UNITED
STATES
 SECURITIES
AND EXCHANGE COMMISSION
 Washington,
D.C. 20549
  
 FORM
10-Q
 
 
 x
              QUARTERLY REPORT UNDER SECTION
      13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY
      PERIOD ENDED JUNE 30, 2008
  o
                TRANSITION
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934 For the transition
      period from
______to______
 Commission
File Number: 000-52337
  BMR
Solutions, Inc.
 (Exact
name of small business issuer as specified in its charter)
 
 Nevada
              33-0989901(State
      or other jurisdiction of
                incorporation
      or organization)
              (I.R.S.
      Employer
                Identification
      No.)
 
 1184
      Rutland Road, Suite 2, Newport Beach, California 92660(Address
      of principal executive offices)
 
 (949)
      292-0820(Issuer’s
      Telephone Number)
 
 Indicate
by check mark whether the issuer (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days. xYes oNo
  Indicate
by check mark whether the registrant is a large accelerated file, an accelerated
filer, a non-accelerated filer, or a smaller reporting company. See the
definitions of "large accelerated filer," "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.
  Large
      accelerated filer
              o
              
              Accelerated
      filer
              oNon-accelerated
      filer
              o
              (Do
      not check if a smaller reporting company)
              Smaller
      reporting company
              x
  Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act). xYes  oNo
 
 APPLICABLE
ONLY TO CORPORATE ISSUERS
  State the
number of shares outstanding of each of the issuer's classes of common equity,
as of the latest practical date.  As of August 13, 2008, there
were7,777,500shares
of the issuer's $.001 par value common stock issued and
outstanding.







PART
I - FINANCIAL INFORMATION
  Item
1.  Financial Statements




BMR
SOLUTIONS, INC.
 (A
Development Stage Company)
 BALANCE
SHEETS




June
      30,2008
              (Unaudited)
            
            
            December
      31, 2007ASSETSCurrent
      assetsCash
            
            $
            4,741
            
            
            $
            13,642Accounts
      receivable
            
            
            2,575
            
            
            
            4,995Prepaid
      expenses
            
            
            52
            
            
            
            983Total
      current assets
            
            
            7,368
            
            
            
            19,620Property
      and equipment, net of $18,715 and $14,101accumulated depreciation, respectively
            
            
            24,371
            
            
            
            28,985Total
      assets
            
            $
            31,739
            
            
            $
            48,605


LIABILITIES
      AND STOCKHOLDERS’ DEFICITCurrent
      liabilitiesAccounts
      payable and accrued expenses
            
            $
            61,152
            
            
            $
            48,309Current
      maturities of long-term note payable
            
            
            5,612
            
            
            
            5,321Income
      tax payable
            
            
            800
            
            
            
            800Total
      current liabilities
            
            
            67,564
            
            
            
            54,430Long-term
      note payable, net of current maturities
            
            
            13,817
            
            
            
            16,698Stockholders’
      deficitCommon
      stock, $.001 par value; 50,000,000 shares authorized, 3,888,750 shares
      issued and outstanding
            
            
            3,889
            
            
            
            3,889Additional
      paid-in capital
            
            
            196,106
            
            
            
            190,106Deficit
      accumulated during the development stage
            
            
            (249,637
            )
            
            
            (216,518
            )Total
      stockholders’ deficit
            
            
            (49,642
            )
            
            
            (22,523
            )Total
      liabilities and stockholders’ deficit
            
            $
            31,739
            
            
            $
            48,605





See
accompanying notes to financial statements


1




BMR
SOLUTIONS, INC.
 (A
Development Stage Company)
 STATEMENTS
OF OPERATIONS
 (UNAUDITED)


For
      the Three
              Months
      Ended
              June
      30, 2008
            
            
            For
      the Three Months Ended June 30, 2007
            
            
            For
      the Six Months ended June 30, 2008
            
            
            For
      the Six
              Months
      Ended
              June
      30, 2007
            
            
            For
      the Period from Inception
              (November
      21, 2001) through
              June
      30, 2008Net
      revenue
            
            $
            19,000
            
            
            $
            16,190
            
            
            $
            38,450
            
            
            $
            29,325
            
            
            $
            142,280Cost
      of revenue
            
            
            (16,717
            )
            
            
            (12,386
            )
            
            
            (32,155
            )
            
            
            (23,616
            )
            
            
            (114,897
            )Gross
      profit
            
            
            2,283
            
            
            
            3,804
            
            
            
            6,295
            
            
            
            5,709
            
            
            
            27,383General
      and administrativeexpenses
            
            
            15,209
            
            
            
            20,937
            
            
            
            37,493
            
            
            
            69,354
            
            
            
            266,242Interest
      expense
            
            
            543
            
            
            
            717
            
            
            
            1,121
            
            
            
            1,436
            
            
            
            5,139Loss
      from continuing operations before income taxes
            
            
            (13,369
            )
            
            
            (17,850
            )
            
            
            (32,319
            )
            
            
            (65,081
            )
            
            
            (243,998
            )Provision
      for income taxes
            
            
            -
            
            
            
            -
            
            
            
            (800
            )
            
            
            (800
            )
            
            
            (5,600
            )Loss
      from continuing operations
            
            
            (13,369
            )
            
            
            (17,850
            )
            
            
            (33,119
            )
            
            
            (65,881
            )
            
            
            (249,598
            )Discontinued
      operation
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (39
            )Net
      loss
            
            $
            (13,369
            )
            
            $
            (17,850
            )
            
            $
            (33,119
            )
            
            $
            (65,881
            )
            
            $
            (249,637
            )Basic
      and diluted earnings (loss) per share resulting fromContinuing
      operations
            
            $
            -
            
            
            $
            -
            
            
            $
            (0.01
            )
            
            $
            (0.02
            )Discontinued
      operations
            
            $
            -
            
            
            $
            -
            
            
            $
            -
            
            
            $
            -Net
      loss
            
            $
            -
            
            
            $
            -
            
            
            $
            (0.01
            )
            
            $
            (0.02
            )Weighted
      average of common shares – basic and diluted
            
            
            3,888,750
            
            
            
            3,638,750
            
            
            
            3,888,750
            
            
            
            3,638,750





See
accompanying notes to financial statements
  2


BMR
SOLUTIONS, INC.
 (A
Development Stage Company)
 STATEMENTS
OF CHANGES IN STOCKHOLDERS’ DEFICIT
 FOR
THE PERIOD FROM INCEPTION (NOVEMBER 21, 2001)
 THROUGH
JUNE 30, 2008




DeficitAccumulated
            
            
            TotalCommon
      Stock
            
            
            Additional
            
            
            During
            
            
            Stockholders'Number
      of
            
            
            
            
            
            Paid
      -In
            
            
            Development
            
            
            EquityShares
            
            
            Amount
            
            
            Capital
            
            
            Stage
            
            
            (Deficit)Balance,
      November 21, 2001 (inception)
            
            
            -
            
            
            $
            -
            
            
            $
            -
            
            
            $
            -
            
            
            $
            -Issuance
      of founder shares for services, December 2001
            
            
            2,000,000
            
            
            
            2,000
            
            
            
            38,000
            
            
            
            -
            
            
            
            40,000Issuance
      of shares for cash, January 2002
            
            
            548,750
            
            
            
            549
            
            
            
            10,426
            
            
            
            -
            
            
            
            10,975Additional
      paid-in capital in exchange for facilities provided by
    officer
            
            
            -
            
            
            
            -
            
            
            
            2,500
            
            
            
            -
            
            
            
            2,500Additional
      paid-in capital in exchange for services provided by
    officer
            
            
            -
            
            
            
            -
            
            
            
            1,110
            
            
            
            -
            
            
            
            1,110Costs
      incurred in private offering
            
            
            -
            
            
            
            -
            
            
            
            (3,000
            )
            
            
            -
            
            
            
            (3,000
            )Loss
      on distribution of assets
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (100
            )
            
            
            (100
            )Net
      loss from inception to December 31, 2003
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (51,674
            )
            
            
            (51,674
            )Balance,
      December 31, 2003 (Audited)
            
            
            2,548,750
            
            
            
            2,549
            
            
            
            49,036
            
            
            
            (51,774
            )
            
            
            (189
            )Additional
      paid-in capital in exchange for facilities provided
officer
            
            
            -
            
            
            
            -
            
            
            
            1,200
            
            
            
            -
            
            
            
            1,200Net
      loss for the year ended December 31, 2004
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (2,812
            )
            
            
            (2,812
            )Balance,
      December 31, 2004 (Audited)
            
            
            2,548,750
            
            
            
            2,549
            
            
            
            50,236
            
            
            
            (54,586
            )
            
            
            (1,801
            )Additional
      paid-in capital in exchange for facilities provided
officer
            
            
            -
            
            
            
            -
            
            
            
            1,200
            
            
            
            -
            
            
            
            1,200Additional
      paid-in capital in exchange for services provided officer
            
            
            -
            
            
            
            -
            
            
            
            2,310
            
            
            
            -
            
            
            
            2,310Net
      loss for the year ended December 31, 2005
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (1,422
            )
            
            
            (1,422
            )








3




BMR
SOLUTIONS, INC.
 (A
Development Stage Company)
 STATEMENTS
OF CHANGES IN STOCKHOLDERS’ DEFICIT
 FOR
THE PERIOD FROM INCEPTION (NOVEMBER 21, 2001)
 THROUGH
JUNE 30, 2008
 (Continued)




DeficitAccumulated
            
            
            TotalCommon
      Stock
            
            
            Additional
            
            
            During
            
            
            Stockholders'Number
      of
            
            
            
            
            
            Paid -In
            
            
            Development
            
            
            EquityShares
            
            
            Amount
            
            
            Capital
            
            
            Stage
            
            
            (Deficit)Balance,
      December 31, 2005 (Audited)
            
            
            2,548,750
            
            
            
            2,549
            
            
            
            53,746
            
            
            
            (56,008
            )
            
            
            287Issuance
      of shares for cash, June 2006
            
            
            1,090,000
            
            
            
            1,090
            
            
            
            107,910
            
            
            
            -
            
            
            
            109,000Additional
      paid-in capital in exchange for facilities provided
officer
            
            
            -
            
            
            
            -
            
            
            
            700
            
            
            
            -
            
            
            
            700Net
      loss for the year ended December 31, 2006
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (64,396
            )
            
            
            (64,396
            )Balance,
      December 31, 2006 (Audited)
            
            
            3,638,750
            
            
            
            3,639
            
            
            
            162,356
            
            
            
            (120,404
            )
            
            
            45,591Issuance
      of shares for cash, August 2007
            
            
            250,000
            
            
            
            250
            
            
            
            24,750
            
            
            
            -
            
            
            
            25,000Additional
      paid-in capital in exchange for services provided officer
            
            
            -
            
            
            
            -
            
            
            
            3,000
            
            
            
            -
            
            
            
            3,000Net
      loss for the year ended December 31, 2007
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (96,114
            )
            
            
            (96,114
            )Balance,
      December 31, 2007 (Audited)
            
            
            3,888,750
            
            
            
            3,889
            
            
            
            190,106
            
            
            
            (216,518
            )
            
            
            (22,523
            )Additional
      paid-in capital in exchange for services provided byrelated
      party
            
            
            -
            
            
            
            -
            
            
            
            6,000
            
            
            
            -
            
            
            
            6,000Net
      loss for the six months ended June 30, 2008
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (33,119
            )
            
            
            (33,119
            )Balance,
      June 30, 2008 (Unaudited)
            
            
            3,888,750
            
            
            $
            3,889
            
            
            $
            196,106
            
            
            $
            (249,637
            )
            
            $
            (49,642
            )




See
accompanying notes to financial statements
  4




BMR
SOLUTIONS, INC.
 (A
Development Stage Company)
 STATEMENTS
OF CASH FLOWS
 (UNAUDITED)


For
      the Six Months Ended June 30, 2008
            
            
            For
      the Six Months Ended June 30, 2007
            
            
            For
      the Period from Inception
              (November
      21, 2001) through
              June
      30, 2008Cash
      flows from operating activitiesNet
      loss
            
            $
            (33,119
            )
            
            $
            (65,881
            )
            
            $
            (249,637
            )Adjustments
      to reconcile net loss to net cash used in operating
    activitiesBad
      debt expense
            
            
            -
            
            
            
            -
            
            
            
            1,440Depreciation
            
            
            4,614
            
            
            
            4,613
            
            
            
            18,715Issuance
      of founder’s shares for services
            
            
            -
            
            
            
            -
            
            
            
            40,000Additional
      paid-in capital in exchange for facilities provided by
    officer
            
            
            -
            
            
            
            -
            
            
            
            5,600Additional
      paid-in capital in exchange for services provided by
    officer
            
            
            6,000
            
            
            
            -
            
            
            
            12,420Changes
      in operating assets and liabilitiesAccounts
      receivable
            
            
            2,420
            
            
            
            (2,210
            )
            
            
            (4,015
            )Prepaid
      expenses and other current assets
            
            
            931
            
            
            
            21
            
            
            
            (52
            )Accounts
      payable and accrued expenses
            
            
            12,843
            
            
            
            22,532
            
            
            
            61,152Income
      tax payable
            
            
            -
            
            
            
            -
            
            
            
            800Net
      cash used in operating activities
            
            
            (6,311
            )
            
            
            (40,925
            )
            
            
            (113,577
            )Cash
      flows from investing activitiesPurchase
      of property and equipment
            
            
            -
            
            
            
            -
            
            
            
            (14,572
            )Net
      cash used by investing activities
            
            
            -
            
            
            
            -
            
            
            
            (14,572
            )Cash
      flows from financing activitiesProceeds
      from issuance of common stock
            
            
            -
            
            
            
            -
            
            
            
            141,975Repayment
      of vehicle loan
            
            
            (2,590
            )
            
            
            (2,275
            )
            
            
            (9,085
            )Net
      cash provided by financing activities
            
            
            -
            
            
            
            (2,275
            )
            
            
            132,890Net
      increase in cash
            
            
            (8,901
            )
            
            
            (43,200
            )
            
            
            4,741Cash,
      beginning of period
            
            
            13,642
            
            
            
            52,735
            
            
            
            -Cash,
      end of period
            
            $
            4,741
            
            
            $
            9,535
            
            
            $
            4,741Supplemental
      disclosure of cash flowinformationIncome
      taxes paid
            
            $
            800
            
            
            $
            800
            
            
            $
            -Interest
      paid
            
            $
            1,121
            
            
            $
            1,436
            
            
            $
            -The
      Company had a non-cash transaction related to the purchase of property and
      equipment in the amount of $28,514.




See
accompanying notes to financial statements
  5
  BMR
SOLUTIONS, INC.
 (A
Development Stage Company)
 NOTES
TO FINANCIAL STATEMENTS
 (UNAUDITED)


NOTE
1 - NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES





NATURE OF
BUSINESS





The
Company is currently a development stage company under the provisions of
Statement of Financial Accounting Standards ("SFAS") No. 7 and was incorporated
under the laws of the State of Nevada on November 21, 2001.  The
Company is developing a delivery services organization that specializes in the
in-home delivery of mattresses, furniture and futons.  As of June 30,
2008, the Company reported $142,280 of revenue from its current line of business
and will continue to report as a development stage company until significant
revenues are produced.





Prior to
the commencement of its current operations, the Company was developing an
organization that specialized in website development and design
services.  The Company abandoned this line of business in 2005 (see
Note 7).





INTERIM FINANCIAL STATEMENTS





The
accompanying unaudited financial statements have been prepared in accordance
with accounting principles generally accepted in the United States of America
for interim financial information and pursuant to the rules and regulations of
the Securities and Exchange Commission.  Certain information and
footnote disclosures normally included in annual financial statements prepared
in accordance with accounting principles generally accepted in the United States
of America have been omitted pursuant to such rules and
regulations.





In the
opinion of management, all adjustments, consisting of normal and recurring
adjustments, necessary for a fair presentation of the financial position and the
results of operations for the periods presented have been
included.  The operating results of the Company on a quarterly basis
may not be indicative of operating results for the full year.  For
further information, refer to the financial statements and notes included in BMR
Solutions, Inc.’s Form 10-KSB for the year ended December 31, 2007.





BASIS OF
PRESENTATION AND GOING CONCERN





The
accompanying financial statements have been prepared in conformity with
accounting principles generally accepted in the United States of America, which
contemplate continuation of the Company as a going concern.  The
Company has incurred net losses since inception, and as of June 30, 2008 had an
accumulated deficit of $249,637. These conditions raise substantial doubt as to
the Company's ability to continue as a going concern. These financial statements
do not include any adjustments that might result from the outcome of this
uncertainty. These financial statements do not include any adjustments relating
to the recoverability and classification of recorded asset amounts, or amounts
and classification of liabilities that might be necessary should the Company be
unable to continue as a going concern.





Management
recognizes that the Company must generate additional resources to enable it to
continue operations. Management intends to raise additional financing through
debt financing and equity financing or through other means that it deems
necessary, with a view to moving forward and sustaining a prolonged growth in
its strategy phases. However, no assurance can be given that the Company will be
successful in raising additional capital. Further, even if the company raises
additional capital, there can be no assurance that the Company will achieve
profitability or positive cash flow. If management is unable to raise additional
capital and expected significant revenues do not result in positive cash flow,
the Company will not be able to meet its obligations and may have to cease
operations.




6


BMR
SOLUTIONS, INC.
 (A
Development Stage Company)
 NOTES
TO FINANCIAL STATEMENTS
 (UNAUDITED)


USE OF
ESTIMATES




The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements, and the reported amounts of revenues and expenses
during the reported periods. Actual results could materially differ from those
estimates.





CASH AND
CASH EQUIVALENTS





For
purposes of the statement of cash flows, cash equivalents include all highly
liquid debt instruments with original maturities of three months or less which
are not securing any corporate obligations.





CONCENTRATION
OF CREDIT RISK





Cash and Cash
Equivalents – The Company maintains its cash deposits in two bank
accounts, which at times may exceed federally insured limits.





Revenues and Accounts
Receivable – For the six months ended June 30, 2008, the Company
transacted its business with five customers.  The Company’s largest
customer, which is also a related party (see Note 6), accounted for 55% of total
revenues. Total revenues from this customer were $20,970 for the six months
ended June 30, 2008.  Total accounts receivable due from this customer
at June 30, 2008 were $-0-. The Company’s second largest customer accounted for
41% of total revenues during the six months ended June 30,
3008.  Total revenues from this customer were $15,635 for the six
months ended June 30, 2008.  Total accounts receivable due from this
customer at June 30, 2008 were $2,575.





ALLOWANCE
FOR DOUBTFUL ACCOUNTS





The
allowance for doubtful accounts on accounts receivable is charged to operations
in amounts sufficient to maintain the allowance for uncollectible accounts at a
level management believes is adequate to cover any probable losses. Management
determines the adequacy of the allowance based on historical write-off
percentages and the current status of accounts receivable. Accounts receivable
are charged off against the allowance when collectibility is determined to be
permanently impaired.  As of June 30, 2008, there was no allowance for
doubtful accounts recorded, as all of the Company’s receivables were considered
collectible.




7


BMR
SOLUTIONS, INC.
 (A
Development Stage Company)
 NOTES
TO FINANCIAL STATEMENTS
 (UNAUDITED)
   PROPERTY
AND EQUIPMENT





Property
and equipment are stated at cost less accumulated depreciation and amortization.
Depreciation and amortization are calculated using the straight-line method and
with useful lives used in computing depreciation ranging from 3 to 5
years.  When property and equipment are retired or otherwise disposed
of, the related cost and accumulated depreciation are removed from the
respective accounts, and any gain or loss is included in operations.
Expenditures for maintenance and repairs are charged to operations as incurred;
additions, renewals and betterments are capitalized.





LONG-LIVED
ASSETS





The
Company accounts for its long-lived assets in accordance with SFAS No. 144,
"Accounting for the Impairment or Disposal of Long-Lived
Assets."  SFAS No. 144 requires that long-lived assets be reviewed for
impairment whenever events or changes in circumstances indicate that the
historical cost carrying value of an asset may no longer be appropriate. The
Company assesses recoverability of the carrying value of an asset by estimating
the future net cash flows expected to result from the asset, including eventual
disposition. If the future net cash flows are less than the carrying value of
the asset, an impairment loss is recorded equal to the difference between the
asset's carrying value and fair value or disposable value. As of June 30, 2008,
the Company did not deem any of its long-term assets to be
impaired.





INTERNAL
WEB SITE DEVELOPMENT COSTS





Under
FASB Emerging Issues Task Force Statement 00-2, Accounting for Web Site
Development Costs ("EITF 00-2"), costs and expenses incurred during the planning
and operating stages of the Company's web site development are expensed as
incurred. Under EITF 00-2, costs incurred in the web site application and
infrastructure development stages are capitalized by the Company and amortized
to expense over the web site's estimated useful life or period of benefit. As of
June 30, 2008, the Company had net capitalized costs of $1,042 related to its
web site development.  The web site development costs were incurred to
a related party (see Note 6) and are being depreciated on a straight-line basis
over an estimated useful life of 3 years.





REVENUE
RECOGNITION





The
Company provides customers with furniture delivery and installation. Revenues
from these services are to be recognized in accordance with Staff Accounting
Bulletin (SAB) No. 101, “Revenue Recognition in Financial Statements,”
as amended by SAB No. 104, “Revenue Recognition” when (a) persuasive
evidence of an arrangement exists, (b) the services have been provided to the
customer, (c) the fee is fixed or determinable, and (d) collectibility is
reasonably assured. In instances where the customer, at its discretion, has the
right to reject the services prior to final acceptance, revenue is deferred
until such acceptance occurs.




8


BMR
SOLUTIONS, INC.
 (A
Development Stage Company)
 NOTES
TO FINANCIAL STATEMENTS
 (UNAUDITED)


BASIC AND
DILUTED INCOME (LOSS) PER SHARE





In
accordance with SFAS No. 128, "Earnings Per Share," basic income (loss) per
common share is computed by dividing net income (loss) available to common
stockholders by theweighted average number
of common shares outstanding. Diluted income (loss) per common share is computed
similar to basic income per common 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. As of June 30, 2008 and 2007, the Company did not
have any equity or debt instruments outstanding that can be converted into
common stock.




PROVISION
FOR INCOME TAXES





The
Company accounts for income taxes under SFAS 109, "Accounting for Income Taxes."
Under the asset and liability method of SFAS 109, deferred tax assets and
liabilities are recognized for the future tax consequences attributable to
differences between the financial statements carrying amounts of existing assets
and liabilities and their respective tax bases. Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable
income in the years in which those temporary differences are expected to be
recovered or settled. Under SFAS 109, the effect on deferred tax assets and
liabilities of a change in tax rates is recognized in income in the period the
enactment occurs. A valuation allowance is provided for certain deferred tax
assets if it is more likely than not that the Company will not realize tax
assets through future operations.





FAIR
VALUE OF FINANCIAL INSTRUMENTS





Pursuant
to SFAS No. 107, “Disclosures About Fair Value of Financial Instruments”, the
Company is required to estimate the fair value of all financial instruments
included on its balance sheet as of June 30, 2008. The Company considers the
carrying value of such amounts in the financial statements to approximate their
fair value.





RECLASSIFICATION





Certain
reclassifications have been made to conform June 30, 2007 amounts to the June
30, 2008 presentation for comparative purposes.





RECENT
ACCOUNTING PRONOUNCEMENTS





SFAS No. 141(R) - In
December 2007, the FASB issued Statement No. 141(R), Business
Combinations.   This Statement replaces FASB Statement No.
141, Business Combinations. This Statement retains the fundamental requirements
in Statement 141 that the acquisition method of accounting (which Statement 141
called the purchase method) be used for all business combinations and for an
acquirer to be identified for each business combination. This Statement defines
the acquirer as the entity that obtains control of one or more businesses in the
business combination and establishes the acquisition date as the date that the
acquirer achieves control. Statement 141 did not define the acquirer, although
it included guidance on identifying the acquirer, as does this Statement. This
Statement's scope is broader than that of Statement 141, which applied only to
business combinations in which control was obtained by transferring
consideration. By applying the same method of accounting - the acquisition
method - to all transactions and other events in which one entity obtains
control over one or more other businesses, this Statement improves the
comparability of the information about business combinations provided in
financial reports.




9


BMR
SOLUTIONS, INC.
 (A
Development Stage Company)
 NOTES
TO FINANCIAL STATEMENTS
 (UNAUDITED)


This
Statement applies prospectively to business combinations for which the
acquisition date is on or after the beginning of the first annual reporting
period beginning on or after December 15, 2008. An entity may not apply it
before that date. The Company is currently evaluating SFAS 141(R), and has not
yet determined its potential impact on its future results of operations or
financial position.





SFAS No. 157 - In
September 2006, the FASB issued SFAS No. 157, Fair Value Measurements(SFAS
157). SFAS 157 defines fair value, establishes a framework for measuring fair
value and enhances disclosures about fair value measures required under other
accounting pronouncements, but does not change existing guidance as to whether
or not an instrument is carried at fair value. SFAS No. 157 was effective
as of the beginning of the Company’s 2008 year. The provisions of SFAS 157 were
adopted January 1, 2008. In February 2008, the FASB staff issued Staff
Position No. 157-2 “Effective Date of FASB Statement
No. 157” (FSP FAS 157-2). FSP FAS 157-2 delayed the effective date
of SFAS 157 for nonfinancial assets and nonfinancial liabilities, except for
items that are recognized or disclosed at fair value in the financial statements
on a recurring basis (at least annually). The provisions of FSP FAS 157-2 are
effective for the Company’s fiscal year beginning January 1,
2009.




SFAS 157
establishes a fair value hierarchy that prioritizes the inputs to valuation
techniques used to measure fair value. The hierarchy gives the highest priority
to unadjusted quoted prices in active markets for identical assets or
liabilities (Level 1 measurements) and the lowest priority to unobservable
inputs (Level 3 measurements). The three levels of the fair value hierarchy
under SFAS 157 are described below:




Level 1
            Unadjusted
      quoted prices in active markets that are accessible at the measurement
      date for identical, unrestricted assets or
  liabilities;




Level 2
            Quoted
      prices in markets that are not active, or inputs that are observable,
      either directly or indirectly, for substantially the full term of the
      asset or liability;




Level 3
            Prices
      or valuation techniques that require inputs that are both significant to
      the fair value measurement and unobservable (supported by little or no
      market activity).





The
Company had no financial assets and liabilities measured at fair value by level
within the fair value hierarchy as of June 30, 2008.





SFAS No. 158 – In
September 2006, the FASB issued Statement No. 158 “Employers’ Accounting for Defined
Benefit Pension and Other Postretirement Plans - an amendment of FASB Statements
No. 87, 88, 106, and 132(R)”.  This Statement improves
financial reporting by requiring an employer to recognize the overfunded or
underfunded status of a defined benefit postretirement plan (other than a
multiemployer plan) as an asset or liability in its statement of financial
position and to recognize changes in that funded status in the year in which the
changes occur through comprehensive income of a business entity or changes in
unrestricted net assets of a not-for-profit organization.  This
Statement also improves financial reporting by requiring an employer to measure
the funded status of a plan as of the date of its year-end statement of
financial position, with limited exceptions.  An employer with
publicly traded equity securities is required to initially recognize the funded
status of a defined benefit postretirement plan and to provide the required
disclosures as of the end of the fiscal year ending after December 15,
2006.  An employer without publicly traded equity securities is
required to recognize the funded status of a defined benefit postretirement plan
and to provide the required disclosures as of the end of the fiscal year ending
after June 15, 2007.  The Company believes that the adoptions of this
standard will not a have a material impact on its financial
statements.




10




BMR
SOLUTIONS, INC.


(A
Development Stage Company)


NOTES
TO FINANCIAL STATEMENTS


(UNAUDITED)






SFAS No. 159 – In
February 2007, the FASB issued FAS No. 159, “The Fair Value Option for Financial
Assets and Financial Liabilities – Including an amendment of FASB Statement No.
115”, (“FAS 159”) which permits entities to choose to measure many
financial instruments and certain other items at fair value at specified
election dates. A business entity is required to report unrealized gains and
losses on items for which the fair value option has been elected in earnings at
each subsequent reporting date. This statement is expected to expand the use of
fair value measurement. FAS 159 is effective for financial statements issued for
fiscal years beginning after November 15, 2007, and interim periods within those
fiscal years.




SFAS No. 160 - In
December 2007, the FASB issued Statement No. 160, Noncontrolling Interests in
Consolidated Financial Statements - an Amendment of ARB No.
51.  This Statement amends ARB 51 to establish accounting and
reporting standards for the noncontrolling interest in a subsidiary and for the
deconsolidation of a subsidiary. It clarifies that a noncontrolling interest in
a subsidiary is an ownership interest in the consolidated entity that should be
reported as equity in the consolidated financial statements. Before this
Statement was issued, limited guidance existed for reporting noncontrolling
interests. As a result, considerable diversity in practice existed. So-called
minority interests were reported in the consolidated statement of financial
position as liabilities or in the mezzanine section between liabilities and
equity. This Statement improves comparability by eliminating that
diversity.





This
Statement is effective for fiscal years, and interim periods within those fiscal
years, beginning on or after December 15, 2008. Earlier adoption is prohibited.
The effective date of this Statement is the same as that of the related
Statement 141(R). This Statement shall be applied prospectively as of the
beginning of the fiscal year in which this Statement is initially applied,
except for the presentation and disclosure requirements. The presentation and
disclosure requirements shall be applied retrospectively for all periods
presented.  The Company is currently evaluating SFAS 160 and has not
yet determined its potential impact on its future results of operations or
financial position.





SFAS No. 161 - In
March 2008, the FASB issued Statement No. 161, Disclosures about Derivative
Instruments and Hedging Activities—an amendment of FASB Statement No.
133. This Statement changes the disclosure requirements for derivative
instruments and hedging activities. Entities are required to provide enhanced
disclosures about (a) how and why an entity uses derivative instruments, (b) how
derivative instruments and related hedged items are accounted for under
Statement 133 and its related interpretations, and (c) how derivative
instruments and related hedged items affect an entity’s financial position,
financial performance, and cash flows.




This
Statement is intended to enhance the current disclosure framework in Statement
133. The Statement requires that objectives for using derivative instruments be
disclosed in terms of underlying risk and accounting designation. This
disclosure better conveys the purpose of derivative use in terms of the risks
that the entity is intending to manage. Disclosing the fair values of derivative
instruments and their gains and losses in a tabular format should provide a more
complete picture of the location in an entity’s financial statements of both the
derivative positions existing at period end and the effect of using derivatives
during the reporting period. Disclosing information about credit-risk-related
contingent features should provide information on the potential effect on an
entity’s liquidity from using derivatives. Finally, this Statement requires
cross-referencing within the footnotes, which should help users of financial
statements locate important information about derivative
instruments.




11


BMR
SOLUTIONS, INC.
 (A
Development Stage Company)
 NOTES
TO FINANCIAL STATEMENTS
 (UNAUDITED)


This
Statement is effective for financial statements issued for fiscal years and
interim periods beginning after November 15, 2008, with early application
encouraged. This Statement encourages, but does not require, comparative
disclosures for earlier periods at initial adoption. The
Company is currently evaluating SFAS 161 and has not yet determined its
potential impact on its future results of operations or financial
position.




In May
2008, the FASB issued SFAS No. 162, “The Hierarchy of Generally Accepted
Accounting Principles (“SFAS No. 162”). SFAS 162 identifies a consistent
framework, or hierarchy, for selecting accounting principles to be used in
preparing financial statements that are presented in conformity with U.S.
generally accepted accounting principles for nongovernmental entities (the
“Hierarchy”). The Hierarchy within SFAS 162 is consistent with that previously
defined in the AICPA Statement on Auditing Standards No. 69, “The Meaning of
Present Fairly in Conformity With Generally Accepted Accounting Principles”
(“SAS 69”). SFAS 162 is effective 60 days following the United States Securities
and Exchange Commission’s (the “SEC”) approval of the Public Company Accounting
Oversight Board amendments to AU Section 411, “The Meaning of Present Fairly in
Conformity With Generally Accepted Accounting Principles”. The adoption of SFAS 162 will
not have a material effect on the financial statements because the Company has
utilized the guidance within SAS 69.
  In May
2008, the FASB issued SFAS No. 163, “Accounting for Financial Guarantee
Insurance Contracts-an interpretation of FASB Statement No. 60 (“SFAS No. 163”).
SFAS 163 requires recognition of an insurance claim liability prior to an event
of default when there is evidence that credit deterioration has occurred in an
insured financial obligation. SFAS 163 is effective for financial statements
issued for fiscal years beginning after December 15, 2008, and all interim
periods within those fiscal years. Early application is not permitted. The
Company’s adoption of SFAS 163 will not have a material effect on the financial
statements.




NOTE
2 - PROPERTY AND EQUIPMENT




A
      summary as of June 30, 2008 is as follows:Delivery
      truck (pledged as collateral – see Note 3)
            
            $
            38,514Computer
      equipment and web site development
            
            
            4,572Less
      accumulated depreciation
            
            
            (18,715
            )$
            24,371





The
delivery truck is being depreciated on a straight-line basis over its estimated
useful life of 5 years.  Depreciation expense related to the delivery
truck amounted to $1,926 and $3,852 for the three and six months ended June 30,
2008, respectively, and is included in cost of revenue.  The computer
equipment and website development are being depreciated on a straight-line basis
over an estimated useful life of 3 years.  Depreciation expense
related to the computer equipment and website development amounted to $381 and
$762 for the three and six months ended June 30, 2008, respectively, and is
included in general and administrative expenses.




NOTE
3 - NOTE PAYABLE





In June
2006, the Company financed the purchase of a vehicle with a loan totaling
$28,514.  The loan is evidenced by a promissory note, secured by the
purchased vehicle. The note bears interest at 10.7% per annum and matures in
July 2011.  This note is repaid in monthly installments of $618, which
includes principal and interest.  Interest expense on this obligation
was $543 and $1,121 for the three and six months ended June 30, 2008,
respectively.




12




BMR
SOLUTIONS, INC.


(A
Development Stage Company)


NOTES
TO FINANCIAL STATEMENTS


(UNAUDITED)






The
following is a summary of scheduled principal payments on this note at June 30,
2008:





2008
            
            $
            5,6122009
            
            
            6,2432010
            
            
            6,9442011
            
            
            63019,429Less:
      current maturities
            
            
            (5,612
            )Long-term
      note payable
            
            $
            13,817





NOTE
4 - STOCKHOLDERS' EQUITY





In
December 2001, the Company issued 2,000,000 shares of its common stock in
exchange for services performed to incorporate the Company.  The
founder shares were valued at $40,000, which represents the fair market value on
the date of issuance.





In
January 2002, the Company performed a private placement and issued 548,750
shares of common stock at $0.02 per share for an aggregate total of
$10,975.





In June
2006, the Company performed a private placement and issued 1,090,000 shares of
common stock at $0.10 per share for an aggregate total of $109,000.





In August
2007, the Company performed a private placement and issued 250,000 shares of
common stock at $0.10 per share for an aggregate total of $25,000.




NOTE
5 - PROVISION FOR INCOME TAXES





Deferred
income taxes are reported using the liability method. Deferred tax assets are
recognized for deductible temporary differences and deferred tax liabilities are
recognized for taxable temporary differences. Temporary differences are the
differences 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.




As of
June 30, 2008, the Company had federal and state net operating loss
carryforwards of approximately $193,000, which can be used to offset future
federal income tax.  The federal and state net operating loss
carryforwards expire at various dates through 2028. Deferred tax assets
resulting from the net operating losses are reduced by a valuation allowance,
when, in the opinion of management, utilization is not reasonably
assured.




13


BMR
SOLUTIONS, INC.
 (A
Development Stage Company)
 NOTES
TO FINANCIAL STATEMENTS
 (UNAUDITED)


A summary
of deferred tax assets as of June 30, 2008 is as follows:





Net
      operating loss carryforward
            
            $
            193,000Effective
      tax rate
            
            
            24
            %Deferred
      tax asset
            
            
            46,320Valuation
      allowance
            
            
            (46,320)Net
      deferred tax asset
            
            $
            --




NOTE
6 - RELATED-PARTY TRANSACTIONS





The
Company utilizes office space provided by its former President on a
month-to-month arrangement.  The Company’s rent expense on this
arrangement totaled $1,800 and $1,800 for the three months ended June 30, 2008
and 2007, respectively.  For the three months ended June 30, 2007, the
Company paid an additional $2,700 directly to the former President’s landlord,
which was charged to compensation. The Company’s rent expense on this
arrangement totaled $3,600 and $3,600 for the six months ended June 30, 2008 and
2007, respectively.





The
Company’s Board approved the appointment of K. John Shukur to serve as
President, Chief Financial Officer, Secretary and a director effective as of
October 1, 2007.  For the six months ended June 30, 2008, Mr.
Shukur received no compensation for his services as a Company
officer.  The Company has recorded compensation expense and additional
paid-in capital totaling $6,000, which represents the estimated fair value of
these services at $1,000 per month.




For the
six months ended June, 2008, 55% of total revenues reflected from the Company’s
delivery service business were derived from sales to a company that is owned by
the brother-in-law of the Company’s former President.  Total revenues
from this customer were $20,970 for the six months ended June 30,
2008.  Total accounts receivable due from this customer at June 30,
2008 were $-0- (see Note 1).


All of
the revenues reflected from the Company’s discontinued website development and
design business were from services performed by an officer of the Company at no
charge to the Company. The Company charged the estimated fair value of these
services against the revenue earned (see Note 7).





In
September 2006, the Company paid $2,500 to a related party for internal web site
development services (see Note 1).




14


BMR
SOLUTIONS, INC.
 (A
Development Stage Company)
 NOTES
TO FINANCIAL STATEMENTS
 (UNAUDITED)


NOTE
7 - DISCONTINUED OPERATION





During
2005, the Company abandoned its website development and design
business.  Operating results for this business have been reclassified
and presented as a single line item in the statements of
operations.  There was no gain or loss recognized on the disposal of
this discontinued operation.





For the
period from November 21, 2001 (inception) to June 30, 2008, total revenues of
the discontinued website development and design business were $10,292 and costs
of revenues totaled $3,420.  Direct general and administrative
expenses totaled $6,911.  There were no income taxes relating to the
discontinued operation.  The net loss from the discontinued operation
for the period from November 21, 2001 (inception) to June 30, 2008 was
($39).





NOTE
8 – SUBSEQUENT EVENTS





On July
11, 2008, the Company signed a term sheet pursuant to which the Company to
agreed to enter into a definitive merger agreement with Balqon Corporation
(“Balqon”). Under the proposed terms, Balqon would merge with the Company, or
its wholly owned subsidiary to be formed, whereby, upon effectiveness of the
merger, the shareholders of Balqon would hold approximately 94.38% of the
outstanding shares of capital stock of the Company and the shareholders of the
Company will own approximately 5.62% of the outstanding shares of capital stock
of the Company, not including certain warrants issued to certain holders of
Balqon. The term sheet provides, among other things, that the definitive merger
agreement will be signed within 30 days of the execution of the term
sheet.





The
proposed merger is pending and the Company has not entered into any definitive
merger agreement with Balqon. The Company cannot guaranty that it will enter
into a definitive merger agreement or that the merger transaction with Balqon
will be completed.




On August
1, 2008, our Board of Directors approved a 2-for-1 stock split (“Split”) of our
issued and outstanding common stock which was effectuated through the issuance
of one share for each share of common stock outstanding as of the record date.
The Split was disclosed in our Current Report on Form 8-K, which was filed on
August 11, 2008.
  On August
12, 2008, in connection with the Split, we filed a Certificate of Change with
the Secretary of State of Nevada, effecting a change in the number of our
authorized shares of common stock from 50,000,000 to 100,000,000. Our issued and
outstanding shares of common stock increased from 3,888,750 shares to
approximately 7,777,500 shares.




15




Item 2.  Plan of
Operation
 
 This
following information specifies certain forward-looking statements of management
of the company. Forward-looking statements are statements that estimate the
happening of future events are not based on historical fact. Forward-looking
statements may be identified by the use of forward-looking terminology, such as
“may”, “shall”, “could”, “expect”, “estimate”, “anticipate”, “predict”,
“probable”, “possible”, “should”, “continue”, or similar terms, variations of
those terms or the negative of those terms. The forward-looking statements
specified in the following information have been compiled by our management on
the basis of assumptions made by management and considered by management to be
reasonable. Our future operating results, however, are impossible to predict and
no representation, guaranty, or warranty is to be inferred from those
forward-looking statements.
 
 The
assumptions used for purposes of the forward-looking statements specified in the
following information represent estimates of future events and are subject to
uncertainty as to possible changes in economic, legislative, industry, and other
circumstances. As a result, the identification and interpretation of data and
other information and their use in developing and selecting assumptions from and
among reasonable alternatives require the exercise of judgment. To the extent
that the assumed events do not occur, the outcome may vary substantially from
anticipated or projected results, and, accordingly, no opinion is expressed on
the achievability of those forward-looking statements. No assurance can be given
that any of the assumptions relating to the forward-looking statements specified
in the following information are accurate, and we assume no obligation to update
any such forward-looking statements.
 
 Critical Accounting Policy and
Estimates.Our Management's Discussion and Analysis of Financial
Condition and Results of Operations section discusses our financial statements,
which have been prepared in accordance with accounting principles generally
accepted in the United States of America. The preparation of these financial
statements requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. On an on-going basis, management evaluates its estimates and
judgments, including those related to revenue recognition, accrued expenses,
financing operations, and contingencies and litigation. Management bases its
estimates and judgments on historical experience and on various other factors
that are believed to be reasonable under the circumstances, the results of which
form the basis for making judgments about the carrying value of assets and
liabilities that are not readily apparent from other sources. Actual results may
differ from these estimates under different assumptions or conditions. The most
significant accounting estimates inherent in the preparation of our financial
statements include estimates as to the appropriate carrying value of certain
assets and liabilities which are not readily apparent from other
sources.   These accounting policies are described at relevant
sections in this discussion and analysis and in the notes to the financial
statements included in our Quarterly Report on Form 10-Q for the period ended
June 30, 2008.
 
 We
provide local delivery and transportation services in the Southern California
area. Our current services include the in-home delivery and installation of
mattresses, furniture and futons and the removal of the old mattresses. We
believe that many small to medium businesses desire to outsource their delivery
services to third parties due to various factors including the increase in fuel
prices and insurance premiums.
  We
currently serve as the sole provider of delivery services for Danna’s
Mattresses, Inc., which owns two retail mattress locations, located in Upland
and Rancho Cucamonga, California. Those two retail mattress locations have been
in business for 16 years and are our primary source of revenue. We do not have a
written agreement with Danna’s Mattresses, Inc.  We are currently
pursuing additional accounts by contacting local furniture retailers. We hope to
expand our operations to acquire additional trucks so that we can service
several accounts.
  16
 
 On July
11, 2008, we signed a term sheet pursuant to which we to agreed to enter into a
definitive merger agreement with Balqon Corporation (“Balqon”). Under the
proposed terms, Balqon would merge with us, or a wholly owned subsidiary to be
formed, whereby, upon effectiveness of the merger, the shareholders of Balqon
would hold approximately 94.38% of the shares of our capital stock outstanding
and our shareholders will own approximately 5.62% of the shares of our capital
stock outstanding, not including certain warrants issued to certain holders of
Balqon. We are currently negotiating the terms of a definitive merger agreement
and we hope to enter into that agreement within the next 30 days. As of the date
of this report, we have not entered into any definitive merger agreement with
Balqon and we cannot guaranty that we will enter into a definitive merger
agreement or that the merger transaction with Balqon will be
completed.
 
 Liquidity
and Capital Resources.We had cash of
$4,741 as of June 30, 2008, together with accounts receivable of $2,575 and
prepaid expenses of $52 which total our current assets of $7,368 as of that
date. By comparison, we had cash of $13,642 as of December 31, 2007, together
with accounts receivable of $4,995 and prepaid expenses of $983 which total our
current assets of $19,620 as of that date. Our cash is down between the two
periods because we have spent most of the funds that we raised in August 2007.
In addition, our accounts receivable are down between the two periods because we
are trying to collect our receivables in a more timely fashion.
 
 Our total
assets of $31,739 as of June 30, 2008, included our current assets of $7,368,
and property and equipment of $24,371, net of depreciation.
 
 Our
current liabilities were $67,564 as of June 30, 2008, which was represented by
accounts payable and accrued expenses of $61,152, current maturities on long
term note payable of $5,612, and income tax payable of $800. Our long term note
payable, net of current maturities was $13,817 as of June 30,
2008.  We had no other liabilities and no long term commitments or
contingencies as of June 30, 2008.
 
 During
the three months ended June 30, 2008, we have incurred significant professional
fees associated with being a public company and fees related to our proposed
merger with Balqon. We expect that the legal and accounting costs of being a
public company and our proposed merger with Balqon will continue to impact our
liquidity and we may need to obtain funds to pay those expenses. Other than the
anticipated increases in legal and accounting costs due to the reporting
requirements of being a reporting company and our proposed merger with Balqon,
we are not aware of any other known trends, events or uncertainties, which may
affect our future liquidity.
 
 For the three months ended
June 30, 2008 and June 30, 2007.
 
 Results
of Operations.
 
 Revenues. For the three months
ended June 30, 2008, we generated revenues of $19,000, as compared to revenues
of $16,190 for the three months ended June 30, 2007. We anticipate that our
revenues will increase as we develop additional relationships with potential
clients for our services. In addition, we are currently exploring options to
generate revenue by placing advertising on the side of our truck.  Our
cost of revenue during the three months ended June 30, 2008, was $16,717, as
compared to $12,386 for the three months ended June 30, 2007. Therefore, for the
three months ended June 30, 2008, we had a gross profit of $2,283, as compared
to $3,804 for the three months ended June 30, 2007.
 
 Operating Expenses.For the
three months ended June 30, 2008, our total general and administrative expenses
of $15,209 along with $543 in interest expense comprised our net loss of
$13,369, as compared to total operating expenses of $20,937 and interest expense
of $717 for a total of $17,850 net loss for the three months ended June 30,
2007. The decrease in total operating expenses for the three months June 30,
2008 as compared to three months ended June 30, 2007, is due to our
organizational effort to streamline costs with respect to the administration of
our delivery and transportation services, which we disclosed in our prior
reports. Despite those efforts, we expect that we will continue to incur
significant operating expenses to comply with our reporting requirements as a
public company as well as professional fees related to our proposed merger with
Balqon.
 
 We had a
net loss of $13,369 for the three months ended June 30, 2008, as compared to a
net loss of $17,850 for the three months ended June 30, 2007.We expect that we
will continue to incur losses for the foreseeable future.
  17
 
 For the six months ended
June 30, 2008 and June 30, 2007.
 
 Results
of Operations.
 
 Revenues. For the six months
ended June 30, 2008, we generated revenues of $38,450, as compared to revenues
of $29,325 for the six months ended June 30, 2007. We anticipate that our
revenues will increase as we develop additional relationships with potential
clients for our services. In addition, we are currently exploring options to
generate revenue by placing advertising on the side of our truck.  Our
cost of revenue during the six months ended June 30, 2008, was $32,155, as
compared to $23,616 for the six months ended June 30, 2007. Therefore, for the
six months ended June 30, 2008, we had a gross profit of $6,295, as compared to
$5,709 for the six months ended June 30, 2007.
 
 Operating Expenses.For the
six months ended June 30, 2008, our total general and administrative expenses of
$37,493 and interest expense of $1,121 comprised our entire operating expenses
of $32,319, as compared to total general and administrative expenses of $69,354
and interest expense of $1,436 which comprised our total operating expenses of
$65,081 for the six months ended June 30, 2007. The decrease in total operating
expenses for the six months June 30, 2008 as compared to six months ended June
30, 2007, is due to our organizational effort to streamline costs with respect
to the administration of our delivery and transportation services, which we
disclosed in our prior reports. Despite those efforts, we expect that we will
continue to incur significant operating expenses to comply with our reporting
requirements as a public company as well as fees related to our proposed merger
with Balqon.
 
 After
provision for income taxes of $800 in the respective six month periods, we had a
net loss of $33,119 for the six months ended June 30, 2008, as compared to a net
loss of $65,881 for the six months ended June 30, 2007. We expect that we will
continue to incur losses for the foreseeable future.
 
 Our Plan of Operation for the Next
Twelve Months. Our primary objective for the next twelve months is to
complete the proposed merger with Balqon. On July 11, 2008, we
signed a term sheet pursuant to which we to agreed to enter into a definitive
merger agreement with Balqon. Under the proposed terms, Balqon would merge with
us, or a wholly owned subsidiary to be formed, whereby, upon effectiveness of
the merger, the shareholders of Balqon would hold approximately 94.38% of the
shares of our capital stock outstanding and our shareholders will own
approximately 5.62% of the shares of our capital stock outstanding, not
including certain warrants issued to certain holders of Balqon. We are currently
negotiating the terms of a definitive merger agreement and we hope to enter into
that agreement within the next 30 days. As of the date of this report, we have
not entered into any definitive merger agreement with Balqon and we cannot
guaranty that we will enter into a definitive merger agreement or that the
merger transaction with Balqon will be completed.
 
 During
the next three to six months, our objective with respect to our business is to
obtain additional clients as one of our current customer accounts for most of
our revenue. If we were to lose this customer, we would lose the primary source
of our revenue. We are currently pursuing additional accounts by researching and
contacting small to medium size furniture stores that are located near our
current accounts in California. We are developing sales and marketing materials
including brochures describing the services that we provide so that we can
provide a professional appearance to potential clients. In addition, we are
currently exploring options to generate revenue by placing advertising on the
side of our truck. If we can generate significant ad revenue, we believe that we
will be able to grow at a much faster pace as we believe that the additional
revenue would significantly defray the costs of purchasing and staffing an
additional delivery trucks.
 
 We had
cash of $4,741 as of June 30, 2008. In the opinion of management, our available
funds will not satisfy our working capital requirements for the next twelve
months. Our forecast for the period for which our financial resources will be
adequate to support our operations involves risks and uncertainties and actual
results could fail as a result of a number of factors. Besides generating
revenue from our current operations, we need to raise additional capital to
expand our operations to the point at which we are able to operate profitably.
Other than anticipated increases in the legal and accounting costs of beinga public
company as well as professional fees related to our proposed merger with Balqon,
we are not aware of any other known trends, events or uncertainties, which may
affect our future liquidity.
 
 We intend
to continue to pursue capital through public or private financing as well as
borrowings and other sources, such as our officers, directors and principal
shareholders. We cannot guaranty that additional funding will be available on
favorable terms, if at all. If adequate funds are not available, then our
ability to expand our operations may be significantly hindered. If adequate
funds are not available, we believe that our officers, directors and principal
shareholders will contribute funds to pay for our expenses to achieve our
objectives over the next twelve months.
  18
  We are
not currently conducting any research and development activities. We do not
anticipate conducting such activities in the near future. We do not anticipate
that we will purchase or sell any significant equipment. In the event that we
expand our customer base, then we may need to hire additional employees or
independent contractors as well as purchase or lease additional
equipment.
  Because
we have limited operations and assets, we may be considered a shell company as
defined in Rule 12b-2 of the Securities Exchange Act of 1934. Accordingly, we
have checked the box on the cover page of this report that specifies we are a
shell company.
 
 Off-Balance Sheet Arrangements.We have no off-balance sheet arrangements.
 
 Item 3. Quantitative and
Qualitative Disclosures about Market Risk
  Not
applicable.
 
 Item 4. Controls and
Procedures
 
 Evaluation of disclosure controls and
procedures. We maintain controls and procedures designed to ensure that
information required to be disclosed in the reports that we file or submit under
the Securities Exchange Act of 1934 is recorded, processed, summarized and
reported within the time periods specified in the rules and forms of the
Securities and Exchange Commission. Based upon their evaluation of those
controls and procedures performed as of June 30, 2008, the date of this report,
our chief executive officer and the principal financial officer concluded that
our disclosure controls and procedures were effective.
 
 Item 4(T). Controls and
Procedures.
 
 Changes in internal controls.There were no changes in our internal control over financial reporting
that occurred during the fiscal quarter covered by this report that have
materially affected, or are reasonably likely to materially affect, our internal
control over financial reporting.
 
 
 PART
II — OTHER INFORMATION
 
 Item 1. Legal
Proceedings.
 
 None.
 
 Item 1A. Risk
Factors.
 
 Not
applicable.
 
 Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds.
 
 None.
 
 Item 3.  Defaults
Upon Senior Securities
 
 None.
 
 Item
4.  Submission of Matters to Vote of Security
Holders
 
 None.
  19
 
 Item 5.  Other
Information
 
 On August
1, 2008, our Board of Directors approved a 2-for-1 stock split (“Split”) of our
issued and outstanding common stock which was effectuated through the issuance
of one share for each share of common stock outstanding as of the record date.
The Split was disclosed in our Current Report on Form 8-K, which was filed on
August 11, 2008.
 
 On August
12, 2008, in connection with the Split, we filed a Certificate of Change with
the Secretary of State of Nevada, effecting a change in the number of our
authorized shares of common stock from 50,000,000 to 100,000,000. Our issued and
outstanding shares of common stock increased from 3,888,750 shares to
approximately 7,777,500 shares.
 
 Item
6.  Exhibits
  3.1  Certificate of Change filed with Secretary of State
of  Nevada on August 12, 2008
 31. Rule
13a-14(a)/15d-14(a) Certifications.
 32.
Section 1350 Certifications.
  SIGNATURES
 
 In
accordance with the requirements of the Securities Exchange Act of 1934, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
  BMR
      Solutions, Inc.,
                  a
      Nevada corporationAugust
      13, 2008
                By:
                /s/ K.
      John ShukurK.
      John Shukur
                  Principal
      Executive Officer, President, Secretary,
                    Chief
      Financial Officer, Treasurer and a Director