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, 2001

                                       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,  17,924,238 shares of
common   stock,   par   value   $.01   per   share   as   of   May   11,   2001.
-----------------------------------------------------------------

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


<PAGE>


                                                  BIORELEASE CORP.

<TABLE>
<CAPTION>

                                                        INDEX

PART I.  FINANCIAL INFORMATION                                                                          Page
                                                                                                       Number

<S>                                                                                                     <C>
Item 1.    Financial Statements .........................................................................3

           Balance sheet as of March 31, 2001 (unaudited) and Consolidated
           Balance Sheet at June 30, 2000  ..............................................................3

           Consolidated Statements of Operations for the Three Months and Nine
           Months Ended March 31, 2001 (unaudited) and 2000 (unaudited), and
           from October 20, 1989 (inception) to March 31, 2001 (unaudited) 4

           Consolidated Statements of Cash Flows for the Nine Months Ended March
           31, 2001 (unaudited) and 2000 (unaudited), and from October 20, 1989
           (inception) to March 31, 2001 (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>


<PAGE>


PART I.  FINANCIAL INFORMATION


Item 1.  Financial Statement

                                BIORELEASE CORP.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                           CONSOLIDATED BALANCE SHEETS
                        March 31, 2001 and June 30, 2000

<TABLE>
<CAPTION>
                                                                                                  March 31,        June 30,
                                                                                                      2001          2000
                                                                                                 -----------    -----------
                                                                                                (Unaudited)     Consolidated)
                              ASSETS
Current Assets:
<S>                                                                                                      <C>    <C>
   Cash ......................................................................................           451    $       502
   Accounts receivable .......................................................................            --             --
   Inventories ...............................................................................            --         16,012
   Other receivables .........................................................................        28,549         29,447
   Prepaid expenses and other current assets .................................................          --             --

                                                                                                 -----------    -----------
Total current assets .........................................................................        29,000         45,961
                                                                                                 -----------    -----------
Equipment and leasehold improvements, net ....................................................            19          1,734
                                                                                                 -----------    -----------
Other assets:
   Intangible assets, net ....................................................................            --            --
   Investments in related party securities ...................................................           800            --
   Other non current assets ..................................................................            --            --

                                                                                                 -----------    -----------
Total assets .................................................................................   $    29,819    $    47,695
                                                                                                     =======    ===========

       LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCIES)
Current liabilities:
   Notes payable .............................................................................   $      --     $       --
   Accounts payable ..........................................................................         1,096         14,792
   Accrued expenses ..........................................................................        10,000         17,000
   Notes payable stockholders,current ........................................................          --             --
   Deferred Income ...........................................................................          --             --
   Other current liabilities .................................................................         5,000          5,000
                                                                                                 -----------    -----------
   Total current liabilities .................................................................        16,096         36,792
   Notes payable stockholders, long term .....................................................          --             --
   Notes payable others, long term ...........................................................          --             --
   Other liabilities .........................................................................         1,500          1,000
                                                                                                 -----------    -----------
Total liabilities ............................................................................        17,596         37,792
                                                                                                 -----------    -----------
Stockholders' equity (Deficiency):
     Common stock of $.01 par value, 50,000,000 shares authorized, 17,924,238
     and 17,924,238 issued and 17,924,238 and 17,924,238
     Outstanding at March 31, 2001 and June 30, 2000 .........................................       179,242        121,242
Additional paid-in capital ...................................................................     7,060,979      9,114,115
Development stage accumulated deficit ........................................................    (7,227,998)    (9,212,078)
                                                                                                     -------     -----------
                                                                                                      12,223         23,279
   Less: Deferred offering costs .............................................................         --           (13,376)
                                                                                                  -----------    -----------

Total Stockholder's Equity (Deficiencies) ....................................................        12,223          9,903
                                                                                                 -----------    -----------
Total liabilities and stockholders' equity (deficiencies) ....................................   $    29,819     $   47,695
                                                                                                 ===========    ===========
</TABLE>

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


<PAGE>


                                BIORELEASE CORP.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                           CONSOLIDATED STATEMENTS OF
                    OPERATIONS For the Three Months and Nine
                      Months Ended March 31, 2001 and 2000,
           and the Cumulative Period from Inception to March 31, 2001
                                   (Unaudited)


<TABLE>
<CAPTION>


                                              Three Months Ended March 31,     Nine Months Ended March 31,           Inception
                                              ----------------------------     ----------------------------      (October 20, 1989)
                                                                                                                        To
                                                  2001             2000            2001            2000             March 31, 2000
                                                  ----             ----           -----           ------            --------------

                                           (Unaudited)      (Unaudited)       (Unaudited)        (Unaudited)         (Unaudited)
<S>                                        <C>             <C>              <C>               <C>                <C>
Revenues                                   $         -     $      4,200     $     14,315      $       4,200      $       588,816
Cost of goods sold                                   -              398            2,698                398             (31,251)
                                               -------          -------          -------            -------             -------
Gross profit                                         -           -3,802           11,617              3,802             557,565
Costs and expenses:                                                   -
   Research and development                          -                -                -                  -          (2,558,041)
   Purchased technology                              -                -                -                  -            (690,000)
   General and administrative income            (2,071)          (6,693)          (3,715)           (22,000)         (4,337,550)
   (expense)
   Biotech selling expenses                          -           (1,065)               -             (1,065)          ( 601,116)
                                                 ------          --------         -------           --------          ----------
        Total costs and expenses               ( 2,071)          (7,758)          (3,715)           (23,065)         (8,186,707)
                                                --------        -------           -------           --------          -----------
   (Loss)/Gain from operations                  (2,071)          (3,956)           7,902            (19,263)         (7,629,142)
                                                -------         -------            -----           ---------          -----------
   Other Income (Costs):
      Interest, net                                  -               -                 -                  -              66,824
      Lease commitment costs                         -               -                 -                  -            (315,000)
      Litigation costs                               -               -                                    -             (99,242)
      Offering costs                                 -               -           (10,441)                 -            (346,887)
      Option compensation                     (135,000)              -          (135,000)                 -            (354,375)
      Other income (cost)                            -           10,817                -             30,502              31,832
      Realized loss for decline in value
      of investment                                  -                -       (3,659,141)                 -          (5,159,141)
     Gain (loss) on sale of assets              (8,331)               -           (6,198)                 -              56,417
     Income recognized on indemnified                -                -                -                  -             241,636
       liabilities
      Income recognized on settlements              -                 -                -              ( 821)            372,555
                                           -----------         --------         --------             ------     -       -------
Total other income (cost)                   (  143,331)          10,817       (3,810,780)            29,681          (5,505,381)
                                           -----------         --------      -----------             ------         -----------

Gain (loss) before provision for (benefit
from) income taxes and Cumulative effect of
change in accounting principle                (145,402)           6,861       (3,802,878)            10,418         (13,134,523)
Provision for income taxes                           -                -                -                  -             343,873
                                            -----------               -     ------------           --------             -------
Gain (loss) before cumulative effect of
change in accounting principle                (145,402)           6,861       (3,802,878)            10,418         (13,478,396)

Cumulative effect of change in accounting
princple                                             -               -                 -                -               463,440
                                           -----------          --------    ------------           --------             -------
Net gain (loss)                         $     (145,402)     $     6,861    $  (3,802,878)      $     10,418       ($ 13,014,956)
                                              =========        ========        =========          =========           =========
Weighted average shares                     17,379,125       13,654,858       14,902,680         13,654,858           8,701,793
Basic and fully diluted loss per share  $        (0.01)    $      (0.00)   $      ($0.26)      $     ($0.00)             ($1.49)
</TABLE>

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


<PAGE>


                                BIORELEASE CORP.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                      CONSOLIDATED STATEMENT OF CASH FLOWS
              For the Nine Months Ended March 31, 2001 and 2000 and
             the Cumulative Period from Inception to March 31, 2001
                                   (Unaudited)
                                  ------------

<TABLE>
<CAPTION>
                                                                                                          Inception
                                                                           Nine Months Ended           (October 20,1989)
                                                                               March 31,                 to March 31,
                                                                        2001               2000              2001
                                                                        ----               ----              ----
Cash flows from operating activities:
<S>                                                               <C>                     <C>              <C>
Net (loss)/Gain                                                   $(3,802,878)            $ 10,418         $(13,014,956)
   Adjustments to reconcile net loss to net cash used in
       development activities:
     Depreciation and amortization                                        334                1,089              285,949
     Cumulative effect of change in accounting principle
                                                                            -                    -            ( 463,440)
     Recognized loss on investment                                  3,659,141                    -            5,159,141
     (Gain) Loss on sale of assets                                     (2,133)                   -            (  40,836)
     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                                            135,000                    -              263,453
     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                                                    -                    -                    -
     Inventories                                                       16,012                  354                    -
     Other receivables                                                    898              (10,503)             (28,549)
     Prepaid expenses and other current assets                              -                    -                  360
     Deferred tax asset                                                     -                    -              463,440
     Related party securities                                            (800)                                     (800)
     Other non-current assets                                               -                    -                    -
   Increase (Decrease) in current liabilities:
     Accounts payable                                                 (13,696)               3,275               72,047
     Accrued expenses                                                  (7,000)              (4,695)              17,468
     Other current liabilities                                              -                    -                5,000
     Other liabilities                                                    500               (4,831)               1,500
                                                                  ------------           ----------             -------
Net cash used in operating activities                                 (14,622)              (4,893)          (6,361,548)
</TABLE>

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


<PAGE>


                                BIORELEASE CORP.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                      CONSOLIDATED STATEMENT OF CASH FLOWS
              For the Nine Months Ended March 31, 2001 and 2000 and
             the Cumulative Period from Inception to March 31, 2001
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                                        Inception
                                                                           Nine Months Ended        (October 20, 1989)
                                                                               March 31,               To March 31,
                                                                        2001                  2000               2001
                                                                        ----                  ----               ----
Cash flows from investing activities:
<S>                                                                         <C>              <C>                  <C>
   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                                         14,571  (                -)           204,313
                                                                        ------  ------------------           ---------

Net cash used in investing activities                                  14,571   (                -)          (234,079)
                                                                       -------  ------------------           ---------

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                                             -              11,387          2,153,868
   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)         6,596,078
                                                            -------------------        ------------         ---------
                                                                            -
Net increase (decrease) in cash                                            (51)             (6,882)               451
Cash at beginning of period                                                502               12,232
                                                            ------------------         ------------         ---------
                                                                                                                    -
Cash at end of period                                                 $    451           $   5,350          $     451
                                                                      ========           =========          =========
</TABLE>

               The accompanying notes are an integral part of the
                       consolidated financial statements.
<TABLE>
<CAPTION>

Supplemental disclosure of non-cash transactions:
  <S>                                                                   <C>               <C>                     <C>
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                    -                 -                1,500,000
   Of common stock

</TABLE>

<PAGE>


                                BIORELEASE CORP.
                          (A DEVELOPMENT STAGE COMPANY)
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
                FOR THE NINE MONTHS ENDED MARCH 31, 2001 and 2000
       AND CUMULATIVE FROM INCEPTION (OCTOBER 20, 1989) TO MARCH 31, 2001

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 and the breakout of the subsidiary  financial
statements from the consolidated  financial statements) considered necessary for
a fair  presentation  have been included.  Operating results for the nine months
ended March 31, 2001 are not  necessarily  indicative of the results that may be
expected for the year ended June 30, 2001.

         During the  current  fiscal  year  through  March 31,  2001 the Company
transferred  all  but  800,000  shares  of  the  stock  it  held  in  Biorelease
Technologies,  Inc.  (the  Subsidiary)  under  provisions  of an Asset  Purchase
Agreement dated April 1999.  Prior to that date the Company owned  approximately
ninety  percent  (90%) of the  subsidiary's  common  stock and the  statement of
operations  and cash flows through  December 31, 2001 included the  consolidated
operations of Biorelease Corp and its Subsidiary. The accompanying balance sheet
at March 31, 2001 includes only the assets and liabilities of Biorelease Corp.

ITEM 2   Investment in related parted securities

         Under the terms of the Asset  Purchase  Agreement  an option to acquire
sixty percent (60%) of the Company's subsidiary was exercised effective December
31, 2000. Of the 4,582,122 shares of the subsidiaries  common stock owned by the
Company,  2,749,273  shares were sold to an entity that is  controlled by family
members  of the  Company's  President.  A  onetime  charge to the  statement  of
operations  in  the  amount  of  $3,659,141  represents  the  original  cost  of
Biorelease's  investment in the subsidiary.  During the three months ended March
31, 2001, 1,032,749 shares of the subsidiary's stock was awarded to Officers and
directors  of the Company  for  services  necessary  to  complete  the  intended
spin-off of the subsidiary shares to the Company's  shareholders.  The remaining
800,000 shares of common stock of the subsidiary,  Biorelease Technology,  Inc.,
are valued at the par value of the stock.







<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.  Effective  December 31, 2000 the  subsidiary  was spun out of the
consolidated  financial  statements and the current three months ended March 31,
2001 include only the results of Biorelease Corp.

Three Months Ended March 31, 2001 and 2000

         For the three months ended March 31, 2001,  the Company,  excluding the
subsidiary,  had  revenues  of $0,  cost of  goods  sold  of $0,  administrative
expenses of $2,071,  option  compensation  for  services of $135,000 and loss on
sale of it's  subsidiary's  common  stock of $8,331  resulting  in a net loss of
$145,402 as compared with the three months ended March 31, 2000 during which the
Company,  including the subsidiary,  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, and no income taxes,  resulting in a net income
of $6,861.

Nine Months Ended March 31,2001 and 2000

         For the nine months  ended March 31, 2001 the  Company,  including  the
subsidiary  for the six months ended December 31, 2000, had revenues of $14,315,
cost of goods sold of $2,698,  administrative expenses of $3,715, offering costs
of $10,441,  option  compensation  of $135,000,  a realized  loss for decline in
value of  investment  of  $3,659,141,  a loss on sale of assets of $6,198 and no
income taxes  resulting in a net loss of  $3,802,878  as compared  with the nine
months ended March 31, 2000 wherein 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 a net loss of $10,418.

Inception to March 31, 2001

         From October 20, 1989, the initial date of the  Subsidiary's  activity,
through March 31, 2001,  the Company,  including the  Subsidiary  from inception
through  December  31, 2000,  had  revenues of  $588,816,  cost of goods sold of
$31,251,  selling expenses of $601,116,  research and developmental  expenses of
$2,558,041,  purchased technology costs of $690,000,  general and administrative
expenses of $4,337,550,  other costs in the aggregate of $5,505,381  including a
charge of  realized  loss for  decline in value of  investments  of  $5,159,141,
income  taxes of  $343,873  and a  cumulative  effect of  change  in  accounting
principle of $463,440 thereby yielding an accumulated net loss of $13,014,956.

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 cash dividends of any kind
will ever be paid. (See Item 6 regarding pending subsidiary stock dividend.)


Effect of Inflation

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


<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  30, 2001 the  Company  filed Form S-8  registering
              5,800,000 shares of its common stock for services  rendered by
              the Company's officers, directors and counsel.


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

                  On March 29, 2001 the Company filed Form 8-K  announcing  that
it would not proceed with the reverse  acquisition  with Electric Energy Storage
Corporation ("EES") of Humble, Texas.

         On May 2,  2001 the  Company  filed  Form 8-K  wherein  a  majority  of
shareholders  of the Company  consented in writing in lieu of a meeting,  to the
following  corporate  actions.  First, that the Company's name be changed to BRL
Holdings,  Inc.;  second,  that the  corporation's  Articles of Incorporation be
amended  to  authorize  5,000,000  shares of $.10 per share par value  Preferred
Stock;  third that the company's  outstanding common stock be reverse split on a
one-for-12.5  basis;  and  fourth  that,  subject  to  the  effectiveness  of  a
registration  statement with the SEC, that the Company  distribute,  pro rata to
its  shareholders  of  record as of the close of  business  of May 31,  2001 all
800,000  shares of common stock of Biorelease  Technologies  , Inc. as currently
owned beneficially by the company.  Furthermore it was resolved by a majority of
the  shareholders  of the Company that the officers and directors of the company
are  authorized  to take such  actions and execute  such  documents,  including,
without  limitation,   the  submission  of  an  Information   Statement  to  the
corporation's  shareholders  who did not sign this consent  pursuant to Schedule
14C  under  the  Securities  Exchange  Act of  1934  and  the  Delaware  General
Corporation law.



<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 11, 2001               By:  /s/ R. Bruce Reeves                  .
                                --------------------------------------

                               R. Bruce Reeves, President and
                               Principal Financial Officer