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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the fiscal period ended:June 30, 2011

[   ] TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________ to
________________

Commission File Number:0-24721

LEXON TECHNOLOGIES, INC.(Exact name of registrant as specified in charter)

|Delaware                                                             | 87-0502701                
|-------------------------------------------------------------------- | --------------------------
|(State or other jurisdiction of incorporation or
      organization) | (I.R.S. Employer I.D. No.)
|                                                                     |                           
|14830 Desman Road                                                    | 90638                     
|(Address of principal executive offices)                             | (Zip Code)                

Issuer's telephone number, including area code:(714)
522-0270

Securities registered pursuant to section 12(b) of the Act:

|Title of each class | Name of each exchange on which registered
|------------------- | -----------------------------------------
|None                | N/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 is not required to file reports
pursuant to Section 13 or 15(d) of the Exchange Act. [   ]

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 has submitted
electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (§232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such files.)
Yes [X]    No [   ]

Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, or a non-accelerated filer (as defined
in Rule 12b-2 of the Act). See the definitions of large accelerated filer,
accelerated filer, and smaller reporting company in Rule 12b-2 of the
Exchange Act. (Check one):

Large accelerated filer [ 
 ]        Accelerated filer
[   ]        Non-accelerated filer
[   ]        Smaller reporting
company [X]

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 August 18, 2011, Lexon had 310,789,721 shares of common
stock, par value $0.001 outstanding.

1

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PART I  FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

INDEX TO FINANCIAL STATEMENTS

|                                                | Page
|----------------------------------------------- | ----
|                                                |     
|Financial Statements:                           |     
|Balance
      Sheets (unaudited)                | 4   
|Statements
      of Operations (unaudited)      | 6   
|Statements
      of Cash Flows (unaudited)      | 7   
|Notes
      to Financial Statements (unaudited) | 9   

2

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LEXON TECHNOLOGIES, INC. BALANCE SHEETS

|ASSETS                                 |   |             |  |   |              | 
|-------------------------------------- | - | ----------- |  | - | ------------ | 
|                                       |   | (Unaudited) |  |   |              | 
|                                       |   | June 30,    |  |   | December 31, | 
|                                       |   | 2011        |  |   | 2010         | 
|Current assets:                        |   |             |  |   |              | 
|Cash and cash
      equivalents        | $ | -           |  | $ | 10,218       | 
|Accounts receivable, net               |   | -           |  |   | 276,764      | 
|Inventories                            |   | -           |  |   | 573,137      | 
|Other current assets                   |   | -           |  |   | 18,000       | 
|                                       |   |             |  |   |              | 
|Total current assets                   |   | -           |  |   | 878,119      | 
|                                       |   |             |  |   |              | 
|Due from related parties               |   | -           |  |   | 138,000      | 
|                                       |   |             |  |   |              | 
|Property and equipment, net            |   | -           |  |   | 60,310       | 
|                                       |   |             |  |   |              | 
|Other assets:                          |   |             |  |   |              | 
|Intangibles, net of
      amortization |   | 278,111     |  |   | 375,944      | 
|Security deposits                      |   | -           |  |   | 20,748       | 
|Goodwill                               |   | -           |  |   | 3,214,289    | 
|                                       |   |             |  |   |              | 
|Total other assets                     |   | 278,111     |  |   | 3,610,981    | 
|                                       |   |             |  |   |              | 
|Total assets                           | $ | 278,111     |  | $ | 4,687,410    | 

The accompanying notes are an integral part of the unaudited
financial statements.

3

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LEXON TECHNOLOGIES, INC.BALANCE SHEETS

|LIABILITIES AND STOCKHOLDERS EQUITY                                                                                                                                                                                                                        |   |             |   |   |              |  
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | ----------- | - | - | ------------ | -
|                                                                                                                                                                                                                                                            |   | (Unaudited) |   |   |              |  
|                                                                                                                                                                                                                                                            |   | June 30,    |   |   | December 31, |  
|                                                                                                                                                                                                                                                            |   | 2011        |   |   | 2010         |  
|Current liabilities:                                                                                                                                                                                                                                        |   |             |   |   |              |  
|                                                                                                                                                                                                                                                            |   |             |   |   |              |  
|Accounts payable                                                                                                                                                                                                                                            | $ | 56,844      |   | $ | 616,637      |  
|Due to related parties                                                                                                                                                                                                                                      |   | 91,960      |   |   | 91,960       |  
|Line of credit                                                                                                                                                                                                                                              |   | -           |   |   | 450,000      |  
|Bank overdraft                                                                                                                                                                                                                                              |   | 16,146      |   |   | 20,454       |  
|Current portion
      of notes payable                                                                                                                                                                                                                      |   | -           |   |   | 65,778       |  
|Current portion of capital lease
      obligations                                                                                                                                                                                                          |   | -           |   |   | 20,447       |  
|Accrued expenses                                                                                                                                                                                                                                            |   | 77,400      |   |   | 317,694      |  
|                                                                                                                                                                                                                                                            |   |             |   |   |              |  
|Total
      current liabilities                                                                                                                                                                                                                             |   | 242,350     |   |   | 1,582,970    |  
|                                                                                                                                                                                                                                                            |   |             |   |   |              |  
|                                                                                                                                                                                                                                                            |   |             |   |   |              |  
|Long-term liabilities:                                                                                                                                                                                                                                      |   |             |   |   |              |  
|                                                                                                                                                                                                                                                            |   |             |   |   |              |  
|Notes payable, net of current
      portion                                                                                                                                                                                                                 |   | -           |   |   | 31,203       |  
|Capital lease
      obligations, net of current portion                                                                                                                                                                                                     |   | -           |   |   | 9,863        |  
|Deferred rent                                                                                                                                                                                                                                               |   | -           |   |   | 42,900       |  
|Settlement
      payable                                                                                                                                                                                                                                    |   | 206,548     |   |   | 206,548      |  
|                                                                                                                                                                                                                                                            |   |             |   |   |              |  
|Total
      long-term liabilities                                                                                                                                                                                                                           |   | 206,548     |   |   | 290,514      |  
|                                                                                                                                                                                                                                                            |   |             |   |   |              |  
|Total liabilities                                                                                                                                                                                                                                           |   | 448,898     |   |   | 1,873,484    |  
|                                                                                                                                                                                                                                                            |   |             |   |   |              |  
|                                                                                                                                                                                                                                                            |   |             |   |   |              |  
|Stockholders equity:                                                                                                                                                                                                                                       |   |             |   |   |              |  
|                                                                                                                                                                                                                                                            |   |             |   |   |              |  
|Common stock -
      $0.001 par
      value;          
      2,000,000,000 shares
      authorized,           310,789,721
      and 510,789,721 shares issued and
      outstanding           as
      of June 30, 2011 and December 31, 2010, respectively |   | 310,790     |   |   | 510,790      |  
|Additional
      paid-in capital                                                                                                                                                                                                                            |   | 1,388,905   |   |   | 3,088,905    |  
|                                                                                                                                                                                                                                                            |   |             |   |   |              |  
|                                                                                                                                                                                                                                                            |   |             |   |   |              |  
|Stock subscription receivable                                                                                                                                                                                                                               |   | (100,000    | ) |   | (100,000     | )
|Accumulated
      deficit                                                                                                                                                                                                                                   |   | (1,770,482  | ) |   | (685,769     | )
|                                                                                                                                                                                                                                                            |   |             |   |   |              |  
|Total stockholders equity                                                                                                                                                                                                                                  |   | (170,787    | ) |   | 2,813,926    |  
|                                                                                                                                                                                                                                                            |   |             |   |   |              |  
|Total liabilities and stockholders equity                                                                                                                                                                                                                  | $ | 278,111     |   | $ | 4,687,410    |  

The accompanying notes are an integral part of the unaudited
financial statements.

4

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LEXON TECHNOLOGIES, INC.STATEMENTS OF OPERATIONS(Unaudited)

|                                                    |   | Three Months Ended |   |   | Six Months Ended |  
|--------------------------------------------------- | - | ------------------ | - | - | ---------------- | -
|                                                    |   | June
      30,     |   |   | June
      30,   |  
|                                                    |   | 2011               |   |   | 2010             |  
|                                                    |   |                    |   |   |                  |  
|Net sales                                           | $ | 10,319             |   | $ | 884,295          |  
|                                                    |   |                    |   |   |                  |  
|Cost of goods sold                                  |   | -                  |   |   | 934,004          |  
|                                                    |   |                    |   |   |                  |  
|Gross profits                                       |   | 10,319             |   |   | (49,709          | )
|                                                    |   |                    |   |   |                  |  
|Selling, general and administrative expenses        |   | 104,724            |   |   | 459,955          |  
|                                                    |   |                    |   |   |                  |  
|Loss from operations                                |   | (94,405            | ) |   | (509,664         | )
|                                                    |   |                    |   |   |                  |  
|Other income (expenses):                            |   |                    |   |   |                  |  
|Gain on forgiveness of debt                         |   | -                  |   |   | -                |  
|Loss on goodwill impairment                         |   | (940,733           | ) |   | -                |  
|Interest expense                                    |   | -                  |   |   | (12,983          | )
|Net
      other income (expense)                    |   | (940,733           | ) |   | (12,983          | )
|                                                    |   |                    |   |   |                  |  
|Loss before income tax provision                    |   | (1,035,138         | ) |   | (522,647         | )
|                                                    |   |                    |   |   |                  |  
|Provision for income taxes                          |   | -                  |   |   | -                |  
|                                                    |   |                    |   |   |                  |  
|Net loss                                            | $ | (1,035,138         | ) | $ | (522,647         | )
|                                                    |   |                    |   |   |                  |  
|Earnings per share of common stock  Basic          |   | (0.00              | ) |   | (0.00            | )
|                                                    |   |                    |   |   |                  |  
|Earnings per share of common stock - Diluted        |   | (0.00              | ) |   | (0.00            | )
|                                                    |   |                    |   |   |                  |  
|Weighted average shares of common stock outstanding |   | 421,038,208        |   |   | 546,340,664      |  

The accompanying notes are an integral part of the unaudited
financial statements.

5

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LEXON TECHNOLOGIES, INC.STATEMENTS OF CASH FLOWS(Unaudited)

|                                                                                                                             |   | For The Six Months Ended |  
|---------------------------------------------------------------------------------------------------------------------------- | - | ------------------------ | -
|                                                                                                                             |   | June
      30,           |  
|                                                                                                                             |   | 2011                     |  
|Cash flows from operating activities:                                                                                        |   |                          |  
|                                                                                                                             |   |                          |  
|Net loss                                                                                                                     | $ | (1,084,712               | )
|                                                                                                                             |   |                          |  
|Adjustments
      to reconcile net income (loss) to net cash provided by               (used
      in) operating activities: |   |                          |  
|                                                                                                                             |   |                          |  
|Bad debt expense                                                                                                             |   | -                        |  
|Depreciation
      and amortization                                                                                          |   | 97,833                   |  
|Loss on goodwill impairment                                                                                                  |   | 940,733                  |  
|Gain
      on forgiveness of debt                                                                                            |   | -                        |  
|Noncash professional services                                                                                                |   | -                        |  
|                                                                                                                             |   |                          |  
|Changes in assets and liabilities:                                                                                           |   |                          |  
|Accounts receivable                                                                                                          |   | 276,764                  |  
|Inventories                                                                                                                  |   | 573,137                  |  
|Security deposit                                                                                                             |   | 20,748                   |  
|Goodwill                                                                                                                     |   | 2,273,555                |  
|Accounts payable                                                                                                             |   | (559,793                 | )
|Accrued expenses                                                                                                             |   | (240,294                 | )
|Bank overdraft                                                                                                               |   | (4,308                   | )
|Deferred rent                                                                                                                |   | (42,900                  | )
|Other current liabilities                                                                                                    |   | -                        |  
|                                                                                                                             |   |                          |  
|Total adjustments                                                                                                            |   | 3,335,475                |  
|                                                                                                                             |   |                          |  
|Net cash provided by (used in) operating activities                                                                          |   | 2,250,763                |  
|                                                                                                                             |   |                          |  
|Cash flows from investing activities:                                                                                        |   |                          |  
|                                                                                                                             |   |                          |  
|Property and equipment                                                                                                       |   | 60,310                   |  
|Note receivable                                                                                                              |   | 18,000                   |  
|Due from related parties                                                                                                     |   | 138,000                  |  
|                                                                                                                             |   |                          |  
|Net cash provided by investing activities                                                                                    |   | 216,310                  |  
|                                                                                                                             |   |                          |  
|Cash flows from financing activities:                                                                                        |   |                          |  
|Payments on notes
      payable                                                                                              |   | (546,981                 | )
|Payments on capital lease obligations                                                                                        |   | (30,310                  | )
|Issuance of common
      stock                                                                                               |   | (1,900,000               | )
|Distributions to stockholder                                                                                                 |   | -                        |  
|Net cash used in financing activities                                                                                        |   | (2,477,291               | )
|                                                                                                                             |   |                          |  
|Net decrease in cash                                                                                                         |   | (10,218                  | )
|                                                                                                                             |   |                          |  
|Cash and cash equivalents, at the beginning
      of period                                                                  |   | 10,218                   |  
|                                                                                                                             |   |                          |  
|Cash and cash equivalents, at the end of period                                                                              | $ | -                        |  

The accompanying notes are an integral part of the unaudited
financial statements.

6

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LEXON TECHNOLOGIES, INC.STATEMENTS OF CASH FLOWS(Unaudited)

|                                                         |   | Six Months Ended | 
|-------------------------------------------------------- | - | ---------------- | 
|                                                         |   | June
      30,   | 
|                                                         |   | 2011             | 
|Supplemental disclosures:                                |   |                  | 
|Cash paid during the period:                             |   |                  | 
|Income taxes                                             | $ | -                | 
|Interest expense                                         | $ | -                | 
|                                                         |   |                  | 
|Noncash investing and financing activities:              |   |                  | 
|Common stock issued
      for acquisition of intangibles | $ | -                | 

The accompanying notes are an integral part of the unaudited
financial statements.

7

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LEXON TECHNOLOGIES, INC.NOTES TO UNAUDITED FINANCIAL STATEMENTS

Note 1 - Nature of Business

Lexon Technologies, Inc. ("the Company" or "Lexon") was
incorporated in April 1989 under the laws of state of Delaware, and owns 90.16%
of Lexon Semiconductor Corporation ("Lexon Semi" or formerly known as Techone
Co., Ltd ("Techone")) which had developed and manufactured 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 Company currently has no business
activities.

Initially registered as California Cola Distributing Company,
Inc, the Company changed its name twice; first to Rexford, Inc. in October 1992,
and to the current name in July 1999.

In July 1999, Lexon acquired 100% of the outstanding common
stock of Chicago Map Corporation (CMC) in exchange for 10,500,000 shares of the
Company's common stock through a reverse acquisition accompanied by a
recapitalization. The surviving entity, Lexon, reflected the assets and
liabilities of Lexon and CMC at their historical book values. Lexon dissolved
CMC in 2002.

In April 2002, Lexon acquired 100% of the outstanding common
stock of Phacon Corporation (Phacon) in exchange for 17,500,000 shares of
Company's common stock through a reverse acquisition accompanied by a
recapitalization. As part of the agreement, the Company elected a 1 for 10
reverse stock split and the acquired shares of Phacon were entirely canceled
leaving the Company as the surviving entity.

In March 2003, the Company incorporated Lexon Korea Corporation
(Lexon Korea) as a wholly-owned subsidiary in Korea for the purpose of
entering into potential business combinations with Korean operating entities.
Lexon Korea was reorganized in August 2005, and as a result, the Companys
equity share in Lexon Korea was reduced to 10%.

In December 2004, the Company acquired 90.16% of the voting
stock of Techone Company, Ltd, a company in Korea, by investing $1,588,000. The
Company recognized goodwill of $1,851,692 in the acquisition. The Company
acquired Techone to develop it as the Companys core operating business in Korea
for manufacturing and selling LTCC related products. However, the development of
the LTCC related products was not successful, and the operations of Techone
became highly leveraged financially. In August 2005, certain creditors filed an
involuntary foreclosure and sold Techones assets through public auction to
satisfy secured debts. This disposal of assets resulted in a gain $1,315,469 for
the year ended December 31, 2005. In February 2006, Techone changed its name to
Lexon Semiconductor Corporation and all of its operation has been suspended due
to lack of operating working capital. Lexon Semi was dissolved on October 28,
2009 based on a decision of shareholders meeting. Lexon Semi has $241,000 of due
to related party and $415,000 of liabilities relation to discontinued operations
as of September 30, 2009.

On October 7, 2009, Paragon Toner Inc, a California
corporation, entered into an Agreement and Plan of Merger (the Merger
Agreement) with the Company whereby the Company issued 347,448,444 shares of
common stock (the Common Stock) of the Company (the Acquisition Shares) to
the shareholders of We, representing approximately 67% of the issued and
outstanding Common Stock after completion of the merger in October 2009. The
effective date of the Merger was October 22, 2009 (Effective Date). We have
decided to maintain the name of our predecessor company.

On December 31, 2010, all of the assets and all of the
liabilities of the Paragon Toner Division of Lexon Technologies Inc. were
exchanged for existing Lexon Technologies Inc. shares specifically 166,300,000
shares held by James Park and 66,700,000 shares held by Young Won.

The internet properties namely 7 inkjet.com, nanoinket.com and
Yourcartridges.com remain with Lexon Technologies Inc., and become the main
operation of the company.

Note 2 - Summary of Significant Accounting Policies

This summary of significant accounting policies of the Company
is presented to assist in understanding the Companys financial statements. The
financial statements and notes are representations of the Companys management,
who is responsible for their integrity and objectivity. These accounting
policies conform to accounting principles generally accepted in the United
States of America and have been consistently applied in the preparation of the
financial statements.

Use of Estimates

The preparation of the financial statements in conformity with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes. Estimates are
primarily used for depreciation of property and equipment, amortization of
intangible assets, allowances for doubtful accounts and inventory valuation.
Actual results could differ from those estimates.

8

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LEXON TECHNOLOGIES, INC.NOTES TO UNAUDITED FINANCIAL STATEMENTS

Revenue Recognition

The Company generates revenues from the operation of the
internet properties. The Company has subcontracted all of the operational
activities of the Websites and has received 15% of all revenues generated from
the Websites on a regular basis.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased
with original maturities of three months or less to be categorized as cash and
cash equivalents.

Allowance for Doubtful Accounts

The allowance for doubtful accounts is computed based upon the
managements estimate of uncollectible accounts and historical experience. The
Company performs ongoing credit evaluations of its customers to estimate
potential credit losses. Amounts are written off against the allowance in the
period the Company determines that the receivable is uncollectible.

Inventories

Inventories are stated at the lower of cost or market. Cost is
determined by the first-in, first-out (FIFO) method. Appropriate consideration
is given to obsolescence, slow moving items and other factors in evaluating net
realizable value.

Property and Equipment

Property and equipment are stated at cost. The straight-line
method is used to calculate depreciation over their estimated useful lives
ranging as follows:

Automobile
    3 yearsFurniture & fixture
    5 to 7 yearsLeasehold improvement
    5 yearsMachinery and equipment
    5 years


Leasehold improvements are depreciated to expense over the
shorter of the life of the improvement or the remaining lease term. Capital
expenditures that enhance the value or materially extend the useful life of the
related assets are reflected as additions to property and equipment.
Expenditures for repairs and maintenance are charged to expense as incurred.
Upon a sale or disposition of assets, a gain or a loss is included in the
statement of operations.

Impairment of Long-lived Assets

The Company periodically reviews the recoverability of its
long-lived assets using the methodology prescribed in accounting guidance now
codified as FASB ASC Topic 360, Property, Plant and Equipment.The
Company also reviews these assets for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be
recoverable. Recoverability of these assets is determined by comparing the
forecasted undiscounted future net cash flows from the operations to which the
assets relate, based on managements best estimates using appropriate
assumptions and projections at the time, to the carrying amount of the assets.
If the carrying value is determined not to be recoverable from future operating
cash flows, the asset is deemed impaired and an impairment loss is recognized
equal to the amount by which the carrying amount exceeds the estimated fair
value of the asset. In managements opinion, no such impairment existed as of
June 30, 2011 and December 31, 2010.

Goodwill - The Company accounts for
intangible assets in accordance with the ASC 350, Intangibles - Goodwill and
Other. ASC 350 requires that goodwill no longer be amortized, but instead be
tested for impairment at least annually. Additionally, ASC 350 requires that
recognized intangible assets be amortized over their respective estimated lives
and reviewed for impairment in accordance with ASC 360, Property, Plant, and
Equipment. Any recognized intangible assets determined to have an indefinite
useful lives will not be amortized, but instead tested for impairment until its
life is determined to no longer be indefinite. ASC 350 requires that the values
of intangible assets be tested for impairment on at least an annual basis, by
comparing the fair value of the assets to their carrying amounts. As a result of
the impairment testing, the Company determined that goodwill was significantly
impaired due to sales of Paragon Toner division. Goodwill amount was $0 and
$3,214,289 as of June 30, 2011 and December 31, 2010, respectively.

9

---

LEXON TECHNOLOGIES, INC.NOTES TO UNAUDITED FINANCIAL STATEMENTS

Accrued Expenses

The Companys accrued expenses consist of amounts payable for
salaries, payroll taxes and sales taxes.

Deferred Rent

The Company recognizes rent expense equal to the total of the
payments and free rent received due over the lease term, divided by the number
of months of the lease term applying the straight-line method. The difference
between rent expense recorded and the amount paid is credited or charged to
deferred rent.

Shipping and Handling

Certain shipping and handling fees are charged to customers and
these are classified as revenue. The costs associated with all shipping to
customers are recorded as operating expenses. Shipping expenses for the six
months ended June 30, 2011 and 2010 amounted to $0 and $89,002, respectively.

Income Taxes

The Company uses the asset and liability method of accounting
for income taxes. Under the asset and liability method, deferred tax assets and
liabilities are recognized for the future tax consequences attributable to
differences between the financial statement carrying amounts of existing assets
and liabilities and their respective tax bases and net operating loss and tax
credit carry-forwards. Deferred tax assets and liabilities are measured using
enacted income tax rates expected to apply to taxable income in the years in
which those differences are expected to be recovered or settled. The effect on
deferred tax assets and liabilities of a change in income tax rates is
recognized in the results of operations in the period that includes the
enactment date. The realizability of deferred tax assets is evaluated based on a
more likely than not standard, and to the extent this threshold is not met, a
valuation allowance is recorded. See Note 13 Income Taxes for more information
about the Companys income taxes.

Recent Accounting Pronouncements

In August 2010, the FASB issued Accounting Standards Update
2010-21, "Accounting for Technical Amendments to Various SEC Rules and
Schedules". This Accounting Standards Update amends various SEC paragraphs
pursuant to the issuance of Release No. 33-9026; Technical Amendments to Rules,
Forms, Schedules and Codifications of Financial Reporting Policies. Management
does not expect this update to have a material effect on the Company's financial
statements.

In February 2010, the FASB issued Accounting Standards Update
2010-09, "Subsequent Events: Amendments to Certain Recognition and Disclosure
Requirements." This FASB retracts the requirement to disclose the date through
which subsequent events have been evaluated and whether that date is the date
the financial statements were issued or were available to be issued. ASU 2010-09
is effective for interim and annual financial periods ending after February 24,
2010, and has been applied with no material impact on the Company's financial
statements.

Note 3 - Inventories

The following table provides the components of inventories as
of June 30, 2011 and December 31, 2010:

June 30,
    
    
    December 31,2011
    
    
    2010Finished goods
    $
    -
    
    $
    335,084Raw materials
    
    -
    
    
    273,039-
    
    
    608,123Less: Inventory reserve
    
    -
    
    
    (34,986
    )Total
    $
    -
    
    $
    573,137


Overhead allocated to the inventory amounted to $0 and $31,353
for the six months ended June 30, 2011 and 2010, respectively.

10

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LEXON TECHNOLOGIES, INC.NOTES TO UNAUDITED FINANCIAL STATEMENTS

Note 4- Property and Equipment

Property and equipment consist of the following as of June 30,
2011 and December 31, 2010:

June 30,
    
    
    December 31,2011
    
    
    2010Automobile
    $
    -
    
    $
    34,092Furniture and fixture
    
    -
    
    
    53,388Leasehold improvement
    
    -
    
    
    5,060Machinery and equipment
    
    -
    
    
    439,030-
    
    
    531,570Less: Accumulated depreciation
    
    -
    
    
    (471,260
    )Net property and equipment
    $
    -
    
    $
    60,310


Depreciation expense amounted to $0 and $29,074 for the six
months ended June 30, 2011 and 2010, respectively.

Note 5 - Capitalized Website Costs

The Company amortizes its website over the estimated useful
life of three years. Amortizable intangible assets are tested for impairment
when impairment indicators are present, and, if impaired, written down to fair
value based on either discounted cash flows or appraised values. No impairment
of website costs has been identified during the periods presented. The carrying
amount and accumulated amortization related to the website costs as of June 30,
2011 and December 31, 2010, are as follows:

June 30,
    
    
    December 31,2011
    
    
    2010Gross balance
    $
    633,589
    
    $
    633,589Less: Accumulated amortization
    
    (355,478
    )
    
    (257,645
    )Net balance
    $
    278,111
    
    $
    375,944


Estimated aggregate amortization expense for each of the
succeeding years is as follows:

Years ending December 31,
    
    
    
    
    AmountRemainder
      of 2011
    
    
    
    $
    97,8342012
    
    
    
    
    180,277Total
    
    
    
    $
    278,111


Total amortization expenses were $97,833 and $105,598 for the
six months ended June 30, 2011 and 2010, respectively.

Note 6 - Transactions with Related Parties

Due from Related Parties

Advances to family members of the stockholder are unsecured,
non-interest bearing and due on demand. The Company has $0 and $138,000 due from
related parties as of June 30, 2011 and December 31, 2010, respectively.

11

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LEXON TECHNOLOGIES, INC.NOTES TO UNAUDITED FINANCIAL STATEMENTS

Due to Related Parties

Interest bearing notes payable to related parties consisting of
the following as of June 30, 2011 and December 31, 2010:

June 30,
    
    
    December 31,2011
    
    
    2010Unsecured note payable to a shareholder,
      with interest at 7.5% per annum. Note is in default and is payable on
      demand.
    $
    5,000
    
    $
    5,000Expired convertible debt issued to a former
      employee, with interest at 7.5% per annum. The conversion maturity date
      was in October 2004. The note is payable on demand.
    
    30,000
    
    
    30,000Expired convertible debt issued to a
      Director, with interest at 7.5% per annum. The conversion maturity date
      was in October 2005. The note is payable on demand.
    
    56,960
    
    
    56,960Total notes payable
    $
    91,960
    
    $
    91,960


Note 7- Line of Credit

The Company has a line of credit with a bank with a maximum
borrowing limit of $450,000. The outstanding balance was $0 and $450,000 as of
June 30, 2011 and December 31, 2010.

The Company incurred interest expenses on this line of credit
  of $0 and $11,098 for the six months ended June 30, 2011 and 2010, respectively.

Note 8 - Notes Payable

The Company has long term notes payable as follows:

June 30,
    
    
    December 31,2011
    
    
    2010A note payable to a bank, due in monthly
      installments of $2,931, including interest at the banks prime plus 1.25%
      (4.50% as of March 31, 2010). The note matures in May 2011, and is
      collateralized by substantially all the assets of the Company. The note is
      subject to various restrictive covenants, including maintenance of
      financial ratios at all times.
    $
    -
    
    $
    14,423A note payable to a bank, due in monthly
      installments of $4,587, including interest at the banks prime plus 1.50%
      with minimum interest rate of 6.25% (6.25% as of March 31, 2010). The note
      matures in January 2012, and is collateralized by substantially all the
      assets of the Company.
    
    -
    
    
    82,558Total notes payable
    
    -
    
    
    96,981Less: Current portion
    
    -
    
    
    (65,778
    )Notes payable, net of current
    $
    -
    
    $
    31,203


Total interest expense on the notes payable were $0 and $4,655
for the six months ended June 30, 2011and 2010, respectively.

12

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LEXON TECHNOLOGIES, INC.NOTES TO UNAUDITED FINANCIAL STATEMENTS

Note 9 - Capital Lease Obligations

The Company entered into numerous capital lease agreements with
  leasing companies to purchase certain equipment and transportation vehicles.
  As of June 30, 2011 and December 31, 2010, these assets are carried as follows:

June 30,
    
    
    December 31,2011
    
    
    2010Equipment
    $
    -
    
    $
    162,889Transportation vehicles
    
    -
    
    
    32,800Less: Accumulated depreciation
    
    -
    
    
    (190,340
    )$
    -
    
    $
    5,349


The related future minimum lease payments under the capital
lease obligations are as follows:

June 30,
    
    
    December 31,2011
    
    
    2010Total minimum lease payments
    $
    -
    
    $
    34,868Less: Amount representing interest
    
    -
    
    
    (4,558
    )Present value of net minimum lease payments
    
    -
    
    
    30,310Less: Current portion
    
    -
    
    
    (20,447
    )Capital lease obligations, net of current
      portion
    $
    -
    
    $
    9,863


Total interest expenses from the capital lease obligations were
$0 and $4,259 for the six months ended June 30, 2011 and 2010, respectively.

Note 10 - Commitments and Contingencies

Legal Proceedings

On July 14, 2008, Advanced Digital Technology Co. Ltd., a
Korean corporation (ADT), filed a claim against Lexon and certain named
individuals who are former and current officers of the Company. The claim
alleges breach of an agreement to settle an earlier dispute, involving ADT's
investment of $150,000 in Lexon on or about January 16, 2007 and ADT's
subsequent unilateral decision to rescind and demand a refund of this
investment. The total amount of damages claimed under the pending lawsuit is the
investment amount of $150,000 plus filing costs, interest and attorney fees for
an aggregate amount of $178,522. On November 9, 2010, judgment was entered
against Lexon Technologies for the amount of $206,547.95. Lexon has already
appealed such decision. The amount of such loss is reflected in our
financials.

13

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LEXON TECHNOLOGIES, INC.NOTES TO UNAUDITED FINANCIAL STATEMENTS

Note 11  Sales of Paragon Toner Inc.

On December 31, 2010, all of the assets and all of the
liabilities of the Paragon Toner Division of Lexon Technologies Inc. were
exchanged for existing Lexon Technologies Inc. shares specifically 166,300,000
shares held by James Park and 66,700,000 shares held by Young Won.

The internet properties namely 7 inkjet.com, nanoinket.com and
Yourcartridges.com remain with Lexon Technologies Inc., and become the main
operation of the company.

Note 12  Services Contract

On January 1, 2011, Lexon and Paragon have decided to enter
into contractual relationship regarding Lexons internet properties. Lexon has
subcontracted all of the operational activities to Paragon Toner including but
not limited to billing, collection, maintenance of website, advertising and all
other activities related to the operation of the Websites. In return for the
operation of the Websites, Paragon hereby agrees to pay to Lexon the agreed
amount of 15% of all revenues generated from the Websites. This agreement shall
be enforceable between the Parties for a period of 2 years from the date of
agreement. However, it is subject to renegotiation at end of each year.

Note 13 - Income Taxes

Significant components of deferred tax assets are as follows:

June 30,
    
    
    December 31,2011
    
    
    2010Loss carry forwards
    $
    3,264,324
    
    $
    2,179,612Other
    
    229,720
    
    
    229,720Total deferred tax asset
    
    3,494,044
    
    
    2,409,332Valuation allowance
    
    (3,494,044
    )
    
    (2,409,332
    )Total deferred tax asset, net
    $
    -
    
    $
    -


As of June 30, 2011, the Company had approximately $3,000,000
of net operating loss (NOL) carryforwards for U.S. federal income tax purposes
expiring in 2020 through 2030. In addition, the Company has California state NOL
carryforwards of approximately $2,600,000 expiring in 2013 through 2020.

The ability to realize the tax benefits associated with
deferred tax assets, which includes benefits related to NOLs, is principally
dependent upon the Companys ability to generate future taxable income from
operations. The Company has provided a full valuation allowance for its net
deferred tax assets due to the Companys net operating losses. The valuation
allowance has increased by $1,084,712 during the six months ended June 30, 2011.

Section 382 of the Internal Revenue Code (IRC) imposes
limitations on the use of NOLs and credits following changes in ownership as
defined in the IRC. The limitation could reduce the amount of benefits that
would be available to offset future taxable income each year, starting with the
year of an ownership change.

Note 14 - Subsequent Events

The Company has evaluated all subsequent events to the balance
sheet date of June 30, 2011 through the date that the financial statements were
issued on August 15, 2011, and has determined that there are no subsequent
events that require disclosure under FASB Accounting Standards Codification
Topic 855, Subsequent Events.

14

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ITEM
2.           MANAGEMENTS
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis should be read in
conjunction with our financial statements, including the notes thereto,
appearing elsewhere in this Report.

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.

Results of Operation for the Three Months Ended June 30,
2011 as Compared to the Three Months Ended June 30, 2010

Revenues.

Revenues decreased by $873,976 to $10,319 for the three months
ended June 30, 2011 as compared to $884,295 for the three months ended June 30,
2010. This decline was primarily attributed to the restructuring of the Company,
whereby only the internet properties remain.

Cost of Goods Sold.

Cost of Goods Sold decreased by $ 934,004 to $0 for the three
months ended June 30, 2011 as compared to $934,004 for the three months ended
June 30, 2010.

Selling, General and Administrative Expenses.

Selling, General and Administrative Expenses (SG&A)
decreased by $355,231 to $104,724 for the three months ended June 30, 2011 as
compared to $459,955 for the three months ended June 30, 2010. This decrease of
$355,231 in SG&A was attributed to the restructuring whereby only internet
properties remain and overhead has been significantly reduced.

Other Income and Expenses.

Other expenses for the three months ended June 30, 2011 was
$940,733 as compared to $12,983 for the three months ended June 30, 2010.
Interest expenses for the three months ended June 30, 2011 was $0 compared to
$12,983 in interest expenses for the three months ended June 30, 2010.

Net income.

As a result, we recorded a net loss of $1,035,138 for the three
months ended June 30, 2011 compared with a net loss of $522,647 for the three
months ended June 30, 2010.

Results of Operation for the Six Months Ended June 30, 2011
as Compared to the Six Months Ended June 30, 2010

Revenues.

Revenues decreased by $2,189,416 to $25,161 for the six months
ended June 30, 2011 as compared to $2,214,577 for the six months ended June 30,
2010. This decline was primarily attributed to a sharp decrease in sales because
of the restructuring of Lexon as well as a reduced budget for internet
marketing.

Cost of Goods Sold.

Cost of Goods Sold decreased by $ 1,975,554 to $0 for the six
months ended June 30, 2011 as compared to $1,975,554 for the six months ended
June 30, 2010.

Selling, General and Administrative Expenses.

Selling, General and Administrative Expenses (SG&A)
decreased by $841,936 to $169,140 for the six months ended June 30, 2011 as
compared to $1,011,076 for the six months ended June 30, 2010. This decrease of
$841,936 in SG&A occurred as result of reduced overhead expenses post
restructuring.

15

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Other Income and Expenses.

Other expenses for the six months ended June 30, 2011 was
$940,733 compared with other income of $244,664 for the six months ended June
30, 2010. Interest expenses for the six months ended June 30, 2010 was $0
compared to $29,946 in interest expenses for the six months ended June 30, 2010.

Net income.

As a result, we recorded a net loss of $1,084,712 for the six
months ended June 30, 2011 compared with a net loss of $527,389 for the six
months ended June 30, 2010.

Liquidity and Capital Resources.

At June 30, 2011, we had current assets of $0 and current
liabilities of $242,350.

Current liabilities at June 30, 2011 was 242,350, consisted of
accounts payable of $56,844, accounts payable due to related parties of $91,960,
bank overdraft of 16,146 and accrued expenses of $77,400.

For the six months ended June 30, 2010, net cash provided by
operating activities totaled $2,250,763 compared to net cash used in operating
activities of $61,948 in the prior year period. Our operating activities
since inception have been funded primarily by income organically generated by
the company and by the limited sale of our common stock.

Net cash provided by investing activities for the six months
ended June 30, 2011 amounted to $216,310 compared to net provided by in
investment activities of $60,000 for the same previous year period.

Net cash used in financing activities for the six months ended
June 30, 2011 was $2,477,291 compared to net cash used in financing activities
of $49,179 for the six months ended June 30, 2010.

Net cash and cash equivalents at June 30, 2011 was $0.

None.

ITEM
3.           QUANTITATIVE AND
QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are a smaller reporting company as defined by Rule 12b-2 of
the Exchange Act and are not required to provide the information under this
item.

ITEM
4.           CONTROLS AND
PROCEDURES

Our Chief Executive Officer, President, and Chief Financial
Officer (the Certifying Officer) is responsible for establishing and
maintaining disclosure controls and procedures for the Company. The Certifying
Officer has designed such disclosure controls and procedures to ensure that
material information is made known to them, particularly during the period in
which this report was prepared. The Certifying Officer has evaluated the
effectiveness of the Company's disclosure controls and procedures within 90 days
of the date of this report and believes that the Companys disclosure controls
and procedures are effective based on the required evaluation. There have been
no significant changes in internal controls or in other factors that could
significantly affect internal controls subsequent to the date of their
evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.

ITEM
4T.        CONTROLS AND PROCEDURES

We are a smaller reporting company as defined by Rule 12b-2 of
the Exchange Act and are not required to provide the information under this
item.

PART II

ITEM
1.           LEGAL PROCEEDINGS

To the best knowledge of management, there are two pending
legal proceedings against us.

On July 14, 2008, Advanced Digital Technology Co. Ltd., a
Korean corporation (ADT), filed a claim against Lexon and certain named
individuals who are former and current officers of the Company. The claim
alleges breach of an agreement to settle an earlier dispute, involving ADT's
investment of $150,000 in Lexon on or about January 16, 2007 and ADT's
subsequent unilateral decision to rescind and demand a refund of this
investment. The total amount of damages claimed under the pending lawsuit is the
investment amount of $150,000 plus filing costs, interest and attorney fees for
an aggregate amount of $178,522. On November 9, 2010, judgment was entered
against Lexon Technologies for the amount of $206,547.95. Lexon has already
appealed such decision. The amount of such loss is reflected in our
financials.

However, on September 5, 2008, Vivien and David Bollenberg, a
current shareholder (the Bollenbergs), filed a claim against Lexon and other
third parties, including Byung Hwee Hwang (also referred to as "Ben Hwang") and
other financial agents and institutions involved in the alleged fraudulent transaction. The lawsuit is
  currently pending in the Orange County Superior Court in Santa Ana, California.
  The filed complaint alleges that Ben Hwang together with his representatives,
  including his accountant, escrow agent and real estate agent/broker, made certain
  representations to and solicited the Bollenbergs to make an investment in several
  companies and ventures including Lexon with the intent to misappropriate the
  solicited funds for personal use. The Bollenbergs allege that they invested
  a total of $1,500,000 among and between the various companies and ventures recommended
  by Ben Hwang, of which investment amount approximately $550,000 was invested
  in Lexon ($150,000 for 600,000 shares at $0.25 per share and $400,000 initially
  invested in Lexon Korea and later converted into 1,150,000 shares in Lexon for
  a total of 1,750,000 shares in Lexon). On April 1, 2011, after a trial was concluded,
  judgment was entered in favor of the Lexon Technologies whereby Lexon was not
found liable for any causes of action brought by the Plaintiff.

16

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|ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
      PROCEEDS DEFAULT UPON SENIOR SECURITIES
|------- | ------------------------------------------------------------------------------------------------

ITEM 3.

None.

ITEM
4.           SUBMISSION OF
MATTERS TO A VOTE OF SECURITIES HOLDERS

None.

ITEM
5.           OTHER INFORMATION

None.

ITEM
6.           EXHIBITS

|Exhibit 31.1 | CERTIFICATION
        OF CHIEF EXECUTIVE OFFICER PURSUANT TO THE SECURITIES EXCHANGE ACT OF
        1934, RULES 13(A)-14 AND 15(D)-14, AS ADOPTED PURSUANT TO SECTION 302
        OF THE SARBANES-OXLEY ACT OF 2002.
|------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|             |                                                                                                                                                                                                                     
|Exhibit 31.2 | CERTIFICATION
        OF CHIEF FINANCIAL OFFICER PURSUANT TO THE SECURITIES EXCHANGE ACT OF
        1934, RULES 13(A)-14 AND 15(D)-14, AS ADOPTED PURSUANT TO SECTION 302
        OF THE SARBANES-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

In accordance with Section 13 or
15(d) of the Exchange Act, the registrant caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

LEXON TECHNOLOGIES, INC.

|Date: August 18, 2011 | By: | /s/
      James Park              
|--------------------- | --- | ----------------------------------
|                      |     | James Park                        
|                      |     | President, Chief Executive Officer

In accordance with the Exchange Act, this report has been
signed below by the following persons on behalf of the registrant and in the
capacities and on the dates stated.

17

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