**FORM      10-QSB**

**September 30**
**, 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                                                                                                | F-1                  - F-13 |
| ITEM                2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND                RESULTS                OF OPERATIONS | 3                           |
| ITEM                3. CONTROLS AND PROCEDURES                                                                                             | 4                           |
|                                                                                                                                       |                        |
| PART                II - OTHER INFORMATION                                                                                                 |                        |
|                                                                                                                                       |                        |
| ITEM                1. LEGAL PROCEEDINGS                                                                                                   | 5                           |
| ITEM                2. CHANGES IN SECURITIES                                                                                               | 5                           |
| ITEM                3. DEFAULT BY THE COMPANY ON ITS SENIOR SECURITIES                                                                     | 5                           |
| ITEM                4. SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS                                                               | 5                           |
| ITEM                5. OTHER INFORMATION                                                                                                   | 5                           |
| ITEM                6. EXHIBITS                                                                                                            | 5                           |
|                                                                                                                                       |                        |
| SIGNATURES                                                                                                                                 | 6                           |
|                                                                                                                                       |                        |
| EX-31.1                (07SEPT PRIN EXEC 302 CERT)                                                                                         |                        |
|                                                                                                                                       |                        |
| EX-31.2                (07SEPT PRIN FIN 302 CERT)                                                                                          |                        |
|                                                                                                                                       |                        |
| EX-32                (07SEPT PRIN EXEC AND FIN 906 CERT)                                                                                   |                        |

----

**LEXON        TECHNOLOGIES, INC. AND SUBSIDIARIES**

**(A          Development Stage Company)**

**Consolidated            Balance Sheets**

----

| **ASSETS**                                                        |   |
|-------------------------------------------------------------------|--------|
|                                                              |   |   |   |   |   |   |
|                                                              |   |   |   |   |   |   |
|                                                              |   | September                  30, 2007 |   |   | December                  31,2006 |   |
|                                                              |   | (Unaudited) |   |   |   |   |
|                                                              |   |   |   |   |   |   |
| CURRENT                  ASSETS                                   |   |   |   |   |   |   |
| Cash                  and cash equivalents (Note 2)               |   | $ | 9,703 |   |   | $ | 227 |   |
|                                                              |   |   |   |   |   |   |   |   |
| PROPERTY                  AND EQUIPMENT, net (Notes 1 and 3)      |   |   | 1,339 |   |   |   | - |   |
|                                                              |   |   |   |   |   |   |   |   |
| OTHER                  ASSETS                                     |   |   |   |   |   |   |   |   |
| Investments                  (Note 4)                             |   |   | 105,679 |   |   |   | 104,839 |   |
| Deposits                  and other assets                        |   |   | 5,925 |   |   |   | 6,568 |   |
| Total                  Other Assets                               |   |   | 111,604 |   |   |   | 111,407 |   |
|                                                              |   |   |   |   |   |   |   |   |
| TOTAL                  ASSETS                                     |   | $ | 122,646 |   |   | $ | 111,634 |   |
|                                                              |   |   |   |   |   |   |   |   |
|                                                              |   |   |   |   |   |   |   |   |
| CURRENT                  LIABILITIES                              |   |   |   |   |   |   |   |   |
| Accounts                  payable                                 |   | $ | 542,996 |   |   | $ | 546,764 |   |
| Due                  to related parties (Note 5)                  |   |   | 400,502 |   |   |   | 421,753 |   |
| Accrued                  expenses (Note 6)                        |   |   | 802,526 |   |   |   | 1,658,316 |   |
| Convertible                  notes payable (Note 11)              |   |   | 86,960 |   |   |   | 128,575 |   |
| Notes                  payable (Note 7)                           |   |   | 174,982 |   |   |   | 25,000 |   |
| Total                  Current Liabilities                        |   |   | 2,007,966 |   |   |   | 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)   |   |   | (125,685 | ) |   |   | (119,837 | ) |
| Deficit                  accumulated during the development stage |   |   | (5,135,268 | ) |   |   | (5,924,570 | ) |
| Total                  Stockholders' Deficiency                   |   |   | (2,159,930 | ) |   |   | (2,943,384 | ) |
|                                                              |   |   |   |   |   |   |   |   |
| TOTAL                  LIABILITIES AND STOCKHOLDERS' DEFICIENCY   |   | $ | 122,646 |   |   | $ | 111,634 |   |

----

| **LEXON                TECHNOLOGIES, INC. AND SUBSIDIARIES**                                                                    |
|---------------------------------------------------------------------------------------------------------------------------------|
| **(A                Development Stage Company)**                                                                                |
| **Consolidated                Statements of Operations**                                                                        |
| **For                the Three Months and the Nine Months Ended September 30, 2007 and                2006                and** |
| **the                Period from Inception on July 18, 2001 through September 30,                2007**                         |
| **(Unaudited)**                                                                                                                 |

----

|                                                        |   |                                           |       |   |                                           |   |       |                         |   |   |       |   |   | From                Inception   |       |
|-------------------------------------------------------------|--------|------------------------------------------------|------------|--------|------------------------------------------------|--------|------------|------------------------------|--------|--------|------------|--------|--------|---------------------------------|------------|
|                                                        |   |                                           |       |   |                                           |   |       |                         |   |   |       |   |   | on                July 18, 2001 |       |
|                                                        |   | For                the Three Months Ended      |       |   | For                the Nine Months Ended       |   |       | Through                      |   |
|                                                        |   | September                30,    |       |   | September                30,    |   |       | September                30, |   |
|                                                        |   | 2007                                           |       |   | 2006                                           |   |       | 2007                         |   |   | 2006       |   |   | 2007                            |       |
|                                                        |   |                                           |       |   |                                           |   |       |                         |   |   |       |   |   |                            |       |
| REVENUES                                                    |   | $                                              | -          |   |                                           | $      | -          |                         |   | $      | -          |   |   | $                               | -          |   |   | $ | - |   |
|                                                        |   |                                           |       |   |                                           |   |       |                         |   |   |       |   |   |                            |       |   |   |   |   |   |
| EXPENSES                                                    |   |                                           |       |   |                                           |   |       |                         |   |   |       |   |   |                            |       |   |   |   |   |   |
| Research                and development                     |   |                                           | -          |   |                                           |   | 3,400      |                         |   |   | -          |   |   |                            | 25,923     |   |   |   | - |   |
| Selling,                general and administrative          |   |                                           | 11,834     |   |                                           |   | 129,448    |                         |   |   | 91,679     |   |   |                            | 656,929    |   |   |   | 179,253 |   |
| Bad                debt expense                             |   |                                           | -          |   |                                           |   | 16,440     |                         |   |   | -          |   |   |                            | 16,440     |   |   |   | - |   |
| Depreciation                and amortization                |   |                                           | 310        |   |                                           |   | 12,854     |                         |   |   | 811        |   |   |                            | 38,486     |   |   |   | 1,040 |   |
| Total                Expenses                               |   |                                           | 12,144     |   |                                           |   | 162,142    |                         |   |   | 92,490     |   |   |                            | 737,778    |   |   |   | 180,293 |   |
|                                                        |   |                                           |       |   |                                           |   |       |                         |   |   |       |   |   |                            |       |   |   |   |   |   |
| INCOME                (LOSS) FROM OPERATIONS                |   |                                           | (12,144    | )      |                                           |   | (162,142   | )                            |   |   | (92,490    | )      |   |                            | (737,778   | ) |   |   | (180,293 | ) |
|                                                        |   |                                           |       |   |                                           |   |       |                         |   |   |       |   |   |                            |       |   |   |   |   |   |
| OTHER                INCOME (EXPENSES)                      |   |                                           |       |   |                                           |   |       |                         |   |   |       |   |   |                            |       |   |   |   |   |   |
| Interest                income                              |   |                                           | -          |   |                                           |   | 1          |                         |   |   | -          |   |   |                            | 715        |   |   |   | - |   |
| Other                income                                 |   |                                           | -          |   |                                           |   | -          |                         |   |   | -          |   |   |                            | -          |   |   |   | - |   |
| Gain                (loss) on sale or foreclosure of assets |   |                                           | -          |   |                                           |   | (17        | )                            |   |   | -          |   |   |                            | (17,537    | ) |   |   | - |   |
| Gain                on forgiveness of debt (Note 6)         |   |                                           | -          |   |                                           |   | -          |                         |   |   | 888,000    |   |   |                            | -          |   |   |   | 888,000 |   |
| Interest                expense                             |   |                                           | (2,117     | )      |                                           |   | (2,903     | )                            |   |   | (6,208     | )      |   |                            | (8,615     | ) |   |   | (8,206 | ) |
| Impairment                of goodwill                       |   |                                           | -          |   |                                           |   | (1,851,692 | )                            |   |   | -          |   |   |                            | (1,851,692 | ) |   |   | - |   |
| Gain                (loss) from investment                  |   |                                           | -          |   |                                           |   | -          |                         |   |   | -          |   |   |                            | -          |   |   |   | - |   |
| Gain                (loss) from discontinued operation      |   |                                           | -          |   |                                           |   | -          |                         |   |   | -          |   |   |                            | -          |   |   |   | - |   |
| Total                Other Income (Expenses)                |   |                                           | (2,117     | )      |                                           |   | (1,854,611 | )                            |   |   | 881,792    |   |   |                            | (1,877,129 | ) |   |   | 879,794 |   |
|                                                        |   |                                           |       |   |                                           |   |       |                         |   |   |       |   |   |                            |       |   |   |   |   |   |
| NET                INCOME (LOSS)                            |   | $                                              | (14,261    | )      |                                           | $      | (2,016,753 | )                            |   | $      | 789,302    |   |   | $                               | (2,614,907 | ) |   | $ | 699,501 |   |
|                                                        |   |                                           |       |   |                                           |   |       |                         |   |   |       |   |   |                            |       |   |   |   |   |   |
| BASIC                LOSS PER SHARE                         |   | $                                              | (0.01      | )      |                                           | $      | (0.06      | )                            |   | $      | 0.02       |   |   | $                               | (0.08      | ) |   |   |   |   |
|                                                        |   |                                           |       |   |                                           |   |       |                         |   |   |       |   |   |                            |       |   |   |   |   |   |
| WEIGHTED                AVERAGE NUMBER OF                   |   |                                           |       |   |                                           |   |       |                         |   |   |       |   |   |                            |       |   |   |
| COMMON                STOCKS OUTSTANDING                    |   |                                           | 34,183,778 |   |                                           |   | 34,183,778 |                         |   |   | 34,183,778 |   |   |                            | 34,183,778 |   |   |   |   |   |

----

| **LEXON                  TECHNOLOGIES, INC. AND SUBSIDIARIES**                                                       |
|----------------------------------------------------------------------------------------------------------------------|
| **(A                  Development Stage Company)**                                                                   |
| **Consolidated                  Statements of Stockholders' Equity and Other Comprehensive                  Income** |
| **the                  Period from Inception on July 18, 2001 through September 30,                  2007**          |
| **(Unaudited)**                                                                                                      |

----

|                                                  |   |                              |       |   |        |   |   |             |   |   |              |   |   |                               |     |   | **Deficit**                     |   |
|-------------------------------------------------------|--------|-----------------------------------|------------|--------|-------------|--------|--------|------------------|--------|--------|-------------------|--------|--------|------------------------------------|----------|--------|---------------------------------|--------|
|                                                  |   |                              |       |   |        |   |   |             |   |   |              |   |   | **Accumulated**                    |     |   | **Accumulated**                 |   |
|                                                  |   |                              |       |   |        |   |   | **Additional**   |   |   |              |   |   | **Other**                          |     |   | **During                  the** |   |
|                                                  |   | **Common                  Stock** |       |   | **Paid-in** |   |   | **Subscription** |   |   | **Comprehensive** |   |   | **Development**                    |     |
|                                                  |   | **Shares**                        |       |   | **Amount**  |   |   | **Capital**      |   |   | **Receivable**    |   |   | **Income                  (loss)** |     |   | **Stage**                       |   |
|                                                  |   |                              |       |   |        |   |   |             |   |   |              |   |   |                               |     |   |                            |   |
| 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 | ) |
|                                                  |   |                              |       |   |        |   |   |             |   |   |              |   |   |                               |     |   |                            |   |   |   |   |   |   |   |
| 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 | ) |

----

| **LEXON                  TECHNOLOGIES, INC. AND SUBSIDIARIES**                                                                   |
|----------------------------------------------------------------------------------------------------------------------------------|
| **(A                  Development Stage Company)**                                                                               |
| **Consolidated                  Statements of Stockholders' Equity and Other Comprehensive Income                  (Continued)** |
| **the                  Period from Inception on July 18, 2001 through September 30,                  2007**                      |

----

|                                              |   |                              |       |   |        |   |   |             |   |   |              |   |   |                               |   |   | **Deficit**                     |   |
|---------------------------------------------------|--------|-----------------------------------|------------|--------|-------------|--------|--------|------------------|--------|--------|-------------------|--------|--------|------------------------------------|--------|--------|---------------------------------|--------|
|                                              |   |                              |       |   |        |   |   |             |   |   |              |   |   | **Accumulated**                    |   |   | **Accumulated**                 |   |
|                                              |   |                              |       |   |        |   |   | **Additional**   |   |   |              |   |   | **Other**                          |   |   | **During                  the** |   |
|                                              |   | **Common                  Stock** |       |   | **Paid-in** |   |   | **Subscription** |   |   | **Comprehensive** |   |   | **Development**                    |   |
|                                              |   | **Shares**                        |       |   | **Amount**  |   |   | **Capital**      |   |   | **Receivable**    |   |   | **Income                  (loss)** |   |   | **Stage**                       |   |
|                                              |   |                              |       |   |        |   |   |             |   |   |              |   |   |                               |   |   |                            |   |
| 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     |   |                              | -          |   |        |   | -      |             |   |   | -                 |   |   |                               | -      |   |                            |   | (5,848 | ) |   |   | - |   |
|                                              |   |                              |       |   |        |   |   |             |   |   |              |   |   |                               |   |   |                            |   |   |   |   |   |   |   |
| Net                  income for the period ended  |   |                              |       |   |        |   |   |             |   |   |              |   |   |                               |   |   |                            |   |   |   |   |
| September                  30, 2007               |   |                              | -          |   |        |   | -      |             |   |   | -                 |   |   |                               | -      |   |                            |   | - |   |   |   | 789,302 |   |
|                                              |   |                              |       |   |        |   |   |             |   |   |              |   |   |                               |   |   |                            |   |   |   |   |   |   |   |
| Balance,                  September 30, 2007      |   |                              | 34,183,778 |   |        | $      | 34,184 |             |   | $      | 3,066,839         |   |   | $                                  | -      |   |                            | $      | (125,685 | ) |   | $ | (5,135,268 | ) |

----

| **LEXON                  TECHNOLOGIES, INC. AND SUBSIDIARIES**                                              |
|-------------------------------------------------------------------------------------------------------------|
| **(A                  Development Stage Company)**                                                          |
| **Consolidated                  Statements of Cash Flows**                                                  |
| **For                  the Nine Months Ended September 30, 2007 and 2006                  and**             |
| **the                  Period from Inception on July 18, 2001 through September 30,                  2007** |
| **(Unaudited)**                                                                                             |

----

|                                                                    |   |                                             |     |   |                           |   |       | From                  Inception   |   |
|-------------------------------------------------------------------------|--------|--------------------------------------------------|----------|--------|--------------------------------|--------|------------|-----------------------------------|--------|
|                                                                    |   |                                             |     |   |                           |   |       | on                  July 18, 2001 |   |
|                                                                    |   | For                  the Nine Months Ended       |     |   | Through                        |   |
|                                                                    |   | September                  30,    |     |   | September                  30, |   |
|                                                                    |   | 2007                                             |     |   | 2006                           |   |       | 2007                              |   |
| CASH                  FLOWS FROM OPERATIONG ACTIVITIES:                 |   |                                             |     |   |                           |   |       |
| Net                  income (loss)                                      |   | $                                                | 789,302  |   |                           | $      | (2,614,907 | )                                 |   | $ | (5,135,268 | ) |
| Adjustments                  to reconcile net income (loss) to net cash |   |                                             |     |   |                           |   |       |                              |   |
| used                  in operating activities                           |   |                                             |     |   |                           |   |       |                              |   |   |   |   |
| Depreciation                  and amortization                          |   |                                             | 501      |   |                           |   | 37,645     |                              |   |   | 100,590 |   |
| Stock                  for services                                     |   |                                             | -        |   |                           |   | -          |                              |   |   | 263,720 |   |
| Stock                  for technology                                   |   |                                             | -        |   |                           |   | -          |                              |   |   | 375,000 |   |
| Bad                  debt expense                                       |   |                                             | -        |   |                           |   | 16,440     |                              |   |   | 52,784 |   |
| Impairment                  of goodwill                                 |   |                                             | -        |   |                           |   | 1,851,692  |                              |   |   | 1,845,124 |   |
| Gain                  on forgiveness of debt                            |   |                                             | -        |   |                           |   | -          |                              |   |   | (19,872 | ) |
| Gain                  (loss) on sale of assets                          |   |                                             | -        |   |                           |   | 17,537     |                              |   |   | (1,297,501 | ) |
| Change                  in assets and liabilities (net of acquisition): |   |                                             |     |   |                           |   |       |                              |   |   |   |   |
| Increase                  in other assets                               |   |                                             | -        |   |                           |   | (104,920   | )                                 |   |   | (18,219 | ) |
| Decrease                  in other receivable                           |   |                                             | -        |   |                           |   | 185,603    |                              |   |   | 359,992 |   |
| Decrease                  in prepaid expenses                           |   |                                             | -        |   |                           |   | 4,684      |                              |   |   | 4,684 |   |
| Increase                  in accrued interest                           |   |                                             | -        |   |                           |   | -          |                              |   |   | (76,360 | ) |
| (Increase)                  decrease in inventory                       |   |                                             | -        |   |                           |   | (1,839     | )                                 |   |   | 5,255 |   |
| (Decrease)                  increase in accounts payable                |   |                                             | (25,019  | )      |                           |   | 125,620    |                              |   |   | 298,117 |   |
| (Decrease)                  increase in accrued expenses                |   |                                             | (855,790 | )      |                           |   | 82,112     |                              |   |   | 1,610,321 |   |
| Net                  Cash Used in Operating Activities                  |   |                                             | (91,006  | )      |                           |   | (400,333   | )                                 |   |   | (1,631,633 | ) |
|                                                                    |   |                                             |     |   |                           |   |       |                              |   |   |   |   |
| CASH                  FLOWS FROM INVESTING ACTIVITIES:                  |   |                                             |     |   |                           |   |       |                              |   |   |   |   |
| Acquisition                  of property and equipment                  |   |                                             | (1,460   | )      |                           |   | (9,134     | )                                 |   |   | (4,576 | ) |
| Proceeds                  received on sale of fixed assets              |   |                                             | 80       |   |                           |   | 2,898      |                              |   |   | 119,303 |   |
| 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    |   |                                             | (1,380   | )      |                           |   | 410,764    |                              |   |   | (1,240,852 | ) |
|                                                                    |   |                                             |     |   |                           |   |       |                              |   |   |   |   |
| CASH                  FLOWS FROM FINANCING ACTIVITIES:                  |   |                                             |     |   |                           |   |       |                              |   |   |   |   |
| Receipt                  of subscription receivable                     |   |                                             | -        |   |                           |   | -          |                              |   |   | 220,000 |   |
| Proceeds                  from related party notes                      |   |                                             | -        |   |                           |   | -          |                              |   |   | 239,731 |   |
| Proceeds                  from notes payable                            |   |                                             | 149,982  |   |                           |   | -          |                              |   |   | 298,557 |   |
| Payments                  made on notes payable                         |   |                                             | (41,615  | )      |                           |   | (149       | )                                 |   |   | (493,822 | ) |
| Proceeds                  from issuance of common stock                 |   |                                             | -        |   |                           |   | -          |                              |   |   | 2,645,000 |   |
| Net                  Cash Provided by (Used in) Financing Activities    |   |                                             | 108,367  |   |                           |   | (149       | )                                 |   |   | 2,909,466 |   |
|                                                                    |   |                                             |     |   |                           |   |       |                              |   |   |   |   |
| NET                  INCREASE IN CASH AND CASH EQUIVALENT               |   |                                             | 15,981   |   |                           |   | 10,282     |                              |   |   | 36,981 |   |
|                                                                    |   |                                             |     |   |                           |   |       |                              |   |   |   |   |
| EFFECT                  OF CURRENCY EXCHANGE RATE CHANGES               |   |                                             |     |   |                           |   |       |                              |   |
| ON                  CASH AND CASH EQUIVALENTS                           |   |                                             | (6,505   | )      |                           |   | (20,773    | )                                 |   |   | (27,278 | ) |
|                                                                    |   |                                             |     |   |                           |   |       |                              |   |   |   |   |
| CASH                  AND CASH EQUIVALENT AT BEGINNING OF PERIOD        |   |                                             | 227      |   |                           |   | 22,623     |                              |   |   | - |   |
|                                                                    |   |                                             |     |   |                           |   |       |                              |   |   |   |   |
| CASH                  AND CASH EQUIVALENT AT END OF PERIOD              |   | $                                                | 9,703    |   |                           | $      | 12,132     |                              |   | $ | 9,703 |   |
|                                                                    |   |                                             |     |   |                           |   |       |                              |   |   |   |   |
| SUPPLEMENTAL                  CASH FLOW INFORMATION                     |   |                                             |     |   |                           |   |       |                              |   |   |   |   |
|                                                                    |   |                                             |     |   |                           |   |       |                              |   |   |   |   |
| Cash                  Payments For:                                     |   |                                             |     |   |                           |   |       |                              |   |   |   |   |
| Interest                                                                |   | $                                                | -        |   |                           | $      | -          |                              |   | $ | 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)**

**September          30, 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)**

**September            30, 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)**

**September              30, 2007**

----

| ***(c)  *** | ***Unit                      of Estimates*** |
|-----------------------|----------------------------------------------|

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

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

----

**LEXON              TECHNOLOGIES, INC. AND SUBSIDIARIES**

**(A                Development Stage Company)**

**Notes                to Consolidated Financial Statements**

**(Unaudited)**

**September                30, 2007**

----

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

| ***(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*** |
|-----------------------|----------------------------------------------------|

----

**LEXON            TECHNOLOGIES, INC. AND SUBSIDIARIES**

**(A              Development Stage Company)**

**Notes              to Consolidated Financial Statements**

**(Unaudited)**

**September              30, 2007**

----

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

|                                                                               |   | **September                  30,** |       |
|------------------------------------------------------------------------------------|--------|------------------------------------|------------|
|                                                                               |   | **2007**                           |       |   | **2006** |   |
|                                                                               |   |                               |       |   |   |   |
| Numerator                  – income (loss) for the nine months          |   | $                                  | 789,302    |   |   | $ | (2,614,907 | ) |
|                                                                               |   |                               |       |   |   |   |   |   |
| Denominator                  – weighted average number of shares outstanding |   |                               | 34,183,778 |   |   |   | 34,183,778 |   |
|                                                                               |   |                               |       |   |   |   |   |   |
| Earning                  (Loss) per share                                          |   | $                                  | 0.02       |   |   | $ | (0.08 | ) |

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

 

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

 

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

----

**LEXON          TECHNOLOGIES, INC. AND SUBSIDIARIES**

**(A            Development Stage Company)**

**Notes            to Consolidated Financial Statements**

**(Unaudited)**

**September            30, 2007**

----

**Note        3 - Property and Equipment**

| Computer                  and equipment         |   | $      | 10,450  |   |
|-------------------------------------------------|--------|--------|---------|--------|
| Furniture                  and fixture          |   |   | 4,287   |   |
|                                            |   |   | 14,737  |   |
| Less:                  accumulated depreciation |   |   | (13,398 | )      |
|                                            |   |   |    |   |
| Net                  property and equipment     |   | $      | 1,339   |   |

**Note        4 - Investments**

**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 $1,688,409.        The Company’s former officers waived $888,000, and as a result the balance of        the unpaid compensations was reduced to $800,409 as of September 30, 2007.        

----

**LEXON            TECHNOLOGIES, INC. AND SUBSIDIARIES**

**(A              Development Stage Company)**

**Notes              to Consolidated Financial Statements**

**(Unaudited)**

**September              30, 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           |   |   | 149,982 |   |
|                                                                                                                                                              |   |   |    |   |
| Total                  notes due                                                                                                                                  |   | $      | 174,982 |   |

**Note        8 - Income Taxes**

**Note        9 - Stock Option Plan**

----

**LEXON          TECHNOLOGIES, INC. AND SUBSIDIARIES**

**(A            Development Stage Company)**

**Notes            to Consolidated Financial Statements**

**(Unaudited)**

**September            30, 2007**

----

**Note        10 - Other Comprehensive Loss**

| Balance,                  December 31, 2006     |   | $      | (119,837 | )      |
|-------------------------------------------------|--------|--------|----------|--------|
|                                            |   |   |     |   |
| Effect                  of currency translation |   |   | (5,848   | )      |
|                                            |   |   |     |   |
| Balance,                  September 30, 2007    |   | $      | (125,685 | )      |

**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 |   |

----

----

ITEM      3. CONTROLS AND PROCEDURES

----

----

**SIGNATURES**