)       presented in this quarterly report our conclusions
                           about the effectiveness of the disclosure controls
                           and procedures based on our evaluation as of the
                           Evaluation Date;

         5.       The registrant's other certifying officers and I have
                  disclosed, based on our most recent evaluation, to the
                  registrant's auditors and the audit committee of registrant's
                  board of directors (or persons performing the equivalent
                  function):

                  a)       all significant deficiencies in the design or
                           operation of internal controls which could adversely
                           affect the registrant's ability to record, process,
                           summarize and report financial data and have
                           identified for the registrant's auditors any material
                           weaknesses in internal controls; and

                  b)       any fraud, whether or not material, that involves
                           management or other employees who have a significant
                           role in the registrant's internal controls; and

         6.       The registrant's other certifying officers and I have
                  indicated in this quarterly report whether or not there were
                  significant changes in internal controls or in other factors
                  that could significantly affect internal controls subsequent
                  to the date of our most recent evaluation, including any
                  corrective actions with regard to significant deficiencies and
                  material weaknesses.

Date: May 15, 2003

                                                    /s/ Gerald S. Blaskie
                                                    ----------------------------
                                                    Gerald S. Blaskie
                                                    Chief Financial Officer




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