SCON Superconductor Technologies Inc

Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On December 2, 2019, Superconductor Technologies Inc. (the “Company”) received a notice from the Listing Qualifications Department of the NASDAQ Stock Market indicating that the Company does not meet the minimum of $2,500,000 in stockholders’ equity required by Listing Rule 5550(b)(1) for continued listing (the “Stockholders’ Equity Requirement). The Company also does not meet the alternatives of market value of listed securities or net income from continuing operations. Under the listing rule, the Company has 45 calendar days, or until January 16, 2020, to submit a plan to regain compliance with the Stockholders’ Equity Requirement. If the plan is accepted by the NASDAQ Stock Market, an extension of up to 180 calendar days from December 2, 2019 will be granted.

As previously disclosed, on July 9, 2019, we received a letter from the Listing Qualifications Department of the NASDAQ Stock Market notifying us that the minimum bid price per share for our common stock fell below $1.00 for a period of 30 consecutive business days and that therefore we did not meet the minimum bid price requirement set forth in NASDAQ Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”). The letter also states that we will be provided 180 calendar days, or until January 6, 2020, to regain compliance with the Minimum Bid Price Requirement. In accordance with Rule 5810(c)(3)(A), we can regain compliance with the Minimum Bid Price Requirement if at any time during the 180-day period the closing bid price of our common stock is at least $1.00 for a minimum of 10 consecutive business days. If by January 6, 2020, we cannot demonstrate compliance with the Rule 5550(a)(2) (and we remain ineligible for a second cure period due to not meeting the Stockholders’ Equity Requirement), then the NASDAQ Staff will provide notice that our securities will be subject to delisting. At such time, we may appeal the delisting determination to a Hearings Panel outlining our plans to regain compliance.

We intend to monitor the closing bid price of our common stock and may, if appropriate, consider implementing available options to regain compliance with the Minimum Bid Price Requirement and to also consider available options to regain compliance with the Stockholders’ Equity Requirement.