U. S. SECURITIES & EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

        [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES
                            AND EXCHANGE ACT OF 1934

                For the quarterly period ended September 30, 2003
                -------------------------------------------------

         [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE EXCHANGE
                                   ACT OF 1934
                         Commission file Number 0-29711

                               SUBJEX CORPORATION
                      (Exact name of small business issuer)

                Minnesota                              41-1596056
         (State of incorporation)      IRS Employer Identification number


                5720 Smetana Dr, Suite 325, Minnetonka, MN 55343
                    (Address of principal executive offices)

                                 (952) 931-0501
                         (Registrant's telephone number)

     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 periods 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 [ ]

The number of shares outstanding of each of the registrant's classes of capital
stock, as of September 30th, 2003: Common Stock, no par value was 28,533,145
shares.


                                      -1-
<PAGE>
SUBJEX CORPORATION INDEX

PART I.

ITEM 1. FINANCIAL STATEMENTS
                                                                         PAGE

BALANCE SHEET -                                                             3
STATEMENTS OF OPERATIONS -                                                  4
STATEMENTS OF CASH FLOWS -                                                  5

ITEM 2. CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

ITEM 3.  DISCRIPTION OF BUSINESS

ITEM 4.  DISCRIPTION OF PROPERTY

ITEM 5:  MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.

ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

PART II.

ITEM 1. LEGAL PROCEEDINGS

ITEM 2. CHANGE IN 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 FORM 8-K

ITEM 7. ATTACHED EXHIBIT:

CEO/CFO CERTIFICATION OF FINANCIAL STATEMENTS

SIGNATURES


                                      -2-
<PAGE>
<TABLE>
<CAPTION>
PART I - ITEM 1. -. FINANCIAL STATEMENTS

                                  BALANCE SHEET
                                      As of



                                              12/31/2002    9/30/2003
<S>                                          <C>           <C>
ASSETS

CURRENT ASSETS
Cash                                              28,842
Accounts Receivable                                4,630           450
Prepaid expenses                                                 4,000
                                             ------------  ------------

Total current assets                         $    33,472   $     4,450

PROPERTY AND EQUIPMENT, NET                        5,330         4,994
                                             ------------  ------------
INTANGIBLES, NET

TOTAL ASSETS                                 $    38,802   $     9,444
                                             ============  ============


LIABILITIES AND
STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Subordinated Convertible Notes Payables           23,000        23,000
Demand Notes Payable                              20,000        20,000
Notes Payable -Related Party                      51,002
Accounts Payable                                 129,469       130,361
Cash Overdraft                                                   4,797
Accrued Payroll                                  167,081       140,600
Other Accrued Expenses                            80,584        67,129
Subscribed Stock                                 133,100

                                             ------------  ------------
Total current liabilities                    $   604,236   $   385,887

LONG-TERM DEBT NET OF CURRENT
Notes Payable -Related Party                      11,529
Long term Equipment loan                                         5,402
                                             ------------  ------------
Total Liabilities                            $   615,765   $   391,289

STOCKHOLDERS' EQUITY
Common Stock, 40,000,000 shares authorized;
no par or stated value                         3,243,760     3,633,405
Accumulated deficit                           (3,820,723)   (4,015,250)

                                             ------------  ------------
TOTAL  EQUITY                                $  (576,963)  $  (381,845)
                                             ------------  ------------


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $    38,802   $     9,444
                                             ============  ============
</TABLE>


                                      -3-
<PAGE>
<TABLE>
<CAPTION>
                               SUBJEX CORPORATION
                                INCOME STATEMENT
                               THREE MONTHS ENDED


                                       9/30/2002     9/30/2003
<S>                                   <C>           <C>
REVENUES                                    1,500         5,080

COSTS AND EXPENSES
Cost of revenues earned
Selling, general and administrative        32,913        66,482
Research and development                   64,001
Asset Impairment
                                      ============  ============
Total Costs and Expenses              $    96,914   $    66,482


OPERATION INCOME (LOSS)                   (95,414)      (61,402)

OTHER INCOME (EXPENSE)
Interest expense                           (3,600)

Total Other Income and Expenses            (3,600)

NET LOSS/INCOME                       $   (99,014)  $   (61,402)
                                      ============  ============

WEIGHTED AVERAGE SHARES OUTSTANDING    16,813,476    28,533,145

                                      ============  ============
EARNINGS PER SHARE                    $     (0.01)  $     (0.00)
                                      ============  ============
</TABLE>


                                      -4-
<PAGE>
<TABLE>
<CAPTION>
                               SUBJEX CORPORATION
                                INCOME STATEMENT
                                NINE MONTHS ENDED



                                       9/30/2002     9/30/2003
<S>                                   <C>           <C>
REVENUES                                   23,500         8,867

COSTS AND EXPENSES
Cost of revenues earned
Selling, general and administrative        63,382       196,715
Research and development                  145,043
Asset Impairment
                                      ============  ============
Total Costs and Expenses              $   208,425   $   196,715


OPERATION INCOME (LOSS)                  (184,925)     (187,848)

OTHER INCOME (EXPENSE)
Interest expense                           (7,200)       (6,679)

Total Other Income and Expenses            (7,200)       (6,679)

NET LOSS/INCOME                       $  (192,125)  $  (194,527)
                                      ============  ============

WEIGHTED AVERAGE SHARES OUTSTANDING    16,813,476    28,533,145

                                      ============  ============
EARNINGS PER SHARE                    $     (0.01)  $     (0.01)
                                      ============  ============
</TABLE>


                                      -5-
<PAGE>
<TABLE>
<CAPTION>
                                    SUBJEX CORPORATION
                                 STATEMENT OF CASH FLOWS
                                    NINE MONTHS ENDED



                                                         9/30/2002          9/30/2003
<S>                                                  <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss                                             $       (188,525)  $       (194,527)
Adjustments required to reconcile net loss to
net cash required by operating activities:
Depreciation and amortization                                   2,800              5,702
(Increase) decrease in:
Accounts receivable                                            (1,378)              (450)
Prepaid Expenses                                               (1,481)               629
Increase (decrease) in:
Accounts Payable                                              (32,149)               892
Accrued other expenses                                       (101,420)           (39,936)
                                                      ---------------    ---------------
NET CASH USED IN OPERATIONS                          $       (322,153)  $       (227,690)
                                                      ---------------    ---------------

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment                                231           (5367.00)
Proceeds from long term loans                                (125,280)           (62,531)
Dell Lease                                                      6,728              5,402
                                                      ---------------    ---------------
Net Cash Used in Investing activities                $       (118,321)  $        (62,496)
                                                      ---------------    ---------------

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock and warrants           445,491            389,646
Proceeds from stock subscriptions                                       $       (133,100)
Cash Overdraft                                                                     4,798
                                                      ---------------    ---------------
Net Cash Provided by Financing Activities            $        445,491   $        261,344
                                                      ---------------    ---------------

DECREASE IN CASH AND CASH EQUIVALENTS                           5,017            (28,842)
BEGINNING CASH BALANCE                                             80             28,842
                                                      ---------------    ---------------
ENDING CASH BALANCE                                  $          5,097   $            -0-
                                                     ================   ================
</TABLE>


                                      -6-
<PAGE>
ITEM 2.  CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Statements in this discussion which are not historical facts may be considered
"forward looking statements" within the meaning of Section 21E of the Securities
Act of 1934, as amended. The words "believe", "expect", "anticipate",
"estimate", and similar expressions identify forward looking statements. Any
forward looking statement involves risks and uncertainties that could cause
actual events or results to differ, perhaps materially, from the events
described in the forward looking statements. Readers are cautioned not to place
undue reliance on these forward looking statements. The Company undertakes no
obligation to publicly update or revise any forward looking statement, whether
as a result of new information, future events or otherwise. The risks associated
with the Company's forward looking statements include, but are not limited to,
risks associated with the Company's history of losses and uncertain
profitability, sales and marketing strategies, competition, general economic
conditions, reliance on key management and production people, current and future
capital needs, dilution, effects of outstanding notes and convertible
debentures, limited public market for the Company's capital Stock, low stock
price, and lack of liquidity.

The following discussion and analysis should be read in conjunction with the
Financial Statements, related notes and other information included in this
report.


ITEM 3.  Description of Business

Overview

Subjex Corporation is an innovative provider of intelligent dialogue
communication solutions for the Internet and Intranet environments. It is a
publicly traded Minneapolis based company that has developed an artificial
intelligence-based text based dialogue communication platform called Subjex
Exchange(TM).

The Subjex Exchange(TM) dialogue engine is a software application that is
licensable to business and industry. For web-connected organizations, Subjex
offers tools and solutions to support website operations with fully automated,
online customer service, knowledge management and marketing. Our solutions allow
clients web site visitors talk (using a text based interface) to Virtual Sales
people, and Virtual customer service representatives. The products can improve
online sales, and lower customer contact cost considerably.

During the third quarter 2003, the Company focused on executing its marketing
plan. With very little operation costs the company has continued its direct
email campaign to directly sell its technology. In addition management had
continued its telemarketing direct commissioned sales force to bring in partners
and resellers. During this time the Company was able to bring in small revenues
and venture capital to sustain itself.


                                      -7-
<PAGE>
Principal Products and Services

SubjexCSR is the main artificial intelligence software product that conducts
dialogue with users (through text) to dynamically converse with a normal,
human-like conversation interaction. Its application can lower costs
dramatically for companies who have a lot of after-sale customer contact. This
Virtual Sales Rep software can converse eloquently with hundreds of simultaneous
users for less than the cost of one live operator. The Virtual Sales Rep can
drastically increase sales (closing ratios) by recommending ideal products for
that specific individual. This is done very quickly using a short interview
conversation. The key to this product it is a very easy to use training system.
Trained by a back end software system called SubjexOPS the system allows
trainers (clients when licensed) sometimes called operators to answer questions
that the system does not know (in real time), then the system never needs to be
trained about that specific question again. The system just keeps becoming
smarter and smarter about the subject that it is implemented to talk about. All
questions can be modified and changed too.

The key to these products is their iterative "back and forth" methodology. The
system is able to learn users' needs in a way users are already familiar with -
by "talking".

Subjex Exchange is a solution that meets all the demands of making web-based
contact centers (websites) fast, easy, accurate and profitable, utilizing
dialogue and iteration (a Virtual Customer Service Rep.). The company's Subjex
Exchange software product suite supports each function of customer service.

The company has gained enough expertise to market the software effectively on a
large scale through partnerships. The Company has successfully made sales with
smaller companies as a result of its direct mail campaign and the company had
made partners sales with commitments by our partners to sell to their own
clients. This campaign has seen a dramatic increase in the interest level and
sales of the software. This new sales strategy in conjunction with placing the
software (to sell itself) on our own web site has demonstrated to potential
buyers what the potential for it can be in their own situation. With all this
and the new direct mail campaign focused on our own op-in e-mail list of 820,000
web site owners management expects to bring the company profitable in 2003.

Employees

The Company currently has 6 commissioned sales people, and 4 full-time
employees. Of the Company's full-time employees, 4 are involved in sales;
marketing and administrative functions and all are involved in engineering,
research and development. The Company's employees are not represented by any
labor unions.  The Company considers its relations with its employees to be very
good.


                                      -8-
<PAGE>
ITEM 4.  Description of Property

The Company's principal office is located at 5720 Smetana Dr. Suite 325,
Minnetonka, MN 55343, occupying approximately 1100 square feet and utilized
entirely for office space. The lease is month to month. The space is rented
under a written lease, which provides for a monthly payment of rent and a
pro-rata share of annual operating expenses. Management believes that comparable
office space is readily available if the Company were to lose its lease.
Management has requested negotiations of a long-term lease with the property
owners in this location.

ITEM 5:  Market for Common Equity and Related Stockholder Matters

          (a)  Market Information

               The Company's Common Stock was traded on the Over the Counter
Bulletin Board since January 2000 under the symbol "PGBN". Since the
commencement of trading, the company has changed it ticker symbol in 2003 to
"SBJX". Its high and low sales prices of common stock were $0.40 and $.015,
respectively.  Since the Company is not NASDAQ qualified, these prices are
inter-dealer prices and may not reflect actual value or transactions.

          (b)  Dividends

               The  Company  has not paid dividends on its common stock and does
not  expect to in 2003. Although it is the company intention to pay dividends at
a  future  date,  there  is  no assurance that any dividends will be paid in the
future,  as  dividends  are  dependent  upon  earnings.  Any  earnings,  for the
foreseeable future, will be utilized to invest in projects intended to build the
Company's  economic  base.



ITEM 6:  Management's Discussion & Analysis of Financial Condition and Results
of Operations

The company has generated immaterial revenues in the quarter ended September 30,
2003. Operating expenses have been lowered for the same quarter of the previous
year. However recent percentages of increases in sales are significant. More
importantly the company has further improved its marketing approach that we
expect to grow according to the same percentages for the foreseeable future. The
results of our telemarketing and direct mail campaign have given us a method of
growing the business that management feels is becoming more predictable. The
company now has 850,000 people who have submitted their domain site to the
search portal Subjex.net, which we are now using for our e-mail campaign to sell
SubjexCSR product. This List is growing by an average of 15,000 good submissions
per month. Although we have seen significant growth in our marketing efforts and
sales results we do not know exactly when this will bring profitable operations.
The Company's cash balances are not sufficient to meet its operational needs,
which is why the company has relied on the on going sales of unregistered shares
to fund operational needs. Profitable operations are however expected by the end


                                      -9-
<PAGE>
of the year or early 2004. As sales increase the company expects future
operational cash requirements to be lower still. This is because of the
automation of the sales, training and installation (i.e. delivery) of its
products. In addition the company still needs some additional capital
investment. Despite the success and difficulty the company as had in raising
funds over the years, the company continues to obtain adequate funding to not
just survive but improve and make sales. The Company expects to experience
significant fluctuations in its future earnings, but very little reduction in
revenue levels once attained. The reason for this is that all sales of its
software are based upon a monthly leasing plan (ASP model) and one sale will
generate ongoing revenues every month. Factors that may affect the Company's
operating results include the continued success of marketing, continued market
acceptance of the Company's products, and management's ability to continue
without spending much of its resources.


PART II.

ITEM 1. - LEGAL PROCEEDINGS

There were two judgments put in place against the company in the first quarter
of 2003 for less than $15,000 total. Management made payment arrangements with
these people and has continued to make payments on them. Management has no
reason to believe that these judgments will adversely affect the company's
ability to execute its business plan. In addition the company has submitted an
Offer in compromise to the Internal Revenue service for all of its IRS debt of
approximately $75,000 dollars. The terms of this arrangement are an initial
payment of $5,000 and 36 monthly payments of $2,433.33. Most of this debt was
picked up as a result of the companies staff increases in the later part of
2002, which the company rectified in December 2002. With a replacement of our
full time internal accounting, and an outsourcing with more experienced
accounting personal and with a new payroll service in place, all future payroll
taxes are expected to be paid on time as a normal part of operations. To the
Company's knowledge there are no other items that would be material to the
financial position of the Company.

ITEM 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS

None.

ITEM 3 - DEFAULTS ON SENIOR SECURITIES

None.

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS


                                      -10-
<PAGE>
It is acknowledged that any sale or substantial restructuring of the Company
will require a shareholders vote. No matters were submitted to the vote of the
Company's stockholders in this quarter.

ITEM 5 - OTHER INFORMATION

None.

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

None





SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused the report to be signed on its behalf by the
undersigned hereunto duly authorized.

SUBJEX CORPORATION
(registrant)
                                BY  /s/ ANDREW HYDER
                                    ---------------------
                                        ANDREW HYDER, CEO


                                      -11-
<PAGE>