----

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| NEVADA(State      or other jurisdiction of incorporation or organization) | 20-4754291(I.R.S.      Employer Identification No.) |
|---------------------------------------------------------------------------|-----------------------------------------------------|

Indicate by check mark whether the registrant is awell-known seasoned issuer, as defined in Rule 405 of the SecuritiesAct. Yes o Nox

| Large accelerated      filer o                | Accelerated filer      o         |
|-----------------------------------------------|----------------------------------|
| Non-accelerated      filer   o | Smaller reporting      company x |

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|                |                                                                                                                      | Page   |
|---------------------|---------------------------------------------------------------------------------------------------------------------------|--------|
| PART      I         |
| Item      1.   | Description      of Busines                                                                                               | 4      |
| Item      1A.  | Risk      Factors                                                                                                         | 7      |
| Item      2.   | Properties                                                                                                                | 11     |
| Item      3.   | Legal      Proceedings                                                                                                    | 11     |
| Item      4.   | Submission      of Matters to a Vote of Security Holders                                                                  | 11     |
|                |                                                                                                                      |   |
| PART      II        |
| Item      5.   | Market      for Common Equity and Related Stockholder Matters                                                             | 11     |
| Item      6.   | Selected      Financial Data                                                                                              | 13     |
| Item      7.   | Management’s      Discussion and Analysis or Plan of Operation                                                      | 13     |
| Item      8.   | Financial      Statements and Supplementary Data                                                                          | 15     |
| Item      9.   | Changes      In and Disagreements with Accountants on Accounting and Financial      Disclosure                            | 15     |
| Item      9A.  | Controls      and Procedures                                                                                              | 15     |
| Item      9B.  | Other      Information                                                                                                    | 16     |
|                |                                                                                                                      |   |
| PART      III       |
| Item      10.  | Directors,      Executive Officers, Promoters and Control Persons; Compliance      With Section 16(a) of the Exchange Act | 16     |
| Item      11.  | Executive      Compensation                                                                                               | 18     |
| Item      12.  | Security      Ownership of Certain Beneficial Owners and Management and      Related Stockholder Matters                  | 19     |
| Item      13.  | Certain      Relationship and Related Transactions                                                                        | 20     |
| Item      14.  | Principal      Accountant Fees and Services                                                                               | 20     |
| Item      15.  | Exhibits                                                                                                                  | 21     |
|                |                                                                                                                      |   |
| SIGNATURES          | 22                                                                                                                        |

----

We were incorporated in the State of Nevada on April24, 2006, as BioSolar Labs, Inc. Our name was changed to BioSolar, Inc. on June8, 2006. Our principal executive offices are located at 27936 Lost Canyon Road,Suite 202, Santa Clarita, California 91387, and our telephone number is (661)251-0001. Our fiscal year end is December 31. 

Our product development focus is based on photovoltaic technology,thus we are currently a part of the photovoltaic segment of the industry."Photovoltaics" is derived from the words photo, meaning light, and voltaic,meaning voltage producing. Sunlight, not heat, fuels photovoltaic cells. Thecells, made mostly of the semiconductor silicon, convert sunlight directly intoelectricity.

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WE HAVE A LIMITED OPERATINGHISTORY UPON WHICH YOU CAN BASE AN INVESTMENT DECISION.

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----

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|   | · | that      a broker or dealer approve a person's account for transactions in penny      stocks; and |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | · | the      broker or dealer receive from the investor a written agreement to the      transaction, setting forth the identity and quantity of the penny stock to      be purchased. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | obtain      financial information and investment experience objectives of the person;      and |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | make      a reasonable determination that the transactions in penny stocks are      suitable for that person and the person has sufficient knowledge and      experience in financial matters to be capable of evaluating the risks of      transactions in penny stocks. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | sets      forth the basis on which the broker or dealer made the suitability      determination; and |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | · | that      the broker or dealer received a signed, written agreement from the      investor prior to the transaction. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

----

We arenot currently a party to, nor is any of our property currently the subject of,any pending legal proceeding that will have a material adverse effect on ourbusiness. None of our directors, officers or affiliates is involved in aproceeding adverse to our business or has a material interest adverse to ourbusiness.

|               |   | Fiscal 2009 |   |           | Fiscal 2008 |   |   | Fiscal      2007 |   |
|--------------------|--------|-------------|--------|----------------|-------------|--------|--------|------------------|--------|
| Quarter      Ended |   | High        |   |           | Low         |   |   | High             |   |   | Low |   |   | High* |   |   | Low* |   |
| March      31      |   | $           | 0.22   | **   |        | $      | 0.12   |             |   | $ | 1.58 |   |   | $ | 0.38 | ** |   | $ | 0.22 |   |   | $ | 0.10 |   |
| June      30       |   |        | N/A    |           |        |   | N/A    |             |   | $ | 0.62 |   |   | $ | 0.38 |   |   | $ | 0.24 |   |   | $ | 0.23 |   |
| September      30  |   |        | N/A    |           |        |   | N/A    |             |   | $ | 0.47 |   |   | $ | 0.32 |   |   | $ | 0.57 |   |   | $ | 0.20 |   |
| December      31   |   |        | N/A    |           |        |   | N/A    |             |   | $ | 0.34 |   |   | $ | 0.12 |   |   | $ | 0.96 |   |   | $ | 0.36 |   |

----

EQUITYCOMPENSATION PLAN INFORMATION

| Plan      category                                              |   | Number      of securitiesto      be issued uponexercise      ofoutstanding      options,warrants      and rights |   | Weighted      averageexercise      price ofoutstanding      options,warrants      and rights |   | Number      of securitiesremaining      available for future issuance under equity compensation plans (excluding      securities      reflected in      column (a) |   |
|-----------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                            |   | (a)                                                                                                              |   | (b)                                                                                          |   | (c)                                                                                                                                                                |   |
| Equity      compensation plans approved by security holders     |   |                                                                                                             | -0-    |                                                                                         | -0-    |                                                                                                                                                               |   | -0- |   |
|                                                            |   |                                                                                                             |   |                                                                                         |   |                                                                                                                                                               |   |   |   |
| Equity      compensation plans not approved by security holders |   |                                                                                                             | -0-    |                                                                                         | -0-    |                                                                                                                                                               |   | -0- |   |
|                                                            |   |                                                                                                             |   |                                                                                         |   |                                                                                                                                                               |   |   |   |
| Total                                                           |   |                                                                                                             | -0-    |                                                                                         | -0-    |                                                                                                                                                               |   | -0- |   |

----

----

----

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| Name                    | Age | Position                                                        |
|-------------------------|-----|-----------------------------------------------------------------|
| David      Lee          | 49  | Chief      Executive Officer and Acting Chief Financial Officer |
| Stanley      Levy       | 69  | Vice      President and Chief Technology Officer                |
| Steven      C. Bartling | 46  | Director                                                        |
| Dennis      LePon       | 61  | Director                                                        |

----

----

Thefollowing table summarizes all compensation recorded by us in each of the lasttwo completed fiscal years for our principal executive officer, each otherexecutive officer serving as such whose annual compensation exceeded $100,000and up to two additional individuals for whom disclosure would have been made inthis table but for the fact that the individual was not serving as an executiveofficer of our company at December 31, 2008. The value attributable to anyoption awards is computed in accordance with FAS 123R.

| Name      and Principal Position    | Year     | Compen-sation($)            | Bonus($) | Stock      Awards | OptionAwards($) | Non-Equity      Incentive Plan      Compen-sation($) | Non-Qualified      Deferred      Compensation | All      Other Compensation($) | Total($)                    |
|-------------------------------------|----------|-----------------------------|----------|-------------------|-----------------|-----------------------------------------------------------|-----------------------------------------------|--------------------------------|-----------------------------|
| David      Lee - CEO and Acting CFO | 20082007 | $144,000$144,000            | 00       | 00                | 00              | 00                                                        | 00                                            | 00                             | $144,000$144,000            |
| Stanley      Levy – CTO  | 20082007 | $132,000$  46,750 | 00       | 00                | 00              | 00                                                        | 00                                            | 00                             | $132,000$  46,750 |

----

Item 12.  SECURITY OWNERSHIP OF CERTAINBENEFICIAL OWNERS AND MANAGEMENT

| ●  | all      directors and nominees, namingthem, |
|---------------|----------------------------------------------|

| ●  | our      executive officers, |
|---------------|------------------------------|

| ●  | our      directors and executive officers as a group, without naming them,      and |
|---------------|-------------------------------------------------------------------------------------|

| ●  | persons      or groups known by us to own beneficially 5% or more of our common      stock: |
|---------------|---------------------------------------------------------------------------------------------|

----

| Title      of Class | Name      ofBeneficial      Owner                                      |   | Number      of SharesBeneficially      Owned |       | Percent      of Total (1) |
|---------------------|------------------------------------------------------------------------|--------|----------------------------------------------|------------|---------------------------|
| Common      Stock   | David      Lee                                                         |   |                                         | 49,500,000 |                      | 37.6% |
| Common      Stock   | Stanley      Levy                                                      |   |                                         | 5,000,000  |                      | 3.8% |
| Common      Stock   | Steven      C. Bartling                                                |   |                                         | 1,000,000  |                      | * |
| Common      Stock   | Dennis      LePon                                                      |   |                                         | 1,000,000  |                      | * |
| Common      Stock   | All      Executive Officers and Directors as a Group      (4 persons ) |   |                                         | 56,500,000 |                      | 41.4% |

from inception (April 24, 2006) to December 31, 2008. 

The aggregate fees billable to us by HJ Associates & Consultants,LLP during 2008 and 2007 for the audits of our annual financial statements forthe fiscal year totaled approximately $16,250 and $23,500,respectively.

----

| Exhibit No. |   | Description                                                                                                                                                                                                                                                                             |
|-------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                                                                                                                                                                                    |
| 3.1         |   | Articles      of Incorporation of Biosolar Labs, Inc. filed with the Nevada      Secretary of State on April 24, 2006. ( Incorporated by reference to the      Company’s Registration Statement on Form SB-2 filed with the SEC on      November 22, 2006)                   |
|        |   |                                                                                                                                                                                                                                                                                    |
| 3.2         |   | Articles      of Amendment of Articles of Incorporation of Biosolar Labs, Inc. filed      with the Nevada Secretary of State on May 25, 2006.( Incorporated by      reference to the Company’s Registration Statement on Form SB-2 filed with      the SEC on November 22, 2006)  |
|        |   |                                                                                                                                                                                                                                                                                    |
| 3.3         |   | Articles      of Amendment of Articles of Incorporation of Biosolar Labs, Inc. filed      with the Nevada Secretary of State on June 8, 2006. ( Incorporated by      reference to the Company’s Registration Statement on Form SB-2 filed with      the SEC on November 22, 2006) |
|        |   |                                                                                                                                                                                                                                                                                    |
| 3.4         |   | Bylaws      of Biosolar, Inc.( Incorporated by reference to the Company’s Registration      Statement on Form SB-2 filed with the SEC on November 22,      2006)                                                                                                                  |

MATERIALCONTRACTS

| 10.1   |   | Form      of Subscription Agreement dated as of May 26, 2006. ( Incorporated by      reference to the Company’s Registration Statement on Form SB-2 filed with      the SEC on November 22, 2006)     |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                        |
| 10.2   |   | Form      of Subscription Agreement dated as of July 17, 2006. ( Incorporated by      reference to the Company’s Registration Statement on Form SB-2 filed with      the SEC on November 22, 2006)    |
|   |   |                                                                                                                                                                                                        |
| 10.3   |   | Form      of Subscription Agreement dated as of October 11, 2006. ( Incorporated by      reference to the Company’s Registration Statement on Form SB-2 filed with      the SEC on November 22, 2006) |
|   |   |                                                                                                                                                                                                        |
| 14.1   |   | Code      of Ethics ( Incorporated by reference to the Company’s annual report on      Form 10-K filed with the SEC on March 25, 2008)                                                                |
|   |   |                                                                                                                                                                                                        |
| 31.1   |   | Certification      by Chief Executive Officer and Acting Chief Financial Officer pursuant to      Sarbanes-Oxley Section 302 (filed herewith).                                                              |
|   |   |                                                                                                                                                                                                        |
| 32.1   |   | Certification      by Chief Executive Officer and Acting Chief Financial Officer pursuant to      18 U.S.C. Section 1350 (filedherewith).                                                                   |

----

|   |   |   | Biosolar,      Inc.                                                                                                                                  |
|--------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                 |
|   |   |   |                                                                                                                                                 |
|   |   |   | By:                                                                                                                                                  |  /s/      David Lee |   |
|   |   |   | CHIEF      EXECUTIVE OFFICER (PRINCIPAL EXECUTIVE OFFICER)      AND ACTING CHIEF FINANCIAL OFFICER (PRINCIPAL      ACCOUNTING AND FINANCIAL OFFICER) |
|   |   |   |                                                                                                                                                 |

| SIGNATURE          |   |        TITLE                                                      |   | DATE                |
|--------------------|--------|------------------------------------------------------------------------|--------|---------------------|
|               |   |                                                                   |   |                |
| /S/      DAVID LEE |   | CHIEF      EXECUTIVE OFFICER                                           |   | MARCH      27, 2009 |
| DAVID      LEE     |   | (PRINCIPAL      EXECUTIVE OFFICER),ACTING      CHIEF FINANCIAL OFFICER |   |                |
|               |   | (PRINCIPAL      ACCOUNTING AND                                         |   |                |
|               |   | FINANCIAL      OFFICER) AND                                            |   |                |
|               |   | CHAIRMAN      OF THE BOARD                                             |   |                |
|               |   |                                                                   |   |                |

| /S/      STEVEN C.      BARTLING  |   | DIRECTOR |   | MARCH 27,      2009  |
|----------------------------------------|--------|----------|--------|---------------------------|
| STEVEN      C. BARTLING                |   |     |   |                      |
|                                   |   |     |   |                      |

| /S/      DENNIS LEPON |   | DIRECTOR |   | MARCH 27,      2009  |
|-----------------------|--------|----------|--------|---------------------------|
| DENNIS      LEPON     |   |     |   |                      |

----

| Report of      Independent Registered Public Accounting Firm  | F-2              |
|--------------------------------------------------------------------|-----------------------|
|                                                               |                  |
| Balance      Sheets                                           | F-3              |
|                                                               |                  |
| Statements of      Operations                                 | F-4              |
|                                                               |                  |
| Statement of      Shareholders’ Equity                  | F-5                   |
|                                                               |                  |
| Statements of Cash      Flows                                 | F-6                   |
|                                                               |                  |
| Notes to the      Financial Statements                        | F-7 -      F-11  |

----

----

|                                                           |   | December      31, 2008 |       |   | December      31, 2007 |   |
|----------------------------------------------------------------|--------|------------------------|------------|--------|------------------------|--------|
|                                                           |   |                   |       |   |                   |   |
| ASSETS                                                         |   |                   |       |   |                   |   |
|                                                           |   |                   |       |   |                   |   |
| CURRENT      ASSETS                                            |   |                   |       |   |                   |   |
| Cash      & cash equivalents                               |   | $                      | 33,391     |   |                   | $      | 340,484 |   |
| Certificates      of deposits                                  |   |                   | 372,112    |   |                   |   | 653,867 |   |
| Inventory,      work in progress                               |   |                   | 24,770     |   |                   |   | - |   |
| Prepaid      expenses                                          |   |                   | 8,738      |   |                   |   | 80,332 |   |
|                                                           |   |                   |       |   |                   |   |   |   |
| Total      Current Assets                                      |   |                   | 439,011    |   |                   |   | 1,074,683 |   |
|                                                           |   |                   |       |   |                   |   |   |   |
| PROPERTY      & EQUIPMENT                                  |   |                   |       |   |                   |   |   |   |
| Machinery      and equipment                                   |   |                   | 49,130     |   |                   |   | - |   |
| Computer                                                       |   |                   | 1,978      |   |                   |   | 1,978 |   |
| Total      Property and Equipment                              |   |                   | 51,108     |   |                   |   | 1,978 |   |
|                                                           |   |                   |       |   |                   |   |   |   |
| Less:      accumulated depreciation                            |   |                   | (4,647     | )      |                   |   | (1,029 | ) |
|                                                           |   |                   |       |   |                   |   |   |   |
| Net      Property and Equipment                                |   |                   | 46,461     |   |                   |   | 949 |   |
|                                                           |   |                   |       |   |                   |   |   |   |
| OTHER      ASSETS                                              |   |                   |       |   |                   |   |   |   |
| Patents,      net of amortization of $40                       |   |                   | 74,972     |   |                   |   | 7,265 |   |
| Deposit                                                        |   |                   | 770        |   |                   |   | 770 |   |
|                                                           |   |                   |       |   |                   |   |   |   |
| TOTAL      OTHER ASSETS                                        |   |                   | 75,742     |   |                   |   | 8,035 |   |
|                                                           |   |                   |       |   |                   |   |   |   |
| TOTAL      ASSETS                                              |   | $                      | 561,214    |   |                   | $      | 1,083,667 |   |
|                                                           |   |                   |       |   |                   |   |   |   |
| LIABILITIES      AND SHAREHOLDERS' EQUITY                      |   |                   |       |   |                   |   |   |   |
|                                                           |   |                   |       |   |                   |   |   |   |
| CURRENT      LIABILITIES                                       |   |                   |       |   |                   |   |   |   |
| Accounts      payable                                          |   | $                      | 20,800     |   |                   | $      | - |   |
| Accrued      expenses                                          |   |                   | -          |   |                   |   | 9,611 |   |
| Credit      card payable                                       |   |                   | -          |   |                   |   | 995 |   |
|                                                           |   |                   |       |   |                   |   |   |   |
| TOTAL      CURRENT LIABILITIES                                 |   |                   | 20,800     |   |                   |   | 10,606 |   |
|                                                           |   |                   |       |   |                   |   |   |   |
| SHAREHOLDERS'      EQUITY                                      |   |                   |       |   |                   |   |   |   |
| Common      stock, $0.0001 par value;                          |   |                   |       |   |                   |   |   |   |
| 500,000,000      authorized common shares                      |   |                   |       |   |                   |   |   |   |
| 133,366,777      and 131,706,777 shares issued and outstanding |   |                   | 13,336     |   |                   |   | 13,170 |   |
| Additional      paid in capital                                |   |                   | 2,596,791  |   |                   |   | 2,181,958 |   |
| Deficit      accumulated during the development stage          |   |                   | (2,069,713 | )      |                   |   | (1,122,067 | ) |
|                                                           |   |                   |       |   |                   |   |   |   |
| TOTAL      SHAREHOLDERS' EQUITY                                |   |                   | 540,414    |   |                   |   | 1,073,061 |   |
|                                                           |   |                   |       |   |                   |   |   |   |
| TOTAL      LIABILITIES AND SHAREHOLDERS' EQUITY                |   | $                      | 561,214    |   |                   | $      | 1,083,667 |   |

----

|                                                     |   | Year      Ended        |        |   | From      InceptionApril 24,      2006through |   |
|----------------------------------------------------------|--------|------------------------|-------------|--------|-----------------------------------------------|--------|
|                                                     |   | December 31,      2008 |        |   | December      31, 2007                        |   |   | December      31, 2008 |   |
|                                                     |   |                   |        |   |                                          |   |   |   |   |
| REVENUE                                                  |   | $                      | -           |   |                                          | $      | - |   |   | $ | - |   |
|                                                     |   |                   |        |   |                                          |   |   |   |   |   |   |   |
| OPERATING      EXPENSES                                  |   |                   |        |   |                                          |   |   |   |   |   |   |   |
| Selling      and marketing expenses                      |   |                   | 291,487     |   |                                          |   | 304,129 |   |   |   | 611,959 |   |
| General      and administrative expenses                 |   |                   | 481,599     |   |                                          |   | 389,294 |   |   |   | 1,133,229 |   |
| Research      and development                            |   |                   | 190,481     |   |                                          |   | 193,493 |   |   |   | 400,665 |   |
| Depreciation      and amortization                       |   |                   | 3,618       |   |                                          |   | 673 |   |   |   | 4,687 |   |
|                                                     |   |                   |        |   |                                          |   |   |   |   |   |   |   |
| TOTAL      OPERATING EXPENSES                            |   |                   | 967,185     |   |                                          |   | 887,589 |   |   |   | 2,150,540 |   |
|                                                     |   |                   |        |   |                                          |   |   |   |   |   |   |   |
| LOSS      FROM OPERATIONS BEFORE  OTHER INCOME |   |                   | (967,185    | )      |                                          |   | (887,589 | ) |   |   | (2,150,540 | ) |
|                                                     |   |                   |        |   |                                          |   |   |   |   |   |   |   |
| TOTAL      OTHER INCOME                                  |   |                   |        |   |                                          |   |   |   |   |   |   |   |
| Interest      income                                     |   |                   | 20,339      |   |                                          |   | 40,683 |   |   |   | 82,427 |   |
|                                                     |   |                   |        |   |                                          |   |   |   |   |   |   |   |
| LOSS      BEFORE PROVISION FOR TAXES                     |   |                   | (946,846    | )      |                                          |   | (846,906 | ) |   |   | (2,068,113 | ) |
|                                                     |   |                   |        |   |                                          |   |   |   |   |   |   |   |
| Provision      for income taxes                          |   |                   | (800        | )      |                                          |   | (800 | ) |   |   | (1,600 | ) |
|                                                     |   |                   |        |   |                                          |   |   |   |   |   |   |   |
| NET      LOSS                                            |   | $                      | (947,646    | )      |                                          | $      | (847,706 | ) |   | $ | (2,069,713 | ) |
|                                                     |   |                   |        |   |                                          |   |   |   |   |   |   |   |
|                                                     |   |                   |        |   |                                          |   |   |   |   |   |   |   |
| BASIC      AND DILUTED LOSS PER SHARE                    |   | $                      | (0.01       | )      |                                          | $      | (0.01 | ) |   |   |   |   |
|                                                     |   |                   |        |   |                                          |   |   |   |   |   |   |   |
| WEIGHTED-AVERAGE      COMMON SHARES OUTSTANDING          |   |                   |        |   |                                          |   |   |   |   |
| BASIC      AND DILUTED                                   |   |                   | 132,402,777 |   |                                          |   | 129,113,689 |   |   |   |   |   |

----

|                                                          |   | Common      stock |        |   | AdditionalPaid-in |   |   | DeficitAccumulatedduring      theDevelopment |   |   |      |   |
|---------------------------------------------------------------|--------|-------------------|-------------|--------|-------------------|--------|--------|----------------------------------------------|--------|--------|-----------|--------|
|                                                          |   | Shares            |        |   | Amount            |   |   | Capital                                      |   |   | Stage     |   |   | Total |   |
| Inception      April 24, 2006                                 |   |              | -           |   |              | $      | -      |                                         |   | $      | -         |   |   | $ | - |   |   | $ | - |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of common stock in April 2006 for services      |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| (1,000      common shares issued at $0.001 per share )        |   |              | 1,000       |   |              |   | 1      |                                         |   |   | -         |   |   |   | - |   |   |   | 1 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of founders shares in May 2006 for cash         |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| (29,999,000      common shares issued at $0.00025 per share ) |   |              | 29,999,000  |   |              |   | 2,999  |                                         |   |   | 4,500     |   |   |   | - |   |   |   | 7,499 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of founders shares in May 2006 for cash         |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| (20,000,000      common shares issued at $0.00025 per share ) |   |              | 20,000,000  |   |              |   | 2,000  |                                         |   |   | 3,000     |   |   |   | - |   |   |   | 5,000 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of founders shares in May 2006 for cash         |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| (9,000,000      common shares issued at $0.00025 per share )  |   |              | 9,000,000   |   |              |   | 900    |                                         |   |   | 1,350     |   |   |   | - |   |   |   | 2,000 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of common stock in May 2006 for cash            |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| (25,000,000      common shares issued at $0.015 per share )   |   |              | 25,000,000  |   |              |   | 2,500  |                                         |   |   | 372,500   |   |   |   | - |   |   |   | 375,000 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of founders shares in June 2006 for cash        |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| (34,000,000      common shares issued at $0.00025 per share ) |   |              | 34,000,000  |   |              |   | 3,400  |                                         |   |   | 5,100     |   |   |   | - |   |   |   | 8,500 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of common shares in June 2006 for cash          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| (90,000      common shares issued at $0.10 per share )        |   |              | 90,000      |   |              |   | 9      |                                         |   |   | 8,991     |   |   |   | - |   |   |   | 9,000 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Stocks      subscribed                                        |   |              | -           |   |              |   | -      |                                         |   |   | -         |   |   |   | - |   |   |   | 250 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of common shares in July 2006 for cash          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| (5,760,000      common shares issued at $0.10 per share )     |   |              | 5,760,000   |   |              |   | 576    |                                         |   |   | 575,424   |   |   |   | - |   |   |   | 576,000 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of common shares in August 2006 for cash        |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |
| (2,807,777      common shares issued at $0.10 per share )     |   |              | 2,807,777   |   |              |   | 281    |                                         |   |   | 280,497   |   |   |   | - |   |   |   | 280,778 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of common shares in September 2006 for cash     |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |
| (1,450,000      common shares issued at $0.10 per share )     |   |              | 1,450,000   |   |              |   | 145    |                                         |   |   | 144,855   |   |   |   | - |   |   |   | 145,000 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of common shares in October 2006 for cash       |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |
| (450,000      common shares issued at $0.10 per share )       |   |              | 450,000     |   |              |   | 45     |                                         |   |   | 44,955    |   |   |   | - |   |   |   | 45,000 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Net      Loss from Inception through December 31, 2006        |   |              | -           |   |              |   | -      |                                         |   |   | -         |   |   |   | (274,361 | ) |   |   | (274,361 | ) |
| Balance      at December 31, 2006                             |   |              | 128,557,777 |   |              |   | 12,856 |                                         |   |   | 1,441,172 |   |   |   | (274,361 | ) |   |   | 1,179,667 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of common shares in September 2007 for cash     |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |
| (250,000      common shares issued at $0.20 per share )       |   |              | 250,000     |   |              |   | 25     |                                         |   |   | 49,975    |   |   |   | - |   |   |   | 50,000 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of common shares in September 2007 for cash     |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |
| (50,000      common shares issued at $0.20 per share )        |   |              | 50,000      |   |              |   | 5      |                                         |   |   | 9,995     |   |   |   | - |   |   |   | 10,000 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of common shares in September 2007 for services |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |
| (100,000      common shares issued at $0.35 per share )       |   |              | 100,000     |   |              |   | 10     |                                         |   |   | 34,990    |   |   |   | - |   |   |   | 35,000 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of common shares in September 2007 for services |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |
| (100,000      common shares issued at $0.26 per share )       |   |              | 100,000     |   |              |   | 10     |                                         |   |   | 25,990    |   |   |   | - |   |   |   | 26,000 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of common shares in September 2007 for services |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |
| (40,000      common shares issued at $0.54 per share )        |   |              | 40,000      |   |              |   | 4      |                                         |   |   | 21,596    |   |   |   | - |   |   |   | 21,600 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of common shares in October 2007 for services   |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |
| (4,000      common shares issued at $0.54 per share )         |   |              | 4,000       |   |              |   | 0      |                                         |   |   | 2,160     |   |   |   | - |   |   |   | 2,160 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of common shares in October 2007 for cash       |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |
| (1,175,000      common shares issued at $0.20 per share )     |   |              | 1,175,000   |   |              |   | 117    |                                         |   |   | 234,883   |   |   |   | - |   |   |   | 235,000 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of common shares in October 2007 for services   |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |
| (250,000      common shares issued at $0.51 per share )       |   |              | 250,000     |   |              |   | 25     |                                         |   |   | 127,475   |   |   |   | - |   |   |   | 127,500 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of common shares in November 2007 for cash      |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |
| (1,180,000      common shares issued at $0.20 per share )     |   |              | 1,180,000   |   |              |   | 118    |                                         |   |   | 235,882   |   |   |   | - |   |   |   | 236,000 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Stock      issuance cost                                      |   |              | -           |   |              |   | -      |                                         |   |   | (2,160    | )      |   |   | - |   |   |   | (2,160 | ) |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Net      Loss for the year ended December 31, 2007            |   |              | -           |   |              |   | -      |                                         |   |   | -         |   |   |   | (847,706 | ) |   |   | (847,706 | ) |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Balance      at December 31, 2007                             |   |              | 131,706,777 |   |              |   | 13,170 |                                         |   |   | 2,181,958 |   |   |   | (1,122,067 | ) |   |   | 1,073,061 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of common shares in June 2008 for cash          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| (520,000      common shares issued at $0.25 per share )       |   |              | 520,000     |   |              |   | 52     |                                         |   |   | 129,948   |   |   |   | - |   |   |   | 130,000 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of common shares in July 2008 for cash          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| (440,000      common shares issued at $0.25 per share )       |   |              | 440,000     |   |              |   | 44     |                                         |   |   | 109,956   |   |   |   | - |   |   |   | 110,000 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of common shares in August 2008 for cash        |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |
| (80,000      common shares issued at $0.25 per share )        |   |              | 80,000      |   |              |   | 8      |                                         |   |   | 19,992    |   |   |   | - |   |   |   | 20,000 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of common shares in September 2008 for cash     |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |
| (520,000      common shares issued at $0.25 per share )       |   |              | 520,000     |   |              |   | 52     |                                         |   |   | 129,948   |   |   |   | - |   |   |   | 130,000 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance      of common shares in October 2008 for services   |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |
| (100,000      common shares issued at $0.25 per share )       |   |              | 100,000     |   |              |   | 10     |                                         |   |   | 24,990    |   |   |   | - |   |   |   | 25,000 |   |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Net      Loss for the year ended December 31, 2008            |   |              | -           |   |              |   | -      |                                         |   |   | -         |   |   |   | (947,646 | ) |   |   | (947,646 | ) |
|                                                          |   |              |        |   |              |   |   |                                         |   |   |      |   |   |   |   |   |   |   |   |   |
| Balance      at December 31, 2008                             |   |              | 133,366,777 |   |              | $      | 13,336 |                                         |   | $      | 2,596,792 |   |   | $ | (2,069,713 | ) |   | $ | 540,415 |   |

----

|                                                                              |   | Year      Ended        |     |   | From      InceptionApril 24,      2006through |   |
|-----------------------------------------------------------------------------------|--------|------------------------|----------|--------|-----------------------------------------------|--------|
|                                                                              |   | December 31,      2008 |     |   | December      31, 2007                        |   |   | December 31,      2008 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                        |   |                   |     |   |                                          |   |   |   |   |
| Net      loss                                                                     |   | $                      | (947,646 | )      |                                          | $      | (847,706 | ) |   | $ | (2,069,713 | ) |
| Adjustment      to reconcile net loss to net cash used in operating    activities |   |                   |     |   |                                          |   |   |   |   |   |   |   |
| Depreciation      expense                                                         |   |                   | 3,618    |   |                                          |   | 673 |   |   |   | 4,687 |   |
| Issuance      of stock for services                                               |   |                   | 25,000   |   |                                          |   | 212,260 |   |   |   | 237,260 |   |
| (Increase)      Decrease in:                                                      |   |                   |     |   |                                          |   |   |   |   |   |   |   |
| Inventory                                                                         |   |                   | (24,770  | )      |                                          |   | - |   |   |   | (24,770 | ) |
| Prepaid      expenses                                                             |   |                   | 71,594   |   |                                          |   | (79,564 | ) |   |   | (8,738 | ) |
| Deposits                                                                          |   |                   | -        |   |                                          |   | - |   |   |   | (770 | ) |
| Increase      (Decrease) in:                                                      |   |                   |     |   |                                          |   |   |   |   |   |   |   |
| Accounts      Payable                                                             |   |                   | 20,800   |   |                                          |   | (37,179 | ) |   |   | 20,800 |   |
| Accrued      Expenses                                                             |   |                   | (9,612   | )      |                                          |   | 7,419 |   |   |   | - |   |
| Credit      Card Payable                                                          |   |                   | (995     | )      |                                          |   | (1,922 | ) |   |   | - |   |
|                                                                              |   |                   |     |   |                                          |   |   |   |   |   |   |   |
| NET      CASH USED IN OPERATING ACTIVITIES                                        |   |                   | (862,011 | )      |                                          |   | (746,019 | ) |   |   | (1,841,244 | ) |
|                                                                              |   |                   |     |   |                                          |   |   |   |   |   |   |   |
| NET      CASH FLOWS FROM INVESTING ACTIVITIES:                                    |   |                   |     |   |                                          |   |   |   |   |   |   |   |
| Purchase      of Equipment                                                        |   |                   | (49,130  | )      |                                          |   | - |   |   |   | (51,108 | ) |
| Patent      expenditures                                                          |   |                   | (67,707  | )      |                                          |   | (7,305 | ) |   |   | (75,012 | ) |
| Investment      in Certificate of Deposits                                        |   |                   | 281,755  |   |                                          |   | 362,037 |   |   |   | (372,112 | ) |
|                                                                              |   |                   |     |   |                                          |   |   |   |   |   |   |   |
| NET      CASH (USED)/PROVIDED BY INVESTING ACTIVITIES                             |   |                   | 164,918  |   |                                          |   | 354,732 |   |   |   | (498,232 | ) |
|                                                                              |   |                   |     |   |                                          |   |   |   |   |   |   |   |
| NET      CASH FLOWS FROM FINANCING ACTIVITIES:                                    |   |                   |     |   |                                          |   |   |   |   |   |   |   |
| Proceeds      from issuance of common stock                                       |   |                   | 390,000  |   |                                          |   | 531,000 |   |   |   | 2,372,867 |   |
|                                                                              |   |                   |     |   |                                          |   |   |   |   |   |   |   |
| NET      CASH PROVIDED BY FINANCING ACTIVITIES                                    |   |                   | 390,000  |   |                                          |   | 531,000 |   |   |   | 2,372,867 |   |
|                                                                              |   |                   |     |   |                                          |   |   |   |   |   |   |   |
| NET      INCREASE/(DECREASE) IN CASH                                              |   |                   | (307,093 | )      |                                          |   | 139,713 |   |   |   | 33,391 |   |
|                                                                              |   |                   |     |   |                                          |   |   |   |   |   |   |   |
| CASH,      BEGINNING OF PERIOD                                                    |   |                   | 340,484  |   |                                          |   | 200,739 |   |   |   | - |   |
|                                                                              |   |                   |     |   |                                          |   |   |   |   |   |   |   |
| CASH,      END OF PERIOD                                                          |   |                   | 33,391   |   |                                          |   | 340,452 |   |   |   | 33,391 |   |
|                                                                              |   |                   |     |   |                                          |   |   |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURES OF CASH FLOW INFORMATION                            |   |                   |     |   |                                          |   |   |   |   |
| Interest      paid                                                                |   | $                      | -        |   |                                          | $      | - |   |   | $ | - |   |
| Taxes      paid                                                                   |   | $                      | 800      |   |                                          | $      | 800 |   |   | $ | 1,600 |   |

| SUPPLEMENTAL      SCHEDULE OF NON-CASH TRANSACTIONS                                                               |   |   |   |   |   |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| During      the year ended December 31, 2008, the Company issued 100,000 shares of      common stock for services |   |
| at      a fair value of $25,000. During the year ended December 31, 2007, the      Company issued 494,000 shares  |   |
| of      common stock for services at a fair value of $212,260.                                                    |   |   |   |   |   |   |   |   |   |   |   |   |

----

| 1.     | ORGANIZATION AND      LINE OF BUSINESS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | OrganizationBioSolar,      Inc. (the "Company") was incorporated in the state of Nevada on April 24,      2006.  The Company, based in Santa Clarita, California, began      operations on April 25, 2006 to develop and market a solar cell module      component technology. Line of      BusinessThe      Company is currently in the stage of developing an innovative technology      to produce bio-based photovoltaic components from renewable plant sources      that will reduce the cost per watt of Photovoltaic solar cells. The      biobased photovoltaic components will be directly marketed to photovoltaic      module manufacturers. Going      ConcernThe      accompanying financial statements have been prepared on a going concern      basis of accounting, which contemplates continuity of operations,      realization of assets and liabilities and commitments in the normal course      of business.  The accompanying financial statements do not      reflect any adjustments that might result if the Company is unable to      continue as a going concern.  The Company does not generate      revenue, and has negative cash flows from operations, which raise      substantial doubt about the Company’s ability to continue as a going      concern.  The ability of the Company to continue as a going      concern and appropriateness of using the going concern basis is dependent      upon, among other things, additional cash infusion.  The Company      has obtained funds from its shareholders since its’ inception through the      year ended December 31, 2008. Management believes this funding will      continue, and has also obtained funding from new      investors.  Management believes the existing shareholders and      the prospective new investors will provide the additional cash needed to      meet the Company’s obligations as they become due, and will allow the      development of its core of business. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 2.     | SUMMARY OF      SIGNIFICANT ACCOUNTING POLICIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | This      summary of significant accounting policies of BioSolar, Inc. is presented      to assist in understanding the Company’s financial statements. The      financial statements and notes are representations of the Company’s      management, which is responsible for their integrity and objectivity.      These accounting policies conform to accounting principles generally      accepted in the United States of America and have been consistently      applied in the preparation of the financial statements. Development Stage      Activities and OperationsThe      Company has been in its initial stages of formation and for the year ended      December 31, 2008, had no revenues. FASB #7 defines a development stage      activity as one in which all efforts are devoted substantially to      establishing a new business and even if planned principal operations have      commenced, revenues are insignificant. Revenue      RecognitionThe      Company will recognize revenue when services are performed, and at the      time of shipment of products, provided that evidence of an arrangement      exists, title and risk of loss have passed to the customer, fees are fixed      or determinable, and collection of the related receivable is reasonably      assured. To date, the Company has had no revenues and is in the      development stage. Cash and Cash      EquivalentThe Company considers all highly      liquid investments with an original maturity of three months or less to be      cash equivalents.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

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| 2.     | SUMMARY OF      SIGNIFICANT ACCOUNTING POLICIES (Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | InvestmentsCertificate      of Deposits with banking institutions are short-term investments with      initial maturities of more than 90 days. The carrying amount of these      investments is a reasonable estimate of fair value due to their short-term      nature. Use of      EstimatesThe      preparation of financial statements in conformity with generally accepted      accounting principles requires management to make estimates and      assumptions that affect the amounts reported in the accompanying financial      statements.  Significant estimates made in preparing these      financial statements include the estimate of useful lives of property and      equipment, the deferred tax valuation allowance, and the fair value of      stock options. Actual results could differ from those      estimates. Property and      EquipmentProperty      and equipment are stated at cost, and are depreciated using straight line      over its estimated useful lives: |

| Computer      equipment        | 5    years  |
|--------------------------------|-------------|
| Machinery &      equipment | 10    years |

|   | Fair Value of      Financial InstrumentsSFAS      No. 107, “Disclosures About Fair Value of Financial Instruments”, requires      disclosure of the fair value information, whether or not recognized in the      balance sheet, where it is practicable to estimate that value. As of      December 31, 2008, the amounts reported for cash, accounts receivable,      accounts payable, accrued interest and other expenses, and notes payable      approximate the fair value because of their short maturities. Loss per Share      CalculationsThe      Company adopted Statement of Financial Standards (“SFAS”) No. 128 for the      calculation of “Loss per Share”.  SFAS No. 128 dictates the      calculation of basic earnings per share and diluted earnings per share.      Basic earnings per share is computed by dividing income available to      common shareholders by the weighted-average number of common shares      available. Diluted earnings per share is computed similar to basic      earnings per share except that the denominator is increased to include the      number of additional common shares that would have been outstanding if the      potential common shares had been issued and if the additional common      shares were dilutive. No shares for employee options or warrants were used      in the calculation of the loss per share as they were all anti-dilutive.      The Company’s diluted loss per share is the same as the basic loss per      share for the year ended December 31, 2008, as the inclusion of any      potential shares would have had an anti-dilutive effect due to the Company      generating a loss. Income      TaxesThe      Company uses the liability method of accounting for income      taxes.  Deferred tax assets and liabilities are recognized for      the future tax consequences attributable to financial statements carrying      amounts of existing assets and liabilities and their respective tax bases      and operating loss and tax      credit  carry-forwards.  The measurement of deferred      tax assets and liabilities is based on provisions of applicable tax      law.  The measurement of deferred tax assets is reduced, if      necessary, by a valuation allowance based on the amount of tax benefits      that, based on available evidence, is not expected to be      realized. ReclassificationCertain      expenses for the year ended December 31, 2007 were reclassified to conform      with the expenses for the year ended December 31,  2008. |
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| 2.     | SUMMARY OF      SIGNIFICANT ACCOUNTING POLICIES (Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
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|   | Research and      DevelopmentResearch      and development costs are expensed as incurred.  Total research      and development costs were $190,481 and $193,493 for the years ended      December 31, 2008 and 2007, respectively. Advertising      CostsThe      Company expenses the cost of advertising and promotional materials when      incurred.  Total advertising costs were $16,500 and $35,445 for      the years ended December 31, 2008 and 2007, respectively. Stock based      CompensationIn      December 2004, the FASB issued Statement of Financial Accounting Standards      No. 123R, Share-based Payment. SFAS 123R revises SFAS 123 and supersedes      APB 25. SFAS 123R will be effective for the period ending December 31,      2006, and applies to transactions in which an entity exchanges its equity      instruments for goods or services and also applies to liabilities an      entity may incur for goods or services that are to follow a fair value of      those equity instruments. Under SFAS 123R, we will be required to follow a      fair value approach using an option-pricing model, such as the Black      Scholes option valuation model, at the date of a stock option grant. The      deferred compensation calculated under the fair value method would then be      amortized over the respective vesting period of the stock option. The      adoption of SFAS 123R is expected to have a material impact on our results      of operations. Recently Issued      Accounting PronouncementsIn      September 2006, the FASB issued SFAS 157, which defines fair value,      establishes a framework for measuring fair value, and expands disclosures      about fair value measurements. The provisions of SFAS 157 are effective as      of the beginning of our 2008 fiscal year. The adoption of SFAS 157 had no      impact on our financial statements. |
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| 3.     | CAPITAL      STOCK                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
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|   | During the period      ended December 31, 2008, the Company issued 1,560,000 shares of common      stock at a price of $0.25 per share for cash in the amount of $390,000.      During the year ended December 31, 2007, the Company issued 2,655,000      shares of common stock at a price of $0.20 per share for cash in the      amount of $531,000; Also, the Company issued 494,000 shares of common      stock at a price between $0.26 and $0.54 per share for services at a fair      value of $212,260, pursuant to a private placement made pursuant to Rule      506 of Regulation D promulgated under section 4(2) of the Securities Act      of 1933, as amended.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
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| 4.     | RENTAL      LEASE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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|   | The      Company renewed its lease for a one year term expiring on May 14, 2009.      The rent paid for the years ended December 31, 2008 and 2007 were $6,408      and $6,158.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
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| 5.     | INTANGIBLE      ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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|   | Intangible      assets that have finite useful lives continue to be amortized over their      useful lives, and are reviewed for impairment when warranted by economic      condition.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

|                               |   | Useful      Lives |   | 2008   |   |   | 2007   |   |
|------------------------------------|--------|-------------------|--------|--------|--------|--------|--------|--------|
| Patents-gross                      |   |              |   | $      | 75,012 |   |   | $      | 7,306 |   |
| Less accumulated      amortization |   | 20    years       |   |   | 40     |   |   |   | 40 |   |
|                               |   |              |   | $      | 74,972 |   |   | $      | 7,346 |   |

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| 5.     | INTANGIBLE      ASSETS (Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
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|   | As      of December 31, 2008, no amortization has been expensed for the patents,      since approval of the patents are pending.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
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| 6.     | INCOME    TAXES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | The      Company files income tax returns in the U.S. Federal jurisdiction, and the      state of California. With few exceptions, the Company is no longer subject      to U.S. federal, state and local, or non-U.S. income tax examinations by      tax authorities for years before 2006. The      Company adopted the provisions of FASB Interpretation No. 48, Accounting      for Uncertainty in Income Taxes, on January 1, 2007.  Deferred      income taxes have been provided by temporary differences between the      carrying amounts of assets and liabilities for financial reporting      purposes and the amounts used for tax purposes. To the extent allowed by      GAAP, we provide valuation allowances against the deferred tax assets for      amounts when the realization isuncertain. |

|   | Included      in the balance at December 31, 2008, are no tax positions for which the      ultimate deductibility is highly certain, but for which there is      uncertainty about the timing of such deductibility.  Because of      the impact of deferred tax accounting, other than interest and penalties,      the disallowance of the shorter deductibility period would not affect the      annual effective tax rate but would accelerate the payment of cash to the      taxing authority to an earlier period. The      Company's policy is to recognize interest accrued related to unrecognized      tax benefits in interest expense and penalties in operating expenses.      During the period ended December 31, 2008, the Company did not recognize      interest and penalties. |
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| 7.     | DEFERRED      TAX BENEFIT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | At      December 31, 2008, the Company had net operating loss carry-forwards of      approximately $2,050,000, which expire at dates that have not been      determined. No tax benefit has been reported in the December 31, 2008 and      2007 financial statements since the potential tax benefit is offset by a      valuation allowance of the same amount.                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
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|   | The      income tax provision differs from the amount of income tax determined by      applying the U.S. federal income tax rate to pretax income from continuing      operations for the years ended December 31, 2008 and 2007 due to the      following:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

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|                     |   | 2008   |     |   | 2007   |   |
|--------------------------|--------|--------|----------|--------|--------|--------|
|                     |   |   |     |   |   |   |
| Bookincome               |   | $      | (379,058 | )      |   | $      | (339,070 | ) |
| State income      taxes  |   |   | (320     | )      |   |   | - |   |
| Depreciation             |   |   | (2,341   | )      |   |   | - |   |
| M&E                  |   |   | 400      |   |   |   | 475 |   |
| R&D                  |   |   | 3,560    |   |   |   | 4,970 |   |
|                     |   |   |     |   |   |   |   |   |
| Valuation      Allowance |   |   | 377,759  |   |   |   | 333,625 |   |
|                     |   |   |     |   |   |   |   |   |
| Income tax      expense  |   | $      | -        |   |   | $      | - |   |

|   | Deferred      taxes are provided on a liability method whereby deferred tax assets are      recognized for deductible differences and operating loss and tax credit      carry-forwards and deferred tax liabilities are recognized for taxable      temporary differences. Temporary differences are the difference between      the reported amounts of assets and liabilities and their tax bases.      Deferred tax assets are reduced by a valuation allowance when, in the      opinion of management, it is more likely than not that some portion or all      of the deferred tax assets will not be realized. Deferred tax assets and      liabilities are adjusted for the effects of changes in tax laws and rates      on the date of enactment. Deferred      taxes are provided on a liability method whereby deferred tax assets are      recognized for deductible differences and operating loss and tax credit      carry-forwards and deferred tax liabilities are recognized for taxable      temporary differences. Temporary differences are the difference between      the reported amounts of assets and liabilities and their tax      bases. Deferred      tax assets are reduced by a valuation allowance when, in the opinion of      management, it is more likely than not that some portion or all of the      deferred tax assets will not be realized. Deferred tax assets and      liabilities are adjusted for the effects of changes in tax laws and rates      on the date of enactment. Net deferred tax      liabilities consist of the following components as of December 31, 2008      and 2007: |
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|                           |   | 2008   |     |   | 2007   |   |
|--------------------------------|--------|--------|----------|--------|--------|--------|
|                           |   |   |     |   |   |   |
| Deferred tax      assets:      |   |   |     |   |   |   |
| NOL      carryover             |   | $      | 826,010  |   |   | $      | 358,337 |   |
| R&D      credit            |   |   | 19,267   |   |   |   | 5,838 |   |
|                           |   |   |     |   |   |   |   |   |
| Deferred tax      liabilities: |   |   |     |   |   |   |   |   |
| Depreciation                   |   |   | (2,283   | )      |   |   | 71 |   |
|                           |   |   |     |   |   |   |   |   |
| Less Valuation      Allowance  |   |   | (842,994 | )      |   |   | (364,246 | ) |
|                           |   |   |     |   |   |   |   |   |
| Net deferred tax      asset    |   | $      | -        |   |   | $      | - |   |

|   | Due      to the change in ownership provisions of the Tax Reform Act of 1986, net      operating loss carry-forwards for Federal income tax reporting purposes      are subject to annual limitations. Should a change in ownership occur, net      operating loss carryforwards may be limited as to use in future      years. |
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