SCON Superconductor Technologies Inc

Item 1.01 Entry Into Material Definitive Agreement

Subsequent to the announcement on January 28, 2020 that Superconductor Technologies Inc. (the “Company”; and in the first person, “we” and our”) planned to reduce the costs of our operation and align our resources for the completion of the strategic alternatives review, the Company started the process of selling, in separate transactions, assets that the Company deemed non-essential going forward. The latest such transaction entered into on March 5th, when considered in combination with the prior transactions since January 28, 2020, may be deemed a material definitive purchase agreement for sales of various production, R&D, and testing equipment and selected intellectual property related primarily to our superconducting wire initiative. The aggregate sales prices of the post January 28th transactions is expected to be approximately $1,075,000, all sold to purchasers having no affiliation with the Company. When the transactions are completed over the next several weeks, the Company will continue to hold production, R&D, and testing assets for our Sapphire cryocooler business, along with the majority of our intellectual property assets. The proceeds from this series of transactions is expected to be sufficient, together with the Company’s other capital resources, for the Company to complete the proposed merger announced last week.

This summary is subject in its entirety to the purchase agreements described above, which the Company expects to be filed with the Company’s next periodic report.