BSRC News:

May 13 - BioSolar Files Quarterly Report with SEC

Cash Flow Increases by 36%

BioSolar Inc. (OTC: BSRC) announced its results of operations for the quarter ended march 31, 2008 compared to the quarter ended march 31, 2007:

OPERATING EXPENSES

Selling and Marketing Expenses

Selling and marketing ("S&M") expenses increased by $37,894 or 368.48%, to $48,178 for the three months ended March 31, 2008, compared to the prior period. S&M expenses increased due to an increase in marketing exposure.

General and Administrative Expenses

General and administrative ("G&A") expenses increased by $39,560 or 46.23%, to $125,126 for the three months ended March 31, 2008, compared to the prior period. This increase in G&A expenses was the result of an increase in salaries and professional fees.

Research and Development

Research and Development ("R&D") expenses increased by $6,337or 23.22%, to $33,628 for the three months ended March 31, 2008, compared to the prior period. This increase in R&D expenses was the result of fees paid to consultants and testing of product.

Net Loss

Our net loss increased by $87,755 to $198,634 for the three months ended March 31, 2008, compared to the prior period. Currently the Company is in its development stage and had no revenues.

LIQUIDITY AND CAPITAL RESOURCES

As of March 31, 2008, we had $854,042 of working capital as compared to $1,064,076 as of December 31, 2007. This decrease of $210,034 was due primarily to use of funds for general and administrative expenses.

Cash flow used in operating activities was $217,228 for the three months ended March 31, 2008, as compared to cash used of $159,555 for the prior period. This increase of $57,673 was primarily attributable to an increase in research and development, and general and administrative expenses.

Cash used by investing activities was $7,258 for the three months ended March 31, 2008, as compared to cash used of $12,212 for the prior period. The decrease of cash used in investing activities was primarily due to a decrease in investing in certificates of deposits.

Cash provided from financing activities during the three months ended March 31, 2008, and 2007 was $0 respectively. There was no equity financing this period.

PLAN OF OPERATION AND FINANCING NEEDS

We are engaged in the development of new and innovative technology to produce bio-based materials with the intent to reduce the cost per watt of solar cells that convert sun light into electrical energy. We plan to develop bio-based backsheets, substrates, superstrate layer, module, panel components, and thereafter focus our efforts on establishing markets in the building materials.

Our plan of operation within the next twelve months is to utilize our cash balances to transition from research and development stage to a production stage for the bio-based plastic backsheets and substrates to reduce the cost of solar cells that convert sun light into electrical energy. In addition, during the next twelve months we plan to accelerate the development activity for other solar cell components, commence a test program to determine the physical properties and characteristics that will be most suitable for commercially available solar cell devices, and build prototype solar cells, as we attempt to validate the commercial viability of additional bio-based solar cell components. We believe that our current cash and investment balances will be sufficient to support development activity and general and administrative expenses for the next twelve months. Management estimates that it will require additional cash resources during 2008, based upon its current operating plan and condition. We will be investigating additional financing alternatives, including equity and/or debt financing. There is no assurance that capital in any form would be available to us, and if available, on terms and conditions that are acceptable. If we are unable to obtain sufficient funds during the next twelve months, we may be forced to reduce the size of our organization, which could have a material adverse impact on, or cause us to curtail and/or cease, the development of our products.