Filed Pursuant to Rule 424(b)(3)

Registration No. 333-131605

PROSPECTUS SUPPLEMENT

Number 5

to

Prospectus dated April 4, 2006, Prospectus Supplement dated May 15, 2006, Prospectus

Supplement dated August 3, 2006, Prospectus Supplement dated November 3, 2006,

Prospectus Supplement dated March 15, 2007 and

Post-effective Amendment dated May 1, 2007

of

SUPERCONDUCTIVE COMPONENTS, INC.

2,281,253 Shares of Common Stock

This Prospectus Supplement relates to the sale of up to 2,281,253 shares of Superconductive Components, Inc. common stock (the “Shares”). The Shares are being registered to permit public secondary trading of the shares that are being offered by the selling shareholders named in the prospectus. We are not selling any of the Shares in this offering and therefore will not receive any proceeds from this offering.

This Prospectus Supplement No. 5 includes the attached Quarterly Report on Form 10-QSB (the “Form 10-QSB”) of Superconductive Components, Inc. (the “Company”), for the three months ended March 31, 2007, filed by the Company with the Securities and Exchange Commission on May 3, 2007. The exhibits to the Form 10-QSB are not included with this Prospectus Supplement No. 5 and are not incorporated by reference herein. This Prospectus Supplement No. 5 should be read in conjunction with the prospectus supplement No. 1 dated May 15, 2006, the prospectus supplement No. 2 dated August 3, 2006, the prospectus supplement No. 3 dated November 3, 2006, the prospectus supplement No. 4 dated March 15, 2007, and the post-effective amendment dated May 1, 2007.

Our common stock is traded on the Over-the-Counter Bulletin Board under the symbol “SCCI.”

NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS SUPPLEMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

The date of this Prospectus Supplement No. 5 is May 9, 2007.



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, 2007

 

¨

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 small business issuer as specified in its charter)

 

Ohio   31-1210318
(State or other jurisdiction of
incorporation or organization)
  (I.R.S. Employer
Identification No.)

2839 Charter Street, Columbus, Ohio 43228

(Address of principal executive offices)

(614) 486-0261

(Issuer’s telephone number)

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 issuer’s classes of common equity, as of the latest practicable date: 3,467,100 shares of Common Stock, without par value, were outstanding at April 30, 2007.

Transitional Small Business Disclosure Format (Check one): YES   ¨     NO   x

 



FORM 10-QSB

SUPERCONDUCTIVE COMPONENTS, INC.

 

          Page No.

PART I.     FINANCIAL INFORMATION

  

Item 1.

  

Financial Statements.

  
  

Balance Sheets as of March 31, 2007 (unaudited) and December 31, 2006

   3
  

Statements of Operations For the Three Months Ended March 31, 2007 and 2006 (unaudited)

   5
  

Statements of Cash Flows For the Three Months Ended March 31, 2007 and 2006 (unaudited)

   6
  

Notes to Financial Statements (unaudited)

   8

Item 2.

  

Management’s Discussion and Analysis or Plan of Operation.

   14

Item 3.

  

Controls and Procedures

   19

PART II.     OTHER INFORMATION

  

Item 1.

  

Legal Proceedings.

   N/A

Item 2.

  

Unregistered Sales of Equity 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.

   20

Signatures.

      20

 

2


PART I. FINANCIAL INFORMATION

 

ITEM 1.

FINANCIAL STATEMENTS

SUPERCONDUCTIVE COMPONENTS, INC.

BALANCE SHEETS

ASSETS

 

     March 31,
2007
    December 31,
2006
 
     (UNAUDITED)        

CURRENT ASSETS

    

Cash

   $ 918,825     $ 648,494  

Accounts receivable

    

Trade, less allowance for doubtful accounts of $25,000

     389,670       439,946  

Contract

     52,760       52,760  

Inventories

     679,522       713,625  

Prepaid expenses

     103,633       47,466  
                

Total current assets

     2,144,410       1,902,291  
                

PROPERTY AND EQUIPMENT, AT COST

    

Machinery and equipment

     2,747,803       2,697,368  

Furniture and fixtures

     25,326       23,643  

Leasehold improvements

     299,551       299,551  

Construction in progress

     135,378       95,590  
                
     3,208,058       3,116,152  

Less accumulated depreciation

     (2,073,433 )     (2,012,312 )
                
     1,134,625       1,103,840  
                

OTHER ASSETS

    

Deposits

     281,159       289,816  

Intangibles

     30,122       30,894  
                

Total other assets

     311,281       320,710  
                

TOTAL ASSETS

   $ 3,590,316     $ 3,326,841  
                

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

 

3


SUPERCONDUCTIVE COMPONENTS, INC.

BALANCE SHEETS

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

     March 31,
2007
    December 31,
2006
 
     (UNAUDITED)        

CURRENT LIABILITIES

    

Capital lease obligation, current portion

   $ 89,781     $ 70,799  

Accounts payable

     275,435       297,161  

Accrued contract expenses

     27,258       27,258  

Accrued personal property taxes

     25,500       22,500  

Deferred revenue

     196,754       50,474  

Accrued expenses and other

     168,841       208,494  
                

Total current liabilities

     783,569       676,686  
                

CAPITAL LEASE OBLIGATION, NET OF CURRENT PORTION

     190,346       145,693  
                

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

     366,443       360,146  

Common stock, no par value, authorized 15,000,000 shares; 3,440,191 and 3,432,915 shares issued and outstanding respectively

     9,047,835       9,007,817  

Additional paid-in capital

     993,598       995,586  

Accumulated deficit

     (7,791,475 )     (7,859,087 )
                
     2,616,401       2,504,462  
                

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

   $ 3,590,316     $ 3,326,841  
                

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

 

4


SUPERCONDUCTIVE COMPONENTS, INC.

STATEMENTS OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 2007 AND 2006

(UNAUDITED)

 

     2007     2006  

SALES REVENUE

   $ 2,454,009     $ 1,158,531  

CONTRACT RESEARCH REVENUE

     —         42,092  
                
     2,454,009       1,200,623  
                

COST OF SALES REVENUE

     1,995,429       910,243  

COST OF CONTRACT RESEARCH

     —         17,407  
                
     1,995,429       927,650  
                

GROSS MARGIN

     458,580       272,973  

GENERAL AND ADMINISTRATIVE EXPENSE

     236,596       212,730  

RESEARCH AND DEVELOPMENT EXPENSE

     63,164       47,176  

SELLING EXPENSE

     97,402       68,103  
                

INCOME (LOSS) FROM OPERATIONS

     61,418       (55,036 )
                

OTHER INCOME (EXPENSE)

    

Interest income

     12,556       10,795  

Interest expense

     (5,904 )     (2,024 )

Miscellaneous, net

     (458 )     (712 )
                
     6,194       8,059  
                

INCOME (LOSS) BEFORE PROVISION FOR INCOME TAX

     67,612       (46,977 )

INCOME TAX EXPENSE

     —         —    
                

NET INCOME (LOSS)

     67,612       (46,977 )

DIVIDENDS ON PREFERRED STOCK

     (6,296 )     (6,296 )
                

INCOME (LOSS) APPLICABLE TO COMMON SHARES

   $ 61,316     $ (53,273 )
                

EARNINGS PER SHARE - BASIC AND DILUTED

(Note 5)

    

NET INCOME (LOSS) PER COMMON SHARE BEFORE DIVIDENDS ON PREFERRED STOCK

    

Basic

   $ 0.02     $ (0.01 )
                

Diluted

   $ 0.02     $ (0.01 )
                

NET INCOME (LOSS) PER COMMON SHARE AFTER DIVIDENDS ON PREFERRED STOCK

    

Basic

   $ 0.02     $ (0.02 )
                

Diluted

   $ 0.01     $ (0.02 )
                

WEIGHTED AVERAGE SHARES OUTSTANDING

    

Basic

     3,439,868       3,425,915  
                

Diluted

     4,206,751       3,425,915  
                

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

 

5


SUPERCONDUCTIVE COMPONENTS, INC.

STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2007 AND 2006

(UNAUDITED)

 

     2007     2006  

CASH FLOWS FROM OPERATING ACTIVITIES

    

Net income (loss)

   $ 67,612     $ (46,977 )
                

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

    

Depreciation and accretion

     61,949       50,242  

Amortization

     772       772  

Stock based compensation expense

     44,326       —    

Inventory reserve

     2,765       —    

Changes in operating assets and liabilities:

    

(Increase) decrease in assets:

    

Accounts receivable

     50,276       (99,507 )

Inventories

     `31,338       40,580  

Prepaid expenses

     (56,167 )     (15,491 )

Other assets

     8,657       (7,912 )

Increase (decrease) in liabilities:

    

Accounts payable

     (21,726 )     57,960  

Accrued expenses and deferred revenue

     108,800       45,888  
                

Total adjustments

     230,990       72,532  
                

Net cash provided by operating activities

     298,602       25,555  
                

CASH FLOWS FROM INVESTING ACTIVITIES

    

Purchases of property and equipment

     (7,310 )     (65,922 )
                

Net cash used in investing activities

     (7,310 )     (65,922 )
                

CASH FLOWS FROM FINANCING ACTIVITIES

    

Payments related to registration of common stock

     —         (37,333 )

Principal payments on capital lease obligations

     (20,961 )     (13,757 )
                

Net cash used in financing activities

     (20,961 )     (51,090 )
                

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

 

6


SUPERCONDUCTIVE COMPONENTS, INC.

STATEMENTS OF CASH FLOWS (CONTINUED)

THREE MONTHS ENDED MARCH 31, 2007 AND 2006

 

     2007    2006  

NET INCREASE (DECREASE) IN CASH

   $ 270,331    $ (91,457 )

CASH - Beginning of period

     648,494      1,161,369  
               

CASH - End of period

   $ 918,825    $ 1,069,912  
               

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

     

Cash paid during the years for:

     

Interest, net

   $ 5,904    $ 2,024  

Income taxes

   $ —      $ —    

SUPPLEMENTAL DISCLOSURES OF NONCASH FINANCING ACTIVITIES