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, 2004
                -------------------------------------------------

         [_] 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  39,178,103  shares  of common stock outstanding as of September 30,
2004.


                                       -1-

================================================================================


<PAGE>
<TABLE>
<CAPTION>
SUBJEX  CORPORATION  INDEX

                                                                         PAGE NUMBER

PART I -   FINANCIAL INFORMATION
<S>        <C>                                                           <C>

           ITEM 1. FINANCIAL STATEMENTS

             Balance Sheets as of September 30, 2004 (unaudited)
             and December 31, 2003  (audited)                                        3

             Statements of Operations for the Three and Nine
             Months Ended September 30, 2004 and
             September 30, 2003 (unaudited)                                          4

             Statements of Cash Flows for the Nine
             Months Ended September 30, 2004 and
             September 30, 2003 (unaudited)                                          5

             Notes to the Financial Statements (unaudited)                           6

           ITEM 2. PLAN OF OPERATION

PART II -  OTHER INFORMATION

           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  SABANES-OXLEY  ACT  OF
2002

CERTIFICATIONS

SIGNATURES
</TABLE>


                                       -2-
<PAGE>
<TABLE>
<CAPTION>
                              PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS
BALANCE  SHEETS

                                            September 30,           December 31,
                                          2004 (unaudited)         2003 (audited)
                                        --------------------------------------------
<S>                                     <C>                   <C>
               ASSETS
               ------
Current Assets:
  Cash                                  $                  -  $               3,753
  Accounts receivable, net                                 -                    300
  Prepaid expenses                                     2,000                  2,000
                                        --------------------  ----------------------

    Total current assets                               2,000                  6,053

Fixed assets, net                                     11,938                  5,937
                                        --------------------  ----------------------


    Total assets                        $             13,938                  11,990
                                        ====================  ======================

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

Current Liabilities:
  Bank overdrafts                       $                 11  $                   -
  Subordinated convertible
  notes payable                                       22,800                 23,000
  Demand notes payable                                20,000                 20,000
  Accounts payable                                    83,625                 91,637
  Accrued expenses:
    Payroll and payroll
    taxes                                            138,989                208,303
    Other                                             24,352                 27,517
                                        --------------------  ----------------------

    Total current
    liabilities                                      289,777                370,457

Long-term debt:
  Note payable - related party                         1,708                      -
  Notes payable                                        4,420                  5,274
                                        --------------------  ----------------------

    Total liabilities                                295,905                375,731
                                        --------------------  ----------------------

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;
    40,000,000 shares
    authorized:
    39,178,103 and
    33,694,236 shares
    issued and
    outstanding at
    September 30, 2004 and
    December 31, 2003
    respectively                                   4,075,621              3,804,198
  Note receivable - officer                                -                (38,292)
  Accumulated deficit                             (4,300,292)            (4,129,647)
                                        --------------------  ----------------------

Stockholders' deficit                               (281,967)              (363,741)
                                        --------------------  ----------------------

  Total liabilities and
  stockholders'' deficit                $             13,938  $              11,990
                                        ====================  ======================

<FN>
      The accompanying notes are an integral part of these financial statements.
</TABLE>


<PAGE>
<TABLE>
<CAPTION>
STATEMENTS  OF  OPERATIONS  (unaudited)


                                        Three Months Ended June 30,
                                           2004             2003
                                     --------------------------------
<S>                                  <C>             <C>

Revenues                             $      11,041   $         5,080
                                     --------------  ----------------


Expenses:
  Selling, general and
  administrative                           134,770            66,482
                                     --------------  ----------------

    Total operating
    expense                                134,770            66,482
                                     --------------  ----------------

                                     --------------  ----------------
Net loss                             $    (123,729)  $       (61,402)
                                     ==============  ================

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

Weighted average common shares
    outstanding - basic and diluted     38,387,793        28,533,145
                                     ==============  ================
<FN>
                     The accompanying notes are an integral
                      part of these financial statements.
</TABLE>


<PAGE>
<TABLE>
<CAPTION>
STATEMENTS  OF  OPERATIONS  (unaudited)


                                                  Nine Months Ended September 30,
                                                    2004               2003
                                              -------------------------------------
<S>                                           <C>               <C>

Revenues                                      $        24,144   $            8,867
                                              ----------------  -------------------

Expenses:
  Selling, general and
  administrative                                      251,578              196,715
                                              ----------------  -------------------

    Total operating
    expense                                           251,578              196,715
                                              ----------------  -------------------

    Operating loss                                   (227,434)             187,848)

Other income (expense)
  Interest expense                                       (507)              (6,679)
                                              ----------------  -------------------

Net loss                                      $      (227,941)  $         (194,527)
                                              ================  ===================

Net loss per basic and diluted
common share                                  $        (0.006)  $           (0.007)
                                              ================  ===================


Weighted average common shares
  outstanding - basic and diluted                  36,107,386           28,533,145
                                              ================  ===================
<FN>
    The accompanying notes are an integral part of these financial statements.
</TABLE>


<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CASH FLOWS (unaudited)

                                                              Nine Months Ended June 30,
                                                                    2004         2003
                                                              --------------------------
<S>                                                           <C>             <C>
Cash flow from operating activities:

  Net loss                                                    $    (227,941)  $(194,527)
  Adjustments to reconcile net loss to
    net cash used in operating activities:

      Depreciation and amortization                                   3,571       5,702
      Stock compensation expense                                     19,700           -
      Non cash consulting expense                                    40,000           -
  Changes in operating assets and liabilities:
    Accounts receivable                                                 300        (450)

    Prepaid expenses                                                      -         629

    Accounts payable                                                 (8,012)        892

    Payroll and payroll taxes payable                               (69,314)    (26,481)
    Other accrued expenses                                           (3,165)    (13,445)
                                                              --------------  ----------

Net cash used in operating activities                              (244,861)   (227,690)
                                                              --------------  ----------

Cash flow from investing activities:
  Purchases of property and equipment                                (9,572)     (5,367)
                                                              --------------  ----------

Net cash flows used in investing activities                          (9,572)     (5,367)
                                                              --------------  ----------

Cash flow from financing activities:
  Bank overdrafts                                                        11       4,798
  Proceeds from issuance of capital stock                           251,723     389,646
                                                                                      -
  Stock subscriptions                                                     -    (133,100)
  Principal payments on convertible notes
  payable                                                              (200)

  Principal payments on long-term debt                                 (854)    (57,129)

                                                              --------------  ----------

Net cash provided by financing activities                           250,680     204,215
                                                              --------------  ----------

Decrease in cash                                                     (3,753)    (28,842)
Cash at beginning of period                                           3,753      28,842
                                                              --------------  ----------

Cash at end of period                                         $           -   $       -
                                                              ==============  ==========
</TABLE>

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


<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 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, 2003.

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
$4,357,588 and has a working capital deficit of $293,905 as of September 30,
2004. These issues raise substantial doubt about the Company's ability to
continue as a going concern.

The Company may need to continue to seek equity financing to fund its working
capital needs. Failure of the Company achieve profitable operations or raise
additional equity financing in the near future and in the long-term could result
in the Company being unable to continue as a going concern. No estimate can be
made at this time of the range of loss that is reasonably possible should the
Company be unable to reach its goals.

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.


<PAGE>
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 which the Company incurred 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 which
began on April 15, 2004 and will end 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.

In March 2004, the State of Minnesota placed a lien on the Company's property.
The amount owed to the State of Minnesota is approximately $492 at September 30,
2004 and is included in accrued expenses - payroll and payroll taxes.

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.


<PAGE>
Description of Business

Overview

Subjex Corporation is an innovative provider of intelligent customer service
solutions. Subjex Corporation has developed an Artificial Intelligence Software
platform that is used to create thinking virtual personalities developed on an
open software distribution platform. The software chats with web site visitors,
answers questions, does customer service functions, and sells products for its
clients. Making complex web site processes simple for web site visitors has
become the key to rapid sales and customer 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. We are committed to fostering a community of
developers from which our customers draw virtual personality's expert in
additional and specialized areas of business.

Principal Products and Services

SubjexCSR (Customer Service Representative) is Subjex Corporation's flagship
product. SubjexCSR is 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 using text based
conversation chat. SubjexCSR can lower costs dramatically for companies who have
web sites, and inbound calls from users of their web site. The system can
converse eloquently with hundreds of simultaneous users for far 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 Corporation is the only customer service solution that is
targeting small business while meeting the real life demands of e-commerce. The
Company's Subjex dialogue platform supports each function of customer service
from the introduction and ongoing sale 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. The Company
continues to maintain a pending patent on business functions of some of its
products and has recently filed for its second patent application.


<PAGE>
Environmental Compliance

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

Employees

As of October 28, 2004, the Company had 9 full-time employees. Three of these
employees are involved in the new telemarketing call center that was built and
they are working primarily on a commission basis. The remaining employees are
used for support, strategic marketing, technology development and administrative
functions. 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 at first look
appear to be similar to Subjex; however management is not aware of any companies
that are selling the same solution. In addition our marketing efforts are
focused directly to small businesses, which our pricing model reflects. Our
competitions solutions are less effective, extremely complex for the small
business owner, and vastly more expensive, affordable only to larger business.
Our target demographic - to our knowledge - has never been exposed to this type
of technology, because no one has priced an effective product of its type within
the budget of small business. Management believes that while some companies may
have greater resources than Subjex, we have superior products, at a lower price,
and the forethought and insight to take a huge part of the market before our
competitors realize it and have time to adapt and change.


<PAGE>
Recent Developments

The Company recently filed for our second patent application on its business
methodology and newest version of SubjexCSR and SubjexOPS. Management believes
these patents will have significant value in the market long term.

In the first, second and third quarters of 2004, the Company was able to raise
additional monies through private issuances of its stock to accredited
individuals. Receipt of these monies allowed the Company to significantly
improve its marketing efforts without significantly increasing expenditures.
Because of new developments in marketing and growth in revenue, management feels
that the Company could generate enough new business to become positive cash
flowing from operations on an ongoing basis sometime in the 4th quarter 2004.


In the first quarter of 2004, the Company had 318 businesses who signed up on
the SubjexCSR free trial. In the second quarter of 2004 the Company had 507 new
businesses sign up on the free trail. As a result of the 2nd quarter increase,
the Company gained experience on how and why signups convert from the free trial
to long term paying customers. Management at that time realized that its
retention of new business from the free trial to paying clients was much lower
than it actually could be. Prospects needed to be better qualified and sold
better. Therefore the Company reworked its entire marketing approach from a
product based marketing message to an e-commerce education approach. This
approach was designed to address more of the real needs of small business and to
educate prospects on how the Subjex products fit into a competent e-commerce
strategy. Unfortunately the result of reworking the approach caused the signup
rate in the 3rd quarter to temporary slow to 262 new businesses. However the
retention of those that signed up has resulted in an increase in revenue, and a
more effective marketing approach that yields higher quality prospects.

The Company generated relatively small revenues in the quarter ended September
30, 2004. However recent percentage increases in sales are significant despite a
complete reworking of the marketing approach. The percentage revenue increase in
the 3rd quarter of 2004 was 44% over the revenue generated in the 2nd quarter of
2004 from $8,060 to $11,547. Management is already seeing a much faster increase
much in the 4th quarter revenue based upon the changes it has made. Total
October revenues were $4,364 and as of November 5th the monthly revenue had
already reached $3,871. With new clients being billed everyday.


<PAGE>
The Company now has over 2,100,000 businesses who have submitted their Company
domain (web site) to the dialogue search engine portal Subjex.net and an
increase of new submissions is averaging 30,000 per month. This list of
submissions has served the Company well for the introduction of the e-commerce
education marketing campaign. The results of the Company's new e-commerce
education program via direct e-mail have provided management a method of growing
the business that is more effective than previous methods. This approach has
generated over 5,000 leads for our telemarketing center to use in generating new
signups. While current revenues are relatively insignificant, insight into our
current marketing operations will show how the Company's projected numbers are
attainable.

For example, as part of this recently modified the direct marketing approach,
the process educates prospects as to the merits of the Company's solutions
while also educating people on all aspects of selling online. Actual email
response rates went from .001% in the 2nd quarter 2004 to 2.4% in 3rd quarter
2004 which initially generated 5,000 business leads. Therefore management made
renovations to their Minnetonka offices to accommodate an outbound telemarketing
call center which was completed on Monday, October 11, 2004. Commission based
sales professionals were hired and initially were expected to close 1 signup per
hour per employee. However as of Friday October 29, 2004, only 18 days into the
project, our first sales person surpassed this goal and began closing 1.1 per
hour. Management has since raised its reasonable expectations to 1.5 signups per
hour per person. Management believes that rate to be conservative considering
how new the program is and that further improvement is naturally inevitable.

Phase 1 goal of the telemarketing center is to reach the level of 5 full time
employees who will close an average of 1.5 businesses on the free trial signup
per hour per person or a total of 300 per week. Management feels that our trend
of increasing the retention of users on the free trial to long term clients will
continue to improve. In January 2004 our retention rate was 15%, as of June it
was over 50% and as of November 1, 2004 was over 60% retention. The goal of goal
of phase 1 is an 80% retention which management feels is realistic due to the
fact that all previous retention percentages were from businesses who signed up
without being contacted by a live person. The telemarketing approach answers
more questions prospects have in advance and gives a stronger sense of personal
attention from the beginning. Phase 1 will produce 15,600 signups in one year.
If 80% retention is applied to this number we can expect to retain 12,480 paying
clients with an average monthly fee of $50, (most clients pay $29 per month -
some pay $150). Therefore management feels that phase 1 after being in operation
for one year will realistically generate monthly gross revenues of $624,000 or
$7,488,000 annually.

Phase 2 goal of the telemarketing center is to reach the level of 21 full time
employees who will close an average of 1.5 businesses on the free trial signup
per hour per person or 1200 per week. This scale of operation is expected to be
attained sometime in the second quarter 2005 and if projected out 30 months will
explain how management arrived at its revenue projection in the Company's
letter to shareholders dated October 7, 2004.

There are more than 40 million small businesses and individuals that the Company
has identified as our target market for the SubjexCSR technology. Although
Management cannot be completely sure of the exact results of its marketing
approach, management believes that it may be possible to gain a client base of
100,000 businesses over several years using the current telemarketing methods.
This represents potential of $60 million in annual revenue.


<PAGE>
Other revenues: Subjex is a modular platform that builds knowledge in what is
called a "Frame" or within one basic theme or subject. For the Company's clients
this means their virtual representative will be an expert in the context of
their objectives. This creates many other opportunities which are diligently
being pursued. The Company is now very close to the launch of the "Subjex
Developer's Network" which will allow individuals to create "Frames" or
personalities on the Subjex platform that can then be sold to the Company's
growing client base from it's "personality portal". Management anticipates
charging developers $10 per month and retaining 15% of each sale. Developers
receive the full version of the software, and can sell each personality as many
times as they wish. Management also feels that to offer a library of
personalities on the Subjex platform will be very lucrative for the developers
and much needed in the marketplace. These expert personalities will talk about
and sell commodity items, sales processes, services or even tell jokes. No
revenue estimate can be made on this business model until some time after the
launch of the developer's network.

Because of the Company direction change in its marketing approach, the costs
involved in setting up its telemarketing center and other factors, as of
September 30, 2004, the Company's cash balances were not sufficient to meet its
operational needs, which is why the Company relied on small additional sales of
unregistered shares of common stock to fund operational needs. This is because
of the automation systems in place which handle much of the sales, training and
installation (i.e. delivery) of the Company's products.



                          PART II - OTHER INFORMATION

ITEM 1. - LEGAL PROCEEDINGS

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 which
began on April 15, 2004 and will end 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.

In March 2004, the State of Minnesota placed a lien on the Company's property.
The amount owed to the State of Minnesota was approximately $492 at on September
30, 2004 and is included in accrued expenses - payroll and payroll taxes.

ITEM 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS

During the first Nine months ended September 30, 2004, the Company sold
5,503,867 shares of unregistered common stock for $260,324.

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 - OTHER INFORMATION

None.

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

None


<PAGE>
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 (acting CFO)
                                     November 12, 2004


<PAGE>