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 September 30, 2000

                                       OR

             [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
        For the transition period from July 1, 2000 to September 30, 2000

                           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 November 15, 2000.

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

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



                                       1
<PAGE>


<TABLE>

<CAPTION>


                                BIORELEASE CORP.


                                      INDEX

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

           Consolidated balance sheets as of September 30, 2000 (unaudited) and
           June 30, 2000.................................................................................3

           Consolidated  Statements  of  Operations  for the Three  Months Ended
           September 30, 2000 (unaudited) and 1999 (unaudited), and from October
           20, 1989 (inception) to September 30, 2000 (unaudited)........................................4

           Consolidated  Statements  of Cash  Flows for the three  Months  Ended
           September 30, 2000 (unaudited) and 1999 (unaudited), and from October
           20, 1989 (inception) to September 30, 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




                                       2
<PAGE>


<CAPTION>

PART I.  FINANCIAL INFORMATION
Item 1.  Financial Statement

                                BIORELEASE CORP.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                           CONSOLIDATED BALANCE SHEETS
                      September 30, 2000 and June 30, 2000

                                                                                     September       June 30,
                                                                                     30, 2000           2000
                                                                                    (Unaudited)
                                 ASSETS                                            ------------    ------------
<S>                                                                                <C>             <C>
Current Assets:
   Cash ........................................................................   $        428    $        502
   Accounts receivable .........................................................          6,125            --
   Due from merger candidate ...................................................         28,549          29,447
   Inventories .................................................................         15,218          16,012
   Other receivables ...........................................................           --              --
   Prepaid expenses and other current assets ...................................           --              --
                                                                                   ------------    ------------

Total current assets ...........................................................         50,320          45,961
                                                                                   ------------    ------------
Equipment and leasehold improvements, net ......................................          1,577           1,734
                                                                                   ------------    ------------
Other assets:
   Intangible assets, net ......................................................           --              --
   Other non current assets ....................................................           --              --
                                                                                   ------------    ------------

Total assets ...................................................................   $     51,897    $     47,695
                                                                                   ============    ============

          LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCIES)
Current liabilities:
   Notes payable ...............................................................   $       --      $       --
   Accounts payable ............................................................         17,215          14,792
   Accrued expenses ............................................................         18,350          17,000
   Notes payable stockholders,current ..........................................           --              --
   Deferred Income .............................................................           --              --
   Other current liabilities ...................................................          5,000           5,000
                                                                                   ------------    ------------
   Total current liabilities ...................................................         40,565          36,792
   Notes payable stockholders, long term .......................................           --              --
   Notes payable others, long term .............................................           --              --
   Other liabilities ...........................................................          2,513           1,000
                                                                                   ------------    ------------
Total liabilities ..............................................................         43,078          37,792
                                                                                   ------------    ------------
Stockholders' equity (Deficiency):
     Common stock of $.01 par value,  50,000,000 shares  authorized, 12,124,238
     and 12,124,238 issued and 12,124,238 and 12,124,238
     Outstanding at September 30, 2000 and June 30, 2000 .......................        121,242         121,242
Additional paid-in capital .....................................................      9,114,114       9,114,115
Development stage accumulated deficit ..........................................     (9,221,007)     (9,212,078)
                                                                                   ------------    ------------
                                                                                         14,349          23,279
   Less: Deferred offering costs ...............................................         (5,530)        (13,376)
                                                                                   ------------    ------------
Total Stockholder's Equity (Deficiencies) ......................................          8,819           9,903
                                                                                   ------------    ------------
Total liabilities and stockholders' equity (deficiencies) ......................   $     51,897    $     47,695
                                                                                   ============    ============

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



                                       3
<PAGE>


<CAPTION>

                                BIORELEASE CORP.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                      CONSOLIDATED STATEMENTS OF OPERATIONS
             For the Three Months Ended September 30, 2000 and 1999,
         and the Cumulative Period from Inception to September 30, 2000
                                   (Unaudited)

                                              Three Months Ended
                                                 September 30,               Inception
                                         ----------------------------    (October 20,1989)
                                              2000           1999      To September 30, 1999
                                         ------------    ------------    ------------
<S>                                      <C>             <C>             <C>
Revenues .............................   $      8,255    $       --      $    582,756
Cost of goods sold ...................          2,345            --           (30,898)
                                         ------------    ------------    ------------
Gross profit .........................          5,910            --           551,858

Costs and expenses:
   Research and development ..........           --              --        (2,558,041)
   Purchased technology ..............           --              --          (690,000)
   General and administrative ........         (6.095)         (5,637)     (4,339,930)
   Biotech selling expenses ..........           --              --          (601,116)
                                         ------------    ------------    ------------
        Total costs and expenses .....         (6,095)         (5,637)     (8,189,087)
                                         ------------    ------------    ------------
   (Loss)/Gain from operations .......           (185)         (5,637)     (7,637,229)
                                         ------------    ------------    ------------
   Other Income (Costs):
      Interest, net ..................           --              --            66,824
      Litigation costs ...............           --              --           (99,242)
      Offering costs .................         (7,846)           --          (344,292)
      Option compensation ............           --              --          (219,375)
      Other income (cost) ............           (898)           --            30,934
      Lease commitment costs .........           --              --          (315,000)
      Realized loss for decline in
      value of investment ...........            --              --        (1,500,000)
     Gain on equipment sale ..........           --              --            62,615
      Income recognized on indemnified           --              --
       liabilities ...................                                        241,636
      Income recognized on settlements           --              --           372,555
                                         ------------    ------------    ------------
Total other income (cost) ............         (8,744)           --        (1,703,345)
                                         ------------    ------------    ------------
(Loss)/Gain before provision for
   (benefit from) income taxes and
   Cumulative effect of change in
   Accounting principle ..............         (8,929)         (5,637)     (9,340,574)
Provision for income taxes ...........           --              --           343,873
                                         ------------    ------------    ------------
(Loss)/Gain before cumulative effect
   Of change in accounting principle .         (8,929)         (5,637)     (9,684,447)
Cumulative effect of change in
   Accounting principle ..............           --              --           463,440
                                         ------------    ------------    ------------
Net (loss)/gain ......................   $     (8,929)   $     (5,637)   ($ 9,221,007)
                                         ============    ============    ============
Weighted average shares ..............     12,124,238      12,082,071       8,330,976
Basic and fully diluted loss per share         ($0.00)         ($0.00)         ($1.11)


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



                                       4
<PAGE>


<CAPTION>


                                BIORELEASE CORP.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                      CONSOLIDATED STATEMENT OF CASH FLOWS
               For the three Months Ended September, 2000 and 1999
         and the Cumulative Period from Inception to September 30, 2000
                                   (Unaudited)


                                                                                          Inception
                                                              Three Months Ended        (October 20,
                                                                 September 30,              1989)
                                                           --------------------------  to September 30,
                                                               2000          1999           2000
                                                           -----------    -----------    -----------
<S>                                                        <C>            <C>           <C>
Cash flows from operating activities:
Net (loss)/Gain ........................................   $    (8,929)   $    (5,637)   $(9,221,007)
   Adjustments to reconcile net loss to net cash used in
       development activities:
     Depreciation and amortization .....................          157             363        285,772
     Cumulative effect of change in accounting principle          --             --         (463,440)
     Recognized loss on investment .....................          --             --        1,500,000
     (Gain) Loss on sale of assets .....................          --             --          (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 ...............................        (6,125)          --           (6,125)
     Inventories .......................................           794           --          (15,218)
     Other receivables .................................           898           --          (28,549)
     Prepaid expenses and other current assets .........          --             --              360
     Deferred tax asset ................................          --             --          463,440
     Other non-current assets ..........................          --             --             --
   Increase (Decrease) in current liabilities:
     Accounts payable ..................................         2,423          3,329         88,166
     Accrued expenses ..................................         1,350         (8,581)        25,818
     Other current liabilities .........................          --             --            5,000
     Other liabilities .................................         1,513           --            2,513
                                                           -----------    -----------    -----------
Net cash used in operating activities ..................   $    (7,919)   $   (10,526)   $(6,354,845)
                                                           -----------    -----------    -----------

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



                                       5
<PAGE>



                                BIORELEASE CORP.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                      CONSOLIDATED STATEMENT OF CASH FLOWS
           For the Three Months Ended September 30, 2000 and 1999 and
           the Cumulative Period from Inception to September 30, 2000
                                   (Unaudited)

                                                                                        Inception
                                                              Three Months Ended      (October 20,
                                                                 September 30,            1989)
                                                           ------------------------- to September 30,
                                                               2000          1999           2000
                                                           -----------    -----------  -----------
<S>                                                        <C>            <C>            <C>
Cash flows from investing activities:
   Purchase of collateralized mortgage obligations .          --             --       (1,000,000)
   Proceeds from collateralized mortgage obligations          --             --        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 ...................................          --             --             --
   Issuance of common stock, net ...................            (1)         3,925      2,153,867
   Payment of deferred offering costs ..............         7,846         (2,958)        (5,530)
   Purchase of treasury stock ......................          --             --          (10,000)
   Re-capitalization ...............................          --             --        4,031,176
                                                          -----------    -----------   -----------

Net cash provided by investing activities ..........         7,845            967      6,599,036
                                                          -----------    -----------   -----------
Net increase (decrease) in cash ....................           (74)        (9,559)           428
Cash at beginning of period ........................           502         12,232           --
                                                          -----------    -----------   -----------
Cash at end of period ..............................      $     428      $   2,673     $      428
                                                          ===========    ===========   ===========

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

</TABLE>


                                       6
<PAGE>



                                BIORELEASE CORP.
                          (A DEVELOPMENT STAGE COMPANY)
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
             FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
     AND CUMULATIVE FROM INCEPTION (OCTOBER 20, 1989) TO SEPTEMBER 30, 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, 2000. 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 three months ended September 30,
2000 are not necessarily  indicative of the results that may be expected for the
year ended June 30, 2001.




                                       7
<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 September 30, 2000 and 1999

           For the  three  months  ended  September  30,  2000 the  Company  had
revenues of $8,255,  costs of goods sold of $2,345,  general and  administrative
costs of  $6,095,  offering  costs of $7,846  related to the  terminated  merger
agreement  with Polar  Molecular  Corporation,  other costs  adjustment  of $898
resulting  in a net loss of  $8,929 as  compared  with the  three  months  ended
September  30, 1999 in which the Company had revenues of $0, costs of goods sold
of $0, general and  administrative  expenses of $5,637, no other costs or income
and no income taxes, resulting in a loss of $5,637.

Inception to September 30, 2000

           From October 20, 1989, the initial date of the Subsidiary's activity,
through September 30, 2000, the Company,  including the Subsidiary, had revenues
of $582,756, cost of goods sold of $30,898,  research and developmental expenses
of   $2,558,041,   purchased   technology   costs  of   $690,000,   general  and
administrative expenses of $4,339,930, selling expenses of $601,116, other costs
in the aggregate of $1,703,345, income taxes of $343,873 and a cumulative effect
of change in accounting  principle of $463,440  thereby  yielding an accumulated
net loss of $9,221,007.

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 source of current capital has 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.



                                       8
<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

Item 5.       Other Information

              On October 12, 2000 the Company  terminated its agreement to merge
              with  Polar  Molecular  Corporation  (Polar).  As of this  date no
              further  discussions  have occurred between the Company and Polar.
              The Company is exploring other merger opportunities.  The plan for
              the  Company to spin off its  subsidiary  is still in effect.  The
              timing for the spin off is delayed due to the  termination  of the
              Polar transaction.


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

              None



                                       9
<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.




November 16, 2000          By:  /s/ R. Bruce Reeves
                                --------------------------------------

                                    R. Bruce Reeves, President and
                                    Principal Financial Officer










                                       10