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 March 31, 2000

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

                        For the transition period from to

                         Commission file number 0-14962

                                  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)

         P.O. Box 3755, Englewood, CO                         80155
         (Address of principal executive offices              (Zip Code)

         Issuer's telephone number, including area code: (303) 699-8784
                                                         --------------
                                    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: 389,200,000 shares of
Common Stock, par value $ .0001 per share, outstanding as of May 10, 2000.


<PAGE>

                                   FORM 10-QSB

                       FINANCIAL STATEMENTS AND SCHEDULES
                                  MORLEX, INC.

                      For the Quarter ended March 31, 2000

         The following financial statements and schedules of the registrant and
its consolidated subsidiaries are submitted herewith:


                          PART I- FINANCIAL INFORMATION
<TABLE>
<CAPTION>

                                                                                  Page of
                                                                                  Form 10-QSB
<S>                                                                               <C>
                                                                                  ------------
Item 1.  Financial Statements:

Balance Sheets - March 31, 2000 (unaudited) and
December 31, 1999                                                                       3

Statement of Stockholders' Equity (unaudited) as at March 31, 2000 and
December 31, 1999 and 1998                                                              4

Statements of Operations (unaudited) for the three months ended
March 31, 2000 and 1999                                                                 5

Statement of Cash Flows (unaudited) for the three months ended
March 31, 2000 and 1999                                                                 6

Notes to Financial Statements                                                           7

Item 2.  Management's Discussion and Analysis or Plan of Operation                      8
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                   REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

<PAGE>
                                  MORLEX, INC.

                         (FORMERLY AMERICA ONLINE, INC.)

                                  BALANCE SHEET
<TABLE>
<CAPTION>

                                                                       March 31            December 31
                                                                         2000                 1999
                                                                      (Unaudited)

                                     ASSETS
<S>                                                                   <C>                  <C>
CURRENT ASSETS
     Cash                                                              $     391           $    3,101
                                                                       =========           ==========
                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
     Accrued expenses                                                  $   1,975           $    1,480
                                                                       ---------           ----------
         TOTAL LIABILITIES                                                 1,975                1,480
                                                                       ---------           ----------
STOCKHOLDERS' EQUITY
         Common stock, $.0001 par value
          1,000,000,000 shares authorized; 389,200,000
           shares issued and outstanding                                  38,920               38,920
         Additional paid-in capital                                      303,728              303,728
         Deficit                                                        (344,232)            (341,027)
                                                                       ---------           ----------
         TOTAL STOCKHOLDERS' EQUITY                                       (1,584)               1,621
                                                                       ---------           ----------
         TOTAL LIABILITIES AND
           STOCKHOLDERS' EQUITY                                        $     391           $    3,101
                                                                       =========           ==========
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<PAGE>
                                  MORLEX, INC.

                         (FORMERLY AMERICA ONLINE, INC.)

                        STATEMENT OF STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
                                                                               Additional                     Total
                                                     Common Stock               Paid in                    Stockholders'
                                                  Shares        Amount          Capital        Deficit        Equity
<S>                                           <C>             <C>             <C>            <C>             <C>
Balance, December 31, 1997                    125,680,000     $ 12,568        $ 291,728      $( 304,296)     $       0

Issuance of common stock                      188,520,000       18,852                0               0         18,852

Capital contributed                                     0            0            7,000               0          7,000

Net loss for the year

  ended December 31, 1998                               0            0                0       (  22,664)      ( 22,664)
                                              -----------     --------        ---------      ---------       ---------

Balance, December 31, 1998                    314,200,000       31,420          298,728        (326,960)         3,188

Capital contributed                                     0            0            5,000               0          5,000

Issuance of common stock                       75,000,000        7,500                0               0          7,500

Net loss for the year ended

   December 31, 1999                                    0            0                0       (  14,067)      ( 14,067)
                                              -----------     --------        ---------      ----------      ---------

Balance, December 31, 1999                    389,200,000       38,920          303,228        (341,027)         1,621

Net loss for the three months

   ended March 31, 2000 (unaudite                       0            0                0      (    3,205)      (  3,205)
                                              -----------     --------        ---------      ----------      ---------

Balance, March 31, 2000 (unaudited)           314,200,000     $ 38,920        $ 303,728       $(344,232)     $(  1,584)
                                              ===========     ========        =========      ==========      =========
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<PAGE>
                                  MORLEX, INC.

                         (FORMERLY AMERICA ONLINE, INC.)

                             STATEMENT OF OPERATIONS

                                   (UNAUDITED)

                                                           For The Three
                                                            Months Ended
                                                              March 31,
                                                       2000             1999

REVENUE                                                NONE             NONE

EXPENSES
         Professional                             $   2,411        $   1,223
         Consulting                                       0                0
         General and                                      0               95
         Filing and transfer fees                       794            1,768
                                                  ---------        ---------
         TOTAL                                        3,205            3,086
                                                  ---------        ---------

NET LOSS                                          $(  3,205)       $(  3,086)
                                                  =========        =========

LOSS PER SHARE:
   Net loss per share                             $     NIL        $     NIL
                                                  =========        =========

WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING                    389,200,000       314,200,000
                                                ===========       ===========
<PAGE>
                                  MORLEX, INC.

                         (FORMERLY AMERICA ONLINE, INC.)

                             STATEMENT OF CASH FLOWS

                                   (UNAUDITED)

                                                           For The Three
                                                            Months Ended
                                                             March 31,
                                                       2000             1999

CASH FLOWS FROM OPERATING ACTIVITIES
         Net loss                                  $( 3,205)        $( 3,086)
         Increase in accrued expense                    495            1,585
                                                   --------         --------
NET CASH USED BY OPERATING ACTIVITIES               ( 2,710)        (  1,501)

CASH FLOWS FROM FINANCING ACTIVITIES
         Capital contributed                              0            1,000
         Shareholder advances                             0                0
                                                   --------         --------

NET CASH PROVIDED BY FINANCING ACTIVITIES                 0            1,000
                                                   --------         --------

NET INCREASE (DECREASE) IN CASH                    (  2,710)          (  501)

BEGINNING CASH BALANCE                                3,101            3,664
                                                   --------         --------
ENDING CASH BALANCE                                $    391         $  3,163
                                                   ========         ========
<PAGE>
                                  MORLEX, INC.

                         (FORMERLY AMERICA ONLINE, INC.)

                          NOTES TO FINANCIAL STATEMENTS

                             MARCH 31, 2000 AND 1999

                                   (UNAUDITED)

NOTE 1:  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

These financial statements have been prepared in accordance with generally
accepted accounting principles for interim financial information and pursuant to
the rules and regulations of the Securities and Exchange Commission.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments (consisting of normal accruals)
considered necessary for fair presentation have been included. The unaudited
financial statements should be read in conjunction with the financial statements
and footnotes thereto included in the Company's Annual Report on Form 10-KSB for
the year ended December 31, 1999.

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

         The Company incurred a net loss of $ 3,205 for the three months ended
March 31, 2000. Combined with the fact that the Company has virtually no working
capital and an accumulated deficit of $344,232, it is management's assertion
that these circumstances may hinder the Company's ability to continue as a going
concern.

         The Company completed two private placements of its Common Stock, par
value $.0001 per share, in December 1997 and July 1998. In December 1997,
Charles T. Gould, a director and the Company's President, purchased 35,970,000
shares of Common Stock in exchange for the cancellation of $49,191 of
indebtedness of the Company to Mr. Gould. In August 1998, Steven J. Goodman and
Lawrence E. Kaplan, both directors of the Company, each purchased 94,260,000
shares of Common Stock in exchange for $3,000 each in cash and $6,246 each in
previous services rendered, or an aggregate of 188,520,000 shares of Common
Stock with an aggregate purchase price of $6,000 in cash and $12,852 in previous
services rendered. The Company currently has virtually no cash or other assets.

         On August 16, 1999, Steven J. Goodman, Lawrence Kaplan and Charles T.
Gould, each directors and major shareholders of the Company, each purchased
25,000,000 shares of Common Stock in exchange for $2,500 each in cash previously
advanced to the Company.

         Plan of Operation. The Company has not realized any revenues from
operations in the past two fiscal years, and its plan of operation for the next
twelve months shall be to continue its efforts to locate suitable acquisition
candidates. The Company can provide no assurance that it can continue to satisfy
its cash requirements for at least the next twelve months.

         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, and now the
Company intends to seek a listing of its common stock on the Nasdaq OTC Bulletin
Board. 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 March 31, 2000, the Company had
assets consisting of $391 in cash. This compares to assets of $3,101 in cash for
the fiscal year ended December 31, 1999.

         Results of Operations. The Company has not conducted any active
operations in the past two fiscal years, except for its efforts to locate
suitable acquisition transactions. No revenue has been generated by the Company
during such two-year period. 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.

<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)      Exhibit No.                        Description
                  27.1                               Financial Data Schedule

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


<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: May 10, 2000

                                                 MORLEX, INC.

                                                 By:  /s/ Lawrence Kaplan
                                                      --------------------------
                                                      Lawrence Kaplan, President