U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

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

                  For the quarterly period ended March 31, 2001

            [ ] 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 May 10, 2001.



<PAGE>


                                  MORLEX, INC.


                                    - INDEX -


PART I- FINANCIAL INFORMATION:
                                                                         Page(s)
Item 1. Financial Statements:

        Balance Sheets - March 31, 2001 (unaudited) and December 31, 2000   3.

        Statements of Operations (unaudited) for the three months ended
        March 31, 2001 and 2000                                             4.

        Statements of Cash Flows (unaudited) for the three months ended
        March 31, 2001 and 2000                                             5.

        Notes 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.




<PAGE>

                                  MORLEX, INC.
                          (A Development Stage Company)
                                 BALANCE SHEETS


<TABLE>
<CAPTION>
                                                                           March 31,   December 31,
                                                                             2001         2000
                                                                           ---------    ---------
                                                                          (unaudited)
<S>                                                                        <C>          <C>
                                             - ASSETS -

CURRENT ASSETS:
     Cash                                                                  $     438    $     683
                                                                           ---------    ---------

TOTAL ASSETS                                                               $     438    $     683
                                                                           =========    =========


                            - LIABILITIES AND SHAREHOLDERS' (DEFICIT) -


CURRENT LIABILITIES:
     Accrued expenses                                                      $   5,500    $   1,500
                                                                           ---------    ---------

TOTAL CURRENT LIABILITIES                                                      5,500        1,500
                                                                           ---------    ---------

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' (DEFICIT):
     Common stock, $.001 par value; 1,000,000 shares authorized, 971,765
       shares issued and outstanding in 2001 and 2000                            972          972
     Additional paid-in capital                                              358,398      358,398
     Accumulated deficit                                                    (341,027)    (341,027)
     Deficit accumulated during the development stage                        (23,183)     (18,938)
     Treasury stock, at par - 221,605 shares                                    (222)        (222)
                                                                           ---------    ---------
                                                                              (5,062)        (817)
                                                                           ---------    ---------

                                                                           $     438    $     683
                                                                           =========    =========
</TABLE>


                             See accompanying notes.

                                                                         Page 3.

<PAGE>


                                  MORLEX, INC.
                          (A Development Stage Company)
                            STATEMENTS OF OPERATIONS
                                   (unaudited)


<TABLE>
<CAPTION>
                                                    Cumulative During the
                                                      Development Stage      For the Three Months Ended
                                                      (January 1, 2000                March 31,
                                                             to               -------------------------
                                                       March 31, 2001)          2001             2000
                                                       --------------         ---------       ---------
<S>                                                          <C>                  <C>             <C>
REVENUES                                                  $    --             $    --         $    --
                                                          ---------           ---------       ---------
COSTS AND EXPENSES:
     Professional fees                                       19,738               4,000           2,411
     Filing fees                                              2,956                 184             794
     Other expenses                                             489                  61            --
                                                          ---------           ---------       ---------

                                                             23,183               4,245           3,205
                                                          ---------           ---------       ---------

NET LOSS                                                  $ (23,183)          $  (4,245)      $  (3,205)
                                                          =========           =========       =========

LOSS PER SHARE - BASIC AND DILUTED                        $    (.02)          $    --         $    --
                                                          =========           =========       =========

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING        971,765             971,765         971,765
                                                          =========           =========       =========
</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      For the Three Months Ended
                                                      (January 1, 2000                March 31,
                                                             to               -------------------------
                                                       March 31, 2001)          2001             2000
                                                       --------------         ---------       ---------
<S>                                                       <C>                  <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:

     Net loss                                             $(23,183)            $(4,245)        $(3,205)


Changes In Assets And Liabilities:

     Increase in accrued expenses                            4,020               4,000             495
                                                          --------             -------         -------

        Net cash used by operating activities              (19,163)               (245)         (2,710)
                                                          --------             -------         -------


CASH FLOWS FROM FINANCING ACTIVITIES:

     Capital contributed                                    16,500                --              --
                                                          --------             -------         -------

        Net cash provided by financing activities           16,500                --              --
                                                          --------             -------         -------


NET DECREASE IN CASH                                        (2,663)               (245)         (2,710)

     Cash at beginning of period                             3,101                 683           3,101
                                                          --------             -------         -------

CASH BALANCE AT END OF PERIOD                             $    438             $   438         $   391
                                                          ========             =======         =======
</TABLE>


                             See accompanying notes.

                                                                         Page 5.



<PAGE>


                                  MORLEX, Inc.
                          (a Development Stage Company)
                 NOTE TO INTERIM CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE 1 -  DESCRIPTION OF COMPANY AND GOING CONCERN UNCERTAINTY:

          Morlex,  Inc.,  the Company,  was  incorporated  under the laws of the
          State of  Colorado  on April 23,  1986.  The  primary  activity of the
          Company was to seek merger or acquisition candidates. In January 1987,
          the Company,  in a  stock-for-stock  exchange acquired America OnLine,
          Inc.,  a then  wholly-owned  subsidiary  of  Info  Source  Information
          Service, Inc. The Company  simultaneously  changed its name to America
          OnLine,  Inc.  ("AOL  #1").  AOL  #1 was  never  affiliated  with  the
          well-known company of the same name. On December 28, 1992, the Company
          terminated  the  business  of AOL #1 and  has had no  active  business
          operations since. On May 15, 1998, the name of the Company was changed
          back to Morlex,  Inc.  The  Company  is  currently  seeking  potential
          business opportunities.

          As shown in the financial statements, the Company incurred net losses,
          has negative working capital and has accumulated a deficit of $364,210
          as  of  March  31,  2001.  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.

          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  which  was filed  with the  Securities  and  Exchange
          Commission  and which is  incorporated  herein by reference.  Specific
          reference is made to this report for a  description  of the  Company's
          securities and the notes to the financial statements included therein.

          These  financial  statements have been prepared in accordance with the
          rules for Form 10-QSB and  therefore  may not contain all  disclosures
          required by generally accepted accounting principles.

          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
          March 31,  2001 and the results of its  operations  and its cash flows
          for the three month  periods ended March 31, 2001 and 2000 and for the
          cumulative  period during the  development  stage  (January 1, 2000 to
          March 31, 2001).

          The results of operations  for the three month periods ended March 31,
          2001 and 2000 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 $ 4,245 for the three months ended
          March 31, 2001.  Combined with the fact that the Company has virtually
          no working capital and an accumulated  deficit of $364,210 as of March
          31, 2001, 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.

          The Company filed,  on June 14, 1999, a Registration  Statement  under
          the  Securities  Exchange Act of 1934 (the  "Exchange  Act"),  on Form
          10-SB,  pursuant  to which the Company  sought to register  its Common
          Stock  under the  Exchange  Act.  The  Registration  Statement  became
          effective on August 14, 1999. The Company believes that it can enhance
          its opportunities to acquire or merge with an operating company if its
          securities are listed on the Bulletin Board. There can be no assurance
          that the Company's securities will be listed on the Bulletin Board.

          Liquidity and Capital Resources. As of March 31, 2001, the Company had
          assets  consisting of $438 in cash. This compares to assets of $683 in
          cash for the fiscal year ended December 31, 2000.

          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 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

In accordance  with the  requirements  of the Exchange Act, the  registrant  has
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

Date: May 10, 2001

                                                 MORLEX, INC.

                                                 By: /s/ Lawrence Kaplan
                                                    Lawrence Kaplan, President



                                                                         Page 9.