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:  March 31, 2006





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.)
|                                                               |                           
|                                                               |                           
|8 Corporate Park, Suite 300, Irvine, California                | 92606                     
|(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 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 (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 March 31, 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 Sheets              
|                                          |                                               |                      |         |               |             |                  |               
|ASSETS                                   
|                                          |                                               |                      |         |               | March 31,   |                  | December 31,  
|                                          |                                               |                      |         |               | 2006        |                  | 2005          
|                                          |                                               |                      |         |               | (Unaudited) |                  |               
|CURRENT ASSETS                            |                                               |                      |         |               |            
|                                          |                                               |                      |         |               |             |                  |               
|                                          | Cash and cash equivalents                     |                      |         | $      14,071 |             | $         22,623
|                                          | Accounts receivable                           |                      |         | 16,543        |             | 15,911          
|                                          | Due from related party                        |                      |         | 25,209        |             | 21,957          
|                                          | Proceeds of sale due from the courts          |                      |         | 364,225       |             | 364,225         
|                                          | Prepaid expenses and other assets             |                      |         | 23,708        |             | 9,939           
|                                          | Note receivable - related party               |                      |         | -             |             | 167,000         
|                                          |                                               |                      |         |               |             |                  |               
|                                          |                                               | Total Current Assets |         |               | 443,756     |                  | 601,655       
|                                          |                                               |                      |         |               |             |                  |               
|PROPERTY AND EQUIPMENT, net               |                                               |                      | 123,104 |               | 146,252    
|                                          |                                               |                      |         |               |             |                  |               
|OTHER ASSETS                              |                                               |                      |         |               |            
|                                          |                                               |                      |         |               |             |                  |               
|                                          | Investments, recorded at cost                 |                      |         | 11,667        |             | 261,667         
|                                          | Investments, recorded under the equity method |                      | 115,111 |               | 115,111    
|                                          | Goodwill                                      |                      |         | 1,851,692     |             | 1,851,692       
|                                          | Deposits and other assets                     |                      |         | 109,085       |             | 6,425           
|                                          |                                               |                      |         |               |             |                  |               
|                                          |                                               | Total Other Assets   |         |               | 2,087,555   |                  | 2,234,895     
|                                          |                                               |                      |         |               |             |                  |               
|                                          |                                               | TOTAL ASSETS         |         |               | $ 2,654,415 |                  | $    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 Balance Sheets (Continued)       
|                                               |                                                                  |                                      |             |              |             |                 |               
|LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
|                                               |                                                                  |                                      |             |              |             |                 |               
|                                               |                                                                  |                                      |             |              | March 31,   |                 | December 31,  
|                                               |                                                                  |                                      |             |              | 2006        |                 | 2005          
|                                               |                                                                  |                                      |             |              | (Unaudited) |                 |               
|CURRENT LIABILITIES                            |                                                                  |                                      |             |              |            
|                                               |                                                                  |                                      |             |              |             |                 |               
|                                               | Accounts payable                                                 |                                      |             | $    408,416 |             | $       377,929
|                                               | Accounts payable - related parties                               |                                      |             | 469,377      |             | 573,595        
|                                               | Accrued expenses                                                 |                                      |             | 1,431,872    |             | 1,352,173      
|                                               | Convertible notes payable                                        |                                      |             | 128,575      |             | 128,575        
|                                               | Notes payable                                                    |                                      |             | 27,740       |             | 27,962         
|                                               |                                                                  |                                      |             |              |             |                 |               
|                                               |                                                                  | Total Current Liabilities            |             |              | 2,465,980   |                 | 2,460,234     
|                                               |                                                                  |                                      |             |              |             |                 |               
|CONTINGENT LIABILITIES                         |                                                                  |                                      | 460,874     |              | 460,874    
|                                               |                                                                  |                                      |             |              |             |                 |               
|STOCKHOLDERS' EQUITY (DEFICIT)                 |                                                                  |                                      |             |              |            
|                                               |                                                                  |                                      |             |              |             |                 |               
|                                               | Common stock, par value $0.001 per share; authorized 100,000,000 |                                      |             |              |            
|                                               | shares; 34,183,778 shares issued and outstanding                 |                                      | 34,184      |              | 34,184     
|                                               | Additional paid-in capital                                       |                                      |             | 3,066,839    |             | 3,066,839      
|                                               | Other comprehensive income (loss)                                |                                      |             | (95,053)     |             | (76,360)       
|                                               | Deficit accumulated during the development stage                 |                                      | (3,278,409) |              | (2,962,969)
|                                               |                                                                  |                                      |             |              |             |                 |               
|                                               |                                                                  | Total Stockholders' Equity (Deficit) |             |              | (272,439)   |                 | 61,694        
|                                               |                                                                  |                                      |             |              |             |                 |               
|                                               |                                                                  | TOTAL LIABILITIES AND STOCKHOLDERS'  |             |              |             |                
|                                               |                                                                  | EQUITY (DEFICIT)                     |             |              | $ 2,654,415 |                 | $    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 Inception
|                                          |                                     |                              |          |                            |          | on July 18, 2001  
|                                          |                                     |                              |          | For the Three Months Ended |          | Through           
|                                          |                                     |                              |          | March 31,                  |          | March 31,         
|                                          |                                     |                              |          | 2006                       |          | 2005               |           | 2006          
|                                          |                                     |                              |          |                            |          |                    |           |               
|REVENUES                                  |                                     | $              -             |          | $              -           |          | $           22,031
|                                          |                                     |                              |          |                            |          |                    |           |               
|EXPENSES                                  |                                     |                              |          |                            |          |                   
|                                          | Research and development            |                              | 12,794   |                            | 24,436   |                    | 481,923  
|                                          | Selling, general and administrative |                              | 277,093  |                            | 309,577  |                    | 3,318,170
|                                          | Bad debt expense                    |                              | -        |                            | 5,388    |                    | 35,941   
|                                          | Depreciation and amortization       |                              | 12,653   |                            | 71,890   |                    | 74,684   
|                                          |                                     |                              |          |                            |          |                    |           |               
|                                          |                                     | Total Expenses               |          | 302,540                    |          | 411,291            |           | 3,910,718     
|                                          |                                     |                              |          |                            |          |                    |           |               
|LOSS FROM OPERATIONS                      |                                     | (302,540)                    |          | (411,291)                  |          | (3,888,687)       
|                                          |                                     |                              |          |                            |          |                    |           |               
|OTHER INCOME (EXPENSE)                    |                                     |                              |          |                            |          |                   
|                                          | Interest income                     |                              | 19       |                            | 3,659    |                    | 39,830   
|                                          | Other income                        |                              | -        |                            | -        |                    | 6,000    
|                                          | Loss on sale of assets              |                              | (10,079) |                            | -        |                    | 1,304,256
|                                          | Gain on forgiveness of debt         |                              | -        |                            | -        |                    | 19,872   
|                                          | Interest expense                    |                              | (2,840)  |                            | (33,623) |                    | (759,680)
|                                          |                                     | Total Other Income (Expense) |          | (12,900)                   |          | (29,964)           |           | 610,278       
|                                          |                                     |                              |          |                            |          |                    |           |               
|NET LOSS                                  |                                     | (315,440)                    |          | (441,255)                  |          | (3,278,409)       
|                                          |                                     |                              |          |                            |          |                    |           |               
|OTHER COMPREHENSIVE INCOME (LOSS)         |                                     |                              |          |                            |          |                   
|                                          | Gain (loss) on foreign currency     |                              | (18,693) |                            | (69,075) |                    | (95,053) 
|                                          |                                     |                              |          |                            |          |                    |           |               
|NET COMPREHENSIVE LOSS                    |                                     | $   (334,133)                |          | $   (510,330)              |          | $    (3,373,462)  
|                                          |                                     |                              |          |                            |          |                    |           |               
|BASIC LOSS PER SHARE                      |                                     | $         (0.01)             |          | $         (0.01)           |          |                   
|                                          |                                     |                              |          |                            |          |                    |           |               
|WEIGHTED AVERAGE NUMBER OF                |                                     |                              |          |                            |          |                   
|COMMON SHARES OUTSTANDING                 |                                     | 34,183,778                   |          | 34,183,778                 |          |                   
|                                          |                                     |                              |          |                            |          |                    |           |               

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 Inception                                    
|                                                        |                                                    |                                         |                  |           |                            |          |                 |             | on July 18, 2001
|                                                        |                                                    |                                         |                  |           | For the Three Months Ended |          | Through        
|                                                        |                                                    |                                         |                  |           | March 31,                  |          | March 31,      
|                                                        |                                                    |                                         |                  |           | 2006                       |          | 2005            |             | 2006            
|CASH FLOWS FROM OPERATING ACTIVITIES:                   |                                                    |                                         |                  |           |                            |         
|Net loss                                                |                                                    |                                         | $      (315,440) |           | $  (441,255)               |          | $   (3,278,409)
|Adjustments to reconcile net loss to net cash           |                                                    |                                         |                  |           |                            |         
|(used) in operating activities:                         |                                                    |                                         |                  |           |                            |          |                
|                                                        | Depreciation and amortization                      |                                         |                  | 12,653    |                            | 71,890   |                 | 74,684     
|                                                        | Stock for services                                 |                                         |                  | -         |                            | -        |                 | 263,720    
|                                                        | Stock for technology                               |                                         |                  | -         |                            | -        |                 | 375,000    
|                                                        | Bad debt expense                                   |                                         |                  | -         |                            | 5,388    |                 | 35,941     
|                                                        | (Gain) on forgiveness of debt                      |                                         |                  | -         |                            | -        |                 | (19,872)   
|                                                        | (Gain) loss on foreclosure/disposition of assets   |                                         | 10,079           |           |                            |          | (1,305,390)    
|Changes in assets and liabilities (net of acquisition): |                                                    |                                         |                  |           |                            |         
|                                                        | Decrease in other assets                           |                                         |                  | (106,612) |                            | (10,442) |                 | (131,256)  
|                                                        | (Increase) decrease in accounts receivable         |                                         |                  |           |                            |          |                
|                                                        | and accounts receivable, related                   |                                         |                  | (3,884)   |                            | (5,105)  |                 | (29,142)   
|                                                        | Increase in prepaid expenses                       |                                         |                  | (9,817)   |                            | (5,318)  |                 | (9,817)    
|                                                        | Increase in interest receivable                    |                                         |                  | -         |                            | (4,103)  |                 | -          
|                                                        | Change in currency conversion                      |                                         |                  | (18,693)  |                            | (69,075) |                 | (95,053)   
|                                                        | Increase in accounts payable and                   |                                         |                  |           |                            |          |                 |            
|                                                        | accrued expenses                                   |                                         |                  | 6,384     |                            | 398,690  |                 | 2,472,495  
|                                                        |                                                    | Net Cash (Used in) Operating Activities |                  | (425,330) |                            | (59,330) |                 | (1,647,099)
|                                                        |                                                    |                                         |                  |           |                            |          |                 |             |                 
|CASH FLOWS FROM INVESTING ACTIVITIES:                   |                                                    |                                         |                  |           |                            |         
|                                                        | Cash paid for property and equipment               |                                         |                  | -         |                            | -        |                 | (13,277)   
|                                                        | Cash paid for related party notes receivables      |                                         | -                |           | -                          |          | (235,554)      
|                                                        | Cash received from related party notes receivables | 167,000                                 |                  | 268,407   |                            | 477,407 
|                                                        | Cash paid for investments                          |                                         |                  | -         |                            | -        |                 | (1,846,667)
|                                                        | Cash received from investments                     |                                         |                  | 250,000   |                            | -        |                 | 250,000    
|                                                        | Cash placed into escrow                            |                                         |                  | -         |                            | -        |                 | (150,000)  
|                                                        | Cash received from escrow                          |                                         |                  | -         |                            | -        |                 | 150,000    
|                                                        | Cash paid for note receivable                      |                                         |                  | -         |                            | -        |                 | (200,000)  
|                                                        | Note receivable converted in acquistion            |                                         |                  | -         |                            | -        |                 | 200,000    
|                                                        | Cash received in acquisition                       |                                         |                  | -         |                            | -        |                 | 39,158     
|                                                        |                                                    | Net Cash Provided by (Used in)          |                  |           |                            |          |                 |             |                 
|                                                        |                                                    | Investing Activities                    |                  |           | 417,000                    |          | 268,407         |             | (1,328,933)     
|                                                        |                                                    |                                         |                  |           |                            |          |                 |             |                 





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 Inception on                          
|                                                  |                                             |                                           |              |                     |                      | July 18, 2001
|                                                  |                                             | For the Three Months Ended                |              | Through            
|                                                  |                                             | March 31,                                 |              | March 31,          
|                                                  |                                             | 2006                                      |              | 2005                |                      | 2006         
|CASH FLOWS FROM FINANCING ACTIVITIES:             |                                             |                                           |              |                     |                      |              
|                                                  | Receipt of subscription receivable          |                                           |              | -                   |                      | -             |                  | 220,000        
|                                                  | Proceeds from related party notes           |                                           |              | -                   |                      | -             |                  | 239,731        
|                                                  | Proceeds from notes payable                 |                                           |              | -                   |                      | 40,575        |                  | 148,575        
|                                                  | Cash paid on notes payable                  |                                           |              | (222)               |                      | (233,889)     |                  | (263,203)      
|                                                  | Cash received from issuance of common stock |                                           | -            |                     | -                    |               | 2,645,000       
|                                                  |                                             |                                           |              |                     |                      |               |                  |                 |                     
|                                                  |                                             | Net Cash Provided by (Used in)            |              |                     |                      |               |                  |                 |                     
|                                                  |                                             | Financing Activities                      |              |                     | (222)                |               | (193,314)        |                 | 2,990,103           
|                                                  |                                             |                                           |              |                     |                      |               |                  |                 |                     
|NET INCREASE (DECREASE) IN CASH AND               |                                             |                                           |              |                     |                      |               |                 
|CASH EQUIVALENTS                                  |                                             |                                           | (8,552)      |                     | 15,763               |               | 14,071          
|                                                  |                                             |                                           |              |                     |                      |               |                  |                 |                     
|CASH AND CASH EQUIVALENTS AT BEG OF PERIOD        | 22,623                                      |                                           | 7,001        |                     | -                   
|                                                  |                                             |                                           |              |                     |                      |               |                  |                 |                     
|CASH AND CASH EQUIVALENTS AT END OF PERIOD        | $         14,071                            |                                           | $     22,764 |                     | $         14,071    
|                                                  |                                             |                                           |              |                     |                      |               |                  |                 |                     
|                                                  |                                             |                                           |              |                     |                      |               |                  |                 |                     
|                                                  |                                             |                                           |              |                     |                      |               |                  |                 |                     
|SUPPLEMENTAL CASH FLOW INFORMATION                |                                             |                                           |              |                     |                      |              
|                                                  |                                             |                                           |              |                     |                      |               |                  |                 |                     
|                                                  | Cash Payments For:                          |                                           |              |                     |                      |               |                  |                
|                                                  |                                             |                                           |              |                     |                      |               |                  |                 |                     
|                                                  |                                             | Interest                                  |              |                     | $          2,840     |               | $              - |                 | $       720,388     
|                                                  |                                             | Income taxes                              |              |                     | $                  - |               | $              - |                 | $                  -
|                                                  |                                             |                                           |              |                     |                      |               |                  |                 |                     
|                                                  | Non-Cash Investing and Financing Activities |                                           |              |                     |                      |               |                 
|                                                  |                                             |                                           |              |                     |                      |               |                  |                 |                     
|                                                  |                                             | Stock issued for technology               |              |                     | $                 -  |               | $              - |                 | $       375,000     
|                                                  |                                             | Stock issued for services                 |              |                     | $                 -  |               | $              - |                 | $       263,720     
|                                                  |                                             | Stock issued in lieu of debt              |              |                     | $                 -  |               | $              - |                 | $       237,000     
|                                                  |                                             | Property 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

March 31, 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 ended March 31, 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 ended March 31, 2006 and 2005:





|                                                        |                    |                
|------------------------------------------------------- | ------------------ | ---------------
|                                                        | For the           
|                                                        | Three Months Ended
|                                                        | March 31,         
|                                                        | 2005               | 2004           
|Net (loss) available to common shareholders             | $   (315,440)      | $   (441,255)  
|                                                        |                    |                
|Weighted average shares                                 | 34,183,778         | 34,183,778     
|                                                        |                    |                
|Basic loss per share (based on weighted average shares) | $        (0.01)    | $        (0.01)
|                                                        |                    |                





LEXON TECHNOLOGIES, INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

March 31, 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 $3,278,409 at March 31, 2006, a working capital deficit of approximately $2,022,000, 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 three months ended March 31, 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 three months ended March 31, 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 Three Months Ended March 31, 2006 compared to March 31, 2005



Revenues.  We had no revenues for the three months ended March 31, 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 three months ended March 31, 2006 were $302,540, consisting of $277,093 in selling, general and administrative expenses, $12,794 in research and development, and $12,653 in depreciation and amortization.  Operating expenses for the prior year period were $411,291, consisting of $309,577 for selling, general and administrative expenses, $24,436 in research and development, $71,890 in depreciation and amortization, and $5,388 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 $3,910,718.  Our net loss per share for the three months ended March 31, 2006 was $0.01, based on a weighted average of 34,183,778 shares outstanding.



Other expense for the three months ended March 31, 2006 consisted of $2,840 in interest expense, a loss of $10,079 on the sale of assets, and $19 in interest income. Other expense for the prior year period totaled $29,964, 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 three months ended March 31, 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 three months ended March 31, 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 March 31, 2006, we had current assets of $443,756 and current liabilities of $2,465,980 for negative working capital of $2,022,224.  Current assets consisted primarily of cash, receivables, a note receivable from a related party, interest receivable, and additional proceeds of $364,225 from the courts related to the foreclosure sale of Lexon Semis assets.



At March 31, 2006, we had property and equipment, net totaling $123,104.  We had other assets of $126,778 in investments, deposits and other assets of $109,085, and goodwill associated with the acquisition of Lexon Semi of $1,851,692, for total assets of $2,654,415.



Current liabilities at March 31, 2006, consisted of accounts payable of $408,416, accounts payable - related parties of $469,377, accrued expenses of $1,431,872, convertible notes payable of $128,575 and notes payable of $27,740. We also had contingent liabilities of $460,874, including accrued payables to creditors and accrued wages.



For the three months ended March 31, 2006, net cash flows used in operating activities totaled $425,330 compared to net cash flows used in operating activities of $59,330 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 three months ended March 31, 2006, net cash provided by investing activities totaled $417,000 for cash received on a related party note receivable, and cash received from investments, as detailed above. 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 three months ended March 31, 2006 consisted of $222 cash paid on notes payable.  In the prior year period, cash used by financing activities totaled $193,314 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 3,278,409 at March 31, 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 March 31, 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: May 19, 2006



/S/Kenneth J. Eaken, CEO

Principal Executive and Financial Officer