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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 September 30, 1999

                                       OR

             [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
        For the transition period from July 1, 1999 to September 30, 1999

                           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 $.10 per share as of November 5, 1999.

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

     Transitional Small Business Disclosure Format (Check One) Yes___  No_X_

                                    1 of 10
<PAGE>


                                BIORELEASE CORP.


                                      INDEX
<TABLE>
<CAPTION>

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

           Consolidated balance sheets as of September 30, 1999 (unaudited) and
           June 30, 1999.................................................................................3

           Consolidated  Statements  of  Operations  for the Three  Months Ended
           September 30, 1999 (unaudited) and 1998 (unaudited), and from October
           20, 1989 (inception) to September 30, 1999 (unaudited)........................................4

           Consolidated  Statements  of Cash  Flows  for the three  Months Ended
           September 30, 1999 (unaudited) and 1998 (unaudited), and from October
           20, 1989 (inception) to September 30, 1999 (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 10
<PAGE>


PART I.  FINANCIAL INFORMATION
Item 1.  Financial Statement

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

                                                                          September         June 30,
                                                                          30, 1999           1999
                                                                         -----------       ---------
                                                                         (Unaudited)
                                 ASSETS
<S>                                                                      <C>             <C>
Current Assets:
   Cash                                                                  $    2,673      $   12,232
   Accounts receivable                                                           --              --
   Inventories                                                               16,366          16,366
   Other receivables                                                             --              --
   Prepaid expenses and other current assets                                     --              --
                                                                         ----------      ----------
Total current assets                                                         19,039          28,598
                                                                         ----------      ----------
Equipment and leasehold improvements, net                                     4,692           5,055
                                                                         ----------      ----------
Other assets:
   Intangible assets, net                                                        --              --
   Other non current assets                                                      --              --
                                                                         ----------      ----------
Total assets                                                             $   23,731      $   33,653
                                                                         ==========      ==========

          LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCIES)
Current liabilities:
   Notes payable                                                         $       --      $       --
   Accounts payable                                                           5,149           1,820
   Accrued expenses                                                           7,419          16,000
   Notes payable stockholders,current                                            --              --
   Deferred Income                                                               --              --
   Other current liabilities                                                     --              --
                                                                         ----------      ----------
   Total current liabilities                                                 12,568          17,820
   Notes payable stockholders, long term                                         --              --
   Notes payable others, long term                                               --              --
   Other liabilities                                                          7,200           7,200
                                                                         ----------      ----------
Total liabilities                                                            19,768          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 September 30, 1999 and June 30, 1999                    121,242         119,977
Additional paid-in capital                                                9,114,729       9,112,069
Development stage accumulated deficit                                    (9,220,977)     (9,215,339)
Stock subscriptions receivable                                               (8,074)         (8,074)
                                                                         ----------      ----------
                                                                              6,920           8,633
   Less: Deferred offering costs                                             (2,957)             --
                                                                         ----------      ----------
Total Stockholder's Equity (Deficiencies)                                     3,963           8,633
                                                                         ----------      ----------
Total liabilities and stockholders' equity (deficiencies)                $   23,731      $   33,653
                                                                         ==========      ==========
</TABLE>

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

                                    3 of 10
<PAGE>


                                BIORELEASE CORP.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                      CONSOLIDATED STATEMENTS OF OPERATIONS
             For the Three Months Ended September 30, 1999 and 1998,
         and the Cumulative Period from Inception to September 30, 1999
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                          Three Months Ended                      Inception
                                                             September 30,                    (October 20,1989)
                                                      1999                 1998             to September 30, 1998
                                                      ----                 ----             ---------------------

<S>                                                    <C>                   <C>               <C>
Revenues                                               $        -            $     3,130       $     570,851
Cost of goods sold                                              -                   (177)            (28,155)
                                                       ----------            -----------       -------------
Gross profit                                                    -                  2,953             542,696

Costs and expenses:
   Research and development                                     -                      -          (2,588,041)
   Purchased technology                                         -                      -            (690,000)
   General and administrative                              (5,637)               (13,533)         (4,295,945)
   Biotech selling expenses                                     -                      -            (601,116)
                                                       ----------            -----------       -------------
        Total costs and expenses                           (5,637)               (13,533)         (8,175,102)
                                                       ----------            -----------       -------------
   (Loss)/Gain from operations                             (5,637)               (10,580)         (7,602,406)
                                                       ----------            -----------       -------------
   Other Income (Costs):
      Interest, net                                             -                 (1,728)             66,824
      Litigation costs                                          -                      -            (315,000)
      Offering costs                                                                   -             (99,242)
      Option compensation                                       -                      -            (336,446)
      Other income (cost)                                       -                      -            (219,375)
      Lease commitment costs                                    -                      -             (13,165)
      Realized loss for decline in
   value      of investment                                     -                      -          (1,500,000)
     Gain on equipment sale                                     -                      -              62,616
      Income recognized on indemnified                          -                      -
       liabilities                                                                                   242,276
      Income recognized on settlements                          -                    154             373,376
                                                       ----------            -----------       -------------
Total other income (cost)                                       -                 (1,574)         (1,738,136)
                                                       ----------            -----------       -------------
(Loss)/Gain before provision for
   (benefit from) income taxes and
   Cumulative effect of change in
   Accounting principle                                    (5,637)               (12,154)         (9,340,542)
Provision for income taxes                                      -                      -             343,873
                                                       ----------            -----------       -------------
(Loss)/Gain before cumulative effect
   Of change in accounting principle                       (5,637)               (12,154)         (9,684,415)
Cumulative effect of change in
   Accounting principle                                         -                      -             463,440
                                                       ----------            -----------       -------------
Net (loss)/gain                                        $   (5,637)           $   (12,154)      $  (9,220,975)
                                                       ==========            ===========       ==============
Weighted average shares                                12,082,071              9,736,659           6,554,384
Basic and fully diluted loss per share                     ($0.00)                ($0.00)             ($1.41)
</TABLE>



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

                                    4 of 10
<PAGE>


                                BIORELEASE CORP.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                      CONSOLIDATED STATEMENT OF CASH FLOWS
               For the three Months Ended September, 1999 and 1998
         and the Cumulative Period from Inception to September 30, 1999
                                   (Unaudited)
<TABLE>
<CAPTION>


                                                                                                            Inception
                                                                          Three Months Ended               (October 20,
                                                                             September 30,                     1989)
                                                                     ------------------------------      to September 30,
                                                                        1999               1998                1999
                                                                     ---------           ----------      ----------------
<S>                                                                  <C>                 <C>               <C>
Cash flows from operating activities:
Net (loss)/Gain                                                      $  (5,637)          $ (12,154)        $ (9,220,976)
   Adjustments to reconcile net loss to net cash used in
       development activities:
     Depreciation and amortization                                         363               4,732              282,657
     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                                                     -               4,325                    -
     Inventories                                                             -                 177             (16,366)
     Other receivables                                                       -                   -                    -
     Prepaid expenses and other current assets                               -                   -                  360
     Deferred tax asset                                                      -                   -              463,440
     Other non-current assets                                                -                   -                    -
   Increase (Decrease) in current liabilities:
     Accounts payable                                                    3,329               3,768               76,100
     Accrued expenses                                                   (8,581)              4,548               14,887
     Other current liabilities                                               -                   -                    -
     Other liabilities                                                       -                   -                7,200
                                                                      --------             -------          -----------
Net cash used in operating activities                                 $(10,526)            $ 5,396          $(6,347,713)
                                                                      --------             -------          -----------
</TABLE>

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

                                    5 of 10
<PAGE>


                                BIORELEASE CORP.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                      CONSOLIDATED STATEMENT OF CASH FLOWS
           For the Three Months Ended September 30, 1999 and 1998 and
           the Cumulative Period from Inception to September 30, 1999
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                                                            Inception
                                                                          Three Months Ended               (October 20,
                                                                             September 30,                     1989)
                                                                     ------------------------------      to September 30,
                                                                        1999               1998                1999
                                                                     ---------           ----------      ----------------
<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                                         3,925                   -          2,146,408
   Payment of deferred offering costs                                   (2,958)                                (2,958)
   Purchase of treasury stock                                                -                   -            (10,000)
   Re-capitalization                                                         -                   -          4,031,176
                                                                     ---------           ---------         ----------
Net cash provided by investing activities                                  967                   -          6,599,036
                                                                     ---------           ---------         ----------
Net increase (decrease) in cash                                         (9,559)              5,396              2,673
Cash at beginning of period                                             12,232               1,320                  -
                                                                     ---------           ---------         ----------
Cash at end of period                                                $   2,673           $   6,716         $    2,673
                                                                     =========           =========         ==========
</TABLE>


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

                                    6 of 10
<PAGE>


                                BIORELEASE CORP.
                          (A DEVELOPMENT STAGE COMPANY)
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
             FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
     AND CUMULATIVE FROM INCEPTION (OCTOBER 20, 1989) TO SEPTEMBER 30, 1999

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 three months ended September 30,
1999 are not necessarily  indicative of the results that may be expected for the
year ended June 30, 2000.




















                                    7 of 10
<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, 1999 and 1998

           For the  three  months  ended  September  30,  1999 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 as compared to the three  months  ended  September  30, 1998 in which the
Company  had  revenues  of  $3,130,  costs of goods  sold of $177,  general  and
administrative  expenses  of  $13,533,  interest  expense  of $1,728  and income
recognized in settlements of $154 resulting in a net loss of $12,154.

Inception to September 30, 1999

           From October 20, 1989, the initial date of the Subsidiary's activity,
through September 30, 1999, the Company,  including the Subsidiary, had revenues
of $570,851, cost of goods sold of $28,155,  research and developmental expenses
of   $2,558,041,   purchased   technology   costs  of   $690,000,   general  and
administrative expenses of $4,295,945, selling expenses of $601,116, other costs
in the aggregate of $1,738,136, income taxes of $343,873 and a cumulative effect
of change in accounting  principle of $463,440  thereby  yielding an accumulated
net loss of $9,220,975.

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 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.



                                    8 of 10
<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  August  2,  1999  the  Company  announced  the  signing  of  a
              definitive  agreement pursuant to which Biorelease will merge with
              POLAR MOLEDCULAR  CORPORATION,  a Utah corporation  ("PMC").  As a
              condition of that merger,  the name of Biorelease  will be changed
              to "Polar Molecular  Corporation" and the current  management team
              of  Biorelease  will resign and be  replaced  by PMC's  management
              team. The definitive agreement provides,  among other things, that
              Biorelease  is to split back its  outstanding  common  shares on a
              one-for-twenty-five  basis and is to spin off or otherwise dispose
              of its wholly owned subsidiary,  Biorelease Technologies, Inc. The
              completion of the proposed  transaction is subject to, among other
              things, the filing with the Securities and Exchange Commission and
              effectiveness  of a Form S-4 registration  statement,  approval of
              the  transaction  by  the  shareholders  of  both  companies,  the
              completion of a private offering pursuant to which PMC is to raise
              at least  $2,000,000  before closing of the  transaction and other
              matters.  No record date or stockholder  meeting date has yet been
              set by the  Company's  Board of Directors to approve or disapprove
              the PMC transaction.

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

              None



                                    9 of 10
<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 12, 1999          By:  /s/ R. Bruce Reeves                  .
                                --------------------------------------
                                R. Bruce Reeves, President and
                                Principal Financial Officer




















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