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                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549


                                   FORM 10-QSB

              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                  For the quarterly period ended March 31, 2000

                                       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 No. 0-15260

                                Biorelease Corp.
        -----------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

               Delaware                                   88-0218411
    -------------------------------              ---------------------------
    (State or other jurisdiction of               (Internal Revenue Service
     incorporation or organization)              Employer Identification No.)

                 340 Granite St. Suite 200, Manchester, NH 03102
                -------------------------------------------------
                (Address of principal Executive offices Zip Code)


                                 (603) 641-8443
                 ----------------------------------------------
                 Issuer's telephone number, including area code

               Former name, former address and formal 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  the  number of  shares  outstanding  of each of the  issuer's
classes of common stock, as of the last practicable  date,  12,124,238 shares of
common stock, par value $.01 per share as of May 08, 2000.

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         Transitional Small Business Disclosure Format (Check One) Yes     No X
                                                                      ---    ---


                                    1 of 11
<PAGE>


                                BIORELEASE CORP.


                                      INDEX

<TABLE>
<CAPTION>
PART I.  FINANCIAL INFORMATION                                                                          Page
                                                                                                       Number
                                                                                                       ------
<S>                                                                                                     <C>
Item 1.    Financial Statements .........................................................................3

           Consolidated balance sheets as of March 31, 2000 (unaudited) and
           June 30, 1999.................................................................................3

           Consolidated  Statements of Operations  for the Three Months and Nine
           Months Ended March 31, 2000  (unaudited)  and 1999  (unaudited),  and
           from October 20, 1989 (inception) to March 31, 2000 (unaudited) ..............................4

           Consolidated Statements of Cash Flows for the Nine Months Ended March
           31, 2000 (unaudited) and 1999 (unaudited),  and from October 20, 1989
           (inception) to March 31, 2000 (unaudited) ....................................................5

           Notes to Unaudited Consolidated Financial Statements .........................................7

Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operation..........8

PART II.   OTHER INFORMATION

Item 1.    Legal Proceedings.............................................................................9

Item 2.    Changes in Securities ........................................................................9

Item 3.    Defaults Upon Senior Securities ..............................................................9

Item 4.    Submission of Matters to a Vote of Security Holders...........................................9

Item 5.    Other Information.............................................................................9

Item 6.    Exhibits and Reports on Form 8-K. ............................................................9
</TABLE>



                                    2 of 11
<PAGE>


PART I.  FINANCIAL INFORMATION
Item 1.  Financial Statement

                                BIORELEASE CORP.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                           CONSOLIDATED BALANCE SHEETS
                        March 31, 2000 and June 30, 1999
<TABLE>
<CAPTION>

                                                                                           March               June 30,
                                                                                         31, 2000                1999
                                                                                         --------            -----------
                               ASSETS                                                   (Unaudited)
                               ------
<S>                                                                                       <C>                <C>
Current Assets:
   Cash                                                                                  $    5,350          $   12,232
   Accounts receivable                                                                            -                   -
   Inventories                                                                               16,012              16,366
   Other receivables                                                                         10,503                   -
   Prepaid expenses and other current assets                                                      -                   -
                                                                                         ----------          ----------
Total current assets                                                                         31,865              28,598
                                                                                         ----------          ----------
Equipment and leasehold improvements, net                                                     3,965               5,055
                                                                                         ----------          ----------
Other assets:
   Intangible assets, net                                                                         -                   -
   Other non current assets                                                                       -                   -
                                                                                         ----------          ----------
Total assets                                                                             $   35,830          $   33,653
                                                                                         ==========          ==========

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCIES)
Current liabilities:

   Notes payable                                                                                  -                   -
   Accounts payable                                                                           5,095               1,820
   Accrued expenses                                                                          11,305              16,000
   Notes payable stockholders,current                                                             -                   -
   Deferred Income                                                                                -                   -
   Other current liabilities                                                                      -                   -
                                                                                         ----------          ----------
   Total current liabilities                                                                 16,400              17,820
   Notes payable stockholders, long term                                                          -                   -
   Notes payable others, long term                                                                -                   -
   Other liabilities                                                                          2,369               7,200
                                                                                         ----------          ----------
Total liabilities                                                                            18,769              25,020
                                                                                         ----------          ----------
Stockholders' equity (Deficiency):
     Common stock of $.01 par value,  50,000,000 shares  authorized,  12,124,238
     and 12,124,238 issued and 11,997,738 and 11,997,738
     Outstanding at March 31, 2000 and June 30, 1999                                        121,242             119,977
Additional paid-in capital                                                                9,114,116           9,112,069
Development stage accumulated deficit                                                    (9,204,921)         (9,215,339)
Stock subscriptions receivable                                                                    -              (8,074)
                                                                                         ----------          ----------
                                                                                             30,437               8,633
   Less: Deferred offering costs                                                            (13,376)                  -
                                                                                         ----------          ----------
Total Stockholder's Equity (Deficiencies)                                                    17,061               8,633
                                                                                         ----------          ----------
Total liabilities and stockholders' equity (deficiencies)                                $   35,830          $   33,653
                                                                                         ==========          ==========
</TABLE>
                   The accompanying notes are an integral part
                   of the consolidated financial statements.



                                    3 of 11
<PAGE>



                                BIORELEASE CORP.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                      CONSOLIDATED STATEMENTS OF OPERATIONS
      For the Three Months and Nine Months Ended March 31, 2000 and 1999,
           and the Cumulative Period from Inception to March 31, 2000
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                                                    Inception
                                                Three Months Ended March 31,       Nine Months Ended March 31,  (October 20, 1989)
                                                ----------------------------       ----------------------------         To
                                                   2000              1999            2000              1999       March 31, 2000
                                                   ----              ----            ----              ----       --------------
                                               (Unaudited)       (Unaudited)     (Unaudited)        (Unaudited)   (Unaudited)
<S>                                           <C>                <C>             <C>                <C>          <C>
Revenues                                      $      4,200       $    5,350      $      4,200       $    6,956   $     575,051
Cost of goods sold                                     398           (1,354)              398           (1,531)        (28,553)
                                              ------------       ----------      ------------       ----------   -------------
Gross profit                                         3,802            3,996             3,802            5,425         546,498
                                              ------------       ----------      ------------       ----------   -------------
Costs and expenses:
   Research and development                              -                -                 -                -      (2,558,041)
   Purchased technology                                  -                -                 -                -        (690,000)
   General and administrative                       (6,693)         (11,260)          (22,000)         (35,284)     (4,312,308)
   Biotech selling expenses                         (1,065)               -            (1,065)               -        (602,181)
                                              ------------       ----------      ------------       ----------   -------------
        Total costs and expenses                    (7,758)         (11,260)          (23,065)         (35,284)     (8,162,530)
                                              ------------       ----------      ------------       ----------   -------------
   (Loss)/Gain from operations                      (3,956)          (7,264)          (19,263)         (29,859)     (7,616,032)
                                              ------------       ----------      ------------       ----------   -------------
   Other Income (Costs):
      Interest, net                                      -           (1,728)                -           (5,182)         66,824
      Lease commitment costs                             -                -                 -                -        (315,000)
      Litigation costs                                   -                -                                  -         (99,242)
      Offering costs                                     -                -                 -                -        (336,446)
      Option compensation                                -                -                 -                -        (219,375)
      Other income (cost)                           10,817                -            30,502                -          17,337
      Realized loss for decline in value
      Gain on equipment sale                             -                -                 -                -          62,616
</TABLE>

                                    4 of 11
<PAGE>

<TABLE>
<CAPTION>
<S>                                           <C>                <C>             <C>                <C>          <C>
     Income recognized on indemnified                    -                -                 -                -         242,276
       liabilities

      Income recognized on settlements                   -                -               821              154         372,555
                                              ------------       ----------      ------------       ----------   -------------
Total other income (cost)                           10,817           (1,728)           29,681           (5,528)     (1,708,455)
                                              ------------       ----------      ------------       ----------   -------------
Gain (loss) before provision for
Provision for income taxes                               -                -                 -                -         343,873
                                              ------------       ----------      ------------       ----------   -------------
Gain (loss) before cumulative effect of              6,861           (8,992)           10,418          (35,387)     (9,668,360)
Cumulative effect of change in                            -               -                 -                -         463,440
                                              ------------       ----------      ------------       ----------   -------------
Net gain (loss)                               $      6,861       $   (8,992)     $     10,418       $  (35,387)   $ (9,204,920)
                                              ============       ==========      ============       ==========    ============
Weighted average shares                         13,654,858        9,736,659        13,654,858        9,736,659       6,811,758
Basic and fully diluted loss per share        $      (0.00)      $    (0.00)     $      (0.00)      $    (0.00)   $      (1.35)
</TABLE>



               The accompanying notes are an integral part of the
                       consolidated financial statements.



                                    5 of 11
<PAGE>


                                BIORELEASE CORP.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                For the Nine Months Ended March 31, 2000 and 1999
           and the Cumulative Period from Inception to March 31, 2000
                                   (Unaudited)

                                  ------------

<TABLE>
<CAPTION>
                                                                                        Inception
                                                       Nine Months ended March 31,  (October 20, 1989)
                                                           2000         1999         March 31, 2000
                                                           ----         ----         --------------
<S>                                                      <C>         <C>             <C>
Cash flows from operating activities:
Net (loss)/Gain                                          $ 10,418    $   (35,387)    $   (9,204,921)
   Adjustments to reconcile net loss to net cash used
    in development activities:
     Depreciation and amortization                          1,089         14,193            283,383
     Cumulative effect of change in accounting principle        -              -           (463,440)
     Recognized loss on investment                              -              -          1,500,000
     (Gain) Loss on sale of assets                              -            500            (38,703)
     Loss on extinguishment of debt                             -              -             42,000
     Common Stock issued in exchange for
         Purchased technologies                                 -              -            605,000
     Common Stock issued in exchange for
         Services rendered                                      -              -            128,453
     Common stock options issued in exchange
         Of Services rendered                                   -              -             52,300
     Amortization of unearned compensation                      -              -            140,625
     Re-pricing of A Warrants                                   -              -             78,750
   (Increase) Decrease in current assets:

     Accounts Receivable                                        -          6,085                  -
     Inventories                                              354          1,531            (16,012)
     Other receivables                                    (10,503)           745            (10,503)
     Prepaid expenses and other current assets                  -              -                360
     Deferred tax asset                                         -              -            463,440
     Other non-current assets                                   -              -                  -
   Increase (Decrease) in current liabilities:

     Accounts payable                                       3,275          8,255             76,046
     Accrued expenses                                      (4,695)         3,586             18,773
     Other current liabilities                                  -              -                  -
     Other liabilities                                     (4,831)             -              2,369
                                                        ---------    -----------       ------------
Net cash used in operating activities                   $  (4,893)   $      (492)      $ (6,342,080)
                                                        ---------    -----------       ------------
</TABLE>

               The accompanying notes are an integral part of the
                       consolidated financial statements.


                                    6 of 11
<PAGE>


                                BIORELEASE CORP.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                      CONSOLIDATED STATEMENT OF CASH FLOWS
              For the Nine Months Ended March 31, 2000 and 1999 and
             the Cumulative Period from Inception to March 31, 2000
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                        Inception
                                                       Nine Months ended March 31,  (October 20, 1989)
                                                           2000         1999         March 31, 2000
                                                           ----         ----         --------------
<S>                                                      <C>         <C>             <C>
Cash flows from investing activities:                   $            $               $
   Purchase of collateralized mortgage obligations
                                                                 -             -         (1,000,000)
   Proceeds from collateralized mortgage                         -             -          1,000,000
   Purchase of fixed assets                                      -             -           (333,187)
   Purchase of intangible assets                                 -             -           (105,205)
   Proceeds from sale of assets                                 (-)           (-)           189,742
                                                        ----------   -----------       ------------
Net cash used in investing activities                           (-)           (-)          (248,650)
                                                        ----------   -----------       ------------
Cash flows from financing activities:
   Advances from and amounts due to
       Stockholders                                              -             -            594,385
   Payments of advances from stockholders                        -             -           (159,975)
   Notes receivable                                              -             -                  -
   Notes payable                                                 -       (12,475)                 -
   Issuance of common stock, net                            11,387             -          2,153,870
   Payment of deferred offering costs                      (13,376)                         (13,376)
   Purchase of treasury stock                                    -             -            (10,000)
   Re-capitalization                                             -             -          4,031,176
                                                        ----------   -----------       ------------
Net cash provided by investing activities                   (1,989)      (12,475)         6,596,080
                                                        ----------   -----------       ------------
Net increase (decrease) in cash                             (6,882)      (10,065)             5,350
Cash at beginning of period                                 12,232        15,278                  -
                                                        ----------   -----------       ------------
Cash at end of period                                   $    5,350   $     5,213       $      5,350
                                                        ==========   ===========       ============

Supplemental disclosure of non-cash transactions:

Cash paid for interest                                           -          -                 7,752

Issuance of common stock for subscription receivable             -          -                50,000

Liabilities repaid through issuance of common stock              -          -               652,731

Non-marketable security acquired through the issuance
   of common stock                                               -          -             1,500,000
</TABLE>

               The accompanying notes are an integral part of the
                       consolidated financial statements.


                                    7 of 11
<PAGE>


                                BIORELEASE CORP.
                          (A DEVELOPMENT STAGE COMPANY)
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
                FOR THE NINE MONTHS ENDED MARCH 31, 2000 AND 1999
       AND CUMULATIVE FROM INCEPTION (OCTOBER 20, 1989) TO MARCH 31, 2000

ITEM 1.    Basis of presentation

           The accompanying  unaudited  consolidated  financial  statements have
been prepared in accordance with generally  accepted  accounting  principles for
interim financial  information and with the instructions to Form 10-QSB and Rule
310 of Regulation S-B.  Accordingly,  they do not include all of the information
and footnotes required by generally accepted accounting  principles for complete
consolidated  financial  statements and should be read in  conjunction  with the
Company's audited  consolidated  financial statements at and for the fiscal year
ended June 30, 1999. In the opinion of management,  all adjustments  (consisting
only of normal recurring accruals)  considered necessary for a fair presentation
have been included.  Operating  results for the nine months ended March 31, 2000
are not necessarily  indicative of the results that may be expected for the year
ended June 30, 2000.













                                    8 of 11
<PAGE>


ITEM 2.  Management's Discussion and Analysis of Financial Condition and
         Results of Operations

Results of Operations

           The  following   discussion   includes  the  business  of  Biorelease
Technologies,  Inc.  (the  "Subsidiary"),   since  the  Company,  prior  to  its
acquisition of the Subsidiary,  had no operations other than raising capital and
searching for an acquisition  candidate (i.e., the Subsidiary).  Where relevant,
all numbers retroactively take into account the acquisition of the Subsidiary by
the Company.

Three Months Ended March 31, 2000 and 1999

           For the three months  ended March 31, 2000,  the Company had revenues
of $4,200,  costs of goods sold of $398, general and administrative  expenses of
$6,693,   selling  expenses  of  $1,065,  other  income  of  $10,817,  costs  on
settlements  of $0 and no  income  taxes,  resulting  in a income  of  $6,861 as
compared  to the three  months  ended  March 31,  1999 in which the  Company had
revenues of $5,350,  costs of goods sold of $1,354,  general and  administrative
expenses of $11,260,  interest expense of $1,728,  and no income taxes resulting
in a net loss of $8,992.

Nine Months Ended March 31, 2000 and 1999

         For the nine months ended March 31,  2000,  the Company had revenues of
$4,200,  cost of goods sold of $398,  general  and  administrative  expenses  of
$22,000,  selling  expenses  of  $1,065,  other  income  of  $30,502,  a loss on
settlements  of $821 and no income  taxes  resulting  in an income of $10,418 as
compared  to the nine  months  ended  March 31,  1999 in which the  Company  had
revenues of $6,956,  cost of goods sold of $1,531,  general  and  administrative
expenses of  $35,284,  interest  expense of $5,182,  a loss on sale of assets of
$500,  income recognized on settlements of $154 and no income taxes resulting in
a net loss of $35,387.

Inception to March 31, 2000

           From October 20, 1989, the initial date of the Subsidiary's activity,
through March 31, 2000, the Company,  including the Subsidiary,  had revenues of
$575,051, cost of goods sold of $28,553,  research and developmental expenses of
$2,558,041,  purchased technology costs of $690,000,  general and administrative
expenses  of  $4,312,308,  selling  expenses  of  $602,181,other  costs  in  the
aggregate of  $1,708,455,  income  taxes of $343,873 and a cumulative  effect of
change in accounting  principle of $463,440  thereby yielding an accumulated net
loss of $9,204,920.

Liquidity and Capital Resources

           From  inception  until  the  closing  of  the   Reorganization,   the
Subsidiary's  primary  source  of  funds  has  been the  proceeds  from  private
offerings  of its Common and  Preferred  Stock.  Since the  Reorganization,  the
primary sources of current capital have been the Company's funds and revenues.

Dividend Policy

           The Company has not declared or paid any cash dividends on its common
stock since its inception and does not anticipate the  declaration or payment of
cash  dividends  in the  foreseeable  future.  The  Company  intends  to  retain
earnings,  if any, to finance the  development  and  expansion of its  business.
Future  dividend  policy  will be  subject  to the  discretion  of the  Board of
Directors and will be  contingent  upon future  earnings,  if any, the Company's
financial condition, capital requirements, general business conditions and other
factors.  Therefore,  there can be no assurance  that dividends of any kind will
ever be paid.

Effect of Inflation

Management  believes  that  inflation  has  not  had a  material  effect  on its
operations for the periods presented.

                                    9 of 11
<PAGE>

                                     PART II

                                OTHER INFORMATION

Item 1.       Legal Proceedings

              None

Item 2.       Changes in Securities.

              None

Item 3.       Defaults Upon Senior Securities.

              None

Item 4.       Submission of matters to a Vote of Securities Holders

              None (See Item 5)

Item 5.       Other Information

              On  January   18,  2000   Biorelease   Corp  filed  the  Form  S-4
              registration  statement  required as a part of the proposed merger
              with POLAR MOLECULAR CORPORATION, a Utah corporation ("PMC"). This
              S-4 registration statement is pending review by the Securities and
              Exchange  Commission.  Because of the respective  fiscal year ends
              for Polar and  Biorelease  Corp.,  it appears  certain that audits
              will have to be performed for both corporations before the S-4 can
              be  declared  effective.  Accordingly,  the  record  date  for the
              Company's stockholders to be eligible to approve or disapprove the
              PMC transaction has been postponed until at least August,  2000 by
              the Company's Board of Directors (See Item 6).

              On  February  7,  2000  the   Company's   subsidiary,   Biorelease
              Technologies,  Inc. (BTI), filed a registration  statement on Form
              S-1 to register  4,582,122  shares of BTI common  stock  currently
              held by the  Company.  These  shares  represent  ninety  and eight
              tenths  percent  (90.8%) of BTI's  issued and  outstanding  common
              stock. The registration  statement was filed as part of the merger
              agreement  between  the Company  and Polar  Molecular  Corporation
              wherein these BTI shares will be  distributed  to Biorelease  Corp
              shareholders  of  record  and  certain  creditors,   officers  and
              directors.   The   postponed   record  date  will  also  apply  to
              eligibility to receive this BTI stock distribution.

Item 6.       Exhibits and Reports on form 8-K.

              On March 14,  2000 the Company  filed on Form 8-K notice  changing
              the proposed  record date for the PMC  transaction  from March 15,
              2000 to April 30, 2000  pending the review and  acceptance  of the
              re-filed registration statement on Form S-4 for the merger between
              Biorelease  Corp and Polar  Molecular  Corporation.  The Company's
              board  of  directors   now  believes  this  record  date  will  be
              reestablished   for  sometime  in  August  2000,   following   the
              completion of audits for the respective corporations.



                                    10 of 11
<PAGE>


                                    SIGNATURE

           Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, as amended,  the Registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.

           BIORELEASE CORP.




May 9, 2000                By:  /s/ R. Bruce Reeves                  .
                                --------------------------------------
                                    R. Bruce Reeves, President and

                                    Principal Financial Officer


















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