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, 2006
                -------------------------------------------------

         [ ] 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

            3010 Hennepin Ave South, Suite 297, Minneapolis, MN 55408
                    (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 [
]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

There were 49,905,648 shares of common stock outstanding as of November 8, 2006.


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<PAGE>
SUBJEX CORPORATION INDEX


                                                                     PAGE NUMBER

PART I - FINANCIAL INFORMATION

      ITEM 1. FINANCIAL STATEMENTS

        Balance Sheets as of September 30, 2006 (unaudited)
        and December 31, 2005 (audited)                                        3

        Statements of Operations for the Three and Nine
        Months Ended September 30, 2006 and
        September 30, 2005 (unaudited)                                         4

        Statements of Cash Flows for the Nine
        Months Ended September 30, 2006 and
        September 30, 2005 (unaudited)                                         5

        Notes to the Financial Statements (unaudited)                          6

      ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

      CONDITION AND RESULTS OF OPERATIONS                                      7

      ITEM 3. CONTROLS AND PROCEDURES                                         10

PART II - OTHER INFORMATION                                                   10

      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

CERTIFICATION PURSUANT TO SECTION 06 OF THE SARBANES-OXLEY ACT OF 2002

CERTIFICATIONS                                                                12

SIGNATURES


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<PAGE>
<TABLE>
<CAPTION>
                                        SUBJEX CORPORATION
                                          BALANCE SHEETS

                                                                     30-Sep            31-Dec
                                                                      2006              2005
                                                                  (Unaudited)        (Audited)
                                                                ----------------  ----------------
<S>                                                             <C>               <C>
               ASSETS
               ------
    Current Assets:
    Cash                                                        $       107,036   $         2,215
    Deposits                                                              1,300                 -
    Accounts receivable                                                       -               150
    Prepaid expenses                                                      4,000            19,045
                                                                ----------------  ----------------

        Total current assets                                            112,336            21,410

Property and equipment, net                                              11,966            17,370
                                                                ----------------  ----------------

        Total assets                                            $       124,302   $        38,780
                                                                ================  ================

LIABILITIES AND STOCKHOLDERS' DEFICIT
-------------------------------------

    Current Liabilities:
    Short-term notes payable                                    $        36,634   $        32,150
    Subordinated convertible notes payable                              143,000            23,000
    Current portion of long-term debt                                         -             1,873
    Accounts payable                                                     82,249            92,281
    Accrued expenses:
        Payroll and payroll taxes                                        71,933           129,373
        Interest                                                         20,065            17,909

                                                                ----------------  ----------------
        Total current liabilities                                       353,880           296,586

Long-term debt:
    Long-term debt, less current portion                                 22,000            20,611
                                                                ----------------  ----------------

        Total liabilities                                               375,880           317,197
                                                                ----------------  ----------------

Stockholders' deficit:
    Common stock, no par or stated value;
        50,000,000 shares authorized: 49,905,648 and
        49,105,648 shares issued and outstanding at
        September 30, 2006 and December 31, 2005, respectively        4,831,230         4,624,730
    Subscription received                                                17,500            29,000
    Accumulated deficit                                              (5,100,308)       (4,932,147)
                                                                ----------------  ----------------

Stockholders' deficit                                                  (251,578)         (278,417)
                                                                ----------------  ----------------


    Total liabilities and stockholders' deficit                 $       124,302   $        38,780
                                                                ================  ================
</TABLE>


   The accompanying notes are an integral part of these financial statements.

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<PAGE>
<TABLE>
<CAPTION>
                                             SUBJEX CORPORATION
                                          STATEMENTS OF OPERATIONS
                                                 (Unaudited)

                                                Three Months Ended Sept 30,     Nine Months Ended Sept 30,
                                                   2006            2005            2006           2005
                                              ------------------------------  ------------------------------
<S>                                           <C>             <C>             <C>             <C>
Revenues                                      $       5,121   $      18,575   $     107,618   $      59,792
                                              --------------  --------------  --------------  --------------

Expenses:
    Selling, general and administrative              74,632         103,931         272,784         384,048
                                              --------------  --------------  --------------  --------------

        Total operating expense                      74,632         103,931         272,784         384,048
                                              --------------  --------------  --------------  --------------

        Operating loss                              (69,511)        (85,356)       (165,166)       (324,256)

Other income (expense)
    Interest expense                                   (719)           (330)         (2,996)         (8,686)
                                              --------------  --------------  --------------  --------------

Net loss                                      $     (70,230)  $     (85,686)  $    (168,162)  $    (332,942)
                                              ==============  ==============  ==============  ==============

Net loss per basic and diluted common share   $      (0.001)  $      (0.002)  $      (0.003)  $      (0.007)
                                              ==============  ==============  ==============  ==============

Weighted average common shares
    outstanding - basic and diluted              49,905,648      44,768,025      49,905,648      44,871,760
                                              ==============  ==============  ==============  ==============
</TABLE>

   The accompanying notes are an integral part of these financial statements.


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<PAGE>
<TABLE>
<CAPTION>
                                SUBJEX CORPORATION
                             STATEMENTS OF CASH FLOWS
                                    (Unaudited)

                                                       Nine Months Ended Sept 30,
                                                          2006           2005
                                                      -------------  -------------
<S>                                                   <C>            <C>
Cash flow from operating activities:
    Net loss                                          $   (168,162)  $   (332,942)
    Adjustments to reconcile net loss to
        net cash flows used in operating activities:
            Depreciation                                     5,929         (6,129)
            Amortization prepaid expense                    19,668              -
            Non cash stock compensation expenses                 -         70,129
    Changes in operating assets and liabilities:
        Accounts receivable                                    150           (150)
        Prepaid expenses                                    (5,000)       (16,666)
        Accounts payable                                   (10,032)        21,114
    Accrued expenses:
        Payroll and payroll taxes                          (57,440)       (32,365)
        Accrued interest                                     2,156              -
        Other accrued expenses                               6,483         24,135
                                                      -------------  -------------

    Net cash used in operating activities                 (206,248)      (272,874)
                                                      -------------  -------------


Cash flow from investing activities:
    Purchase of property and equipment                      (1,447)       (10,546)
                                                      -------------  -------------

    Net cash used in investing activities                   (1,447)       (10,546)

Cash flow from financing activities:
    Proceeds from issuance of capital stock                177,500        221,300
    Proceeds from stock subscriptions                       17,500            200
    Proceeds from subordinated convertible note            120,000              -
    Principal payments on long-term debt                    (2,484)          (990)
                                                      -------------  -------------

    Net cash provided by financing activities              312,516        220,510
                                                      -------------  -------------


Increase (decrease) in cash                                104,821        (62,910)
Cash at beginning of period                                  2,215         62,952
                                                      -------------  -------------

Cash at end of period                                 $    107,036   $         42
                                                      =============  =============

Supplemental cash flow information:
    Cash paid for interest                            $          -   $          -
                                                      =============  =============
    Cash paid for income taxes                        $          -   $          -
                                                      =============  =============
</TABLE>

   The accompanying notes are an integral part of these financial statements.


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<PAGE>
                  Notes to the Financial Statements (unaudited)


Note 1.  Basis of Presentation

The accompanying unaudited condensed financial statements of Subjex Corporation
(the Company) have been prepared in accordance with generally accepted
accounting principles for interim financial information and with the
instructions to Item 310(b) of Regulation S-B. Accordingly, they do not include
all of the information and footnotes required by accounting principles generally
accepted in the United States of America for complete financial statements. All
adjustments which, in the opinion of management, are considered necessary for a
fair presentation of the results of operations for the periods shown are of a
normal recurring nature and have been reflected in the unaudited condensed
financial statements. There are no additional material subsequent events or
material contingencies that require disclosure. The results of operations for
the periods presented are not necessarily indicative of the results expected for
the full fiscal year or for any future period. The information included in these
unaudited condensed financial statements should be read in conjunction with
Management's Discussion and Analysis  contained in this report and with the
financial statements and accompanying notes included in the Annual Report on
Form 10-KSB for the year ended December 31, 2005.

Note 2. Acquisition of Assets

In January 2006, the Company acquired certain assets, primarily web-site, domain
names, software and trade names from FarSuperior Management LLC., (FM) using a
performance based warrant agreement. FM claimed it operated a business directory
websites for consumers to shop on the internet. Operational requirements of the
two parties included working together to continue to execute on the FM business
model and SubjexCRS/ME sales systems. Subjex Corporation attempted to take over
technical operations of the FM web properties and integrate them with its other
operation; however this was not possible due to a lack of documentation on the
assets that were delivered to the Company. FM was paid a commission on the
revenue it produced in January on SubjexCSR. However without additional sales
resources or proper documentation to support a software FM migration, the FM
operation ceased to generate revenue for the Company. The Company believes that
the agreement with FM has been breached, and has terminated all operations in
this regard. All warrants were canceled as well as the acquiring of trade names
during the quarter ended June 30, 2006. This decision is based upon limited
resources of the Company as a result of the inability of FM to deliver in a
manner that did not necessitate the Company to completely redevelop the software
that FM presented to the Company as completed.

Note 3.  Going Concern

The accompanying financial statements were prepared assuming that the Company
will continue as a going concern. This basis of accounting contemplates the
realization of assets and the satisfaction of its liabilities and commitments in
the normal course of operations. Since inception, the Company has incurred
losses of $5,100,308 and has a working capital deficit of $251,578 as of
September 30, 2006.  These issues raise substantial doubt about the Company's
ability to continue as a going concern.

The Company has sought equity financing to fund its working capital needs.
Failure of the Company to generate continued revenue could result in the company
to continue as a going


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<PAGE>
concern. No estimate can be made of the range of loss that is reasonably
possible should the Company be unsuccessful.

The financial statements do not include any adjustments to reflect the possible
future effects on the recoverability and classification of assets or the amounts
and classification of liabilities that may result from the inability of the
Company to continue as a going concern.

Note 4.  Payroll and Payroll Taxes

In March 2004, the Company agreed to a payment plan with the IRS related to
employee payroll withholdings and payroll taxes in which the Company did not pay
from October 1, 2000 through June 30, 2003 aggregating approximately $88,000 at
December 31, 2003.  This liability is included in accrued expenses - payroll and
payroll taxes. The payment plan required 24 monthly installments of $2,000
beginning April 15, 2004 and ending March 15, 2006.  As of September 30, 2006,
the Company paid $24,450.06 and was working with the IRS to determine the
resolution for final payment which totaled $53,879.06 at September 30, 2006.
The amount owed to the IRS was paid in full in October, 2006; the IRS lifted a
federal tax lien on the Company's property.


Note 5. Stockholders' Deficit

During the quarter ending September 30, 2006, the Company issued 550,000 shares
of common stock. During the quarter ended March 31, 2006, 250,000 shares were
added due to common shares outstanding for shares issued in prior years but not
accounted for properly by our previous transfer agent.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS

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.


                                        7
<PAGE>
Description of Business

Overview

Subjex Corporation is an innovative Artificial Intelligence Development Company.
The products, SubjexCSR, SubjexME facilitate meaningful text-based humanlike
conversations with website visitors thereby reducing customer service cost,
while SubjexFMS forecasts the DJIA with a current accuracy of over 80%. The
Company has also expanded its corporate goals to include possible acquisitions
or licensing of profitable businesses and business models that are
synergistically compatible with its core technology.

Principal Products and Services

SubjexCSR (Customer Service Representative) is Subjex Corporation's flagship
Artificial Intelligence product. SubjexME is another product recently developed.
SubjexCSR and SubjexME are used in conjunction with SubjexOPS (Operator Training
System) which allows clients to train their implementation to sell their
products and communicate with their users on their web site. This technology is
used on the Subjex.com web site to sell itself by conducting dialogue with
business owners (through text) to dynamically converse with a normal, human-like
conversation chat. SubjexCSR and SubjexME both run in the same environment and
on the same platform. Both can lower costs dramatically for companies who have
web sites, or large distributor networks. The system can converse eloquently
with thousands of simultaneous users for less than the cost of one live
operator, and can drastically increase sales (closing ratios) by recommending
ideal products for that specific individual. The key to this product is its
iterative "back and forth" methodology which actually conducts an interview
conversation. The system is able to learn users' needs in a way users are
already familiar with - "dialogue".

The software called SubjexFMS ("Forecast Market Software") is an Artificial
Intelligence trade-timing and index forecasting engine built on a similar Neural
Network structure as Subjex dialogue technology. The system takes daily
"snapshots" of various economic indicators such as Prime Rate, Oil prices, Dow
performance and other indices as input and outputs a very accurate short term
forecast of the Dow Jones Industrial Average.


Trademarks and Patents

The Company holds trademarks and patent protection for most of its business that
management feels are relevant to protect the company interests.

Environmental Compliance

The Company believes it is in compliance with all current federal and state
environmental laws.

Employees

The Company had two full-time employees on September 30, 2006.  The Company's
employees are not represented by any labor unions.  The Company considers its
relations with its employees to be very good.

Competition


                                        8
<PAGE>
The Company is aware of other companies selling solutions that appear to be
similar to Subjex; however management is not aware of any companies that are
selling the same solution as we have designed. Management believes that while
some companies may have greater resources than Subjex, we have superior
products.

Recent Developments

Operating expenses have decreased for the same quarter of the previous year due
to the lowering of operational debt. Operating expenses for the quarter ending
September 30, 2005 were $103,931 compared to the quarter ending September 30,
2006 which was $74,632. The quarter ending September 30, 2005 the Company had
received $18,575 in revenue whereas the quarter ending September 30, 2006
revenue was $5,121. This decrease in revenue is due to lack of sales resources.
To cover operational expenses the Company completed equity financing.

The Company's cash balances are enough to meet its operational needs. However
this is due to the Company adjusting its operations to meet its operational
cash. As sales continue, the Company expects future operational cash
requirements to increase to accommodate growth.  The Company's use of the
automation tools for sales, training and installation (i.e. delivery) of the
Company's products allows us to operate efficiently, and use less operational
cash than without such tools. Management believes this will give us a further
advantage in the marketplace.

Subjex and its supporters are breaking new ground in several related technology
and Artificial Intelligence areas. Management believes that the company will be
successful and see not just continued revenue growth but exceptional revenue
growth from these efforts.

In addition the Company continues to identify what it feels are acquisition
targets and an acquisition methodology to bring in additional top line revenue
with very little dilutional impact on the company.

ITEM 3 - CONTROLS AND PROCEDURES

The Company has in place one staff member that daily reviews all accounts and
figures (accounting systems) that pertain to accounting and the financial
condition of the company. This includes banking, accounts payable, stocks etc.
One additional employee handles the accounts receivable only. The internal
records are then forwarded to an outside accounting firm, owned and operated by
a person related to the Company's CEO, that does the bookkeeping and accounting.
The staff and the accounting firm are in contact on a daily basis.



                           PART II - OTHER INFORMATION

ITEM 1. - LEGAL PROCEEDINGS

None.

ITEM 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS


                                        9
<PAGE>
None.

ITEM 3 - DEFAULTS ON SENIOR SECURITIES

None.

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

It is acknowledged that any sale or substantial restructuring of the Company
will require a stockholders vote. No matters were submitted to the vote of the
Company's stockholders in this quarter. However a Shareholder meeting was
convened on October 18, 2006 (see Item 6)

ITEM 5 - OTHER INFORMATION

None.

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K


On September 1, 2006 the following 8-K report was filed:

On Sept 1, 2006 a material event occurred which was not made in the ordinary
course of Subjex Corporation business thus prompting an 8-K filing with the SEC.
It was announced that Ronald N. Silberstein, CPA, PLLC, 30201 Orchard Lake Road,
Suite 150, Farmington Hills, Michigan 48334
became Subjex Corporation's new independent auditor and certifying accountant.
This filing completes Subjex Corporation's obligations as it relates to the
filing requirements of an 8-K filing as defined by the SEC.

On October 11, 2006 the following 8-K was filed:

On October 10, 2006 an event occurred which was not made in the ordinary course
of Subjex Corporation business thus prompting an 8-K filing with the SEC. An
Annual Meeting of Shareholders was scheduled for 7:00 P.M. (Central Time) in
Savage MN. This meeting was open to All Shareholders of Record and Shareholder
Proxy Holders qualified to vote on matters brought forth at the meeting.  The
meeting was not able to be held because a Quorum did not exist. The actual
voting shares counted was 21,804,569 and the amount needed to hold the Annual
Meeting of Shareholders was 24,952,824 therefore the meeting was adjourned. This
filing completes Subjex Corporations obligations as it relates to the filing
requirements of an 8-K filing as defined by the SEC.

On October 23, 2006 the following 8-K was filed:

On October 18, 2006 an event occurred which was not made in the ordinary course
of Subjex Corporation business thus prompting an 8-K filing with the SEC. An
Annual Meeting of Shareholders was rescheduled for 7:00 P.M. (Central Time)
October 18, 2006 in Savage MN. This meeting was open to All Shareholders of
Record and Shareholder Proxy Holders qualified to vote on matters brought forth
at the meeting.  The meeting was able to be held because a Quorum did exist. The
actual voting shares counted were 29,101,353 and the amount needed to hold the
Annual Meeting of Shareholders was 24,952,825 therefore the meeting went
forward.  All of management's proposals were approved by well over 95%.  The
following agenda was presented and approved.

1. To set the number of directors at three (3) members and elect each director
to a term of three years from the date of the annual meeting.  a. Andrew D
Hyder, b. Brian K Ahern and c. Sharon R Hyder.
The motion was passed with 28,059,753 votes.


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<PAGE>
2. To authorize the Board of Directors to update and revise the Company's Stock
Option and Grant program, originally adopted on August 17, 1999.
The motion was passed with 27,342,753 votes.

3. To authorize the Board of Directors to file with the Minnesota Secretary of
State for an increase in the number of Authorized Shares from the current
50,000,000 to 100,000,000.
The motion was passed with 28,072,753 votes.

4. To transact such other business as may properly come before the Annual
Meeting and any adjournments or postponements thereof.
The motion was passed with 28,692,753 votes.

This filing completes Subjex Corporations obligations as it relates to the
filing requirements of an 8-K filing as defined by the SEC.



SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities and
Exchange Act of 1934, the Issuer has duly caused this report to be signed on its
behalf by the undersigned officers and/or Directors, there unto duly authorized.

SUBJEX CORPORATION
Date:  November 8, 2006

NAME                    TITLE
/s/ Andrew D. Hyder     President and Chief Executive Officer,

<TABLE>
<CAPTION>
Exhibit Index
<S>           <C>
Exhibit 31.1  Certificate pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 32.1  Certificate pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
</TABLE>

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