SECURITIES
      AND EXCHANGE COMMISION


WASHINGTON,
      D.C. 20549


FORM
      10-KSB




ANNUAL
      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934





For
      the
      fiscal year ended June 30, 2007





Commission
      file number 000-52177





KALEX
      CORP




Incorporated in Delaware
              IRS
                  #
                  13-3305161


Address:
              2401
                  Pennsylvania Avenue, # 21 A2; Philadelphia, PA 19130Telephone
                  Number:
              215-765-1470





No
      Securities registered under Section 12(b) of the Exchange Act





Securities
      registered under Section 12(g) of the Exchange Act:





Common
      Stock, $.01
      Par Value





Yes,
      issuer filed (1) 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.





There
      is
      no disclosure of delinquent filers in response to Item 405 of Regulation S-B
      contained in this form, and no disclosure will be contained, to the best of
      registrant's knowledge, in definitive proxy or information statements
      incorporated by reference in
      Part
      III of this Form 10-KSB or
      any
      amendment to this Form 10-KSB





Issuer's
      revenues for its most recent fiscal year: $0





Aggregate
      market value of the voting and non-voting common equity held by non-affiliates
      computed by reference to the price at which
      the
      common equity was sold, or the average bid and asked price of such common
      equity, as of a specified date within the past
      60
      days: $0 as of October 16, 2007





The
      registrant is a shell company.





Number
      of
      shares outstanding of each of the issuer's classes of common equity, as of
      October 10, 2007: 725,200




DOCUMENTS
      INCORPORATED BY REFERENCE




None




Transitional
      Small Businss Disclosure Format (Check One):  oYes
x No









Table
      of
      Contents




PART
                IItem
                1.
            Business
            3Item
                2.
            Property
            4Item
                3.
            Legal
                Proceedings
            4Item
                4.
            Submission
                of Matters to a Vote of Security Holders
            4PART
                IIItem
                5.
            Market
                for Common Equity, Related Stockholder Matters and Issuer Purchases
                of
                Equity Securities
            5Item
                6.
            Management's
                Discussion and Analysis of Plan of Operation
            5Item
                7.
            Financial
                Statements
            6Item
                8.
            Changes
                in and Disagreements with Accountants on Accounting and Financial
                Disclosures.
            6Item
                8A.
            Controls
                and Procedures
            6Item
                8B.
            Other
                Information
            6PART
                IIIItem
                9.
            Directors
                and Executive Officers of the Registrant
            6Item
                10.
            Executive
                Compensation
            7Item
                11.
            Security
                Ownership of Certain Beneficial Owners, Management and Related Stockholder
                Matters
            8Item
                12.
            Certain
                Relationships and Related Transactions.
            8Item
                13.
            Exhibits
                and Reports on Form 8-K
            8Item
                14.
            Principal
                Accountant Fees and Services
            8SIGNATURES
            
            9INDEX
                TO FINANCIAL STATEMENTS
            10




-2-




PART I




**Item
      1.**  **BUSINESS**




Introduction




Kalex
      Corp. ("we",
      "us", "our",
      the "Company" or the "Registrant") was incorporated in Delaware on May 1, 1984. The
      Company was organized to engage in the electroplating business, which business
      was transferred to it's parent Victor
      Kellering, Inc., an issuer subject to the reporting requirements of the
      Securities Exchange Act of 1934. Subsequent to the
      acquisition, the Company's shares were distributed to the Victor Kellering,
      Inc
      stockholders. In 1985, the business was sold. In 1996, it
      disposed of all of its assets except for its plant facility in Brooklyn, NY
      which was sold in 2001. From 2001 to the present,
      the Company remained inactive except for its effort to identify possible
      partners to acquire or merge with. The Company has not concluded any transaction
      or entered into a letter intent concerning any target business.





The
      Company is now a "public shell" investigating businesses seeking the perceived
      advantages of merging with a company having a class of securities registered
      under the federal securities laws. The Company will not limit its potential
      candidate target enterprises to any specific business, industry or geographical
      location.





Competition





The
      Company faces vast competition from other shell companies as well as from large
      number of established and well financed entities, venture capital firms and
      investment banks for a limited number of viable businesses interested in "going
      public".





Employees





The
      Company had no paid employees as of June 30, 2007.




RISK
      FACTORS




An
      investment in our securities is highly speculative, and subject to numerous
      and
      substantial risks. These risks include those set forth below and elsewhere
      in
      this Form 10-KSB. Readers are encouraged to review these risks carefully before
      making any investment
      decisions.





**Possible
      Conflicts of Interest**





Principals
      of the Company are also principals of other "public shells" and private
      companies. Conflicts may arise, in the pursuit of
      business combinations, between the Company and other entities in which our
      principals have investments.





**No
      current operations and minimal assets**





The
      Company has had no recent operating history nor any revenues or earnings from
      operations since it disposed of its assets. Until the consummation of a business
      combination the Company is likely to continue to sustain expenses without
      corresponding revenues. Principals who have financed the search for potential
      merger partners are not required to continue such funding.





**Speculative
      nature of the Company's proposed operations**





The
      success of the Company's proposed plan of operations will depend, to a great
      extent, on the management, operations and financial condition of the identified
      target company. Management prefers a business combination with an entity having
      an established operating history and continuing management. There can be no
      assurance that the Company will succeed in locating candidates
      meeting such criteria.





**Lack
      of Funds and time for due diligence review**





Lack
      of
      funds will limit the Company's competitive ability to attract appropriate
      targets for business combinations. Lack of full time
      management will impede a thorough due diligence investigation and analysis
      of a
      proposed merger target.




-3-








**No
      existing agreement for a business combination.**




There
      is
      no arrangement, agreement, letter of intent or understanding with respect to
      engaging in a merger with, joint venture with, or acquisition of a private
      or
      public business entity. No assurances can be given that the Company will
      successfully identify, evaluate, negotiate and consummate a suitable
      combination.





**No
      liquid trading market in the stock currently.**





The
      Common Stock of the Company is quoted on the Pink Sheets and, from time to
      time,
      the shares are traded in small volume and sporadically. There is no assurance
      that a regular, active trading market will develop, and, if developed, that
      it
      will be sustained. Consequently the stockholders' ability to trade or pledge
      shares will be limited.





**No
      revenues unless** a **business
      combination is consummated** **with** **an
      operating entity**





As
      a
      development stage company, Kalex has no current operating revenues. There will
      be no revenues unless and until the Company successfully merges with or acquires
      an operating business.





**No
      plans to pay dividends**





The
      Company does not anticipate paying dividends, cash or otherwise, on its common
      stock.





**Item
      2**  ****Properties****





The
      Company neither rents nor owns any property. Kalex currently has no policy
      with
      respect to investment in real estate, mortgages, other securities or other
      personal assets.





**Item
      3.** **Legal
      Proceedings**





The
      Company is not party to any legal proceedings, nor is it aware of any
      investigation, claim or demand made on the Company that may reasonably result
      in
      any legal proceeding.





**Item
      4.**  **Submission
      of Matters to a vote of Security Holders.**




None.




-4-




PART
      II




Item
      5.
      Market for Common Equity, Related Stockholder Matters and Issuer Purchases
      of
      EquitySecurities




Common
      Stock





Our
      Certificate of Incorporation authorizes the issuance of up to 2,000,000 shares
      of common stock, par value $.01 per share. As of October 10, 2007 there were
      725,200 shares of common stock outstanding (excluding 74,800 shares of treasury
      stock).





Preferred
      Stock





Our
      Certificate of Incorporation authorizes the issuance of up to 100,000 shares
      of
      preferred stock, par value $1.00 per share (the "Preferred Stock"). The Company
      has not yet issued any of its preferred stock.





Our
      common stock is not listed or admitted to quotation on any established trading
      market. From time to time, quotes for our stock are reported on the Pink Sheets
      which is a centralized quotation service that collects and publishes market
      maker quotes for over-the-counter securities in real time. Unlike companies
      the
      stock of which trades on a stock exchange, companies quoted on the Pink Sheets
      system do not need to meet quantitative and qualitative listing and maintenance
      standards or be registered or file reports with the SEC. Investors may obtain
      quotes for our common stock by entering our symbol, KLXC, in the input box
      of
      the Web site pinksheets.com. Such quotations reflect inter-dealer prices,
      without retail markup, markdown or commission, and may not represent actual
      transactions.





The
      high
      and low sales prices for our common stock, as reported by the Pink Sheets,
      have
      been as follows during the two years ended June 30, 2007:





Twelve
                Months Ended June 30, 2007
            
            Twelve
                Months Ended June 30, 2006Quarter
            
            High
            
            Low
            
            High
            
            Low1st
            
            $
            0.15
            
            $
            0.15
            
            $
            0.20
            
            $
            0.152nd
            
            
            0.30
            
            
            0.15
            
            
            0.15
            
            
            0.153rd
            
            
            0.30
            
            
            0.20
            
            
            0.15
            
            
            0.154th
            
            
            0.22
            
            
            0.21
            
            
            0.15
            
            
            0.15




As
      of
      December 31, 2006 there were approximately 134 holders of record of our common
      stock. This number of holders of record does not include beneficial owners
      of
      our common stock whose shares are held in the names of various security holders,
      dealers and clearing agencies.





The
      Company has not declared or paid any cash dividends on its common stock and
      does
      not intend to declare or pay any cash dividend in the foreseeable future. The
      payment of dividends, if any, is within the discretion of the Board of Directors
      and will depend on the Company's earnings, if any, its capital requirements
      and
      financial condition and such other factors as the Board of Directors may
      consider.





Recent
      Sales of Unregistered Securities





The
      Company has not issued any securities during the last three years.




**Item
      6. Management's Discussion and Analysis or Plan of Operation.**





Plan
      of
      Operation





The
      Company has not realized any revenues from operations since 1995 other than
      minimal interest payments from past investments. Its plan of operation for
      the
      next twelve months shall be to locate a suitable acquisition or merger candidate
      and consummate a business combination. The Company may need additional cash
      advances from stockholders to pay for operating expenses until the Company
      consummates a merger. Although it is currently anticipated that the Company
      can
      satisfy its cash requirements with additional cash advances, if needed, for
      at
      least the next twelve months, the Company can provide no assurance that it
      can
      continue to satisfy its cash requirements for such period.




-5-




Results
      of Operations





The
      Company has not conducted any active operations since 1995, except for its
      efforts to locate suitable acquisition or merger transactions. No revenue has
      been generated by the Company during such period, and it is unlikely the Company
      will have any revenues unless it is able to consummate or effect an acquisition
      of, or merger with, an operating company, of which there can be no
      assurance.





**Item
      7** . **Financial
      Statements.**





The
      Company submits with this report the financial statements and related
      information listed in the Index to Consolidated Financial statements on page
      F-1
      following this report's signature page.





**Item
      8. Changes in and Disagreements with Accountants on Accounting and Financial
      Disclosure.**




None.





**Item
      8A. Controls and Procedures.**





The
      Company's management is responsible for establishing and maintaining a system
      of
      disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e)
      under the Exchange Act) that is designed to ensure that information required
      to
      be disclosed by the Company in the reports that the Company files or submits
      under the Exchange Act is recorded, processed, summarized and reported, within
      the time periods specified in the Commission's rules and forms. Disclosure
      controls and procedures include, without limitation, controls and procedures
      designed to ensure that information required to be disclosed by an issuer in
      the
      reports that it files or submits under the Exchange Act is accumulated and
      communicated to the issuer's management, including its principal executive
      officer or officers and principal financial officer or officers, or persons
      performing similar functions, as appropriate to allow timely decisions regarding
      required disclosure.





In
      accordance with Exchange Act Rules 13a-15 and 15d-15, an evaluation was
      completed under the supervision and with the participation of the Company's
      management, including the Company's President and Secretary, of the
      effectiveness of the design and operation of the Company's disclosure controls
      and procedures as of the end of the period covered by this Annual Report. Based
      on that evaluation, the Company's management including the President, Principal
      financial Officer and Secretary, concluded that the Company's disclosure
      controls and procedures are effective, to provide reasonable assurance that
      information required to be disclosed in the Company's reports filed or submitted
      under the Exchange Act is recorded, processed, summarized, and reported within
      the time periods specified in the Commission's rules and forms. There have
      been
      no significant changes to the Company's internal controls over financial
      reporting that occurred during our last fiscal quarter of the year ended June
      30, 2007 that materially affected, or were reasonably likely to materially
      affect, our internal controls over financial reporting.




**Item
      8B. Other Information.**




None




**PART
      III**




**Item
      9. Directors and Executive Officers of the Registrant.**





The
      following table sets forth certain information regarding the Company's directors
      and executive officers:




Name
            
            Age
            
            Position
            
            TermKuno
                Laren
            
            84
            
            President,
                Director
            
            1996
                thru PresentInga
                Lamonaca
            
            51
            
            Treasurer,
                Secretary and Director
            
            1996
                thru PresentAllan
                J. Rude
            
            68
            
            Director
            
            1996
                thru Present




The
      Company's officers and directors are elected annually for a one year term or
      until their respective successors are duly elected and qualified or until their
      earlier resignation or removal.




-6-


Kuno
        Laren - director,
        president and chief executive officer of the Company - has
        been
        engaged in investment management and investment
        banking for over fifty years. From 1952 to 1986, Mr. Laren was associated
        in
        various capacities with Shearson Hammill,
        Lehman Brothers, Smith Barney and Janney Montgomery. In the period from 1986
        to
        2007, Mr. Laren acted as the chief
        executive officer of AHSI, Inc., Grant Enterprise Ltd. and Kalex Corp., which
        were involved in various businesses such as nursing
        homes, armored couriers and plastics. Mr. Laren attended Stockholm University,
        Park University and was awarded a Masters
        Degree in Economics by New York University.
 
 Inga
        Lamonaca - director,
        treasurer and secretary of the Company since 1996 -
        is also
        engaged in real estate and in education. Mrs.
        Lamonaca graduated from George Washington University and received an MA degree
        in Education from Queens College. Inga
        Lamonaca is the daughter of Kuno Laren.
 
 Alan
        J.
        Rude has been a member of our board of directors since 1996. Mr. Rude is
        the
        founder of R.W. Wentworth & Co. Inc., which
        provides investment and business development advisory services to a wide
        range
        of clients with a concentration in the public
        sector. R.W. Wentworth was organized in 1998 to deliver competitive financial
        returns and increased benefits to its clients by
        incorporating socially responsible economic, environmental, social and corporate
        factors into strategic investment decisions. Mr.
        Rude
        has over 30 years of senior level experience in securities and in
        entrepreneurial activities. Mr. Rude received a BA in economics
        from Cornell University and an MBA in finance from the Harvard Business
        School.
 
 The
        Board
        of Directors acts as
        the
        audit committee and the Board has no separate committees. The Company does
        not
        have a qualified
        financial expert at this time. The Company believes that it has inadequate
        financial resources at this time to hire such an expert.
        The Company intends to continue to search for a qualified individual for
        hire.
 
 COMPLIANCE
        WITH SECTION 16(a) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 Section
        16(a) of the Exchange Act requires the Company's directors and officers,
        and
        persons who beneficially own more than 10%
        of a
        registered class of the Company's equity securities, to file reports of
        beneficial ownership and changes in beneficial
        ownership of the Company's securities with the SEC on Forms 3, 4 and 5.
        Officers, directors and greater than 10% stockholders are
        required by SEC regulation to furnish the Company with copies of all Section
        16(a) forms they file.
 
 Based
        solely on the Company's review of the copies of the forms received by it
        during
        the fiscal year ended June 30, 2007 and written
        representations that no other reports were required, the Company believes
        that
        no person who, at any time during such fiscal
        year, was a director, officer or beneficial owner of more that 10% of the
        Company's common stock failed to comply with all Section
        16(a) filing requirements during such fiscal year.
 
 Code
        of
        Ethics
 
 We
        have
        not adopted a Code of Business Conduct and Ethics that applies to our principal
        executive officer, principal financial officer, principal account officer
        or
        controller, or persons performing similar functions in that our officers
        and
        sole director serves in
        all
        the above capacities.
 
 **Item
        10. Executive Compensation**
  Director
        Compensation
 
 We
        do not
        currently pay any cash fees to our directors, but we pay directors' expenses
        in
        attending board meetings. During the year
        ended June 30, 2007 no directors expenses were reimbursed.
 
 Officer
        Compensation
 
 The
        Company has not paid any salaries to any person during the last three
        years.
 
 **SUMMARY
        COMPENSATION TABLE**
  Long
                  Term CompensationAnnual
                  Compensation
              
              Awards
              
              PayoutsSalary
              
              Bonus
              
              Other
                  Annual Compensation
              
              Restricted
                  Stock Award(s)
              
              Securities
                  Underlying Opton/SARs
              
              LTIP
                  Payouts
              
              All
                  Other CompensationName
                  and Principal Position
              
              Year
              
              ($)
              
              ($)
              
              ($)
              
              ($)
              
              ($)
              
              ($)
              
              ($)Kuno
                  Laren
              
              
              2007
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              —
  -7-
  The
          Company is not a party to any employment agreements.
  **Item
            11. Security Ownership of Certain Beneficial Owners and Related
            Matters**
 
 The
            following table sets forth certain information as of October 10, 2007
            regarding
            (i) each person known by the Company to be the beneficial owner of more
            than 5%
            of the outstanding shares of Common Stock, (ii) each director, nominee
            and
            executive officer
            of the Company, and (iii) all officers and directors as a
            group.
  Name
                  and Address
              
              
              
              Amount
                  and Nature of ClassBeneficial
                  Ownership
              
              Percentage
                  of Class Beneficial OwnershipKuno
                  Laren
              
              
              *
              
              
              261,280
              
              
              36
              %Inga
                  Lamonaca
              
              
              *
              
              
              -0-
              
              
              0Alan
                  J. Rude
              
              
              *
              
              
              1,000
              
              
              **World
                  of Magic Inc.
              
              
              *
              
              
              200,000
              
              
              28
  *
              The
                  address of each person referenced in the table is c/o the
                  Company
  **
              Less
                  than 1% of class
  **Item
          12.**  **Certain
          Relationships and Related Transactions**
  None
  **Item
          13.**  **Exhibits
          and Reports on Form 8-K**
  (a)  Index
          to
          Exhibits
  Exhibit
                No.
              
              Exhibit
                  Description
              
              Location3.1
              
              Certificate
                  of Incorporation
              
              *3.2
              
              By-laws
              
              *4.1
              
              Specimen
                  form of common stock certificate
              
              *31.1
              
              Certification
                  of the Company's Principal Executive Officer and Principal Financial
                  Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002,
                  with
                  respect to the registrant's Annual Report on Form 10-KSB for the
                  year
                  ended June 30, 2007
              
              *32.1
              
              Certification
                  of the Company's Principal Executive Officer and Principal Financial
                  Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant
                  to Section
                  906 of the Sarbanes-Oxley Act of 2002
              
              *
  *
              Filed
                herewith(b)
              Reports
                  on Form 8-K
 
 None
  **Item
        14.**  **Principal
        Accountant Fees and Services**
  The
        Company's independent registered public accounting firm is Stanley Nanes
        and
        Company. For its services rendered in connection
        with its annual audit, preparation of Form I0-KSB and advisory services for
        tax
        compliance, Stanley Nanes and Company
        charged $900. There were no fees billed for any other services for the fiscal
        year ended June 30, 2007.
  -8-
  SIGNATURES
 Pursuant
              to the requirements of Section 13 or 15(d) of the Securities Exchange
              Act of 1934, the
              registrant has duly caused this report
              to
              be signed on its behalf by the undersigned, thereunto duly
              authorized.
 Kalex
                    Corp.October
                    16, 2007
                By:
                /s/ Kuno LarenKuno
                    Laren, Chief Executive OfficerChief
                    Financial Officer
 Pursuant
            to the requirements of the Securities Exchange Act of 1934, this Report
            has been
            signed below by the following persons on behalf of Registrant, in the
            capacities
            and on the dates indicated.
  PERSONS
                  
                  CAPACITY
                  
                  DATE
                  
                  SIGNATUREKuno
                      Laren
                  
                  President,
                      Chief Executive Officer,
                    ChiefFinancial Officer and Director
                  
                  10/16/07
                  
                  /s/ Kuno
                    LarenInga
                      Lamonaca
                  
                  Treasurer,
                      Secretary and Director
                  
                  10/16/07
                  
                  /s/ Inga
                    Lamonaca
  -9-
 **KALEX
          CORP.**
  **INDEX
          TO FINANCIAL STATEMENTS**
 Report
                  of Independent Registered Public Accounting Firm
              
              
              F
                  - 1Balance
                  Sheet
              
              
              F
                  - 2Statement
                  of Operations
              
              
              F
                  - 3Statement
                  of Stockholders' Equity (Deficit)
              
              
              F
                  - 4Statement
                  of Cash Flows
              
              
              F
                  - 5Notes
                  to the Financial Statement
              
              
              F
                  -6
                  and F-
                  7
  -10-


***Stanley
      Nanes and Company***


***Certified
      Public Accountants***


*2401
      Pennsylvania Avenue Suite 1A11*


*Philadelphia,
      Pennsylvania 19130*




September,
      2007




Board
      of
      Directors and


Stockholders
      of Kalex Corp.




We
      have
      audited the accompanying balance sheet of




KALEX
      CORPORATION





as
      of
      June 30, 2007 and the related statements of operations, shareholder's equity
      (deficit) and statement of cash
      flows for each of the two years in the period ended June 30, 2007. These
      financial statements are the responsibility
      of the company's management. Our responsibility is to express an opinion on
      these financial statements
      based on our audit.





We
      conducted our audit in accordance with the standards of the Public Company
      Accounting Oversight Board (United States). Those standards require that we
      plan
      and perform audit to obtain reasonable assurance about whether the financial
      statements are free of material misstatement. The Company is not required
      to have, nor were we engaged to perform, an audit of its internal control over
      financial reporting as a basis for designing audit procedures that are
      appropriate in the circumstances, but not for the purpose of expressing
      an opinion on the effectiveness of the Company's internal control over financial
      reporting. Accordingly,
      we express no such opinion. An audit includes examining, on a test basis,
      evidence supporting
      the amounts and disclosures in the financial statements. An audit also includes
      assessing the accounting
      principles used and significant estimates made by management, as well as
      evaluating the overall financial statement presentation. We believe that our
      audits provide a reasonable basis for our opinion.





In
      our
      opinion, the financial statements referred to above present fairly, in all
      material respects, the financial
      position of Kalex Corporation at June 30, 2007 and the results of its operations
      and cash flows for each
      of
      the two years in the period ended June 30, 2007 in conformity with accounting
      principles generally accepted
      in the United States of America.





The
      accompanying financial statements have been prepared assuming that the Company
      will continue as an ongoing
      concern. As more fully described in Note 2, the Company has incurred operating
      losses in fiscal 2007
      and
      2006, negative cash flows from operations in fiscal 2007, and has limited cash,
      factors which raise
      substantial doubt as to
      its
      ability to continue as a going concern. Management's plans concerning these
      matters are also discussed in Note 2. The financial statements do not include
      any adjustments that might result from the outcome of these
      uncertainties.




Respectfully
              submitted,stanleySTANLEY
                NANES
              Certified
                Public Accountant




F-1




**KALEX
      CORPORATION**


**BALANCE
      SHEET**


**YEAR
      ENDED JUNE 30, 2007**


**ASSETS****Current
                  Assets**Cash
              
              
              
              
              $
              13,523**Total
                  Assets**
              
              
              
              
              **$**
              **13,523****LIABILITIES
                  AND STOCKHOLDER'S EQUITY****Current
                  Liabilities**Due
                  to Affliates*
              
              
              
              
              
              34,700**Stockholder's
                  Equity (Deficit)**Common
                  stock - 5.01 par value, 2,000,000 shares authorized
                800,000
                  shares issued & 725,000 outstanding
              
              
              8,000Additional
                  paid in capital
              
              
              3,000Retained
                  earnings (Deficit)
              
              
              (9,152
              )Treasury
                  Stock, 74,800 shares at cost
              
              
              (23,025
              )Total
                  stockholder's equity (Deficit)
              
              
              
              
              
              **(21,177**
              **)****Total
                  Liabilities and Stockholder's Equity(Deficit)**
              
              
              
              
              $
              **13,523**




*Affiliates:Kamala
            
            
            13,000Laren
            
            
            8,000Grant
            
            
            10,000King
            
            
            3,70034,700





F-2




**KALEX
      CORPORATION**


**STATEMENT
      OF OPERATIONS**


**YEAR
      ENDED JUNE 30, 2007**


Year
                  Ended2007
              
              2006Revenues:Interest
                  Income
              
              $
              247
              
              $
              84General
                  and Administrative Expenses
              
              
              6,036
              
              
              17,234Net
                  Loss
              
              
              (5,789
              )
              
              (17,150
              )Basic
                  and diluted loss per share based on
                725,200
                  weighted average shares
                of
                  outstanding stock
              
              $
              (.01
              )
              $
              (.02
              )




F-3




KALEX
      CORPORATION


**STATEMENT
      OF** **STOCKHOLDERS'
      EQUITY(DEFICI)**


**FOR
        THE PERIOD JUNE 30, 2006** **TO** **JUNE
        30, 2007**


Retained
                Earnings June 30, 2006
            
            $
            (3,363
            )Net
                Loss for the Year Ended June 30, 2007
            
            
            (5,789
            )Retained
                Earnings June 30, 2007
            
            $
            (9,152
            )




F-4




KALEX
      CORPORATION


STATEMENT
      OF CASH FLOWS


YEAR
      ENDED JUNE 30, 2007




Year
                Ended2007
            
            2006**CASH
FLOWS
              FROM OPERATING ACTIVITIES:**Net
                Loss
            
            $
            (5,789
            )
            $
            (17,150
            )Changes
                in Assets & Liabilities
            
            
            (8,000
            )
            
            5,000Net
                Cash (Applied to) Operating Activities
            
            
            (13,789
            )
            
            (12,150
            )**CASH
              FLOWS
              FROM FINANCING ACTIVITIES:**Advances
                from Affiliates
            
            
            19,000
            
            
            15,700Capital
                Contributed
            
            
            
            
            
            3,00018,700Increase
                in Cash
            
            
            5,211
            
            
            6,550Cash-Beginning
                of the Year
            
            
            8,312
            
            
            1,762Cash-End
                of the Year
            
            $
            13,523
            
            $
            8,312




F-5




KALEX
      CORPORATION


NOTES
      TO FINANCIAL STATEMENT


**JUNE
      30, 2007**




Note 1
      Organization and Description of Business




Kalex
      Corp. ("the Company") was incorporated on March 27, 1984 under the laws of
      the
      State of Delaware.
      The company is a publicly-owned company, not currently operating in any
      business. The company, through a wholly-owned subsidiary, was previously in
      the
      real estate business.




Note
      2
      Summary of Significant Accounting Policies




Basis
      of
      Presentation




The
      financial statements have been prepared on a going-concern basis which
      contemplates the realization
      of assets and liquidation of liabilities in the ordinary course of business.
      The
      company has
      incurred losses in the last four years an has minimal cash. The company has
      relied on cash infusions
      from parties related to the president and CEO of the company, and unless these
      continue, substantial
      doubt exists about the company's ability to fund future operations using its
      existing resources.





Future
      plans for funding the company include additional infusions from related parties
      and, or a merger with another company.





Cash
      and
      Cash Equivalents





The
      company considers all highly liquid debt instruments with an original maturity
      of three months or less when purchased to be cash equivalents. There were no
      cash equivalents as at June 30,
      2007
      and 2006.





Use
      of
      Estimates





Management
      uses estimates and assumptions in preparing these financial statements in
      accordance with
      generally accepted accounting principles. Those estimates and assumptions affect
      the reported
      assets and liabilities, disclosure of contingent assets and liabilities, and
      the
      reported revenue
      and expenses. Actual results could vary from the estimates that were
      used.





Impairment
      of Long-Lived Assets





The
      company regularly reviews long-lived assets for indicators of impairment.
      Management's judgments
      regarding the existence of impairment indicators are based on performance.
      Future events
      could cause management to conclude that impairment indicators exist and that
      the
      value of long-lived
      assets is impaired. When events of circumstances indicate that the carrying
      amount of an
      asset
      may not be recoverable, the fair value of the asset is compared to its carrying
      value. Impairment
      losses are measured as the amount by which the carrying value of an asset
      exceeds its estimated
      fair value.





Loss
      per
      Common Share





Basic
      loss per common share is computed by dividing the net loss by the weighted
      average number
      of
      shares outstanding during the period. Basic loss per share also excludes any
      dilutive effect
      of
      warrants.




F
          - 6




KALEX
      CORPORATION


NOTES
      TO
      FINANCIAL STATEMENT


**JUNE
      30, 2007**




Income
      Taxes





Income
      taxes are accounted for under the asset and liability method. Deferred tax
      assets and liabi lities
      are recognized for the future tax consequences attributable to differences
      between the financial
      statement carrying amounts of existing assets and liabilities, and their
      respective tax bases and operating loss and tax credit carry forwards. Deferred
      tax assets and liabilities are measured
      using enacted tax rates expected to apply to taxable income in the year in
      which
      those temporary
      differences are expected to be recovered or settled.




New
      Authoritative Accounting Pronouncements





The
      company does not anticipate that the adoption of recently issued account
      pronouncements will have
      a
      significant impact on its results of operations, financial position or cash
      flow.




Note
      3
      Preferred Stock




Since
      June 30, 2003, there have been no prefer red
      shares issued and outstanding. The preferences, dividends, voting power,
      conversion rights, etc. will be determined by the Board of Directors at the
      time
      of issuance.




Note
      4
      Commitments




The
      company used space in the home/office of one of its principals on a
      month-to-month basis. No rent
      was
      paid during the
      years ended
      June 30, 2007 and 2006.




Note
      5
      Income Taxes




As
      of
      June 30, 2007, the company had net operating loss carry-forwards of
      approximately $500,000
      expiring from 2009 to 2025.





At
      this
      time, the company does not believe it can predict profitability for the
      foreseeable future. Accordingly, the deferred tax assets applicable to
      subsequent operations has been reduced in its entirety
      by the valuation allowance. The benefits of net operating losses will not be
      recognized until
      management determines that realization is more likely than not to
      occur.




Note
      6
      Related Party Transactions




A.
            The
                company has been operating out of the premises either owned by or
                leased
                to thepresident
                and CEO of the company. As the company is not generating any operationalincome,
                no rent has been charged to the
                company.





B.
            Some
                of the company's bills have been paid by its president and CEO as
                well as
                othercompanies
                and individuals affiliated with the president. As of June 30, 2007
                a total
                of$34,700
                is owed to the related parties as
                follows:




Kumala,Inc.
            
            $
            13,000Kuno
                Laren
            
            
            8,000Grant
                lnc.
            
            
            10,000Norman
                King
            
            
            3,700




F-7