**FORM      10-QSB**

**March      31, 2007**

**0-24721**

**LEXON      TECHNOLOGIES, INC.**

|                                                                          |   |                                      |
|-------------------------------------------------------------------------------|--------|-------------------------------------------|
| **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)                 |

**      (949)752-7700**

|                               |                                                     |
|------------------------------------|----------------------------------------------------------|
| Title                of each class | Name                of each exchange on which registered |
| None                               | N/A                                                      |

**Common      Stock, par value $0.001 per share**

----

**TABLE      OF CONTENTS**

| PART I- FINANCIAL INFORMATION                                                                                                |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                              |   |
| ITEM 1. FINANCIAL STATEMENTS                                                                                                 | 3      |
| ITEM 2. MANAGEMENT'S DISCUSSION AND                ANALYSIS                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS  | 17     |
| ITEM 3. CONTROLS AND                PROCEDURES                                                                               | 18     |
|                                                                                                                              |   |
| PART II- OTHER INFORMATION                                                                                                   |   |
|                                                                                                                              |   |
| ITEM 1. LEGAL PROCEEDINGS                                                                                                    | 19     |
| ITEM 2. CHANGES IN SECURITIES                                                                                                | 19     |
| ITEM 3. DEFAULT BY THE COMPANY ON                ITS SENIOR                SECURITIES                                        | 19     |
| ITEM 4. SUBMISSION OF MATTERS TO A                VOTE OF                SECURITIES HOLDERS                                  | 19     |
| ITEM 5. OTHER INFORMATION                                                                                                    | 19     |
| ITEM 6. EXHIBITS                                                                                                             | 20     |
|                                                                                                                              |   |
| SIGNATURES                                                                                                                   | 20     |
|                                                                                                                              |   |
| EX-31.1 (07MAR PRIN EXEC 302                CERT)                                                                            |   |
|                                                                                                                              |   |
| EX-31.2                  (07MAR PRIN FIN 302 CERT)                                                                           |   |
|                                                                                                                              |   |
| EX-32 (07MAR PRIN EXEC AND FIN 906                CERT)                                                                      |   |

----

**LEXON        TECHNOLOGIES, INC. AND SUBSIDIARIES**

**CONSOLIDATED        FINANCIAL STATEMENTS**

**(UNAUDITED)**

**MARCH        31, 2007**

----

**LEXON        TECHNOLOGIES, INC. AND SUBSIDIARIES**

**CONSOLIDATED        FINANCIAL STATEMENTS**

**(UNAUDITED)**

**MARCH        31, 2007**

| **CONTENTS**                                                       | **PAGE**                     |
|-------------------------------------------------------------------------|------------------------------|
|                                                                    |                         |
|                                                                    |                         |
| **FINANCIAL                STATEMENTS**                            |                         |
|                                                                    |                         |
| Consolidated                  Balance Sheet                             | 3                            |
|                                                                    |                         |
| Consolidated                  Statements of Operations                  | 5                            |
|                                                                    |                         |
| Consolidated                  Statements of Stockholders’ Deficit | 6                            |
|                                                                    |                         |
| Consolidated                  Statements of Cash Flows                  | 8                            |
|                                                                    |                         |
| Notes                  to Consolidated Financial Statements             | 9 -                  16 |

----

| **LEXON                TECHNOLOGIES, INC. AND SUBSIDIARIES** |   |
|--------------------------------------------------------------|--------|
| **(A                Development Stage Company)**             |   |
| **Consolidated                Balance Sheets**               |   |
|                                                         |   |
|                                                         |   |   |   |   |   |
| **ASSETS**                                                   |   |
|                                                         |   |   |   |   |   |
|                                                         |   | March                31, 2007 |   | December                31, 2006 |   |
|                                                         |   | (Unaudited) |   |   |   |
|                                                         |   |   |   |   |   |
| CURRENT                ASSETS                                |   |   |   |   |   |
| Cash                and cash equivalents (Note 2)            |   | $ | 288,300 |   | $ | 227 |   |
|                                                         |   |   |  |   |   |  |   |
| PROPERTY                AND EQUIPMENT, net (Notes 1and 3)    |   |   | - |   |   | - |   |
|                                                         |   |   |  |   |   |  |   |
| OTHER                ASSETS                                  |   |   |  |   |   |  |   |
| Investments                (Note 4)                          |   |   | 103,603 |   |   | 104,839 |   |
| Deposits                and other assets                     |   |   | 6,262 |   |   | 6,568 |   |
| Total                Other Assets                            |   |   | 109,865 |   |   | 111,407 |   |
|                                                         |   |   |  |   |   |  |   |
| TOTAL                ASSETS                                  |   | $ | 398,165 |   | $ | 111,634 |   |
|                                                         |   |   |  |   |   |  |   |

----

| **LEXON                TECHNOLOGIES, INC. AND SUBSIDIARIES**    |   |
|-----------------------------------------------------------------|--------|
| **(A                Development Stage Company)**                |   |
| **Consolidated                Balance Sheets**                  |   |
|                                                            |   |
|                                                            |   |
| **LIABILITIES                AND STOCKHOLDERS' DEFICIENCY**     |   |
|                                                            |   |   |   |   |   |
|                                                            |   | March                31, 2007 |   | December                31, 2006 |   |
|                                                            |   | (Unaudited) |   |   |   |
|                                                            |   |   |   |   |   |
| CURRENT                LIABILITIES                              |   |   |   |   |   |
| Accounts                payable                                 |   | $ | 40,492 |   | $ | 546,764 |   |
| Due                to related parties (Note 5)                  |   |   | 404,277 |   |   | 421,753 |   |
| Accrued                expenses (Note 6)                        |   |   | 1,741,316 |   |   | 1,658,316 |   |
| Convertible                notes payable (Note 11)              |   |   | 86,960 |   |   | 128,575 |   |
| Notes                payable (Note 7)                           |   |   | 374,982 |   |   | 25,000 |   |
| Total                Current Liabilities                        |   |   | 3,148,027 |   |   | 2,780,408 |   |
|                                                            |   |   |  |   |   |  |   |
| CONTINGENT                LIABILITIES (Note 6)                  |   |   | 274,610 |   |   | 274,610 |   |
|                                                            |   |   |  |   |   |  |   |
| STOCKHOLDERS'                DEFICIENCY                         |   |   |  |   |   |  |   |
| Common                stock, par value $0.001 per share;        |   |   |  |   |   |  |   |
| 100,000,000                shares authorized;                   |   |   |  |   |   |  |   |
| 34,183,778                shares issued and outstanding         |   |   | 34,184 |   |   | 34,184 |   |
| Additional                paid-in capital                       |   |   | 3,066,839 |   |   | 3,066,839 |   |
| Accumulated                other comprehensive loss (Note 10)   |   |   | (111,124 | ) |   | (119,837 | ) |
| Deficit                accumulated during the development stage |   |   | (6,014,371 | ) |   | (5,924,570 | ) |
| Total                Stockholders' Deficiency                   |   |   | (3,024,472 | ) |   | (2,943,384 | ) |
|                                                            |   |   |  |   |   |  |   |
| TOTAL                LIABILITIES AND STOCKHOLDERS' DEFICIENCY   |   | $ | 398,165 |   | $ | 111,634 |   |
|                                                            |   |   |  |   |   |  |   |

----

| **LEXON                TECHNOLOGIES, INC. AND SUBSIDIARIES**                                        |   |
|-----------------------------------------------------------------------------------------------------|--------|
| **(A                Development Stage Company)**                                                    |   |
| **Consolidated                Statements of Operations**                                            |   |
| **For                the Three Months Ended March 31, 2007 and 2006                and**            |   |
| **the                Period from Inception on July 18, 2001 through March 31,                2007** |   |
| **(Unaudited)**                                                                                     |   |
|                                                                                                |   |
|                                                                                                |   |   |   |   |   |   |   |
|                                                                                                |   |   |   |   |   | From                Inception |   |
|                                                                                                |   |   |   |   |   | on                July 18, 2001 |   |
|                                                                                                |   | For                the Three Months Ended |   | Through |   |
|                                                                                                |   | March                31, |   | March                31, |   |
|                                                                                                |   | 2007 |   | 2006 |   | 2007 |   |
|                                                                                                |   |   |   |   |   |   |   |
| REVENUES                                                                                            |   | $ | - |   | $ | - |   | $ | 22,031 |   |
|                                                                                                |   |   |  |   |   |  |   |   |  |   |
| EXPENSES                                                                                            |   |   |  |   |   |  |   |   |  |   |
| Research                and development                                                             |   |   | - |   |   | 12,794 |   |   | 495,688 |   |
| Selling,                general and administrative                                                  |   |   | 87,574 |   |   | 277,093 |   |   | 3,913,915 |   |
| Bad                debt expense                                                                     |   |   | - |   |   | - |   |   | 52,784 |   |
| Depreciation                and amortization                                                        |   |   | 229 |   |   | 12,653 |   |   | 100,318 |   |
| Total                Expenses                                                                       |   |   | 87,803 |   |   | 302,540 |   |   | 4,562,705 |   |
|                                                                                                |   |   |  |   |   |  |   |   |  |   |
| LOSS                FROM OPERATIONS                                                                 |   |   | (87,803 | ) |   | (302,540 | ) |   | (4,540,674 | ) |
|                                                                                                |   |   |  |   |   |  |   |   |  |   |
| OTHER                INCOME (EXPENSES)                                                              |   |   |  |   |   |  |   |   |  |   |
| Interest                income                                                                      |   |   | - |   |   | 19 |   |   | 40,543 |   |
| Other                income                                                                         |   |   | - |   |   | - |   |   | 6,000 |   |
| Gain                (loss) on sale or foreclosure of assets                                         |   |   | - |   |   | (10,079 | ) |   | 1,296,367 |   |
| Gain                on forgiveness of debt                                                          |   |   | - |   |   | - |   |   | 19,872 |   |
| Interest                expense                                                                     |   |   | (1,998 | ) |   | (2,840 | ) |   | (770,356 | ) |
| Impairment                of goodwill                                                               |   |   | - |   |   | - |   |   | (1,851,692 | ) |
| Loss                from investment                                                                 |   |   | - |   |   | - |   |   | (11,667 | ) |
| Loss                from discontinued operation                                                     |   |   | - |   |   | - |   |   | (202,764 | ) |
| Total                Other Income (Expenses)                                                        |   |   | (1,998 | ) |   | (12,900 | ) |   | (1,473,697 | ) |
|                                                                                                |   |   |  |   |   |  |   |   |  |   |
| NET                LOSS                                                                             |   | $ | (89,801 | ) | $ | (315,440 | ) | $ | (6,014,371 | ) |
|                                                                                                |   |   |  |   |   |  |   |   |  |   |
| BASIC                LOSS PER SHARE                                                                 |   | $ | (0.003 | ) | $ | (0.01 | ) |   |  |   |
|                                                                                                |   |   |  |   |   |  |   |   |  |   |
| WEIGHTED                AVERAGE NUMBER OF                                                           |   |   |  |   |   |  |   |   |  |   |
| COMMON                STOCKS OUTSTANDING                                                            |   |   | 34,183,778 |   |   | 34,183,778 |   |   |  |   |
|                                                                                                |   |   |  |   |   |  |   |   |  |   |

----

| **LEXON                  TECHNOLOGIES, INC. AND SUBSIDIARIES**                                                       |   |
|----------------------------------------------------------------------------------------------------------------------|--------|
| **(A                  Development Stage Company)**                                                                   |   |
| **Consolidated                  Statements of Stockholders' Equity and Other Comprehensive                  Income** |   |
| **Period                  from Inception on July 18, 2001 through March 31,                  2007**                  |   |
| **(Unaudited)**                                                                                                      |   |
|                                                                                                                 |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   | **Deficit** |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   | **Accumulated** |   | **Accumulated** |   |
|                                                                                                                 |   |   |   |   |   | **Additional** |   |   |   | **Other** |   | **During                  the** |   |
|                                                                                                                 |   | **Common                  Stock** |   | **Paid-in** |   | **Subscription** |   | **Comprehensive** |   | **Development** |   |
|                                                                                                                 |   | **Shares** |   | **Amount** |   | **Capital** |   | **Receivable** |   | **Income                  (loss)** |   | **State** |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                  July 18, 2001                                                                              |   |   | - |   | $ | - |   | $ | - |   | $ | - |   | $ | - |   | $ | - |   |
|                                                                                                                 |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| July                  2001 - stock issued for                                                                        |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| services                  at $0.001 per share                                                                        |   |   | 13,720,000 |   |   | 13,720 |   |   | - |   |   | - |   |   | - |   |   | - |   |
|                                                                                                                 |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| August                  2001 - stock issued for                                                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| cash                  at $0.25 per share                                                                             |   |   | 2,280,000 |   |   | 2,280 |   |   | 567,720 |   |   | (220,000 | ) |   | - |   |   | - |   |
|                                                                                                                 |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| October                  2001 - stock issued for                                                                     |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| technology                  at $0.25 pr share                                                                        |   |   | 1,500,000 |   |   | 1,500 |   |   | 373,500 |   |   | - |   |   | - |   |   | - |   |
|                                                                                                                 |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Net                  loss for the period ended                                                                       |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| December                  31, 2001                                                                                   |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | (522,180 | ) |
| Balance,                  December 31, 2001                                                                          |   |   | 17,500,000 |   |   | 17,500 |   |   | 941,220 |   |   | (220,000 | ) |   | - |   |   | (522,180 | ) |
|                                                                                                                 |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Receipt                  of subscription receivable                                                                  |   |   | - |   |   | - |   |   | - |   |   | 220,000 |   |   | - |   |   | - |   |
|                                                                                                                 |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| April                  2002 - stock issued to acquire                                                                |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Phacon                  Corporation (Note 1)                                                                         |   |   | 1,648,778 |   |   | 1,649 |   |   | (641,346 | ) |   | - |   |   | - |   |   | - |   |
|                                                                                                                 |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| September                  2002 - stock issued for                                                                   |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| cash                  at $0.25 per share                                                                             |   |   | 280,000 |   |   | 280 |   |   | 69,720 |   |   | - |   |   | - |   |   | - |   |
|                                                                                                                 |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| December                  2002 - stock issued for                                                                    |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| cash                  at $0.83 per share                                                                             |   |   | 120,000 |   |   | 120 |   |   | 99,880 |   |   | - |   |   | - |   |   | - |   |
|                                                                                                                 |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Net                  loss for the period ended                                                                       |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| December                  31, 2002                                                                                   |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | (473,510 | ) |
| Balance,                  December 31, 2002                                                                          |   |   | 19,548,778 |   |   | 19,549 |   |   | 469,474 |   |   | - |   |   | - |   |   | (995,690 | ) |

----

|                                              |   |   |                              |   |   |        |   |   |             |   |   |              |   |   |                               |   |   | **Deficit**                     |   |
|---------------------------------------------------|--------|--------|-----------------------------------|--------|--------|-------------|--------|--------|------------------|--------|--------|-------------------|--------|--------|------------------------------------|--------|--------|---------------------------------|--------|
|                                              |   |   |                              |   |   |        |   |   |             |   |   |              |   |   | **Accumulated**               |   |   | **Accumulated**                 |   |
|                                              |   |   |                              |   |   |        |   |   | **Additional**   |   |   |              |   |   | **Other **                    |   |   | **During                  the** |   |
|                                              |   |   | **Common                  Stock** |   |   | **Paid-in** |   |   | **Subscription** |   |   | **Comprehensive** |   |   | **Development**                    |   |
|                                              |   |   | **Shares**                        |   |   | **Amount**  |   |   | **Capital**      |   |   | **Receivable**    |   |   | **Income                  (loss)** |   |   | **State**                       |   |
|                                              |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| January                  2003 - stock issued for  |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| cash                  at $0.83 per share          |   |   | 240,000                           |   |   | 240         |   |   | 199,760          |   |   | -                 |   |   | -                                  |   |   | -                               |   |
|                                              |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| March                  2003 - stock issued for    |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| cash                  at $0.25 per share          |   |   | 840,000                           |   |   | 840         |   |   | 209,160          |   |   | -                 |   |   | -                                  |   |   | -                               |   |
|                                              |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| December                  2003 - stock issued for |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| cash                  at $0.25 per share          |   |   | 60,000                            |   |   | 60          |   |   | 14,940           |   |   | -                 |   |   | -                                  |   |   | -                               |   |
|                                              |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| Foreign                  currency translation     |   |   | -                                 |   |   | -           |   |   | -                |   |   | -                 |   |   | 4,729                              |   |   | -                               |   |
|                                              |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| Net                  loss for the period ended    |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| December                  31, 2003                |   |   | -                                 |   |   | -           |   |   | -                |   |   | -                 |   |   | -                                  |   |   | (611,808                        | )      |
| Balance,                  December 31, 2003       |   |   | 20,688,778                        |   | $      | 20,689      |   | $      | 893,334          |   | $      | -                 |   | $      | 4,729                              |   | $      | (1,607,498                      | )      |
|                                              |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| October                  2004 - stock issued for  |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| cash                  at $0.25 per share          |   |   | 4,000,000                         |   |   | 4,000       |   |   | 996,000          |   |   | -                 |   |   | -                                  |   |   | -                               |   |
|                                              |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| December                  2004 - stock issued for |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| cash                  at $0.11 per share          |   |   | 6,125,000                         |   |   | 6,125       |   |   | 693,875          |   |   | -                 |   |   | -                                  |   |   | -                               |   |
|                                              |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| December                  2004 - stock issued for |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| services                  at $0.25 pr share       |   |   | 1,000,000                         |   |   | 1,000       |   |   | 249,000          |   |   | -                 |   |   | -                                  |   |   | -                               |   |
|                                              |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| December                  2004 - stock issued     |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| in                  lieu of outstanding debt      |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| at                  $0.10 per share               |   |   | 2,370,000                         |   |   | 2,370       |   |   | 234,630          |   |   | -                 |   |   | -                                  |   |   | -                               |   |
|                                              |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| Foreign                  currency translation     |   |   | -                                 |   |   | -           |   |   | -                |   |   | -                 |   |   | 1,589                              |   |   | -                               |   |
|                                              |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| Net                  loss for the period ended    |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| December                  31, 2004                |   |   | -                                 |   |   | -           |   |   | -                |   |   | -                 |   |   | -                                  |   |   | (907,200                        | )      |
| Balance,                  December 31, 2004       |   |   | 34,183,778                        |   |   | 34,184      |   |   | 3,066,839        |   |   | -                 |   |   | 6,318                              |   |   | (2,514,698                      | )      |
|                                              |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| Foreign                  currency translation     |   |   | -                                 |   |   | -           |   |   | -                |   |   | -                 |   |   | (82,678                            | )      |   | -                               |   |
|                                              |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| Net                  loss for the period ended    |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| December                  31, 2005                |   |   | -                                 |   |   | -           |   |   | -                |   |   | -                 |   |   | -                                  |   |   | (448,271                        | )      |
|                                              |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| Balance,                  December 31, 2005       |   |   | 34,183,778                        |   |   | 34,184      |   |   | 3,066,839        |   |   | -                 |   |   | (76,360                            | )      |   | (2,962,969                      | )      |
|                                              |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| Foreign                  currency translation     |   |   | -                                 |   |   | -           |   |   | -                |   |   | -                 |   |   | (20,773                            | )      |   | -                               |   |
|                                              |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| Investment                  loss                  |   |   | -                                 |   |   | -           |   |   | -                |   |   | -                 |   |   | (22,704                            | )      |   | -                               |   |
|                                              |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| Net                  loss for the period ended    |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| December                  31, 2006                |   |   | -                                 |   |   | -           |   |   | -                |   |   | -                 |   |   | -                                  |   |   | (2,961,601                      | )      |
| Balance,                  December 31, 2006       |   |   | 34,183,778                        |   |   | 34,184      |   |   | 3,066,839        |   |   | -                 |   |   | (119,837                           | )      |   | (5,924,570                      | )      |
|                                              |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| Foreign                  currency translation     |   |   | -                                 |   |   | -           |   |   | -                |   |   | -                 |   |   | 8,713                              |   |   | -                               |   |
|                                              |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| Net                  loss for the period ended    |   |   |                                   |   |   |             |   |   |                  |   |   |                   |   |   |                                    |   |   |                                 |   |
| March                  31, 2007                   |   |   | -                                 |   |   | -           |   |   | -                |   |   | -                 |   |   | -                                  |   |   | (89,801                         | )      |
| Balance,                  March 31, 2007          |   |   | 34,183,778                        |   | $      | 34,184      |   | $      | 3,066,839        |   | $      | -                 |   | $      | (111,124                           | )      | $      | (6,014,371                      | )      |

----

| **LEXON                TECHNOLOGIES, INC. AND SUBSIDIARIES**                                        |   |
|-----------------------------------------------------------------------------------------------------|--------|
| **(A                Development Stage Company)**                                                    |   |
| **Consolidated                Statements of Cash Flows**                                            |   |
| **For                the Three Months Ended March 31, 2007 and 2006                and**            |   |
| **the                Period from Inception on July 18, 2001 through March 31,                2007** |   |
| **(Unaudited)**                                                                                     |   |
|                                                                                                |   |   |   |   |   |   |   |
|                                                                                                |   |   |   |   |   |   |   |
|                                                                                                |   |   |   |   |   | From                Inception |   |
|                                                                                                |   |   |   |   |   | on                July 18, 2001 |   |
|                                                                                                |   | For                the Three Months Ended |   | Through |   |
|                                                                                                |   | March                31, |   | March                31, |   |
|                                                                                                |   | 2007 |   | 2006 |   | 2007 |   |
| CASH                FLOWS FROM OPERATIONG ACTIVITIES:                                               |   |   |   |   |   |   |   |
| Net                loss                                                                             |   | $ | (89,801 | ) | $ | (315,440 | ) | $ | (6,014,371 | ) |
| Adjustments                to reconcile net loss to net cash                                        |   |   |  |   |   |  |   |   |  |   |
| used                in operating activities                                                         |   |   |  |   |   |  |   |   |  |   |
| Depreciation                and amortization                                                        |   |   | 229 |   |   | 12,653 |   |   | 100,318 |   |
| Stock                for services                                                                   |   |   | - |   |   | - |   |   | 263,720 |   |
| Stock                for technology                                                                 |   |   | - |   |   | - |   |   | 375,000 |   |
| Bad                debt expense                                                                     |   |   | - |   |   | - |   |   | 52,784 |   |
| Impairment                of goodwill                                                               |   |   | - |   |   | - |   |   | 1,845,124 |   |
| Gain                on forgiveness of debt                                                          |   |   | - |   |   | - |   |   | (19,872 | ) |
| Gain                (loss) on sale of assets                                                        |   |   | - |   |   | 10,079 |   |   | (1,297,501 | ) |
| Change                in assets and liabilities (net of acquisition):                               |   |   |  |   |   |  |   |   |  |   |
| Increase                in other assets                                                             |   |   | - |   |   | (106,612 | ) |   | (18,219 | ) |
| (Increase)                decrease in other receivable                                              |   |   | - |   |   | (3,884 | ) |   | 359,992 |   |
| (Increase)                decrease in prepaid expenses                                              |   |   | - |   |   | (9,817 | ) |   | 4,684 |   |
| Increase                in accrued interest                                                         |   |   | - |   |   | - |   |   | (76,360 | ) |
| Decrease                in inventory                                                                |   |   | - |   |   | - |   |   | 5,255 |   |
| Increase                in accounts payable                                                         |   |   | 59,252 |   |   | - |   |   | 382,388 |   |
| Increase                in accrued expenses                                                         |   |   | - |   |   | 6,384 |   |   | 2,466,111 |   |
| Net                Cash Used in Operating Activities                                                |   |   | (30,320 | ) |   | (406,637 | ) |   | (1,570,947 | ) |
|                                                                                                |   |   |  |   |   |  |   |   |  |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES:                                                |   |   |  |   |   |  |   |   |  |   |
| Acquisition                of property and equipment                                                |   |   | - |   |   | - |   |   | (3,116 | ) |
| Proceeds                received on sale of fixed assets                                            |   |   | - |   |   | - |   |   | 119,223 |   |
| Payments                made on related party notes                                                 |   |   | - |   |   | - |   |   | (235,554 | ) |
| Proceeds                received on related party notes                                             |   |   | - |   |   | 167,000 |   |   | 477,407 |   |
| Acquisition                of investments                                                           |   |   | - |   |   | - |   |   | (1,869,371 | ) |
| Proceeds                from return of investments                                                  |   |   | - |   |   | 250,000 |   |   | 271,939 |   |
| Net                Cash Provided by (Used in) Investing Activities                                  |   |   | - |   |   | 417,000 |   |   | (1,239,472 | ) |
|                                                                                                |   |   |  |   |   |  |   |   |  |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES:                                                |   |   |  |   |   |  |   |   |  |   |
| Receipt                of subscription receivable                                                   |   |   | - |   |   | - |   |   | 220,000 |   |
| Proceeds                from related party notes                                                    |   |   | - |   |   | - |   |   | 239,731 |   |
| Proceeds                from notes payable                                                          |   |   | 349,982 |   |   | - |   |   | 498,557 |   |
| Payments                made on notes payable                                                       |   |   | (41,615 | ) |   | (222 | ) |   | (493,822 | ) |
| Proceeds                from issuance of common stock                                               |   |   | - |   |   | - |   |   | 2,645,000 |   |
| Net                Cash Provided by (Used in) Financing Activities                                  |   |   | 308,367 |   |   | (222 | ) |   | 3,109,466 |   |
|                                                                                                |   |   |  |   |   |  |   |   |  |   |
| NET                INCREASE IN CASH AND CASH EQUIVALENT                                             |   |   | 278,047 |   |   | 10,141 |   |   | 299,047 |   |
|                                                                                                |   |   |  |   |   |  |   |   |  |   |
| EFFECT                OF CURRENCY EXCHANGE RATE CHANGES                                             |   |   |   |   |   |  |   |   |  |   |
| ON                CASH AND CASH EQUIVALENTS                                                         |   |   | 10,026 |   |   | (18,693 | ) |   | (10,747 | ) |
|                                                                                                |   |   |  |   |   |  |   |   |  |   |
| CASH                AND CASH EQUIVALENT AT BEGINNING OF PERIOD                                      |   |   | 227 |   |   | 22,623 |   |   | - |   |
|                                                                                                |   |   |  |   |   |  |   |   |  |   |
| CASH                AND CASH EQUIVALENT AT END OF PERIOD                                            |   | $ | 288,300 |   | $ | 14,071 |   | $ | 288,300 |   |
|                                                                                                |   |   |  |   |   |  |   |   |  |   |
| SUPPLEMENTAL                CASH FLOW INFORMATION                                                   |   |   |  |   |   |  |   |   |  |   |
|                                                                                                |   |   |  |   |   |  |   |   |  |   |
| Cash                Payments For:                                                                   |   |   |  |   |   |  |   |   |  |   |
| Interest                                                                                            |   | $ | - |   | $ | 2,840 |   | $ | 717,548 |   |
|                                                                                                |   |   |  |   |   |  |   |   |  |   |
| Non-Cash                Investing and Financing Activities                                          |   |   |  |   |   |  |   |   |  |   |
| Stock                issued for thechnology                                                         |   | $ | - |   | $ | - |   | $ | 375,000 |   |
| Stock                issued for services                                                            |   | $ | - |   | $ | - |   | $ | 263,720 |   |
| Stock                issued for in lieu of debt                                                     |   | $ | - |   | $ | - |   | $ | 237,000 |   |

----

**LEXON      TECHNOLOGIES, INC. AND SUBSIDIARIES**

**(**
**A      Development Stage Company)**

**Notes      to Consolidated Financial Statements**

**(Unaudited)**

**March      31, 2007**

----

**Note****1    - Nature of Business and Going Concern**

| ***    (a)  *** | ***Description                  of Business*** |
|-----------------------------------------------|------------------------------------------------|

----

**LEXON        TECHNOLOGIES, INC. AND SUBSIDIARIES**

**(**
**A        Development Stage Company)**

**Notes        to Consolidated Financial Statements**

**(Unaudited)**

**March        31, 2007**

----

| ***    (b)  *** | ***Going                  Concern*** |
|-----------------------------------------------|--------------------------------------|

**Note      **
**2      - Significant Accounting Policies**

| ***    (a)  *** | ***Basis                of Financial Statement                Presentation*** |
|-----------------------------------------------|-------------------------------------------------------------------------------|

| ***    (b)  *** | ***Basis                of Consolidation**** * |
|-----------------------------------------------|-----------------------------------------------------|

----

**LEXON      TECHNOLOGIES, INC. AND SUBSIDIARIES**

**(**
**A      Development Stage Company)**

**Notes      to Consolidated Financial Statements**

**(Unaudited)**

**March      31, 2007**

----

| ***    (c)  *** |
|-----------------------------------------------|

***Unit        of***
***Estimates***

| ***    (d)  *** | ***Revenue                  Recognition*** |
|-----------------------------------------------|--------------------------------------------|

| ***    (e)  *** | ***Currency                Translation*** |
|-----------------------------------------------|-------------------------------------------|

| ***    (f)   *** | ***Cash                  and Cash                  Equivalents*** |
|-----------------------------------------------------|-------------------------------------------------------------------|

----

**LEXON      TECHNOLOGIES, INC. AND SUBSIDIARIES**

**(**
**A      Development Stage Company)**

**Notes      to Consolidated Financial Statements**

**(Unaudited)**

**March      31, 2007**

----

| ***    (g)  *** |
|-----------------------------------------------|

***Properties        and Equipment***

| Buildings                and improvements |   |   | 20-40                years |   |
|-------------------------------------------|--------|--------|----------------------------|--------|
| Machinery                and equipment    |   |   | 10                years    |   |
| Computer                equipment         |   |   | 3                years     |   |
| Automobiles                               |   |   | 5                years     |   |
| Office                and other equipment |   |   | 5                years     |   |

| ***    (h)  *** | ***Investments*** |
|-----------------------------------------------|-------------------|

| ***    (i)  *** | ***Intangible                Assets*** |
|-----------------------------------------------|----------------------------------------|

| ***    (j)  *** | ***Basic                (Loss) Per Share*** |
|-----------------------------------------------|---------------------------------------------|

|                                                                       |   | **March                31,** |       |
|----------------------------------------------------------------------------|--------|------------------------------|------------|
|                                                                       |   | **2007**                     |       | **2006** |   |
|                                                                       |   |                         |       |   |   |
| Numerator                - loss for the year                               |   | $                            | (89,801    | ) | $ | (315,440 | ) |
|                                                                       |   |                         |       |   |   |   |   |
| Denominator                - weighted average number of shares outstanding |   |                         | 34,183,778 |   |   | 34,183,778 |   |
|                                                                       |   |                         |       |   |   |   |   |
| Loss                per share                                              |   | $                            | (0.003     | ) | $ | (0.01 | ) |

----

**LEXON          TECHNOLOGIES, INC. AND SUBSIDIARIES**

**(**
**A          Development Stage Company)**

**Notes          to Consolidated Financial Statements**

**(Unaudited)**

**March          31, 2007**

----

| ***    (k)  *** | ***Financial                Instruments*** |
|-----------------------------------------------|--------------------------------------------|

| ***    (l)  *** | ***Recent                Accounting                Pronouncements*** |
|-----------------------------------------------|----------------------------------------------------------------------|

*Share-Based      Payment*
*Accounting      for Stock-Based Compensation. *
*Accounting      for Stock Issued to Employees, *

**Note      3 - Property and Equipment**

| Computer                and equipment         |   | $      | 8,990   |   |
|-----------------------------------------------|--------|--------|---------|--------|
| Furniture                and fixture          |   |   | 4,287   |   |
|                                          |   |   | 13,277  |   |
| Less:                accumulated depreciation |   |   | (13,277 | )      |
|                                          |   |   |    |   |
| Net                property and equipment     |   | $      | --      |   |

----

**LEXON        TECHNOLOGIES, INC. AND SUBSIDIARIES**

**(**
**A        Development Stage Company)**

**Notes        to Consolidated Financial Statements**

**(Unaudited)**

**March        31, 2007**

----

**Note      4 - Investments **

NOTES      PAYABLE 

**Note      5 - Related Party Transactions **

**Note      6 - Commitments and Contingencies **

The      Company has not been able to pay compensation to its officers on time, and      the      past due compensation aggregated $1,741,316      as ofMarch      31,      2007.      

**Note      7 - Notes Payable**

| Note                payable to a related party with interest at 7.5% per annum, unsecured.                Note is in default and due on demand              |   | $      | 20,000  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
|                                                                                                                                                        |   |   |         |   |
| Note                payable to an individual with interest at 7.5% per annum, unsecured.                Note                is in default and due on demand |   |   | 5,000   |   |
|                                                                                                                                                        |   |   |    |   |
| Note                payable to an unrelated party with interest at 7.5% per annum, unsecured.                Note is due on demand                          |   |   | 349,982 |   |
|                                                                                                                                                        |   |   |    |   |
| Total                notes due                                                                                                                              |   | $      | 374,982 |   |

----

**LEXON          TECHNOLOGIES, INC. AND SUBSIDIARIES**

**(**
**A          Development Stage Company)**

**Notes          to Consolidated Financial Statements**

**(Unaudited)**

**March          31, 2007**

----

**Note      8 - Income Taxes**

**Note      9 - Stock Option Plan **

**Note      10 - Other Comprehensive Income (Loss) **

| Balance,                December 31, 2006     |   | $      | (119,837 | )      |
|-----------------------------------------------|--------|--------|----------|--------|
|                                          |   |   |     |   |
| Effect                of currency translation |   |   | 8,713    |   |
|                                          |   |   |     |   |
| Balance,                March 31, 2007        |   | $      | (111,124 | )      |

----

**LEXON        TECHNOLOGIES, INC. AND SUBSIDIARIES**

**(**
**A        Development Stage Company)**

**Notes        to Consolidated Financial Statements**

**(Unaudited)**

**March        31, 2007**

----

**Note    11 - Convertible Notes Payable **

| A                note with 7.5% interest, convertible to 30,000 shares of the Company’s                common stock, matured                on September 9, 2004 with interest accrued at $7,891.     |   | $      | 30,000 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|  Two                notes with 7.5% interest, convertible to 227,840 shares of common                stock,                matured on                October 30, 2005 with interest accrued at $9,639. |   |   | 56,960 |   |
|                                                                                                                                                                                                        |   |   |   |   |
| Total                notes due                                                                                                                                                                              |   | $      | 86,960 |   |

**Note      12 - Subsequent Events**

----

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

----

ITEM      3.  CONTROLS AND      PROCEDURES

----

----