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, 2002

            [ ] 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  30,  2002.

<PAGE>
<TABLE>
<CAPTION>
                                  MORLEX, INC.


                                   - INDEX -


PART  I-  FINANCIAL  INFORMATION:

                                                                                      Page(s)
<S>                                                                                     <C>
Item  1.  Financial  Statements:

     Balance  Sheets  -June  30,  2002  (unaudited) and December 31, 2001                3.

     Statements of Operations (unaudited) for the cumulative period during the
     development stage (January 1, 2000 to June 30, 2002) and the three and six
     months ended June 30, 2002 and 2001                                                 4.

     Statements of Cash Flows (unaudited) for the cumulative period during the
     development stage (January 1, 2000 to June 30, 2002) and the six months
     ended June 30, 2002 and 2001                                                        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>
                                     PART 1
                                     ------

ITEM  1.     FINANCIAL  INFORMATION:

                                  MORLEX, INC.
                                  ------------
                          (A DEVELOPMENT STAGE COMPANY)
                                 BALANCE SHEETS
                                 --------------
<TABLE>
<CAPTION>
                                                                        June 30, 2002
                                                                         (unaudited)    December 31, 2001
                                                                         ------------  -------------------
                                - ASSETS -
<S>                                                                           <C>             <C>
CURRENT ASSETS:
Cash                                                                     $       371   $              145
                                                                         ------------  -------------------

TOTAL ASSETS                                                             $       371   $              145
                                                                         ============  ===================

              - LIABILITIES AND SHAREHOLDERS' (DEFICIT) -

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

TOTAL CURRENT LIABILITIES                                                      1,500                1,500
                                                                         ------------  -------------------

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' (DEFICIT):
Common stock, $.001 par value; 1,000,000,000 shares authorized, 971,765
 shares issued in 2002 and 2001                                                  972                  972
Additional paid-in capital                                                   375,798              370,798
Accumulated deficit                                                         (341,027)            (341,027)
Deficit accumulated during the development stage                             (36,650)             (31,876)
Treasury stock, at par - 221,605 shares                                         (222)                (222)
                                                                         ------------  -------------------
                                                                              (1,129)              (1,355)
                                                                         ------------  -------------------

                                                                         $       371   $              145
                                                                         ============  ===================
</TABLE>

                            See accompanying notes.
                                                                       Page 3.
<PAGE>

                                  MORLEX, INC.
                                  ------------
                          (A DEVELOPMENT STAGE COMPANY)
                            STATEMENTS OF OPERATIONS
                            ------------------------
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                       Cumulative During
                        the Development
                             Stage
                       (January 1, 2000
                               to               For the Three Months         For The Six Months
                        June 30, 2002)             Ended June 30,              Ended June 30,
                                               2002              2001          2002        2001
                        ---------------  ----------------  ----------------  ---------  ---------
<S>                           <C>              <C>               <C>             <C>        <C>
REVENUES                $            -   $             -   $             -   $      -   $      -
                        ---------------  ----------------  ----------------  ---------  ---------

COSTS AND EXPENSES:
 Professional fees              29,648             2,802             1,518      2,802      5,518
 Filing fees                     4,850               263             1,399        462      1,583
 Other expenses                  2,152               659                63      1,510        124
                        ---------------  ----------------  ----------------  ---------  ---------

                                36,650             3,724             2,980      4,774      7,225
                        ---------------  ----------------  ----------------  ---------  ---------

NET LOSS                $      (36,650)  $        (3,724)  $        (2,980)  $ (4,774)  $ (7,225)
                        ===============  ================  ================  =========  =========


LOSS PER SHARE - BASIC
AND DILUTED             $         (.05)  $             -   $             -   $   (.01)  $   (.01)
                        ===============  ================  ================  =========  =========

WEIGHTED AVERAGE
NUMBER OF COMMON
 SHARES OUTSTANDING            750,160           750,160           750,160    750,160    750,160
                        ===============  ================  ================  =========  =========
</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
                                         (January 1, 2000
                                                 to        For the Six Months Ended
                                            June 30, 2002)         June 30,
                                                               2002        2001
                                           ---------------  ----------  --------
<S>                                             <C>            <C>         <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                   $      (36,650)  $  (4,774)  $(7,225)

Changes in assets and liabilities:
Increase in accrued expenses                           20           -     1,250
                                           ---------------  ----------  --------
NET CASH USED BY OPERATING ACTIVITIES             (36,630)     (4,774)   (5,975)
                                           ---------------  ----------  --------

CASH FLOWS FROM FINANCING ACTIVITIES:
Capital contributed                                33,900       5,000     5,400
                                           ---------------  ----------  --------
NET CASH PROVIDED BY FINANCING ACTIVITIES          33,900       5,000     5,400
                                           ---------------  ----------  --------

NET (DECREASE) INCREASE IN CASH                    (2,730)        226      (575)
Cash at beginning of period                         3,101         145       683
                                                            ----------  --------
CASH BALANCE AT END OF PERIOD              $          371   $     371   $   108
                                           ===============  ==========  ========

</TABLE>
                            See accompanying notes.
                                                                       Page 5.
<PAGE>

                                  MORLEX, INC.
                                  ------------
                          (A DEVELOPMENT STAGE COMPANY)
                 NOTE TO INTERIM CONDENSED FINANCIAL STATEMENTS
                 ----------------------------------------------
                                  JUNE 30, 2002
                                  -------------
                                   (UNAUDITED)

NOTE  1  .  DESCRIPTION  OF  COMPANY  AND  GOING  CONCERN  UNCERTAINTY.

     Morlex,  Inc.  ("the Company") was incorporated in the State of Colorado on
April  23,  1986,  as  what is commonly known as a blind pool.  In January 1987,
Morlex,  in a stock-for-stock exchange, acquired America OnLine, Inc. ("AOL#1"),
a  then  wholly  owned  subsidiary  of InfoSource Information Service, Inc.  The
Company  changed  its name from Morlex to America Online, Inc. on July 17, 1987.
AOL #1 was never affiliated with the well-known company of the same name.  Since
the  termination  of the business of the former AOL#1, the Company has been, and
is  still,  seeking  the  acquisition  of,  or merger with, an existing company.
Otherwise,  the  Company  has  had  no active business, has no employees, and is
currently  considered  a  development  stage  company.

     As  shown in the financial statements, the Company has incurred net losses,
has  negative  working  capital  and has accumulated a deficit of $377,677 as of
June 30, 2002.  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.

     These  financial statements have been prepared in accordance with the rules
for  Form  10-QSB  and  therefore  may  not  contain all disclosures required by
accounting  principles  generally accepted in the United States of America.  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 for
the  year  ended  December  31,  2001,  which  was filed with the Securities and
Exchange  Commission  and  which  is incorporated herein by reference.  Specific
reference  is  made  in this report to a description of the Company's securities
and  the  notes  to  the  financial  statements  included  therein.

     In  the opinion of management, the accompanying unaudited interim condensed
financial  statements  of  Morlex,  Inc.  contain  all  adjustments necessary to
present  fairly  the  Company's  financial  position as of June 30, 2002 and the
results  of  its operations for the three and six months ended June 30, 2002 and
2001  and its cash flows for the six months ended June 30, 2002 and 2001 and for
the  cumulative period during the development stage (January 1, 2000 to June 30,
2002).

     The  results of operations for the three and six months ended June 30, 2002
and  2001  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 incurred a net loss of $3,724 and $4,774 for the three and six
months  ended  June  30,  2002,  respectively.  Combined  with the fact that the
Company  has virtually no working capital and an accumulated deficit of $377,677
as  of  June 30, 2002, it is management's assertion that these circumstances may
hinder  the  Company's  ability  to  continue  as  a  going  concern.

     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.

     Liquidity  and  Capital  Resources.  As  of  June 30, 2002, the Company had
     -----------------------------------
assets consisting of $371 in cash. This compares to assets of $145 in cash as of
the  fiscal  year  ended  December  31,  2001.

     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  candidates.  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 7.
<PAGE>
                           PART II - OTHER INFORMATION
                           ---------------------------

ITEM  1.  LEGAL PROCEEDINGS.To the best knowledge of the officers and directors,
the  Company  is  not  a  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
                                   ----------

     Pursuant  to  the  requirements  of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused the Report to be signed on its behalf by
the  undersigned  thereunto  duly  authorized.


Dated:  July  30,  2002                    Morlex,  Inc.


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



                                                                        Page 9.