| 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 September 30, 2007                                                                                 | 2      |
|                                                                                                                                  |   |
| Statements                of Operations for the Three and Nine Months Ended September 30, 2007                and                2006 | 3      |
| and                the Cumulative Period During the Development Stage                                                                 |   |
| (January                1, 2000 to September 30, 2007)                                                                                |   |
|                                                                                                                                  |   |
| Statement                of Changes in Shareholders’ Equity for the period ended September 30,                2007              | 4      |
|                                                                                                                                  |   |
| Statements                of Cash Flows for the Three and Nine Months Ended September 30, 2007                and                2006 | 5      |
| and                the Cumulative Period During the Development Stage                                                                 |   |
| (January                1, 2000 to September 30, 2007)                                                                                |   |
|                                                                                                                                  |   |
| 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                                     | 10     |
|                                                                                                                                  |   |
| 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     |

----

**PART      I - FINANCIAL INFORMATION**

**Item      1. Unaudited Financial Statements.**

**MORLEX,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**BALANCE      SHEET**

**(Unaudited)**

|                                                    |   | **September                30,** |   |
|---------------------------------------------------------|--------|----------------------------------|--------|
|                                                    |   | **2007**                         |   |
| **Assets**                                              |   |                             |   |
| Current                assets:                          |   |                             |   |
| Cash                                                    |   | $                                | 3,536  |   |
|                                                    |   |                             |   |   |
| Total                assets                             |   | $                                | 3,536  |   |
| **Liabilities                and Stockholders' Equity** |   |                             |   |   |
| Current                liabilities:                     |   |                             |   |   |

| Accrued                expenses                                                 |   |   |     |   |
|---------------------------------------------------------------------------------|--------|--------|----------|--------|
|                                                                            |   | $      | 5,565    |   |
| Total                current liabilities                                        |   |   | 5,565    |   |
|                                                                            |   |   |     |   |
| Commitments                and contingencies                                    |   |   |     |   |
|                                                                            |   |   |     |   |
| **Stockholders'                Equity**                                         |   |   |     |   |
| Common                Stock, $0.001 par value; 1,000,000,000 shares authorized; |   |   |     |   |
| 1,501,765                shares issued and 1,280,160 shares outstanding         |   |   |     |   |
| as                of September 30, 2007                                         |   |   | 1,502    |   |
| Additional                paid-in capital                                       |   |   | 460,768  |   |
| Accumulated                deficit                                              |   |   | (341,027 | )      |
| Deficit                accumulated during the development stage                 |   |   | (123,049 | )      |
| Treasury                stock, at per - 221,605 shares                          |   |   | (222     | )      |
| Total                stockholders' equity                                       |   |   | (2,028   | )      |
|                                                                            |   |   |     |   |
| Total                liabilities and stockholders' equity                       |   | $      | 3,536    |   |

----

**MORLEX,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**STATEMENTS      OF OPERATIONS**

**(Unaudited)**

|                                                  |   | **Three                Months Ended****September                30,** |         | **Nine                Months Ended****September                30,** |   | **Cumulative****During                the****Development****Stage                (January****1,                2000 to****September                30,** |   |
|-------------------------------------------------------|--------|-----------------------------------------------------------------------|--------------|----------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                  |   | **2007**                                                              |         | **2006**                                                             |   | **2007**                                                                                                                                                 |   | **2006** |   | **2007)** |   |
|                                                  |   |                                                                  |         |                                                                 |   |                                                                                                                                                     |   |   |   |   |   |
| Revenues                                              |   | $                                                                     | -            |                                                                 | $      | -                                                                                                                                                        |   | $ | - |   | $ | - |   | $ | - |   |
|                                                  |   |                                                                  |         |                                                                 |   |                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Costs                and expenses:                    |   |                                                                  |         |                                                                 |   |                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Professional                fees                      |   |                                                                  | 7,205        |                                                                 |   | 5,827                                                                                                                                                    |   |   | 19,487 |   |   | 11,105 |   |   | 101,513 |   |
| Filing                fees                            |   |                                                                  | 948          |                                                                 |   | 1,415                                                                                                                                                    |   |   | 4,237 |   |   | 3,328 |   |   | 19,929 |   |
| Other                expenses                         |   |                                                                  | 30           |                                                                 |   | 30                                                                                                                                                       |   |   | 89 |   |   | 217 |   |   | 1,608 |   |
| Total                costs and expenses               |   |                                                                  | 8,182        |                                                                 |   | 7,272                                                                                                                                                    |   |   | 23,812 |   |   | 14,650 |   |   | 123,049 |   |
|                                                  |   |                                                                  |    |                                                                 |   |                                                                                                                                                |   |   |   |   |   |   |   |   |     |   |
| Net                loss                               |   | $                                                                     | (8,182       | )                                                                    | $      | (7,272                                                                                                                                                   | )      | $ | (23,812 | ) | $ | (14,650 | ) | $ | (123,049 | ) |
|                                                  |   |                                                                  |         |                                                                 |   |                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Net                loss per share - basic and diluted |   | $                                                                     | (0.01        | )                                                                    | $      | (0.01                                                                                                                                                    | )      | $ | (0.02 | ) | $ | (0.02 | ) |   |   |   |
|                                                  |   |                                                                  |         |                                                                 |   |                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Weighted                average number of             |   |                                                                  |         |                                                                 |   |                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| common                shares outstanding              |   |                                                                  | 1,270,270    |                                                                 |   | 989,330                                                                                                                                                  |   |   | 1,220,343 |   |   | 904,712 |   |   |   |   |

----

**MORLEX,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**STATEMENT      OF CHANGES IN SHAREHOLDERS’ EQUITY**

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

**(Unaudited)**

|                                             |   | **Common                Stock** |      | **Additional****Paid-In****Capital** |   | **Accumulated                Deficit** |   | **Deficit                Accumulated During the Development Stage** |                  | **Treasury****Stock** |   | **Total                Shareholders Equity (Deficit)** |   |
|--------------------------------------------------|--------|---------------------------------|-----------|--------------------------------------|--------|----------------------------------------|--------|---------------------------------------------------------------------|----------------------------|-----------------------|--------|--------------------------------------------------------|--------|
|                                             |   | **Number**                      |      | **Amount**                           |   |
|                                             |   |                            |      |                                 |   |                                   |   |                                                                |                       |                  |   |                                                   |   |   |   |
| **Balance                at December 31, 2006**  |   |                            | 1,401,765 |                                 | $      | 1,402                                  |   | $                                                                   | 450,868                    |                  | $      | (341,027                                               | )      | $ | (99,237 | ) | $ | (222 | ) | $ | 11,784 |   |
|                                             |   |                            |      |                                 |   |                                   |   |                                                                |                       |                  |   |                                                   |   |   |   |   |   |   |   |   |   |   |
| Issuance                of common stock          |   |                            | 100,000   |                                 |   | 100                                    |   |                                                                | 9,900                      |                  |   |                                                   |   |   |   |   |   |   |   |   | 10,000 |   |
| Net                loss                          |   |                            | -         |                                 |   | -                                      |   |                                                                | -                          |                  |   | -                                                      |   |   | (23,812 | ) |   | - |   |   | (23,812 | ) |
| **Balance                at September 30, 2007** |   |                            | 1,501,765 |                                 | $      | 1,502                                  |   | $                                                                   | 460,768                    |                  | $      | (341,027                                               | )      | $ | (123,049 | ) | $ | (222 | ) | $ | (2,028 | ) |

----

**MORLEX,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**STATEMENTS      OF CASH FLOWS**

**(Unaudited)**

|                                                              |   | **Three                Months Ended****September                30,** |   | **Nine                Months Ended****September                30,** |   | **Cumulative****During                the****Development****Stage                (January****1,                2000 to****September                30,** |   |
|-------------------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|----------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                              |   | **2007**                                                              |   | **2006**                                                             |   | **2007**                                                                                                                                                 |   | **2006** |   | **2007)** |   |
| **Operating                activities**                           |   |                                                                  |   |                                                                 |   |                                                                                                                                                     |   |   |   |   |   |
| Net                loss                                           |   | $                                                                     | (8,182 | )                                                                    | $      | (7,272                                                                                                                                                   | )      | $ | (23,812 | ) | $ | (14,650 | ) | $ | (123,049 | ) |
| Adjustments                to reconcile net loss to net cash used |   |                                                                  |   |                                                                 |   |                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| in                operating activities:                           |   |                                                                  |   |                                                                 |   |                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Amount                due from former stockholder                 |   |                                                                  | -      |                                                                 |   | -                                                                                                                                                        |   |   | 5,500 |   |   | - |   |   | - |   |
| Accrued                expenses                                   |   |                                                                  | (3,807 | )                                                                    |   | (1,202                                                                                                                                                   | )      |   | (2,328 | ) |   | 13,115 |   |   | 4,085 |   |
|                                                              |   |                                                                  |   |                                                                 |   |                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Net                cash used in operating activities              |   |                                                                  | (4,376 | )                                                                    |   | (8,474                                                                                                                                                   | )      |   | (20,640 | ) |   | (1,535 | ) |   | (118,965 | ) |
|                                                              |   |                                                                  |   |                                                                 |   |                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| **Financing                activities**                           |   |                                                                  |   |                                                                 |   |                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Issuance                of common stock                           |   |                                                                  | 5,000  |                                                                 |   | 10,000                                                                                                                                                   |   |   | 10,000 |   |   | 18,000 |   |   | 53,000 |   |
| Capital                contributed                                |   |                                                                  | -      |                                                                 |   | -                                                                                                                                                        |   |   |     |   |   | 3,000 |   |   | 66,400 |   |
|                                                              |   |                                                                  |   |                                                                 |   |                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Net                cash provided by financing activities          |   |                                                                  | 5,000  |                                                                 |   | 10,000                                                                                                                                                   |   |   | 10,000 |   |   | 21,000 |   |   | 119,400 |   |
|                                                              |   |                                                                  |   |                                                                 |   |                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Net                increase (decrease) in cash and cash           |   |                                                                  |   |                                                                 |   |                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| equivalents                                                       |   |                                                                  | 624    |                                                                 |   | 1,526                                                                                                                                                    |   |   | (10,640 | ) |   | 19,465 |   |   | 435 |   |
|                                                              |   |                                                                  |   |                                                                 |   |                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Cash                at beginning of the period                    |   |                                                                  | 2,912  |                                                                 |   | 1,800                                                                                                                                                    |   |   | 14,176 |   |   | 91 |   |   | 3,101 |   |
|                                                              |   |                                                                  |   |                                                                 |   |                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Cash                at end of the period                          |   | $                                                                     | 3,536  |                                                                 | $      | 3,326                                                                                                                                                    |   | $ | 3,536 |   | $ | 19,556 |   | $ | 3,536 |   |

----

**MORLEX,      INC.**

**(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)**

**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.**

**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 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 September 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. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **** | Filed                as an exhibit to the Company’s quarterly report on Form 10-QSB, as filed                with the Securities and Exchange Commission on July 23, 2007, and                incorporated herein by this reference. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES**

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

----