Filed Pursuant to Rule 424(b)(3)
Registration No. 333-131605

PROSPECTUS SUPPLEMENT

Number 9

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, Post-effective Amendment dated May 1, 2007, Prospectus Supplement dated May 9, 2007, Post-effective Amendment dated July 18, 2007, Post-effective Amendment dated July 20, 2007, Post-effective Amendment dated August 3, 2007, Post-effective Amendment dated August 29, 2007, Prospectus Supplement dated November 13, 2007, Post effective Amendment dated April 24, 2008, Prospectus Supplement dated May 8. 2008 and Prospectus Supplement dated August 7, 2008

of

SCI ENGINEERED MATERIALS, INC.

2,281,253 Shares of Common Stock

This Prospectus Supplement relates to the sale of up to 2,281,253 shares of SCI Engineered Materials, 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. 9 includes the attached Quarterly Report on Form 10-Q (the “Form 10-Q”) of SCI Engineered Materials, Inc. (the “Company”), for the three months ended September 30, 2008, filed by the Company with the Securities and Exchange Commission on November 5, 2008. The exhibits to the Form 10-Q are not included with this Prospectus Supplement No. 9 and are not incorporated by reference herein. This Prospectus Supplement No. 9 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, the post-effective amendment dated May 1, 2007, the prospectus supplement No. 5 dated May 9, 2007, the post-effective amendment No. 2 dated July 18, 2007, the post-effective amendment No. 3 dated July 20, 2007, the post-effective amendment No. 4 dated August 3, 2007, the post-effective amendment No. 5 dated August 29, 2007, the prospectus supplement No. 6 dated November 13, 2007, the post-effective amendment No. 6 dated April 24, 2008, the prospectus supplement No. 7 dated May 8, 2008 and the prospectus supplement No. 8 dated August 7, 2008.

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

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. 9 is November 6, 2008.
 

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

FORM 10-Q

(Mark One)
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 
For the quarterly period ended September 30, 2008
or
   
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 
For the transition period from                             to                           

Commission file number: 0-31641

SCI ENGINEERED MATERIALS, INC.
(Exact name of small business issuer as specified in its charter)

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

2839 Charter Street, Columbus, Ohio 43228
(Address of principal executive offices) (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 such filing requirements for the past 90 days. Yes    x     No    ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer    ¨    Accelerated filer    ¨    Non-accelerated filer    ¨    Smaller reporting company    x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes    ¨     No    x

3,560,259 shares of Common Stock, without par value, were outstanding at October 30, 2008.
 
 
FORM 10-Q

SCI ENGINEERED MATERIALS, INC.
 
Table of Contents

   
Page No.
     
PART I.       FINANCIAL INFORMATION
 
     
 
Item 1.
Financial Statements.
 
       
   
Balance Sheets as of September 30, 2008 (unaudited)
 
   
and December 31, 2007
3
       
   
Statements of Operations for the Three Months and Nine Months
 
   
Ended September 30, 2008 and 2007 (unaudited)
5
       
   
Statements of Cash Flows for the Nine Months
 
   
Ended September 30, 2008 and 2007 (unaudited)
6
       
   
Notes to Financial Statements (unaudited) 
8
       
 
Item 2.
Management's Discussion and Analysis of Financial Condition and
 
   
Results of Operations.
14
       
 
Item 3.
Quantitative and Qualitative Disclosures About Market Risk.
N/A
       
 
Item 4.
Controls and Procedures.
20
       
PART II.      OTHER INFORMATION
 
       
 
Item 1.
Legal Proceedings.
N/A
       
 
Item 1A.
Risk Factors
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.
21
       
  Signatures.
21
 
2

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SCI ENGINEERED MATERIALS, INC.

BALANCE SHEETS
 
ASSETS

   
September 30,
 
December 31,
 
   
2008
 
2007
 
   
(UNAUDITED)
     
CURRENT ASSETS
             
Cash
 
$
906,409
 
$
1,182,086
 
Accounts receivable
             
Trade, less allowance for doubtful accounts of $24,700
   
605,061
   
219,222
 
Contract
   
78,137
   
65,954
 
Other
   
-
   
550
 
Inventories
   
1,513,458
   
756,999
 
Prepaid expenses
   
180,241
   
21,148
 
Total current assets
   
3,283,306
   
2,245,959
 
               
PROPERTY AND EQUIPMENT,   AT COST
             
Machinery and equipment
   
4,198,407
   
3,386,778
 
Furniture and fixtures
   
105,089
   
74,222
 
Leasehold improvements
   
313,951
   
301,551
 
Construction in progress
   
17,535
   
599,753
 
     
4,634,982
   
4,362,304
 
Less accumulated depreciation
   
(2,380,180
)
 
(2,185,277
)
     
2,254,802
   
2,177,027
 
               
 
             
OTHER ASSETS
             
Deposits
   
27,530
   
18,639
 
Intangibles
   
34,850
   
29,202
 
Total other assets
   
62,380
   
47,841
 
               
TOTAL ASSETS
 
$
5,600,488
 
$
4,470,827
 

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

3
 
SCI ENGINEERED MATERIALS, INC.

BALANCE SHEETS

LIABILITIES AND SHAREHOLDERS' EQUITY

 
 
September 30, 
 
  December 31,
 
   
2008
 
  2007
 
   
(UNAUDITED)
      
CURRENT LIABILITIES
             
Capital lease obligation, current portion
 
$
272,530
 
$
259,714
 
Accounts payable
   
231,475
   
160,468
 
Accrued contract expenses
   
39,892
   
47,702
 
Customer deposits
   
806,618
   
19,483
 
Accrued compensation
   
83,941
   
138,190
 
Accrued expenses and other
   
100,861
   
100,184
 
Note payable, current portion
   
5,077
   
-
 
Total current liabilities
   
1,540,394
   
725,741
 
               
               
LONG TERM LIABILITIES
             
Capital lease obligation, net of current portion
   
628,649
   
846,433
 
Note payable, net of current portion
   
394,923
   
-
 
Total long term liabilities
   
1,023,572
   
846,433