UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C.  20549  FORM 10-QSB  (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the quarter ended:  June 30, 2006   Commission File Number:   0-24721  LEXON TECHNOLOGIES, INC. (Exact name of registrant as specified in charter)  Delaware87-0502701(State or other jurisdiction of incorporation or organization)(I.R.S. Employer I.D. No.)8 Corporate Park, Suite 300, Irvine, California92606(Address of principal executive offices)(Zip Code)  Issuer's telephone number, including area code:(949)752-7700  Securities registered pursuant to section 12(b) of the Act:  Title of each className of each exchange on which registeredNoneN/A   Securities registered pursuant to section 12(g) of the Act:  Common Stock, par value $0.001 per share (Title of class)  Check whether the Issuer (1) filed all reports required to be filed by section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. (1) Yes [X]  No [ ]  (2)  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]  Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the latest practicable date.  As of June 30, 2006, Lexon had 34,183,778 shares of its common stock, par value $.001 outstanding.  PART I FINANCIAL INFORMATION  ITEM 1.  FINANCIAL STATEMENTS  LEXON TECHNOLOGIES, INC. AND SUBSIDIARY FINANCIAL STATEMENTS (UNAUDITED)  The accompanying financial statements have been prepared by the Company, without audit, in accordance with the instructions to Form 10-QSB pursuant to the rules and regulations of the Securities and Exchange Commission and, therefore may not include all information and footnotes necessary for a complete presentation of the financial position, results of operations, cash flows, and stockholders equity in conformity with generally accepted accounting principles.  In the opinion of management, all adjustments (which include only normal recurring accruals) necessary to present fairly the financial position and results of operations for the periods presented have been made.  These financial statements should be read in conjunction with the accompanying notes, and with the historical financial information of the Company.    LEXON TECHNOLOGIES, INC. AND SUBSIDIARIES(A Development Stage Company)Consolidated Balance SheetsASSETSJune 30,December 31,20062005CURRENT ASSETS(Unaudited)Cash and cash equivalents$            13,898$                 22,623Accounts receivable16,94315,911Due from related party23,38121,957Proceeds of sale due from the courts339,520364,225Prepaid expenses and other assets12,0789,939Note receivable - related party-167,000Total Current Assets405,820601,655PROPERTY AND EQUIPMENT, net95,900146,252OTHER ASSETSInvestments, recorded at cost11,667261,667Investments, recorded under the equity method115,111115,111Goodwill1,851,6921,851,692Deposits and other assets111,3006,425Total Other Assets2,089,7702,234,895TOTAL ASSETS$       2,591,490$            2,982,802LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)CURRENT LIABILITIESAccounts payable$          521,860$               377,929Accounts payable - related parties498,139573,595Accrued expenses1,527,1491,352,173Convertible notes payable128,575128,575Notes payable27,80627,962Total Current Liabilities2,703,5292,460,234CONTINGENT LIABILITIES460,874460,874STOCKHOLDERS' EQUITY (DEFICIT)Common stock, par value $0.001 per share; authorized34,18434,184100,000,000 shares; 34,183,778 shares issued and outstandingAdditional paid-in capital3,066,8393,066,839Other comprehensive income (loss)(112,813)(76,360)Deficit accumulated during the development stage(3,561,123)(2,962,969)Total Stockholders' Equity (Deficit)(572,913)61,694TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)$       2,591,490$            2,982,802  The accompanying notes are an integral part of these consolidated financial statements.   LEXON TECHNOLOGIES, INC. AND SUBSIDIARIES(A Development Stage Company)Consolidated Statements of Operations(Unaudited)From Inceptionon July 18, 2001For the Three Months EndedFor the Six Months EndedThroughJune 30,June 30,June 30,20062005200620052006REVENUES$             -$             -$             -$             -$           22,031EXPENSESResearch and development9,729-22,52324,192491,652Selling, general and administrative250,388207,263527,481517,1373,568,558Bad debt expense---5,33535,941Depreciation and amortization12,97970,29225,632142,18287,663Total Expenses273,096277,555575,636688,8464,183,814LOSS FROM OPERATIONS(273,096)(277,555)(575,636)(688,846)(4,161,783)OTHER INCOME (EXPENSE)Interest income6953,5867147,24540,525Other income----6,000Loss on sale of assets(7,441)-(17,520)-1,296,815Gain on forgiveness of debt----19,872Interest expense(2,872)(33,554)(5,712)(67,177)(762,552)Total Other Income (Expense)(9,618)(29,968)(22,518)(59,932)600,660NET LOSS(282,714)(307,523)(598,154)(748,778)(3,561,123)OTHER COMPREHENSIVE INCOME (LOSS)Gain (loss) on foreign currency(17,760)43,711(36,453)(25,364)(112,813)NET COMPREHENSIVE LOSS$(300,474)$(263,812)$(634,607)$(774,142)$   (3,673,936)BASIC LOSS PER SHARE$      (0.01)$      (0.01)$     (0.02)$     (0.02)WEIGHTED AVERAGE NUMBER OF COMMON  SHARES OUTSTANDING34,183,77834,183,77834,183,77834,183,778    The accompanying notes are an integral part of these consolidated financial statements.   LEXON TECHNOLOGIES, INC. AND SUBSIDIARIES(A Development Stage Company)Consolidated Statements of Cash Flows(Unaudited)From Inceptionon July 18, 2001For the Six Months EndedThroughJune 30,June 30,200620052006CASH FLOWS FROM OPERATING ACTIVITIES:Net loss$           (598,154)$     (748,778)$        (3,561,123)Adjustments to reconcile net loss to net cash(used) in operating activities:Depreciation and amortization25,632142,18287,663Stock for services--263,720Stock for technology--375,000Bad debt expense-5,33535,941(Gain) on forgiveness of debt--(19,872)(Gain) loss on foreclosure/disposition of assets17,520-(1,297,949)Changes in assets and liabilities (net of acquisition):(Increase) decrease in other assets(104,875)6,316(129,519)(Increase) decrease in accounts receivable22,249(4,510)(3,009)and accounts receivable, related(Increase) decrease in prepaid expenses(2,139)1,022(2,139)Increase in interest receivable-(7,251)Increase in inventory-(16,203)Change in currency conversion(36,453)(25,364)(112,813)Increase in accounts payable and accrued expenses256,887532,0402,722,998Net Cash (Used in) Operating Activities(419,333)(115,211)(1,641,102)CASH FLOWS FROM INVESTING ACTIVITIES:Cash paid for property and equipment(9,134)-(22,411)Cash proceeds received on sale of property and equipment2,898-2,898Cash paid for related party notes receivables--(235,554)Cash received from related party notes receivables167,000268,407477,407Cash paid for investments--(1,846,667)Cash received from investments250,000-250,000Cash placed into escrow--(150,000)Cash received from escrow--150,000Cash paid for note receivable--(200,000)Note receivable converted in acquistion--200,000Cash received in acquisition--39,158Net Cash Provided by (Used in) Investing Activities410,764268,407(1,335,169)CASH FLOWS FROM FINANCING ACTIVITIES:Receipt of subscription receivable--220,000Proceeds from related party notes--239,731Proceeds from notes payable-75,575148,575Cash paid on notes payable(156)(233,889)(263,137)Cash received from issuance of common stock--2,645,000Net Cash Provided by (Used in) Financing Activities$                  (156)$      (158,314)$          2,990,169 The accompanying notes are an integral part of these consolidated financial statements.   LEXON TECHNOLOGIES, INC. AND SUBSIDIARIES(A Development Stage Company)Consolidated Statements of Cash Flows (Continued)(Unaudited)From Inceptionon July 18, 2001For the Six Months EndedThroughJune 30,June 30,200620052006NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS$                 (8,725)$           (5,118)$            13,898CASH AND CASH EQUIVALENTS AT BEG OF PERIOD22,6237,001-CASH AND CASH EQUIVALENTS AT END OF PERIOD$              13,898$          1,883$               13,898SUPPLEMENTAL CASH FLOW INFORMATIONCash Payments For:Interest$                   5,712$                    -$               723,260Income taxes$                         -$                    -$                         -Non-Cash Investing and Financing ActivitiesStock issued for technology$                         -$                    -$               375,000Stock issued for services$                         -$                    -$               263,720Stock issued in lieu of debt$                         -$                    -$               237,000Property and equipment acquired with debt$                         -$          545,607$               545,607    The accompanying notes are an integral part of these consolidated financial statements.  LEXON TECHNOLOGIES, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements June 30, 2006 and December 31, 2005   NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION  The accompanying unaudited condensed financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted in accordance with such rules and regulations.  The information furnished in the interim condensed financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements.  Although management believes the disclosures and information presented are adequate to make the information not misleading, it is suggested that these interim condensed financial statements be read in conjunction with the Company's audited financial statements and notes thereto included in its December 31, 2005 Annual Report on Form 10-KSB.  Operating results for the three months and six months ended June 30, 2006 are not necessarily indicative of the results that may be expected for the year ending December 31, 2006.  NOTE 2 - LOSS PER SHARE  Following is a reconciliation of the loss per share for the three months and six months ended June 30, 2006 and 2005:   For theThree Months EndedJune 30,20062005Net (loss) available to common shareholders$   (282,714)$   (307,523)Weighted average shares34,183,77834,183,778Basic loss per share (based on weighted average shares)$        (0.01)$        (0.01)  For theSix Months EndedJune 30,20062005Net (loss) available to common shareholders$   (598,154)$   (748,778)Weighted average shares34,183,77834,183,778Basic loss per share (based on weighted average shares)$        (0.02)$        (0.02)  LEXON TECHNOLOGIES, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements June 30, 2006 and December 31, 2005   NOTE 3 - GOING CONCERN  The Company=s consolidated financial statements are prepared using generally accepted accounting principles applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business.  The Company has historically incurred significant losses which have resulted in an accumulated deficit of $3,561,123 at June 30, 2006, a working capital deficit of approximately $2,298,000, and limited internal financial resources.  These factors combined, raise substantial doubt about the Company=s ability to continue as a going concern.  The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty.  It is the intent of management to continue to raise additional funds to sustain operations and to pursue acquisitions of operating companies in order to generate future profits for the Company.  NOTE 4 - MATERIAL EVENTS  During the six months ended June 30, 2006, the Companys $250,000 investment in a Republic of Korea entity called Nano Plasma Center Company, Ltd. (NPC) was liquidated and the entire $250,000 was received in cash.  In addition, a note receivable of $167,000 owed to the Company from NPC was also received in full during the six months ended June 30, 2006.  During February, 2006, Techone Company, Ltd., a majority-owned subsidiary of the Company, changed its name to Lexon Semiconductor Corporation.     ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS  Cautionary Statement Regarding Forward-looking Statements  This report may contain forward-looking statements.  Examples of forward-looking statements include, but are not limited to: (a) projections of revenues, capital expenditures, growth, prospects, dividends, capital structure and other financial matters; (b) statements of plans and objectives of our management or Board of Directors; (c) statements of future economic performance; (d) statements of assumptions underlying other statements and statements about us and our business relating to the future; and (e) any statements using the words anticipate, expect, may, project, intend or similar expressions.  General  Effective December 8, 2004, we acquired a majority control (90.16%) of Techone Company, Ltd., a Republic of Korea corporation (Techone), through an investment of $1,585,000 financed through the sale of our restricted common stock to two accredited investors.  During February, 2006, we changed the name of Techone to Lexon Semiconductor Corporation (Lexon Semi).  Lexon Semi is a corporation that manufactures and sells Low Temperature Cofired Ceramic (LTCC) components, including LTCC wafer probe cards, LTCC circuit boards, LTCC Light Emitting Diode (LED) displays and related products for the semiconductor testing and measurement, custom Printed Circuit Board (PCB), and cellular phone industries. The manufacturing process is a patented method for producing low temperature cofired ceramic electronic components.  We now operate Lexon Semi as a majority-owned subsidiary and the business of Lexon Semi is the operating business of the Company. However, most of Lexon Semis assets were seized and sold at auction effective August 19, 2005 to satisfy certain secured creditors.  Management has negotiated a lease arrangement with the acquirer to allow the Company to continue operations and use the Lexon Semi facilities. The new landlord has agreed to lease the building, land and equipment to the Company for 20 million South Korean Won per month (approximately $18,000 U.S. dollars per month).  Results of Operations for the Six Months Ended June 30, 2006 compared to June 30, 2005  Revenues.  We had no revenues for the six months ended June 30, 2006 and no revenues for the prior year period. We anticipate revenues over the next fiscal year from the operation of Lexon Semi and, at this filing date, operations are continuing.  Effective August 19, 2005, the land, building and approximately half of the manufacturing equipment were sold at auction to satisfy certain secured creditors.  As previously discussed, management has negotiated a lease with the acquirer to continue operations and continue using the facilities.  Operating expenses for the six months ended June 30, 2006 were $575,636, consisting of $527,481 in selling, general and administrative expenses, $22,523 in research and development, and $25,632 in depreciation and amortization.  Operating expenses for the prior year period were $688,846, consisting of $517,137 for selling, general and administrative expenses, $24,192 in research and development, $142,182 in depreciation and amortization, and $5,335 in bad debt expense.  The decrease in operating expenses for the current period is due to our efforts to reduce expenses because resources have not been available.  We anticipate that expenses will increase if we can obtain necessary funding.  We plan to raise additional funds to continue and sustain operations of Lexon Semi through debt or equity financing.  Operating expenses since inception (July 18, 2001) total $4,183,814.  Our net loss per share for the six months ended June 30, 2006 was $0.02, based on a weighted average of 34,183,778 shares outstanding.  Other expense for the six months ended June 30, 2006 consisted of $5,712 in interest expense, a loss of $17,520 on the sale of assets, and $714 in interest income. Other expense for the prior year period totaled $59,932, including interest income offset by interest expense.   Liquidity and Capital Resources  Historically, our primary source of liquidity has been cash proceeds from the sale of our common stock and proceeds from notes payable.  However, during the six months ended June 30, 2006, our $250,000 investment in a Republic of Korea entity called Nano Plasma Center Company, Ltd. (NPC) was liquidated and we received the entire $250,000 in cash.  In addition, a note receivable of $167,000 owed to us from NPC was also paid in full during the six months ended June 30, 2006.  However, we anticipate that we will need to raise significant additional capital to fund operations of Lexon Semi.  At this date we have no agreements or commitments for long term funding.  At June 30, 2006, we had current assets of $405,820 and current liabilities of $2,703,529 for negative working capital of $2,297,709.  Current assets consisted primarily of cash, receivables, a note receivable from a related party, interest receivable, and additional proceeds of $339,520 from the courts related to the foreclosure sale of Lexon Semis assets.  At June 30, 2006, we had property and equipment, net totaling $95,900.  We had other assets of $126,778 in investments, deposits and other assets of $111,300, and goodwill associated with the acquisition of Lexon Semi of $1,851,692, for total other assets of $2,089,770.  Current liabilities at June 30, 2006, consisted of accounts payable of $521,860, accounts payable - related parties of $498,139, accrued expenses of $1,527,149, convertible notes payable of $128,575 and notes payable of $27,806. We also had contingent liabilities of $460,874, including accrued payables to creditors and accrued wages.  For the six months ended June 30, 2006, net cash flows used in operating activities totaled $419,333 compared to net cash flows used in operating activities of $115,211 in the prior year period.  Our operating activities since inception have been funded primarily by the sale of our common stock and the issuance of convertible notes and promissory notes.  For the six months ended June 30, 2006, net cash provided by investing activities totaled $410,764 for cash received on a related party note receivable, and cash received from investments, as detailed above, plus cash proceeds received on the sale of property and equipment offset by cash paid for property and equipment. For the prior year period, net cash provide by investing activities totaled $268,407 for cash received from related party notes receivable.  Net cash used in financing activities for the six months ended June 30, 2006 consisted of $156 cash paid on notes payable.  In the prior year period, cash used by financing activities totaled $158,314 in cash paid on notes payable offset by proceeds from notes payable.  To date, our primary source of liquidity has been proceeds from the sale of our common stock and notes payable to finance operations and business activities.  In each year we incurred significant losses which have resulted in an accumulated deficit of $3,561,123 at June 30, 2006, a working capital deficit and limited internal financial resources.  Accordingly, our financial statements include a going concern qualification raising substantial doubt about Lexons ability to continue as a going concern. Our management hopes to be able to raise additional funds to continue and sustain operations of Lexon Semi through debt or equity financing.  We estimate that approximately $1,000,000 will be needed to accomplish these tasks, to continue development and production activities and deploy a new and invigorated sales and marketing effort.  We hope to obtain such financing before the end of the fiscal year but no commitments have been received to date. If we are successful, we also intend to seek additional longer term capital to continue to develop the business and also to pursue acquisitions of other synergistic operating companies in order to develop profitable operations.  If we are not successful in obtaining both short and long term financing, we may have to suspend or cease operations.    ITEM 3. CONTROLS AND PROCEDURES  Our principal executive and financial officer has participated with management in the evaluation of effectiveness of the controls and procedures required by paragraph (b) of Rule 13a-15 or Rule 15d-15 under the Exchange Act as of the end of the period covered by this report.  Based on that evaluation, our principal executive and financial officer believes that our disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Exchange Act) are effective as of the end of the period covered by the report.  There have been no changes in our internal controls that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting during the period covered by this report.  PART II - OTHER INFORMATION  ITEM 1.  LEGAL PROCEEDINGS  None.  ITEM 2.  CHANGES IN SECURITIES  None.  ITEM 3.  DEFAULT BY THE COMPANY ON ITS SENIOR SECURITIES  None.  ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS  No matters were submitted to the shareholders during the quarter ended June 30, 2006.  ITEM 5.  OTHER INFORMATION  During February, 2006, we changed the name of Techone Company, Ltd., our majority-owned subsidiary, to Lexon Semiconductor Corporation.  ITEM 6.  EXHIBITS  Exhibit 31 - CERTIFICATION AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANNES-OXLEY ACT OF 2002.  Exhibit 32 - CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002.   SIGNATURES  Pursuant to the requirements of the Securities Exchange Act of 1934, we have duly caused this report to be signed on our behalf by the undersigned, thereunto duly authorized.  LEXON TECHNOLOGIES, INC.  Date: August 21, 2006  /S/Kenneth J. Eaken, CEO Principal Executive and Financial Officer