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                     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 September 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 September 30, 2002.




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<CAPTION>
                                  MORLEX, INC.


                                    - INDEX -


PART I- FINANCIAL INFORMATION:
<S>                                                                                                <C>
                                                                                                 Page(s)
Item 1.  Financial Statements:

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

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

         Statements of Cash Flows  (unaudited) for the cumulative  period during
         the development stage (January 1, 2000 to September 30, 2002) and the
         nine months ended September 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.

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                                                                          Page 2
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<CAPTION>


                                                                       PART 1

ITEM 1.  FINANCIAL INFORMATION:

                                  MORLEX, INC.
                                  ------------
                          (A DEVELOPMENT STAGE COMPANY)
                                 BALANCE SHEETS
                                 --------------


                                                                                             September 30, 2002   December 31, 2001
                                                                                             ------------------- ------------------
                                                                                                 (UNAUDITED)
                                   - ASSETS -
<S>                                                                                                 <C>                  <C>

CURRENT ASSETS:
     Cash                                                                                    $            610     $            145
                                                                                             ----------------     ----------------

TOTAL ASSETS                                                                                 $            610     $            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                                                                       383,798              370,798
     Accumulated deficit                                                                             (341,027)            (341,027)
     Deficit accumulated during the development stage                                                 (44,411)             (31,876)
     Treasury stock, at par - 221,605 shares                                                             (222)                (222)
                                                                                             -----------------    -----------------
                                                                                                         (890)              (1,355)
                                                                                             -----------------    -----------------

                                                                                             $            610     $            145
                                                                                             ================     ================

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                             See accompanying notes.
                                                                          Page 3
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                                  MORLEX, INC.
                                --------------
                          (A DEVELOPMENT STAGE COMPANY)
                            STATEMENTS OF OPERATIONS
                           --------------------------
                                  (UNAUDITED)


                                   CUMULATIVE DURING THE
                                    DEVELOPMENT STAGE
                                    (JANUARY 1, 2000
                                           TO               For the Three Months Ended       For The Nine Months Ended
                                    SEPTEMBER 30, 2002)          September 30,                    September 30,
                                                              2002             2001             2002            2001
                                    -------------------    ------------    -------------     ------------    ------------

REVENUES                                   $          -     $         -     $          -      $         -     $         -
                                    -------------------    ------------    --------------     ------------    -----------
<S>                                      <C>                    <C>                 <C>            <C>              <C>

COSTS AND EXPENSES:
     Professional fees                            36,398           6,750            1,250            9,552           6,768
     Filing fees                                   5,209             359               -               821           1,583
     Other expenses                                2,804             652               60            2,162             184
                                    --------------------    ------------    -------------     ------------    ------------

                                                  44,411           7,761            1,310           12,535           8,535
                                    --------------------    ------------    -------------     ------------    ------------

NET LOSS                                   $     (44,411)   $     (7,761)   $      (1,310)    $    (12,535)   $     (8,535)
                                     ===================   =============   ==============    =============   =============


LOSS PER SHARE - BASIC AND DILUTED         $       (.06)    $      (.01)    $           -     $      (.02)    $       (.01)
                                     ===================    ============    ==============    ============    =============

WEIGHTED AVERAGE NUMBER OF COMMON
   SHARES OUTSTANDING                            750,160         750,160          750,160          750,160         750,160
                                     ===================    ============    ==============    ============    =============
</TABLE>
                     See accompanying notes.

                                                                          Page 4
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                                  MORLEX, INC.
                                 -------------
                          (A DEVELOPMENT STAGE COMPANY)
                            STATEMENTS OF CASH FLOWS
                            ------------------------
                                   (UNAUDITED)

                                                                    CUMULATIVE DURING THE
                                                                      DEVELOPMENT STAGE                For the Nine Months Ended
                                                                       (JANUARY 1, 2000                     September 30,
                                                                              TO                 ---------------------------------
                                                                     SEPTEMBER 30, 2002)               2002              2001
                                                                     -----------------           --------------     --------------
<S>                                                                               <C>                   <C>               <C>

CASH FLOWS FROM OPERATING ACTIVITIES:

     Net loss                                                        $         (44,411)          $      (12,535)    $       (8,535)


Changes in assets and liabilities:

     Increase in accrued expenses                                                   20                       -               2,500
                                                                     -----------------           --------------     --------------

        NET CASH USED BY OPERATING ACTIVITIES                                  (44,391)                 (12,535)            (6,035)
                                                                     ------------------          ---------------    ---------------


CASH FLOWS FROM FINANCING ACTIVITIES:

     Capital contributed                                                        41,900                   13,000              5,400
                                                                     -----------------           --------------     --------------

        NET CASH PROVIDED BY FINANCING ACTIVITIES                               41,900                   13,000              5,400
                                                                     -----------------           --------------     --------------


NET (DECREASE) INCREASE IN CASH                                                 (2,491)                     465               (635)

     Cash at beginning of period                                                 3,101                      145                683
                                                                     -----------------           --------------     --------------

CASH AT END OF PERIOD                                                $             610           $          610     $           48
                                                                     =================           ==============     ==============

</TABLE>
                     See accompanying notes.
                                                                          Page 5
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                                  MORLEX, INC.
                                --------------
                          (A DEVELOPMENT STAGE COMPANY)
                 NOTE TO INTERIM CONDENSED FINANCIAL STATEMENTS
                 ----------------------------------------------
                               SEPTEMBER 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 an aggregate deficit of
$385,438 as of  September  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 September 30, 2002 and
the results of its operations for the three and nine months ended  September 30,
2002 and 2001 and its cash flows for the nine months  ended  September  30, 2002
and 2001 and for the cumulative  period during the development stage (January 1,
2000 to September 30, 2002).

         The results of operations for the three and nine months ended September
30, 2002 are not  necessarily  indicative  of the results to be expected for the
full year.


                                                                          Page 6
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ITEM 2.           MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

         The Company incurred a net loss of $7,761 and $12,535 for the three and
nine months ended September 30, 2002, respectively.  Combined with the fact that
the Company  has  virtually  no working  capital  and an  aggregate  accumulated
deficit of $385,438 as of September 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 September 30, 2002, the Company
         -------------------------------
had assets  consisting of $610 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
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                          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.

     On August 30,  2002  Lawrence  E.  Kaplan  resigned  as a  director  of the
Company.  On September  1, 2002  Lawrence E. Kaplan  resigned as  President  and
Treasurer of the Company.

     In August,  2002,  Lawrence E. Kaplan, the former President,  Treasurer and
director of the  Company,  was  indicted  by a federal  grand jury on charges of
securities and mail fraud related to alleged securities violations in connection
with the initial public offerings of four companies  (United States vs. Lawrence
Kaplan, et. al., 02 Crim. 986 (SDNY)).


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

   (a) Exhibits.

      SEE EXHIBIT 99.1

   (b) Reports on Form 8-K. None.





                                                                          Page 8
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                                   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.


Date: March 25, 2003                              Morlex, Inc.


                                                  By: /S/ STEVEN J. GOODMAN
                                                      ---------------------
                                                      Steven J. Goodman
                                                      Secretary

                                 CERTIFICATIONS

I, Steven J. Goodman, certify that:

         1. I have  reviewed  this  quarterly  report on Form  10-QSB of Morlex,
Inc.;

         2. Based on my knowledge,  this  quarterly  report does not contain any
untrue  statement of a material fact or omit to state a material fact  necessary
to make the  statements  made,  in light of the  circumstances  under which such
statements  were made, not misleading with respect to the period covered by this
quarterly report; and

         3. Based on my knowledge, the financial statements, and other financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report.

Date: March 25, 2003
                                    /s/ Steven J. Goodman
                                  -----------------------------
                                  Steven J. Goodman
                                  Secretary, Principal Executive Officer
                                  and Principal Financial Officer





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