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 June 30, 2005
                -------------------------------------------------

         [ ] 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 [ ]

There were 46,601,934 shares of common stock outstanding as of June 30, 2005.


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<TABLE>
<CAPTION>
SUBJEX CORPORATION INDEX
                                                                        PAGE NUMBER
PART I - FINANCIAL INFORMATION
<S>                                                                     <C>
          ITEM 1. FINANCIAL STATEMENTS

               Balance Sheets as of June 30, 2005 (unaudited)
               and December 31, 2004  (audited)                                  3

               Statements of Operations for the Three and Six
               Months Ended June 30, 2005 and
               June 30, 2004 (unaudited)                                         4

               Statements of Cash Flows for the Six
               Months Ended June 30, 2005 and
               June 30, 2004 (unaudited)                                         5

               Notes to the Financial Statements (unaudited)                     6

          ITEM 2. PLAN OF OPERATION                                              7

PART II - OTHER INFORMATION

          ITEM 1. LEGAL PROCEEDINGS                                              9

          ITEM 2. CHANGE IN SECURITIES AND USE OF PROCEEDS                       9

          ITEM 3. DEFAULTS UPON SENIOR SECURITIES                               10

          ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS           10

          ITEM 5. CONTROLS AND PROCEDURES                                       10

          ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K                             10

SIGNATURES                                                                      11

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

</TABLE>


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<TABLE>
<CAPTION>
                            PART 1 - FINANCIAL INFORMATION

                                   SUBJEX CORPORATION
                                     BALANCE SHEETS

                                                                June 30,       December 31,
                                                                 2005             2004
                                                               Unaudited         Audited
                                                            ----------------  --------------
<S>                                                         <C>               <C>
                 ASSETS
                 ------
Current Assets:
        Cash                                                $           741   $      62,952
        Accounts Receivable                                             150
        Prepaid expenses                                              2,000           2,000
                                                            ----------------  --------------

            Total current assets                                      2,891          64,952

Fixed assets, net                                                    23,883          17,585
                                                            ----------------  --------------


            Total assets                                    $        26,775   $      82,537
                                                            ================  ==============


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

Current Liabilities:
        Subordinated convertible notes payable              $        23,000   $      22,800
        Accounts payable                                             87,867          72,120
        Accrued expenses:
            Payroll and payroll taxes                                96,642         116,503
            Other                                                    27,786          26,654
                                                            ----------------  --------------

            Total current liabilities                               235,295         238,077

Long-term debt:
        Notes payable                                                 2,484           3,474
                                                            ----------------  --------------

            Total liabilities                                       237,779         241,551
                                                            ----------------  --------------

Stockholders' deficit:
        Undesignated stock, no par or stated value;
            10,000,000 shares authorized: none issued
            or outstanding                                                -               -
        Common stock, no par or stated value;
            50,000,000 shares authorized: 46,601,934 and
            42,558,096 shares issued and outstanding at
            June 30,2005 and December 31,2004,respectively        4,492,271       4,305,342
        Accumulated deficit                                      (4,703,275)     (4,464,356)
                                                            ----------------  --------------

Stockholders' deficit                                              (211,004)       (159,014)
                                                            ----------------  --------------


        Total liabilities and stockholders' deficit         $        26,775   $      82,537
                                                            ================  ==============
</TABLE>

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


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<TABLE>
<CAPTION>
                                SUBJEX CORPORTION
                            STATEMENTS OF OPERATIONS
                                    Unaudited

                                              Three Months Ended June 30,
                                                   2005          2004
                                              ---------------------------
<S>                                           <C>           <C>
Revenues                                      $    22,913   $      8,060
                                              ------------  -------------

Expenses:
        Selling, general and administrative       140,730         58,868
                                              ------------  -------------

            Total operating expense               140,730         58,868
                                              ------------  -------------

            Operating loss                       (117,817)       (50,808)

Other income (expense)

        Interest expense                           (7,789)          (346)
                                              ------------  -------------

Net loss                                      $  (125,606)  $    (51,154)
                                              ============  =============

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

Weighted average common shares
        outstanding - basic and dilutes        46,601,934     36,249,549
                                              ============  =============
</TABLE>

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


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<TABLE>
<CAPTION>
                                 SUBJEX CORPORTION
                              STATEMENTS OF CASH FLOWS
                                     Unaudited

                                                             Six Months Ended June 30,
                                                                 2005         2004
                                                             ------------  -----------
<S>                                                          <C>           <C>
Cash flow from operating activities:
        Net loss                                             $  (125,606)  $ (104,213)
        Adjustments to reconcile net loss to
            net cash from operating activities:
                Depreciation and amortization                      2,124        2,381
                Non cash stock compensation expenses
        Changes in operating assets and liabilities:
            Accounts receivable                                      150          150
            Prepaid expenses
            Accounts payable                                      (7,952)      (5,103)
            Payroll and payroll taxes payable                    (41,885)     (65,452)
            Other accrued expenses                                  (567)        (251)
                                                             ------------  -----------

Net cash used by operating activities                           (173,736)    (172,488)
                                                             ------------  -----------

Cash flow from investing activities:
        Purchase of property and equipment                          (266)      (2,550)
                                                             ------------  -----------

Net cash flows used in investing activities                         (266)      (2,550)


Cash flow from financing activities:
        Proceeds from issuance of capital stock                  173,979      204,723
        Proceeds from stock subscriptions                              -
        Proceeds from notes from stockholder                           -
        (Payments) Proceeds from subordinated note payable                       (200)
        Principal payments on long-term debt                                     (178)
        Principal payments on note payable  - related party            -
                                                             ------------  -----------

Net cash provided by financing activities                        173,979      204,345
                                                             ------------  -----------

Decrease in cash                                                     (23)      29,307
Cash at beginning of period                                          764        3,753
                                                             ------------  -----------

Cash at end of period                                        $       741   $   33,060
                                                             ============  ===========
</TABLE>

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


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                  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 Plan
of Operation 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, 2004.

Note 2.  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 in the normal
course of operations. Since inception the Company has incurred losses of
approximately $4,703,275 and has a working capital deficit of $173,736 as of
June 30, 2005.  These issues raise substantial doubt about the Company's ability
to continue as a going concern.

The Company continues to seek debt and equity financing to fund its working
capital needs.  Failure of the Company raise additional debt and equity
financing in the near future and achieve profitable operations in the long-term
could result in the Company being unable to continue as a going 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 3.  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 requires 24 monthly installments of $2,000
beginning April 15, 2004 and ending March 15, 2006.  On March 15, 2006, the
Company will work with the IRS to determine the resolution for final payment.
Until all amounts owed are paid to the IRS, the IRS will maintain a federal tax
lien on the Company's property.  The Company has made all monthly payments as
agreed for the year 2004 and the first quarter and second quarter of 2005.


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Note  4. During the second quarter of 2005, the Company issued 2,382,528 shares
of common stock for $173,979 and for consulting services work. Included in this,
the Company issued 23,571 shares of common stock to employees for services
performed which were valued at $879.

ITEM 2.  PLAN OF OPERATION

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.

Description of Business

Overview

Subjex Corporation is an innovative provider of intelligent customer service
solutions.  Subjex Corporation has developed and sells an Artificial
Intelligence Software platform that is used to create virtual personalities for
corporate and individual web sites. The software chats with web site visitors,
answers questions, and sells products for its clients. Making the searching and
communication process simple for web site visitors has become the key to
improved sales and visitor web site retention. Subjex Corporation is setting a
new standard in customer service technology that is both easily deployable and
inexpensive. The Subjex Corporation mission is to give massive value to our
client base while providing clear-continuous revenue and profit growth for our
investor base.

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 visitors of their web sites. 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


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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".

Today, Subjex is the only customer service solution that is targeting small
business with a true bi-directional dialogue application. The company's Subjex
dialogue system supports each function of customer service from the introduction
to the sales process to post sale support.


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 as of June 30, 2005, 9 full-time employees. The Company's
employees are not represented by any labor unions.  The Company considers its
relations with its employees to be very good.

Competition

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. In addition management has made
the decision to focus half of our marketing efforts directly to small businesses
with the SubjexCSR product, and the remainder towards Network Marketing
companies with the SubjexME product. Our competitions solutions are less
effective, extremely complex for the small business owner, and vastly more
expensive. Our demographic target - to our knowledge - has never been exposed to
this type of technology, because no one has priced an appealing product within
the budget of small business. Management believes that while some companies may
have greater resources than Subjex, we have superior products, and a new market
with a product no one has seen before in the Network Marketing industry. We
believe we have the experience to implement a model that is self sustaining
enough to take a huge part of the market before our competitors realize it.

Recent Developments

In the second quarter of 2005 Subjex Corporation made further changes in our
approach to sell SubjexCSR to small businesses. We have reallocated part of our
resources to sell SubjexME into larger businesses. This was done in part because
the sale of one implementation of SubjexME will generate tens of thousands of
dollars per month. This will result in positive cash flow faster than current
growth of SubjexCSR sales will allow. Because of the number of outstanding
shares the company has, in the second quarter of 2005, the Company has changed
its focus from raising additional monies through private issuances of its stock
to accredited individuals to raising of


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funds with debt instruments.  Receipt of monies raised allowed the Company to
operate and continue its execution of its plan.

Operating expenses have increased for the same quarter of the previous year due
to increased marketing efforts. However our costs were lower in the second
quarter than they were for the first quarter of 2005. The Company has sought out
resellers for the SubjexME product and has signed non-exclusive reseller
agreements with several software sales companies and individuals. Using this
marketing approach it is our intention to grow considerably faster in the
foreseeable future.

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
and is now using debt instruments to fund operational needs. As sales increase
the Company expects future operational cash requirements to remain at their
current levels.  This is because of the automation of the sales, training and
installation (i.e. delivery) of the Company's products. Until positive cash flow
occurs, the Company requires additional capital investment to maintain its
current operations.

Developing an ideal business model with an entirely new category type product
line requires a great deal of research and development on several different
fronts. The company has had to become expert in Building this company not just
in the areas of technological science but also in marketing such services into a
profitable entity. It is our belief that the potential for success in this
endeavor will vastly out measure its cost of time and resources.

The experience we have gained since the company's inception in these areas has
made the company very valuable even though at this point our operation has not
translated into profitability. What Subjex is doing is breaking new ground. The
AI community as it relates to dialogue and customer service is in its infancy
stage. Management believes that should we be successful we will see exceptional
profitability.

                           PART II - OTHER INFORMATION

ITEM 1. - LEGAL PROCEEDINGS

As reported in previous filings, the Company, In March 2004, 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 option was
preferable to the dilution that raising the money to pay it off would have
required. This liability is included in accrued expenses - payroll and payroll
taxes. The payment plan requires 24 monthly installments of $2,000 beginning
April 15, 2004 and ending March 15, 2006.  On March 15, 2006, the Company will
work with the IRS to determine the resolution for final payment.  Until all
amounts owed are paid to the IRS, the IRS will maintain a federal tax lien on
the Company's property. The Company is current with its payments to the IRS.

ITEM 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS

During the three months ended June 30, 2005, the Company issued 2,382,528 of
common stock for $175,979 and for consulting services.  In addition, the Company
issued 23,571 shares of common stock to employees for services performed which
were valued $879


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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 shareholders vote. No matters were submitted to the vote of the
Company's stockholders in this quarter.

ITEM 5 - CONTROLS AND PROCEDURES.

The Company has in place two staff members that daily review all the accounts
and figures (accounting systems) that pertain to accounting and the financial
condition of the company. This includes banking, accounts payable, stocks etc.
Two additional employees handle the accounts receivable only.  These are then
forwarded to an out of house accounting firm who does all our accounting on
Quick Books.  Our staff and the accounting firm are in contact on a daily basis.

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

Exhibit  Description
-------  -----------
31       Certification as Required by Section 302 of Sarbanes-Oxley Act of 2002
32       Certification as Required by Section 906 of Sarbanes-Oxley Act of 2002


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                                   SIGNATURES

     In accordance with the requirements of the Securities Exchange Act of 1934,
as amended, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.


                                       /s/ Andrew Hyder
                                       --------------------------
                                       Andrew Hyder
                                       CEO (Acting CFO)
                                       August 15, 2005


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