U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

            [X] QUARTERLY REPORT PURSUANT SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2001

            [ ] TRANSITION REPORT PURSUANT SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                        For the transition period from to

                         Commission file number 33-6505D

                                  MORLEX, INC.
        (Exact name of small business issuer as specified in its charter)


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

         999 Walt Whitman Road, 3rd Floor, Melville, NY       11747
         (Address of principal executive offices              (Zip Code)

         Issuer's telephone number, including area code: (631) 421-3600

                                    No change
                     (Former name, former address and former
                   fiscal year, if changed since last report)

     Check  whether  the issuer (1) 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. Yes X No.

                      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  practicable  date:  750,160  shares of Common
Stock, par value $ .001 per share, outstanding as of July 23, 2001.




<PAGE>



                                  MORLEX, INC.


                                    - INDEX -


<TABLE>
<CAPTION>
PART I- FINANCIAL INFORMATION:
                                                                                                 Page(s)
<S>                                                                                                 <C>
Item 1.  Financial Statements:

         Balance Sheets -June 30, 2001 (unaudited) and December 31, 2000                            3.

         Statements of Operations  (unaudited) for the cumulative  period during
         the development stage (January 1, 2000 to June 30, 2001) and the
         three and six months ended June 30, 2001 and 2000                                          4.

         Statements of Cash Flows  (unaudited) for the cumulative  period during
         the development stage (January 1, 2000 to June 30, 2001) and the
         six months ended June 30, 2001 and 2000                                                    5.

         Note to Interim Condensed Financial Statements                                             6.

Item 2.  Management's Discussion and Analysis or Plan of Operation                                  7.


PART II - OTHER INFORMATION                                                                         8.


SIGNATURES                                                                                          9.
</TABLE>



<PAGE>

                                  MORLEX, INC.
                          (A Development Stage Company)
                                 BALANCE SHEETS


<TABLE>
<CAPTION>
                                                                                     June 30, 2001    December 31, 2000
                                                                                     -------------    -----------------
                                                                                      (unaudited)
                                   - ASSETS -

<S>                                                                                     <C>              <C>
     CURRENT ASSETS:
          Cash                                                                          $     108        $     683
                                                                                        ---------        ---------

     TOTAL ASSETS                                                                       $     108        $     683
                                                                                        =========        =========


                        - LIABILITIES AND SHAREHOLDERS' (DEFICIT) -


     CURRENT LIABILITIES:
          Accrued expenses                                                              $   2,750        $   1,500
                                                                                        ---------        ---------

     TOTAL CURRENT LIABILITIES                                                              2,750            1,500
                                                                                        ---------        ---------

     COMMITMENTS AND CONTINGENCIES

     SHAREHOLDERS' (DEFICIT):
          Common stock, $.001 par value; 1,000,000,000 shares authorized, 971,765
            shares issued and outstanding in 2001 and 2000                                    972              972
          Additional paid-in capital                                                      363,798          358,398
          Accumulated deficit                                                            (341,027)        (341,027)
          Deficit accumulated during the development stage                                (26,163)         (18,938)
          Treasury stock, at par - 221,605 shares                                            (222)            (222)
                                                                                        ---------        ---------
                                                                                           (2,642)            (817)
                                                                                        ---------        ---------

                                                                                        $     108        $     683
                                                                                        =========        =========
</TABLE>


                             See accompanying notes.


                                                                         Page 3.
<PAGE>



                                  MORLEX, INC.
                          (A Development Stage Company)
                            STATEMENTS OF OPERATIONS
                                   (unaudited)


<TABLE>
<CAPTION>
                                                     Cumulative During the
                                                      Development Stage      For the Three Months            For The Six Months
                                                       (January 1, 2000         Ended June 30,                  Ended June 30,
                                                             to           -------------------------       -------------------------
                                                        June 30, 2001)      2001             2000             2001            2000
                                                          ---------       ---------       ---------       ---------       ---------
<S>                                                       <C>             <C>             <C>             <C>             <C>
REVENUES                                                  $    --         $    --         $    --         $    --         $    --
                                                          ---------       ---------       ---------       ---------       ---------

COSTS AND EXPENSES:
     Professional fees                                       21,256           1,518           1,825           5,518           4,236
     Filing fees                                              4,355           1,399             676           1,583           1,470
     Other expenses                                             552              63              64             124              64
                                                          ---------       ---------       ---------       ---------       ---------

                                                             26,163           2,980           2,565           7,225           5,770
                                                          ---------       ---------       ---------       ---------       ---------

NET LOSS                                                  $ (26,163)      $  (2,980)      $  (2,565)      $  (7,225)      $  (5,770)
                                                          =========       =========       =========       =========       =========


LOSS PER SHARE - BASIC AND DILUTED                        $    (.03)      $    --         $    --         $    (.01)      $    (.01)
                                                          =========       =========       =========       =========       =========

WEIGHTED AVERAGE NUMBER OF COMMON SHARES
   OUTSTANDING                                              971,765         971,765         971,765         971,765         971,765
                                                          =========       =========       =========       =========       =========
</TABLE>


                             See accompanying notes.



                                                                         Page 4.
<PAGE>


                                  MORLEX, INC.
                          (A Development Stage Company)
                            STATEMENTS OF CASH FLOWS
                                   (unaudited)

<TABLE>
<CAPTION>
                                               Cumulative During the
                                                Development Stage        For the Six Months Ended
                                                (January 1, 2000               June 30,
                                                      to               --------------------------
                                                 June 30, 2001)         2001              2000
                                               --------------------    -------           -------
<S>                                                 <C>                <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:

     Net loss                                       $(26,163)          $(7,225)          $(5,770)


Changes in assets and liabilities:

     Increase in accrued expenses                      1,270             1,250              (506)
                                                    --------           -------           -------

        Net cash used by operating activities        (24,893)           (5,975)           (6,276)
                                                    --------           -------           -------


CASH FLOWS FROM FINANCING ACTIVITIES:

     Capital contributed                              21,900             5,400             9,000
                                                    --------           -------           -------

        Net cash provided by financing activities     21,900             5,400             9,000
                                                    --------           -------           -------


NET (DECREASE) INCREASE IN CASH                       (2,993)             (575)            2,724

     Cash at beginning of period                       3,101               683             3,101
                                                    --------           -------           -------

CASH BALANCE AT END OF PERIOD                       $    108           $   108           $ 5,825
                                                    ========           =======           =======
</TABLE>

                             See accompanying notes.


                                                                         Page 5.
<PAGE>



                                  MORLEX, Inc.
                          (a Development Stage Company)
                      NOTE TO INTERIM FINANCIAL STATEMENTS
                                  June 30, 2001
                                   (Unaudited)

NOTE   1  -    DESCRIPTION OF COMPANY AND GOING CONCERN UNCERTAINTY:

               Morlex, Inc., the Company, was incorporated under the laws of the
               State of Colorado on April 23, 1986. The primary  activity of the
               Company was to seek merger or acquisition candidates.  In January
               1987, the Company, in a stock-for-stock exchange acquired America
               OnLine,  Inc.,  a then  wholly-owned  subsidiary  of Info  Source
               Information Service, Inc. The Company  simultaneously changed its
               name  to  America  OnLine,  Inc.  ("AOL  #1").  AOL #1 was  never
               affiliated  with the  well-known  company  of the same  name.  On
               December 28, 1992, the Company  terminated the business of AOL #1
               and has had no active business operations since. On May 15, 1998,
               the name of the  Company  was changed  back to Morlex,  Inc.  The
               Company is currently seeking potential business opportunities.

               As shown in the  financial  statements,  the Company has incurred
               net losses,  has negative  working  capital and has accumulated a
               deficit  of  $367,190  as of June 30,  2001.  It is  management's
               assertion  that these  circumstances  may  hinder  the  Company's
               ability to continue as a going  concern.  Management  has not yet
               developed a formal  plan to raise funds for either the  Company's
               short or long term needs.

               In accordance  with Statement of Financial  Accounting  Standards
               No.  7, the  Company  is being  treated  as a  development  stage
               company  since  January  1,  2000,  the  date the  Company  began
               devoting  substantially  all of their  efforts to establish a new
               business.

               The accounting  policies followed by the Company are set forth in
               Note 2 to the  Company's  financial  statements  included  in its
               annual report on Form 10-KSB which was filed with the  Securities
               and  Exchange  Commission  and  which is  incorporated  herein by
               reference.  Specific  reference  is  made to  this  report  for a
               description  of the  Company's  securities  and the  notes to the
               financial statements included therein.

               These financial  statements have been prepared in accordance with
               the rules for Form  10-QSB  and  therefore  may not  contain  all
               disclosures required by generally accepted accounting principles.
               In the opinion of management,  the accompanying unaudited interim
               financial  statements  of Morlex,  Inc.  contain all  adjustments
               necessary to present fairly the Company's  financial  position as
               of June 30, 2001 and the results of its  operations for the three
               and six month  periods  ended June 30,  2001 and 2000 and for the
               cumulative  period during the development  stage (January 1, 2000
               to June 30,  2001) and its cash  flows for the six month  periods
               ended June 30, 2001 and 2000 and for the cumulative period during
               the development stage (January 1, 2000 to June 30, 2001).

               The  results of  operations  for the three and six month  periods
               ended June 30, 2001 and 2000 are not  necessarily  indicative  of
               the results to be expected for the full year.


                                                                         Page 6.
<PAGE>



ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

          The Company has incurred a net loss of $2,980 and $7,225 for the three
          and six months  ended June 30, 2001.  Combined  with the fact that the
          Company has no working capital and an accumulated  deficit of $367,190
          as  of  June  30,  2001,  it  is  management's  assertion  that  these
          circumstances  may hinder the Company's ability to continue as a going
          concern.

          Results/Plan  of  Operation.  The Company has not conducted any active
          operations  in the past two fiscal  years,  except for its  efforts to
          locate  suitable  acquisition  candidates.  Accordingly,  we have  not
          realized any revenues from operations in the past two fiscal years and
          through June 30, 2001.  The  Company's  plan of operation for the next
          twelve  months  shall be to continue  its  efforts to locate  suitable
          acquisition  candidates.  It is  unlikely  the  Company  will have any
          revenues unless it is able to effect an acquisition of, or merger with
          an operating company, of which there can be no assurance.

          The Company filed,  on June 14, 1999, a Registration  Statement  under
          the  Securities  Exchange Act of 1934 (the  "Exchange  Act"),  on Form
          10-SB,  pursuant  to which the Company  sought to register  its Common
          Stock  under the  Exchange  Act.  The  Registration  Statement  became
          effective on August 14, 1999. The Company believes that it can enhance
          its opportunities to acquire or merge with an operating company if its
          securities are listed on the Bulletin Board. There can be no assurance
          that the Company's securities will be listed on the Bulletin Board.

          Liquidity and Capital Resources.  As of June 30, 2001, the Company had
          assets  consisting of $108 in cash. This compares to assets of $683 in
          cash for the fiscal  year ended  December  31,  2000.  The Company can
          provide  no  assurance  that  it can  continue  to  satisfy  its  cash
          requirements for at least the next twelve months.



                                                                         Page 7.
<PAGE>





                           PART II - OTHER INFORMATION

Item 1. Legal Proceedings.  To the best knowledge of the officers and directors,
the Company is not party to any legal proceeding or litigation.

Item 2. Changes in Securities. None

Item 3. Defaults Upon Senior Securities. None.

Item 4. Submission of Matters to a Vote of Security Holders. None.

Item 5. Other Information. None.

Item 6. Exhibits and Reports on Form 8-K.

          (a)  Exhibits.                None

          (b)  Reports on Form 8-K.     None.


                                                                         Page 8.
<PAGE>


                                   SIGNATURES

In accordance  with the  requirements  of the Exchange Act, the  registrant  has
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

Date: July 26, 2001

                                                 MORLEX, INC.

                                              By: /s/ Lawrence Kaplan
                                                  ------------------------------
                                                  Lawrence Kaplan, President and
                                                  Principal Accounting Officer







                                                                         Page 9.
<PAGE>