| Colorado                                                |   | 84-1028977                            |
|---------------------------------------------------------|--------|---------------------------------------|
| (State                or other jurisdiction of          |   | (I.R.S.                employer       |
| incorporation                or organization)           |   | identification                number) |
|                                                    |   |                                  |
| c/o                Resource Management Partners, Inc.   |   |                                  |
| 1690                Washington Avenue                   |   |                                  |
| Bohemia,                NY                              |   | 11716                                 |
| (Address                of principal executive offices) |   | (Zip                Code)             |

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**MORLEX,      INC.**

**-      INDEX -**

| **PART                I - FINANCIAL INFORMATION**:                                                                                                              |   |  Page |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|
|                                                                                                                                                            |   |       |
| Item                1. Unaudited Financial Statements                                                                                                           |   |       |
|                                                                                                                                                            |   |       |
| Condensed                Balance Sheet as of September 30, 2006                                                                                                 |   | 2          |
|                                                                                                                                                            |   |       |
| Condensed                Statements of Operations for the three months and nine months endedSeptember                30, 2006 and 2005 and the Cumulative       |   | 3          |
| Period                During the Development Stage (January 1, 2000 to September 30,                2006)                                                       |   |       |
|                                                                                                                                                            |   |       |
| Condensed                Statement of Changes in Shareholders’ Equity (Deficit) for the Period                Ended                September 30, 2006     |   | 4          |
|                                                                                                                                                            |   |       |
| Condensed                Statements of Cash Flows for the nine months ended September 30,                2006 and                2005 and the Cumulative Period |   | 5          |
| During                the Development Stage (January 1, 2000 to September 30,                2006)                                                              |   |       |
|                                                                                                                                                            |   |       |
| Notes                to Condensed Financial Statements                                                                                                          |   | 6          |
|                                                                                                                                                            |   |       |
| Item                2. Management's Discussion and Analysis or Plan of                Operation                                                                 |   | 8          |
|                                                                                                                                                            |   |       |
| Item                3. Controls and Procedures                                                                                                                  |   | 8          |
|                                                                                                                                                            |   |       |
| **PART                II - OTHER INFORMATION**:                                                                                                                 |   |       |
|                                                                                                                                                            |   |       |
| Item                1. Legal Proceedings                                                                                                                        |   | 9          |
|                                                                                                                                                            |   |       |
| Item                2. Unregistered Sales of Equity Securities and Use of Proceeds                                                                              |   | 9          |
|                                                                                                                                                            |   |       |
| Item                3. Defaults Upon Senior Securities                                                                                                          |   | 9          |
|                                                                                                                                                            |   |       |
| Item                4. Submission of Matters to a Vote of Security Holders                                                                                      |   | 9          |
|                                                                                                                                                            |   |       |
| Item                5. Other Information                                                                                                                        |   | 9          |
|                                                                                                                                                            |   |       |
| Item                6. Exhibits and Reports on Form 8-K                                                                                                         |   | 9          |
|                                                                                                                                                            |   |       |
| Signatures                                                                                                                                                      |   | 11         |

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**PART      I - FINANCIAL INFORMATION**

**Item      1. Unaudited Financial Statements.**

**MORLEX,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**CONDENSED      BALANCE SHEET**

|                                                                            |   | **September                30,** |     |
|---------------------------------------------------------------------------------|--------|----------------------------------|----------|
|                                                                            |   | **2006**                         |     |
| **Assets**                                                                      |   |                             |     |
| Current                assets:                                                  |   |                             |     |
| Cash                                                                            |   | $                                | 3,326    |   |
|                                                                            |   |                             |     |   |
| Total                assets                                                     |   | $                                | 3,326    |   |
| **Liabilities                and Stockholders' Equity**                         |   |                             |     |   |
| Current                liabilities:                                             |   |                             |     |   |
| Accrued                expenses                                                 |   | $                                | 2,273    |   |
| Total                current liabilities                                        |   |                             | 2,273    |   |
|                                                                            |   |                             |     |   |
| Commitments                and contingencies                                    |   |                             |     |   |
|                                                                            |   |                             |     |   |
| **Stockholders'                Equity**                                         |   |                             |     |   |
| Common                Stock, $0.001 par value; 1,000,000,000 shares authorized; |   |                             |     |   |
| 1,251,765                shares issued and outstanding as of September 30, 2006 |   |                             | 1,252    |   |
| Additional                paid-in capital                                       |   |                             | 430,518  |   |
| Accumulated                deficit                                              |   |                             | (341,027 | ) |
| Deficit                accumulated during the development stage                 |   |                             | (89,468  | ) |
| Treasury                stock, at per - 221,605 shares                          |   |                             | (222     | ) |
| Total                stockholders' equity                                       |   |                             | 1,053    |   |
|                                                                            |   |                             |     |   |
| Total                liabilities and stockholders' equity                       |   | $                                | 3,326    |   |

----

**MORLEX,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**CONDENSED      STATEMENTS OF OPERATIONS**

|                                                                |   | **Three                Months Ended September 30,** |                                                                                                                                                   | **Nine                Months Ended September 30,** |   | **Cumulative                During the Development Stage (January 1, 2000 to September 30,                2006)** |   |
|---------------------------------------------------------------------|--------|-----------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|--------|
|                                                                |   | **2005**                                            |                                                                                                                                                   | **2006**                                           |   | **2005**                                                                                                          |   | **2006** |   |   |   |
|                                                                |   |                                                |                                                                                                                                                   |                                               |   |                                                                                                              |   |   |   |   |   |
| Revenues                                                            |   | $                                                   | -                                                                                                                                                      |                                               | $      | -                                                                                                                 |   | $ | - |   | $ | - |   | $ | - |   |
|                                                                |   |                                                |                                                                                                                                                   |                                               |   |                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| Costs                and expenses:                                  |   |                                                |                                                                                                                                                   |                                               |   |                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| Professional                fees                                    |   |                                                | -                                                                                                                                                      |                                               |   | 5,827                                                                                                             |   |   | 3,878 |   |   | 11,105 |   |   | 73,783 |   |
| Filing                fees                                          |   |                                                | -                                                                                                                                                      |                                               |   | 1,415                                                                                                             |   |   | - |   |   | 3,328 |   |   | 14,201 |   |
| Other                expenses                                       |   |                                                | 30                                                                                                                                                     |                                               |   | 30                                                                                                                |   |   | 90 |   |   | 217 |   |   | 1,484 |   |
| Total                costs and expenses                             |   |                                                | 30                                                                                                                                                     |                                               |   | 7,272                                                                                                             |   |   | 3,968 |   |   | 14,650 |   |   | 89,468 |   |
|                                                                |   |                                                |                           |                                               |   |                                             |   |   |                     |   |   |                   |   |   |                  |   |
| Net                loss                                             |   | $                                                   | (30                                                                                                                                                    | )                                                  | $      | (7,272                                                                                                            | )      | $ | (3,968 | ) | $ | (14,650 | ) | $ | (89,468 | ) |
|                                                                |   |                                                |                                                                                                                                                   |                                               |   |                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| Net                loss per share - basic and diluted               |   | $                                                   | (0.00                                                                                                                                                  | )                                                  | $      | (0.01                                                                                                             | )      | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.12 | ) |
|                                                                |   |                                                |                                                                                                                                                   |                                               |   |                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| Weighted                average number of common shares outstanding |   |                                                | 750,160                                                                                                                                                |                                               |   | 989,300                                                                                                           |   |   | 750,160 |   |   | 904,712 |   |   | 767,332 |   |

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**MORLEX,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**CONDENSED      STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICIT)**

**For      the period ended September 30, 2006**

|                                             |   |   |                            |   |   |              |   |   |                          |   |   | **Deficit **        |   |   |            |   |   |                                   |   |
|--------------------------------------------------|--------|--------|---------------------------------|--------|--------|-------------------|--------|--------|-------------------------------|--------|--------|-------------------------------|--------|--------|-----------------|--------|--------|----------------------------------------|--------|
|                                             |   |   |                            |   |   |              |   |   |                          |   |   | **Accumulated**          |   |   |            |   |   |                                   |   |
|                                             |   |   |                            |   |   | **Additional**    |   |   |                               |   |   | **During                the** |   |   |            |   |   | **Total**                              |   |
|                                             |   |   | **Common                Stock** |   |   | **Paid-In**  |   |   | **Accumulated**               |   |   | **Development**               |   |   | **Treasury**    |   |   | **Shareholders                Equity** |   |
|                                             |   |   | **Number**                      |   |   | **Amount**        |   |   | ** Capital **  |   |   | **Deficit **        |   |   | **Stage**  |   |   | **Stock **                   |   |   | ** (Deficit) **  |   |
|                                             |   |   |                            |   |   |              |   |   |                          |   |   |                          |   |   |            |   |   |                                   |   |   |   |   |
| **Balance                at December 31, 2005**  |   |   | 971,765                         |   | $      | 972               |   | $      | 399,798                       |   | $      | (341,027                      | )      | $      | (74,818         | )      | $      | (222                                   | )      | $ | (15,297 | ) |
|                                             |   |   |                            |   |   |              |   |   |                          |   |   |                          |   |   |            |   |   |                                   |   |   |   |   |
| Issuance                of common stock          |   |   | 280,000                         |   |   | 280               |   |   | 27,720                        |   |   | -                             |   |   | -               |   |   | -                                      |   |   | 28,000 |   |
| Capital                contributed               |   |   | -                               |   |   | -                 |   |   | 3,000                         |   |   | -                             |   |   | -               |   |   | -                                      |   |   | 3,000 |   |
| Net                loss                          |   |   | -                               |   |   | -                 |   |   | -                             |   |   | -                             |   |   | (14,650         | )      |   | -                                      |   |   | (14,650 | ) |
|                                             |   |   |                            |   |   |              |   |   |                          |   |   |                          |   |   |            |   |   |                                   |   |   |   |   |
| **Balance                at September 30, 2006** |   |   | 1,251,765                       |   | $      | 1,252             |   | $      | 430,518                       |   | $      | (341,027                      | )      | $      | (89,468         | )      | $      | (222                                   | )      | $ | 1,053 |   |

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**MORLEX,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**CONDENSED      STATEMENTS OF CASH FLOWS**

|                                                                                                      |   | **Nine                Months Ended September 30,** |   | **Cumulative                During the Development Stage (January 1, 2000 to September 30,                2006)** |   |
|-----------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                      |   | **2005**                                           |   | **2006**                                                                                                          |   |   |   |
| **Operating                activities**                                                                   |   |                                               |   |                                                                                                              |   |   |   |
| Net                loss                                                                                   |   | $                                                  | (3,968 | )                                                                                                                 | $      | (14,650 | ) | $ | (89,468 | ) |
| Adjustments                to reconcile net loss to net cash used in                operating activities: |   |                                               |   |                                                                                                              |   |   |   |   |   |   |
| Accrued                expenses                                                                           |   |                                               | -      |                                                                                                              |   | (13,115 | ) |   | 793 |   |
|                                                                                                      |   |                                               |   |                                                                                                              |   |   |   |   |   |   |
| Net                cash used in operating activities                                                      |   |                                               | (3,968 | )                                                                                                                 |   | (27,765 | ) |   | (88,675 | ) |
|                                                                                                      |   |                                               |   |                                                                                                              |   |   |   |   |   |   |
| **Financing                activities**                                                                   |   |                                               |   |                                                                                                              |   |   |   |   |   |   |
| Issuance                of common stock                                                                   |   |                                               |   |                                                                                                              |   | 28,000 |   |   | 28,000 |   |
| Capital                contributed                                                                        |   |                                               | 4,000  |                                                                                                              |   | 3,000 |   |   | 60,900 |   |
|                                                                                                      |   |                                               |   |                                                                                                              |   |   |   |   |   |   |
| Net                cash provided by financing activities                                                  |   |                                               | 4,000  |                                                                                                              |   | 31,000 |   |   | 88,900 |   |
|                                                                                                      |   |                                               |   |                                                                                                              |   |   |   |   |   |   |
|                                                                                                      |   |                                               |   |                                                                                                              |   |   |   |   |   |   |
| Net                  increase in cash and cash equivalents                                                |   |                                               | 32     |                                                                                                              |   | 3,235 |   |   | 225 |   |
|                                                                                                      |   |                                               |   |                                                                                                              |   |   |   |   |   |   |
| Cash                at beginning of the period                                                            |   |                                               | 2,291  |                                                                                                              |   | 91 |   |   | 3,101 |   |
|                                                                                                      |   |                                               |   |                                                                                                              |   |   |   |   |   |   |
| Cash                at end of the period                                                                  |   | $                                                  | 2,323  |                                                                                                              | $      | 3,326 |   | $ | 3,326 |   |

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**MORLEX,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

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

**Net      Loss per Common Share**

**Fair      Value**

**NOTE      3 - Shareholders’ Equity**

**NOTE      4 - Income Taxes**

**NOTE      5 - Subsequent Events**

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

**Item      3. Controls and Procedures.**

----

**PART      II — OTHER INFORMATION**

**Item      1. Legal Proceedings. **

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

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

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

**Item      5. Other Information.**

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

|   | Exhibit    |   | Description                                                                                                                                                                                                                                                                                                                                  |
|--------|------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |       |   |                                                                                                                                                                                                                                                                                                                                         |
|   | *3.1       |   | Articles of Incorporation                                                                                                                                                                                                                                                                                                                    |
|   |       |   |                                                                                                                                                                                                                                                                                                                                         |
|   | **3.2      |   | Articles of Amendment to the Articles              of              Incorporation                                                                                                                                                                                                                                                             |
|   |       |   |                                                                                                                                                                                                                                                                                                                                         |
|   | ***3.3     |   | By-laws                                                                                                                                                                                                                                                                                                                                      |
|   |       |   |                                                                                                                                                                                                                                                                                                                                         |
|   | 31.1       |   | Certification of the Company’s Principal              Executive Officer and Principal Financial Officer pursuant to Section              302              of the Sarbanes-Oxley Act of 2002, with respect to the registrant’s              Quarterly Report on Form 10-QSB for the period ended September 30,              2006. |
|   |       |   |                                                                                                                                                                                                                                                                                                                                         |
|   | 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.                                                                               |

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| *      | 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              registration statement on Form 10-SB, as filed with the              Securities and Exchange Commission on June 14, 1999, 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. |

----

**SIGNATURES**

|                                     |                        |                                 |
|------------------------------------------|-----------------------------|--------------------------------------|
|                                     | MORLEX,              INC.   |
|                                |                   |                            |
| Date: November              1, 2006 | By:               | /s/ Donald              Barrick |
|                                     | Donald              Barrick |
|                                     | President                   |

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