| 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)             |

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**MORLEX,      INC.**

**-      INDEX -**

| **PART                I –                FINANCIAL                INFORMATION:**                                                                                                                                                             |   |   | **Page** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|
|                                                                                                                                                                                                                                                    |   |   |     |   |
| Item                1. Unaudited Financial Statements                                                                                                                                                                                                   |   |   |     |   |
|                                                                                                                                                                                                                                                    |   |   |     |   |
| Balance                Sheet as of June 30, 2007                                                                                                                                                                                                        |   |   | 2        |   |
|                                                                                                                                                                                                                                                    |   |   |     |   |
| Statements                of Operations for the Three and Six Months ended June 30, 2007 and                2006                and the Cumulative Period During the Development Stage (January 1,                2000 to                June 30, 2007) |   |   | 3        |   |
|                                                                                                                                                                                                                                                    |   |   |     |   |
| Statement                of Changes in Shareholders’ Equity for the period ended June 30,                2007                                                                                                                                     |   |   | 4        |   |
|                                                                                                                                                                                                                                                    |   |   |     |   |
| Statements                of Cash Flows for the Three and Six Months ended June 30, 2007 and                2006                and the Cumulative Period During the Development Stage (January 1,                2000 to                June 30, 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                                                                                                                                                                                                  |   |   | 10       |   |
|                                                                                                                                                                                                                                                    |   |   |     |   |
| Item                4. Submission of Matters to a Vote of Security Holders                                                                                                                                                                              |   |   | 10       |   |
|                                                                                                                                                                                                                                                    |   |   |     |   |
| Item                5. Other Information                                                                                                                                                                                                                |   |   | 10       |   |
|                                                                                                                                                                                                                                                    |   |   |     |   |
| Item                6. Exhibits                                                                                                                                                                                                                         |   |   | 10       |   |
|                                                                                                                                                                                                                                                    |   |   |     |   |
| Signatures                                                                                                                                                                                                                                              |   |   | 12       |   |

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**PART      I – FINANCIAL INFORMATION**

**Item      1. Unaudited Financial Statements.**

**MORLEX,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**BALANCE      SHEET**

**(Unaudited)**

|                                                                                                                                                                                                      |   |   | **June                  30,****2007** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------|--------|
| **Assets**                                                                                                                                                                                                |   |   |                                  |   |
| Current                assets:                                                                                                                                                                            |   |   |                                  |   |
| Cash                                                                                                                                                                                                      |   | $      | 2,912                                 |   |
| Total                assets                                                                                                                                                                               |   | $      | 2,912                                 |   |
| **Liabilities                and Stockholders' Equity**                                                                                                                                                   |   |   |                                  |   |
| Current                liabilities:                                                                                                                                                                       |   |   |                                  |   |
| Accrued                expenses                                                                                                                                                                           |   | $      | 1,758                                 |   |
| Total                current liabilities                                                                                                                                                                  |   |   | 1,758                                 |   |
|                                                                                                                                                                                                      |   |   |                                  |   |
| Commitments                and contingencies                                                                                                                                                              |   |   |                                  |   |
|                                                                                                                                                                                                      |   |   |                                  |   |
| **Stockholders'                Equity**                                                                                                                                                                   |   |   |                                  |   |
| Common                Stock, $0.001 par value; 1,000,000,000 shares authorized; 1,451,765                shares                issued and 1,230,160 shares outstanding as of June 30,                2007 |   |   | 1,452                                 |   |
| Additional                paid-in capital                                                                                                                                                                 |   |   | 455,818                               |   |
| Accumulated                deficit                                                                                                                                                                        |   |   | (341,027                              | )      |
| Deficit                accumulated during the development stage                                                                                                                                           |   |   | (114,867                              | )      |
| Treasury                stock, at per - 221,605 shares                                                                                                                                                    |   |   | (222                                  | )      |
| Total                stockholders' equity                                                                                                                                                                 |   |   | 1,154                                 |   |
| Total                liabilities and stockholders' equity                                                                                                                                                 |   | $      | 2,912                                 |   |

----

**MORLEX,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**STATEMENTS      OF OPERATIONS**

**(Unaudited)**

|                                                                                                   |   |   | **Three                Months Ended****June                30,**  |   |   | **Six                Months Ended****June                30,**  |   | **CumulativeDuring                theDevelopmentStage (January 1,2000 to June                30,**  |           |
|--------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|----------------|
|                                                                                                   |   |   | **2007**                                                          |   |   | **2006**                                                        |   |                                                                                                     | **2007**  |   |   | **2006**  |   |   | **2007)**  |   |
| Revenues                                                                                               |   | $      | -                                                                      |   | $      | -                                                                    |   | $                                                                                                        | -              |   | $ | - |   | $ | - |   |
|                                                                                                   |   |   |                                                                   |   |   |                                                                 |   |                                                                                                     |           |   |   |   |   |   |   |   |
| Costs                and expenses:                                                                     |   |   |                                                                   |   |   |                                                                 |   |                                                                                                     |           |   |   |   |   |   |   |   |
| Professional                fees                                                                       |   |   | 4,563                                                                  |   |   | 2,197                                                                |   |                                                                                                     | 12,282         |   |   | 5,278 |   |   | 94,308 |   |
| Filing                fees                                                                             |   |   | 1,601                                                                  |   |   | 900                                                                  |   |                                                                                                     | 3,289          |   |   | 1,913 |   |   | 18,981 |   |
| Other                expenses                                                                          |   |   | 30                                                                     |   |   | 153                                                                  |   |                                                                                                     | 59             |   |   | 187 |   |   | 1,578 |   |
| Total                costs and expenses                                                                |   |   | 6,194                                                                  |   |   | 3,250                                                                |   |                                                                                                     | 15,630         |   |   | 7,378 |   |   | 114,867 |   |
| Net                loss                                                                                |   | $      | (6,194                                                                 | )      | $      | (3,250                                                               | )      | $                                                                                                        | (15,630        | ) | $ | (7,378 | ) | $ | (114,867 | ) |
| Net                loss per share - basic and diluted                                                  |   | $      | (0.01                                                                  | )      | $      | (0.00                                                                | )      | $                                                                                                        | (0.01          | ) | $ | (0.01 | ) |   |   |   |
| Weighted                          average number of common shares                          outstanding |   |   | 1,209,749                                                              |   |   | 930,160                                                              |   |                                                                                                     | 1,194,955      |   |   | 862,418 |   |   |   |   |

----

**MORLEX,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**STATEMENT      OF CHANGES IN SHAREHOLDERS’ EQUITY**

**For      the period ended June 30, 2007**

**(Unaudited)**

|                                            |   |  **Common                Stock** |      |  **AdditionalPaid-In** |   |                **Accumulated** |   | **DeficitAccumulatedDuring                theDevelopment** |    | **Treasury** |   | **Total****Shareholders’****Equity** |   |
|-------------------------------------------------|--------|---------------------------------------|-----------|-----------------------------|--------|-------------------------------------|--------|------------------------------------------------------------|---------|--------------|--------|--------------------------------------------|--------|
|                                            |   | **Number**                            |      | **Amount**                  |   | **Capital**                         |   | **Deficit**                                                |    | **Stage**    |   | **Stock**                                  |   | **(Deficit)** |   |
| **Balance                at December 31, 2006** |   |                                  | 1,401,765 |                        | $      | 1,402                               |   | $                                                          | 450,868 |         | $      | (341,027                                   | )      | $ | (99,237 | ) | $ | (222 | ) | $ | 11,784 |   |
|                                            |   |                                  |      |                        |   |                                |   |                                                       |    |         |   |                                       |   |   |   |   |   |   |   |   |   |   |
| Issuance                of common stock         |   |                                  | 50,000    |                        |   | 50.0                                |   |                                                       | 4,950   |         |   |                                       |   |   |   |   |   |   |   |   | 5,000 |   |
| Net                loss                         |   |                                  | -         |                        |   | -                                   |   |                                                       | -       |         |   | -                                          |   |   | (15,630 | ) |   | - |   |   | (15,630 | ) |
| **Balance                at June 30, 2007**     |   |                                  | 1,451,765 |                        | $      | 1,452                               |   | $                                                          | 455,818 |         | $      | (341,027                                   | )      | $ | (114,867 | ) | $ | (222 | ) | $ | 1,154 |   |

----

**MORLEX,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**STATEMENTS      OF CASH FLOWS**

**(Unaudited)**

|                                                                                                      |   |                **Three                Months Ended June 30,** |   |                **Six                Months Ended June 30,** |   |  **CumulativeDuring                theDevelopmentStage (January 1,2000 to June                30,** |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|--------|------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|--------|
|                                                                                                      |   | **2007**                                                           |   | **2006**                                                         |   | **2007**                                                                                                 |   | **2006** |   | **2007)** |   |
| **Operating                activities**                                                                   |   |                                                               |   |                                                             |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Net                loss                                                                                   |   | $                                                                  | (6,194 | )                                                                | $      | (3,250                                                                                                   | )      | $ | (15,630 | ) | $ | (7,378 | ) | $ | (114,867 | ) |
| Adjustments                to reconcile net loss to net                cash used in operating activities: |   |                                                               |   |                                                             |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Amount                due from former stockholder                                                         |   |                                                               | -      |                                                             |   |                                                                                                     |   |   | 5,500 |   |   |   |   |   | - |   |
| Accrued                expenses                                                                           |   |                                                               | 258    |                                                             |   | (5,205                                                                                                   | )      |   | (6,134 | ) |   | (11,913 | ) |   | 278 |   |
| Net                cash used in operating activities                                                      |   |                                                               | (5,936 | )                                                                |   | (8,455                                                                                                   | )      |   | (16,264 | ) |   | (19,291 | ) |   | (114,589 | ) |
| **Financing                activities**                                                                   |   |                                                               |   |                                                             |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Issuance                of common stock                                                                   |   |                                                               | 5,000  |                                                             |   | 10,000                                                                                                   |   |   | 5,000 |   |   | 18,000 |   |   | 48,000 |   |
| Capital                contributed                                                                        |   |                                                               | -      |                                                             |   | -                                                                                                        |   |   |     |   |   | 3,000 |   |   | 66,400 |   |
| Net                        cash provided by financing                        activities                   |   |                                                               | 5,000  |                                                             |   | 10,000                                                                                                   |   |   | 5,000 |   |   | 21,000 |   |   | 114,400 |   |
| Net                        increase (decrease) in cash and cash                        equivalents        |   |                                                               | (936   | )                                                                |   | 1,545                                                                                                    |   |   | (11,264 | ) |   | 1,709 |   |   | (189 | ) |
|                                                                                                      |   |                                                               |   |                                                             |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Cash                at beginning of the period                                                            |   |                                                               | 3,848  |                                                             |   | 255                                                                                                      |   |   | 14,176 |   |   | 91 |   |   | 3,101 |   |
| Cash                at end of the period                                                                  |   | $                                                                  | 2,912  |                                                             | $      | 1,800                                                                                                    |   | $ | 2,912 |   | $ | 1,800 |   | $ | 2,912 |   |

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**(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**

----

**MORLEX,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

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

**NOTE      2 - Summary of Significant Accounting Policies (Continued)**

**Net      Loss per Common Share**

**Fair      Value**

**Income      Taxes**

**NOTE      3 - Shareholders’ Equity**

----

**MORLEX,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

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

**NOTE      3 - Shareholders’ Equity (Continued)**

**NOTE      4 - Income Taxes**

**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.**

*The      following information is being provided herein in lieu of in a Current Report      on      Form 8-K.*

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

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

**Item      5. Other Information.**

**Item      6. Exhibits.**

|  Exhibit |   | Description                                                                                                                                           |
|---------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
| *3.1          |   | Articles                of Incorporation.                                                                                                             |
| **3.2         |   | Amendment                to Certificate of Incorporation.                                                                                             |
| ***3.3        |   | By-laws.                                                                                                                                              |
|  10.1    |   | Common                  Stock Purchase Agreement by and between the Company and Michelle                  Kaplan,                  dated May 7, 2007. |

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| 10.2 |   | Common                  Stock Purchase Agreement by and between the Company and Michael                  Miller,                  dated July 18, 2007.                                                                                                                                                                                            |
|------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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 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                  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**

|                                           |                      |                              |
|------------------------------------------------|---------------------------|-----------------------------------|
|                                           | MORLEX,              INC. |
|                                      |                 |                         |
| Dated:              July 23,              2007 | By:             | /s/                Michael Miller |
|                                           | Name:                     | Michael              Miller       |
|                                           | Title:               |  President                   |

----