| Colorado                                       | 84-1028977                            |
|------------------------------------------------|---------------------------------------|
| ------------------------------------           | -------------                         |
| (State                or other jurisdiction of | (I.R.S.                employer       |
| incorporation                or organization)  | identification                number) |
|                                           |                                  |

| 31                Pierce Lane                           |                      |
|---------------------------------------------------------|---------------------------|
| Norwich,                Vermont                         | 05055                     |
| ------------------------------------                    | -------------             |
| (Address                of principal executive offices) | (Zip                Code) |

----

**MORLEX,      INC.**

**-      INDEX -**

| **PART                I - FINANCIAL INFORMATION:**                                                                                      | Page   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                    |   |
| Item                1. Unaudited Financial Statements                                                                                   |   |
|                                                                                                                                    |   |
| Balance                Sheet as of March 31, 2007                                                                                       | 2      |
|                                                                                                                                    |   |
| Statements                of Operations for the three months ended March 31, 2007 and                2006                               |   |
| and                the Cumulative Period During the Development Stage (January 1, 2000                to                March 31, 2007) | 3      |
|                                                                                                                                    |   |
| Statement                of Changes in Shareholders’ Equity for the period ended March 31,                2007                    | 4      |
|                                                                                                                                    |   |
| Statements                of Cash Flows for the three months ended March 31, 2007 and 2006                and                the        |   |
| Cumulative                Period During the Development Stage (January 1, 2000 to March 31,                2007)                        | 5      |
|                                                                                                                                    |   |
| Notes                to Financial Statements                                                                                            | 6      |
|                                                                                                                                    |   |
| Item                2. Management's Discussion and Analysis or Plan of                Operation                                         | 9      |
|                                                                                                                                    |   |
| Item                3. Controls and Procedures                                                                                          | 9      |
|                                                                                                                                    |   |
| **PART                II - OTHER INFORMATION:**                                                                                         |   |
|                                                                                                                                    |   |
| Item                1. Legal Proceedings                                                                                                | 9      |
|                                                                                                                                    |   |
| Item                2. Unregistered Sales of Equity Securities and Use of                Proceeds                                       | 9      |
|                                                                                                                                    |   |
| Item                3. Defaults Upon Senior Securities                                                                                  | 9      |
|                                                                                                                                    |   |
| Item                4. Submission of Matters to a Vote of Security Holders                                                              | 10     |
|                                                                                                                                    |   |
| Item                5. Other Information                                                                                                | 10     |
|                                                                                                                                    |   |
| Item                6. Exhibits                                                                                                         | 11     |
|                                                                                                                                    |   |
| Signatures                                                                                                                              | 12     |

----

**PART      I - FINANCIAL INFORMATION**

**Item      1. Unaudited Financial Statements.**

**MORLEX,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**BALANCE      SHEET**

**(Unaudited)**

|                                                                            |   | **March                31,** |     |
|---------------------------------------------------------------------------------|--------|------------------------------|----------|
|                                                                            |   | **2007**                     |     |
| **Assets**                                                                      |   |                         |     |
| Current                assets:                                                  |   |                         |     |   |
| Cash                                                                            |   | $                            | 3,848    |   |
|                                                                            |   |                         |     |   |
| Total                assets                                                     |   | $                            | 3,848    |   |
| **Liabilities                and Stockholders' Equity**                         |   |                         |     |   |
|                                                                            |   |                         |     |   |
| Current                liabilities:                                             |   |                         |     |   |
| Accrued                expenses                                                 |   | $                            | 1,500    |   |
| Total                current liabilities                                        |   |                         | 1,500    |   |
|                                                                            |   |                         |     |   |
| Commitments                and contingencies                                    |   |                         |     |   |
|                                                                            |   |                         |     |   |
| **Stockholders'                Equity**                                         |   |                         |     |   |
| Common                Stock, $0.001 par value; 1,000,000,000 shares authorized; |   |                         |     |   |
| 1,401,765                shares issued and 1,180,160 shares outstanding         |   |                         |     |   |
| as                of March 31, 2007                                             |   |                         | 1,402    |   |
| Additional                paid-in capital                                       |   |                         | 450,868  |   |
| Accumulated                deficit                                              |   |                         | (341,027 | ) |
| Deficit                accumulated during the development stage                 |   |                         | (108,673 | ) |
| Treasury                stock, at per - 221,605 shares                          |   |                         | (222     | ) |
| Total                stockholders' equity                                       |   |                         | 2,348    |   |
|                                                                            |   |                         |     |   |
| Total                liabilities and stockholders' equity                       |   | $                            | 3,848    |   |

----

**MORLEX,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**STATEMENTS      OF OPERATIONS**

**(Unaudited)**

|                                                                |   | **Three                Months Ended March 31,** |                     | **Cumulative                During the Development Stage (January 1, 2000 to March 31,                2007)** |   |
|---------------------------------------------------------------------|--------|-------------------------------------------------|--------------------------|---------------------------------------------------------------------------------------------------------------|--------|
|                                                                |   | **2007**                                        |                     | **2006**                                                                                                      |   |
|                                                                |   |                                            |                     |                                                                                                          |   |   |   |
| Revenues                                                            |   | $                                               | -                        |                                                                                                          | $      | - |   | $ | - |   |
|                                                                |   |                                            |                     |                                                                                                          |   |   |   |   |   |   |
| Costs                and expenses:                                  |   |                                            |                     |                                                                                                          |   |   |   |   |   |   |
| Professional                fees                                    |   |                                            | 7,719                    |                                                                                                          |   | 3,081 |   |   | 89,745 |   |
| Filing                fees                                          |   |                                            | 1,688                    |                                                                                                          |   | 1,013 |   |   | 17,380 |   |
| Other                expenses                                       |   |                                            | 29                       |                                                                                                          |   | 34 |   |   | 1,548 |   |
| Total                costs and expenses                             |   |                                            | 9,436                    |                                                                                                          |   | 4,128 |   |   | 108,673 |   |
|                                                                |   |                                            |      |                                                                                                     |   |    |   |   |    |   |
| Net                loss                                             |   | $                                               | (9,436                   | )                                                                                                             | $      | (4,128 | ) | $ | (108,673 | ) |
|                                                                |   |                                            |                     |                                                                                                          |   |   |   |   |   |   |
| Net                loss per share - basic and diluted               |   | $                                               | (0.01                    | )                                                                                                             | $      | (0.01 | ) |   |   |   |
|                                                                |   |                                            |                     |                                                                                                          |   |   |   |   |   |   |
| Weighted                average number of common shares outstanding |   |                                            | 1,180,160                |                                                                                                          |   | 750,160 |   |   |   |   |

----

**MORLEX,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**STATEMENT      OF CHANGES IN SHAREHOLDERS’ EQUITY**

**For      the period ended March 31, 2007**

**(Unaudited)**

|                                            |   | **Common                Stock** |      | **Additional                Paid-In****Capital** |   | **Accumulated                Deficit** |   | **Deficit                Accumulated During the Development Stage** |    | **Treasury****Stock** |   | **Total                Shareholders Equity** |   |
|-------------------------------------------------|--------|---------------------------------|-----------|--------------------------------------------------|--------|----------------------------------------|--------|---------------------------------------------------------------------|---------|-----------------------|--------|----------------------------------------------|--------|
|                                            |   | **Number**                      |      | **Amount**                                       |   |
|                                            |   |                            |      |                                             |   |                                   |   |                                                                |    |                  |   |                                         |   |   |   |
| **Balance                at December 31, 2006** |   |                            | 1,401,765 |                                             | $      | 1,402                                  |   | $                                                                   | 450,868 |                  | $      | (341,027                                     | )      | $ | (99,237 | ) | $ | (222 | ) | $ | 11,784 |   |
|                                            |   |                            |      |                                             |   |                                   |   |                                                                |    |                  |   |                                         |   |   |   |   |   |   |   |   |   |   |
| Net                loss                         |   |                            | -         |                                             |   | -                                      |   |                                                                | -       |                  |   | -                                            |   |   | (9,436 | ) |   | - |   |   | (9,436 | ) |
| **Balance                at March 31, 2007**    |   |                            | 1,401,765 |                                             | $      | 1,402                                  |   | $                                                                   | 450,868 |                  | $      | (341,027                                     | )      | $ | (108,673 | ) | $ | (222 | ) | $ | 2,348 |   |

----

**MORLEX,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**STATEMENTS      OF CASH FLOWS**

**(Unaudited)**

|                                                              |   | **Three                Months Ended March 31,** |    | **Cumulative                During the Development Stage (January 1, 2000 to March 31,                2007)** |   |
|-------------------------------------------------------------------|--------|-------------------------------------------------|---------|---------------------------------------------------------------------------------------------------------------|--------|
|                                                              |   | **2007**                                        |    | **2006**                                                                                                      |   |
| **Operating                activities**                           |   |                                            |    |                                                                                                          |   |   |   |
| Net                loss                                           |   | $                                               | (9,436  | )                                                                                                             | $      | (4,128 | ) | $ | (108,673 | ) |
| Adjustments                to reconcile net loss to net cash used |   |                                            |    |                                                                                                          |   |   |   |   |   |   |
| in                operating activities:                           |   |                                            |    |                                                                                                          |   |   |   |   |   |   |
| Amount                due from former stockholder                 |   |                                            | 5,500   |                                                                                                          |   |   |   |   | - |   |
| Accrued                expenses                                   |   |                                            | (6,392  | )                                                                                                             |   | (6,708 | ) |   | 20 |   |
|                                                              |   |                                            |    |                                                                                                          |   |   |   |   |   |   |
| Net                cash used in operating activities              |   |                                            | (10,328 | )                                                                                                             |   | (10,836 | ) |   | (108,653 | ) |
|                                                              |   |                                            |    |                                                                                                          |   |   |   |   |   |   |
| **Financing                activities**                           |   |                                            |    |                                                                                                          |   |   |   |   |   |   |
| Issuance                of common stock                           |   |                                            | -       |                                                                                                          |   | 8,000 |   |   | 43,000 |   |
| Capital                contributed                                |   |                                            | -       |                                                                                                          |   | 3,000 |   |   | 66,400 |   |
|                                                              |   |                                            |    |                                                                                                          |   |   |   |   |   |   |
| Net                cash provided by financing activities          |   |                                            | -       |                                                                                                          |   | 11,000 |   |   | 109,400 |   |
|                                                              |   |                                            |    |                                                                                                          |   |   |   |   |   |   |
| Net                increase (decrease) in cash and cash           |   |                                            |    |                                                                                                          |   |   |   |   |   |   |
| equivalents                                                       |   |                                            | (10,328 | )                                                                                                             |   | 164 |   |   | 747 |   |
|                                                              |   |                                            |    |                                                                                                          |   |   |   |   |   |   |
| Cash                at beginning of the period                    |   |                                            | 14,176  |                                                                                                          |   | 91 |   |   | 3,101 |   |
|                                                              |   |                                            |    |                                                                                                          |   |   |   |   |   |   |
| Cash                at end of the period                          |   | $                                               | 3,848   |                                                                                                          | $      | 255 |   | $ | 3,848 |   |

----

**MORLEX,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO FINANCIAL STATEMENTS**

**NOTE      1 - Description of the Company**

**NOTE      2 - Summary of Significant Accounting Policies**

**Basis      of Presentation**

**Use      of Estimates**

**Net      Loss per Common Share**

**Fair      Value**

**Income      Taxes**

----

**MORLEX,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO FINANCIAL STATEMENTS - (Continued)**

**NOTE      3 - Shareholders’ Equity**

**NOTE      4 - Income Taxes**

----

**MORLEX,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO FINANCIAL STATEMENTS - (Continued)**

**NOTE      5 - Subsequent Events**

----

**Item      2. Management’s Discussion and Analysis or Plan of Operation.**

**Item      3. Controls and Procedures.**

**-------------------------------------------------**

**-----------------------------**

**PART      II — OTHER INFORMATION**

**Item      1. Legal Proceedings. **

**Item      2. Unregistered Sales of Equity Securities and Use of Proceeds.**

**Item      3. Defaults Upon Senior Securities.**

----

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

**Item      5. Other Information.**

| Name                and Address                                                                                                  | Amount                and Nature of Beneficial                Ownership | Percentage                of Class |
|----------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------|------------------------------------|
|                                                                                                                             |                                                                    |                               |
| Jeanne                Baer (1)c/o                Morlex, Inc.31                Pierce LaneNorwich,                VT 05055       | 558,962                (2)                                              | 47.4%                              |
|                                                                                                                             |                                                                    |                               |
| Michelle                Kaplan (3)401                East 86th Street, Apt 3H New                York, New York 10028  | 558,962                                                                 | 47.4%                              |
|                                                                                                                             |                                                                    |                               |
| Michael                Miller (4)c/o                Morlex, Inc.31                Pierce LaneNorwich,                VT 05055    | 558,962                                                                 | 47.4%                              |
|                                                                                                                             |                                                                    |                               |
| All                Directors and Officers as a Group (3                individuals)                                              | 1,117,924                                                               | 94.7%                              |

| (1)   | Ms.                Baer is a director of the Company. |
|-----------------|-------------------------------------------------------|

| (2)   | Represents                shares of Common Stock owned by Ms. Baer’s husband, Mr.                Miller. |
|-----------------|----------------------------------------------------------------------------------------------------------------|

| (3)   | Ms.                Kaplan is a director of the                Company. |
|-----------------|------------------------------------------------------------------------|

| (4)   | Mr.                Miller is President, Secretary, Treasurer and director of the                Company. |
|-----------------|----------------------------------------------------------------------------------------------------------|

----

**Item      6. Exhibits.**

|  | Exhibit | Description |
|--|---------|-------------|

|  | *3.1 | Articles                of Incorporation |
|--|------|------------------------------------------|

|  | **3.2 | Amendment                to Certificate of Incorporation |
|--|-------|----------------------------------------------------------|

|  | ***3.3 | By-laws |
|--|--------|---------|

|  | 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 Quarterly Report on Form 10-QSB for the period                ended March 31, 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                as an exhibit to the Company’s registration statement on Form 10-SB/A, as                filed with                the Securities and Exchange Commission on December 30, 2005, and                incorporated herein                by this reference. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | Filed                as an exhibit to the Company’s annual report on Form 10-KSB, as filed with                the Securities                and Exchange Commission on March 29, 2001, and incorporated herein                by                this                reference. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *** | Filed                as an exhibit to the Company’s registration statement on Form 10-SB, as                filed with the                Securities and Exchange Commission on June 14, 1999, and incorporated                herein by this                reference. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES**

|                               |                        |                            |
|------------------------------------|-----------------------------|---------------------------------|
| Dated:              April 19, 2007 | MORLEX, INC.                |
|                          |                   |                       |
|                               | By:               | /s/              Michael Miller |
|                               | Michael              Miller |
|                               | President                   |

----