10QSB

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-QSB

(Mark One)

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

For the quarter ended: June 30, 2007

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

For the transition period from _____ to _______

Commission File Number: 0-24721

LEXON TECHNOLOGIES, INC.

(Exact name of registrant as specified in charter)

Delaware	87-0502701
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer I.D. No.)
8 Corporate Park, Suite 300, Irvine, California	92606
(Address of principal executive offices)	(Zip Code)

Issuer's telephone number, including area code: (949)752-7700

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

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

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

Common Stock, par value $0.001 per share

(Title of class)

Check whether the Issuer (1) filed all reports required to be filed by section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. (1) Yes ý No o (2) Yes ý No o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ý No o

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of August 17, 2007, Lexon had 34,183,778 shares of its common stock, par value $.001 outstanding.

Transitional Small Business Disclosure Format (Check one): Yes o No ý

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	19
ITEM 3. CONTROLS AND PROCEDURES	20
PART II- OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS	21
ITEM 2. CHANGES IN SECURITIES	21
ITEM 3. DEFAULT BY THE COMPANY ON ITS SENIOR SECURITIES	21
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS	21
ITEM 5. OTHER INFORMATION	21
ITEM 6. EXHIBITS	22
SIGNATURES
EX-31.1 (07JUN PRIN EXEC 302 CERT)
EX-31.2 (07JUN PRIN FIN 302 CERT)
EX-32 (07JUN PRIN EXEC AND FIN 906 CERT)

2

 PART I- FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

LEXON TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

JUNE 30, 2007

3

LEXON TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

JUNE 30, 2007

CONTENTS	PAGE
FINANCIAL STATEMENTS
Consolidated Balance Sheets	5
Consolidated Statements of Operations	7
Consolidated Statements of Stockholders’ Deficit	8
Consolidated Statements of Cash Flows	10
Notes to Consolidated Financial Statements	12 - 18

4

LEXON TECHNOLOGIES, INC. AND SUBSIDIARIES

(A Development Stage Company)

Consolidated Balance Sheets

ASSETS
	June 30, 2007		December 31, 2006
	(Unaudited)
CURRENT ASSETS
Cash and cash equivalents (Note 2)	$	21,537	$	227
PROPERTY AND EQUIPMENT, net (Notes 1and 3)		1,419		-
OTHER ASSETS
Investments (Note 4)		105,679		104,839
Deposits and other assets		6,155		6,568
Total Other Assets		111,834		111,407
TOTAL ASSETS	$	134,790	$	111,634

The accompanying notes are an integral part of these consolidated financial statements

5

LEXON TECHNOLOGIES, INC. AND SUBSIDIARIES

(A Development Stage Company)

Consolidated Balance Sheets

LIABILITIES AND STOCKHOLDERS' DEFICIENCY
	June 30, 2007			December 31, 2006
	(Unaudited)
CURRENT LIABILITIES
Accounts payable	$	542,996		$	546,764
Due to related parties (Note 5)		400,502			421,753
Accrued expenses (Note 6)		800,409			1,658,316
Convertible notes payable (Note 11)		86,960			128,575
Notes payable (Note 7)		174,982			25,000
Total Current Liabilities		2,005,849			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		(5,121,007	)		(5,924,570	)
Total Stockholders' Deficiency		(2,145,669	)		(2,943,384	)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY	$	134,790		$	111,634

The accompanying notes are an integral part of these consolidated financial statements

6

LEXON TECHNOLOGIES, INC. AND SUBSIDIARIES

(A Development Stage Company)

Consolidated Statements of Operations

For the Three Months and the Six Months Ended June 30, 2007 and 2006 and

the Period from Inception on July 18, 2001 through June 30, 2007

(Unaudited)

													From Inception
													on July 18, 2001
	For the Three Months Ended						For the Six Months Ended						Through
	June 30,						June 30,						June 30,
	2007			2006			2007			2006			2007
REVENUES	$	-		$	-		$	-		$	-		$	22,031
EXPENSES
Research and development		-			9,729			-			22,523			495,688
Selling, general and administrative		(7,729	)		250,388			79,845			527,481			3,906,186
Bad debt expense		-			-			-			-			52,784
Depreciation and amortization		272			12,979			501			25,632			100,590
Total Expenses		(7,457	)		273,096			80,346			575,636			4,555,248
INCOME (LOSS) FROM OPERATIONS		7,457			(273,096	)		(80,346	)		(575,636	)		(4,533,217	)
OTHER INCOME (EXPENSES)
Interest income		-			695			-			714			40,543
Other income		-			-			-			-			6,000
Gain (loss) on sale or foreclosure of assets		-			(7,441	)		-			(17,520	)		1,296,367
Gain on forgiveness of debt (Note 6)		888,000			-			888,000			-			907,872
Interest expense		(2,093	)		(2,872	)		(4,091	)		(5,712	)		(772,449	)
Impairment of goodwill		-			-			-			-			(1,851,692	)
Loss from investment		-			-			-			-			(11,667	)
Loss from discontinued operation		-			-			-			-			(202,764	)
Total Other Income (Expenses)		885,907			(9,618	)		883,909			(22,518	)		(587,790	)
NET INCOME (LOSS)	$	893,364		$	(282,714	)	$	803,563		$	(598,154	)	$	(5,121,007	)
BASIC EARNING (LOSS) PER SHARE	$	0.03		$	(0.01	)	$	0.02		$	(0.02	)
WEIGHTED AVERAGE NUMBER OF
COMMON STOCKS OUTSTANDING		34,183,778			34,183,778			34,183,778			34,183,778

The accompanying notes are an integral part of these consolidated financial statements

7

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 June 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	)

The accompanying notes are an integral part of these consolidated financial statements

8

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 June 30, 2007

												Deficit
									Accumulated			Accumulated
					Additional				Other			During the
	Common Stock				Paid-in		Subscription		Comprehensive			Development
	Shares		Amount		Capital		Receivable		Income (loss)			State
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
June 30, 2007		-		-		-		-		-			803,563
Balance, January 0, 1900		34,183,778	$	34,184	$	3,066,839	$	-	$	(125,685	)	$	(5,121,007	)

The accompanying notes are an integral part of these consolidated financial statements

9

LEXON TECHNOLOGIES, INC. AND SUBSIDIARIES

(A Development Stage Company)

Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2007 and 2006 and

the Period from Inception on July 18, 2001 through June 30, 2007

(Unaudited)

							From Inception
							on July 18, 2001
	For the Six Months Ended						Through
	June 30,						June 30,
	2007			2006			2007
CASH FLOWS FROM OPERATIONG ACTIVITIES:
Net income (loss)	$	803,563		$	(598,154	)	$	803,563
Adjustments to reconcile net income (loss) to net cash
used in operating activities
Depreciation and amortization		501			25,632			501
Stock for services		-			-			-
Stock for technology		-			-			-
Bad debt expense		-			-			-
Impairment of goodwill		-			-			-
Gain (loss) on forgiveness of debt		-			-			-
Gain (loss) on sale of assets		-			17,520			-
Change in assets and liabilities (net of acquisition):
(Increase) decrease in other assets		-			(104,875	)		-
(Increase) decrease in other receivable		-			22,249			-
(Increase) decrease in prepaid expenses		-			(2,139	)		-
(Increase) decrease in accrued interest		-			-			-
Decrease in inventory		-			-			-
(Decrease) increase in accounts payable		(25,019	)		68,475			(25,019	)
(Decrease) increase in accrued expenses		(857,907	)		188,412			(857,907	)
Net Cash Used in Operating Activities		(78,862	)		(382,880	)		(78,862	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment		(1,460	)		(9,134	)		(1,460	)
Proceeds received on sale of fixed assets		-			2,898			-
Payments made on related party notes		-			-			-
Proceeds received on related party notes		-			167,000			-
Acquisition of investments		-			-			-
Proceeds from return of investments		-			250,000			-
Net Cash Provided by (Used in) Investing Activities		(1,460	)		410,764			(1,460	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Receipt of subscription receivable		-			-			-
Proceeds from related party notes		-			-			-
Proceeds from notes payable		149,982			-			149,982
Payments made on notes payable		(41,615	)		(156	)		(41,615	)
Proceeds from issuance of common stock		-			-			-
Net Cash Provided by (Used in) Financing Activities		108,367			(156	)		108,367
NET INCREASE IN CASH AND CASH EQUIVALENT		28,045			27,728			28,045
EFFECT OF CURRENCY EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS		(6,735	)		(36,453	)		(6,735	)
CASH AND CASH EQUIVALENT AT BEGINNING OF PERIOD		227			22,623			-
CASH AND CASH EQUIVALENT AT END OF PERIOD	$	21,537		$	13,898		$	21,310

The accompanying notes are an integral part of these consolidated financial statements

10

LEXON TECHNOLOGIES, INC. AND SUBSIDIARIES

(A Development Stage Company)

Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2007 and 2006 and

the Period from Inception on July 18, 2001 through June 30, 2007

(Unaudited)

SUPPLEMENTAL CASH FLOW INFORMATION
Cash Payments For:
Interest	$	-	$	5,712	$	-
Income taxes	$	-	$	-	$	-
Non-Cash Investing and Financing Activities
Stock issued for thechnology	$	-	$	-	$	-
Stock issued for services	$	-	$	-	$	-
Stock issued for in lieu of debt	$	-	$	-	$	-

The accompanying notes are an integral part of these consolidated financial statements

11

Note 1 – Nature of Business and Going Concern

(a) Description of Business

Lexon Technologies, Inc. ("the Company" or "Lexon") was incorporated in April 1989 under the laws of state of Delaware, and owns 90.16% of Lexon Semiconductor Corporation ("Lexon Semi" or  formerly known as Techone Co., Ltd ("Techone")) which develops and manufactures Low Temperature Cofired Ceramic (LTCC) components, including LTCC wafer probe cards, LTCC circuit boards, LTCC Light Emitting Diode (LED) displays and related products for the semiconductor testing and measurement, custom Printed Circuit Board (PCB), and cellular phone industries.  The Company currently has no other business activities.

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

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

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

In March 2003, the Company incorporated Lexon Korea Corporation (“Lexon Korea”) as a wholly-owned subsidiary in the Republic of Korea for the purpose of entering into  Lexon Korea was reorganized in August 2005, and as a result, the Company’s equity share in Lexon Korea was reduced to 10%.

In December 2004, the Company acquired 90.16% of the voting stock of Techone Company, Ltd, a Korean corporation by investing $1,585,000.  The Company recognized goodwill of $1,851,692 in the acquisition.  The Company acquired Techone to develop it as the Company’s core operating business in Korea of manufacturing and selling LTCC related products.  However, the development of the LTCC related products was not successful, and the operations of Techone became highly leveraged financially.  In August 2005, certain creditors filed an involuntary foreclosure and sold Techone’s assets through public auction to satisfy secured debts.  This disposal of assets resulted in a gain $1,315,469 for the year ended December 31, 2005.  In February 2006, Techone changed its name to Lexon Semiconductor Corporation and all of its operation has been suspended due to lack of operating working capital.  

12

(b) Going Concern

The Company’s consolidated financial statements are presented on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business.  The Company has experienced recurring losses which have resulted in an accumulated deficit of $5,121,007 and a working capital deficit of approximately $2,172,000 as of June 30, 2007.   The development of the LTCC related products by Lexon Semi, which had been pursued as the Company’s core business, was unsuccessful, and most of assets of Lexon Semi were foreclosed and sold by creditors in August 2005. Since then, the operations of Lexon Semi have been suspended.  This situation raises substantial doubt about the Company's ability to continue as a going concern.   The Company’s ability to continue as a going concern is contingent upon its ability to secure additional financing, initiate sales of its products and attain profitable operations.

The Company’s management is currently pursuing various sources of equity or debt financing, although there can be no assurance that the Company will be able to secure financing when needed or obtain on such terms that are satisfactory to the Company.

The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty.  It is the intent of management to continue to raise additional funds to sustain operations and to pursue acquisitions of operating companies in order to generate future profits for the Company.

Note 2 - Significant Accounting Policies

The following summary of significant accounting polices of the Company is presented to assist in understanding the Company’s financial statements. These accounting policies conform to the accounting principles generally accepted in the United States of America, and have been consistently applied in the preparation of the financial statements.

(a) Basis of Financial Statement Presentation

These financial statements have been prepared with the assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business.

(b) Basis of Consolidation

The consolidated financial statements include the accounts of Lexon Technologies, Inc., and its majority-owned subsidiary, Lexon Semiconductor Co., Ltd.  All material intercompany accounts and transactions have been eliminated in the consolidation.

Minority interests are recorded to the extent of equity owned. Losses in excess of minority interest equity capital are charged against the majority interest and will be reversed when the losses reverse.

13

(c) Unit of Estimates

Preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and related notes to financial statements.  These estimates are based on management's best knowledge of current events and actions the Company may undertake in the future. Actual results may ultimately differ from estimates, although management does not believe such changes will materially affect the financial statements in any individual year.

(d) Revenue Recognition

Revenue is recognized, in accordance with Staff Accounting Bulletin No. 101 "Revenue Recognition in Financial Statements" ("SAB No. 101"), when delivery has occurred provided there is persuasive evidence of an agreement, the fee is fixed or determinable and collection of the related receivable is probable.  As such, the Company recognizes revenue for its products generally when the product is shipped and title passes to the buyer.  There are no multi-deliverables or product warranties requiring accounting recognition.

(e) Currency Translation

For the Company's foreign subsidiaries, the functional currency has been determined to be the local currency, Korean Won.  In accordance with the Statement of Financial Accounting Standard No. 52, “Foreign Currency Translation”, the assets and liabilities are translated at year-end exchange rates, and operating statement items are translated at average exchange rates prevailing during the year.  The resultant cumulative translation adjustments to the assets and liabilities are recorded as other comprehensive income (loss) as a separate component of stockholders’ equity.  Exchange adjustments resulting from foreign currency transactions are included in the determination of net income (loss).  Such amounts are immaterial for all years presented.

In accordance with Statement of Financial Accounting Standards No. 95, "Statement of Cash Flows," cash flows from the Company's foreign subsidiaries are calculated based upon the local currencies.  As a result, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets.

Since the subsidiary's financial statements must be translated into U.S. Dollars, major changes in the currency exchange rate between the foreign denominations and U.S. Dollars may have a significant impact on the operations of the Company.  Although the Company does not anticipate the currency exchange rate to be significantly different over the next twelve months, no such assurances can be given.

(f) Cash and Cash Equivalents

Highly liquid investments with maturities of three months or less when purchased are considered cash equivalents and recorded at cost, which approximates fair value.

14

(g) Properties and Equipment

Properties and equipment are stated at cost.  Major renewals and betterments are capitalized and expenditures for repairs and maintenance are charges to expense as incurred.  Depreciation is computed using the straight-line method over the following periods:

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

In accordance with Statement of Financial Accounting Standards No. 144, the Company records impairment of long-lived assets to be held and used or to be disposed of when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount.  

(h) Investments

Investments in available-for-sale securities are being recorded in accordance with Statement of Financial Accounting Standards No. 115, "Accounting for Certain Investments in Debt and Equity Securities".  Equity securities that are not held principally for the purpose of selling in the near term are reported at fair market value with unrealized holding gains and losses excluded from earnings and reported as a separate component of stockholders' equity.  Investments in equities where the Company has the ability to exercise influence over the operations are accounted for using the equity method.

(i) Intangible Assets

Intangible assets such as cost of obtaining industrial rights and patents are stated at cost, net of   depreciation computed using the straight-line method over five to ten years.

(j) Basic Earning (Loss) Per Share

The computations of basic loss per share of common stock are based on the weighted average number of common shares outstanding during the each period of the consolidated financial statements.  Common stock equivalents, consisting of stock options and warrants, have not been included in the calculation as their effect is anti-dilutive for the periods presented.

The following is a reconciliation of the numerators and denominators of the earning (loss) per share computations at June 30, 2007 and 2006:

	June 30,
	2007		2006
Numerator – income (loss) for the six months	$	803,563	$	(598,154	)
Denominator – weighted average number of shares outstanding		34,183,778		34,183,778
Earning (Loss) per share	$	0.02	$	(0.02	)

15

(k) Financial Instruments

Fair values of cash equivalents, short-term and long-term investments and short-term debt approximate their costs.  The estimated fair values of other financial instruments, including debt, equity and risk management instruments, have been determined using market information and valuation methodologies, primarily discounted cash flow analysis.  These estimates require considerable judgment in interpreting market data, and changes in assumptions or estimation methods could significantly affect the fair value estimates.

(l) Recent Accounting Pronouncements

On December 16, 2004, the FASB issued SFAS No. 123(R), Share-Based Payment, which is an amendment to SFAS No. 123, Accounting for Stock-Based Compensation. This new standard eliminates the ability to account for share-based compensation transactions using Accounting Principles Board (“APB”) Opinion No. 25, Accounting for Stock Issued to Employees, and generally requires such transactions to be accounted for using a fair-value-based method and the resulting cost recognized in our financial statements. This new standard is effective for awards that are granted, modified or settled in cash in interim and annual periods beginning after December 15, 2005. In addition, this new standard applies to unvested options granted prior to the effective date. The Company adopted this new standard during the fourth fiscal quarter of 2005, but had no share-based employee compensation during the year ended December 31, 2005.

In May 2005, the FASB issued SFAS No. 154, "Accounting Changes and Error Corrections" ("SFAS 154"), which replaces Accounting Principles Board ("APB") Opinion No. 20, "Accounting Changes", and SFAS No. 3, "Reporting Accounting Changes in Interim Financial Statements   An Amendment of APB Opinion No. 28". SFAS No. 154 provides guidance on the accounting for and reporting of changes in accounting principles and error corrections. SFAS No. 154 requires retrospective application to prior period financial statements of voluntary changes in accounting principle and changes required by new accounting standards when the standard does not include specific transition provisions, unless it is impracticable to do so. SFAS No. 154 also requires certain disclosures for restatements due to correction of an error. SFAS No. 154 is effective for accounting changes and corrections of errors made in fiscal years beginning after December 15, 2005. The Company adopted this pronouncement as of January 1, 2006.  The implementation of the provisions of this pronouncement had no significant effect on the Company’s consolidated financial statement presentation.

Note 3 - Property and Equipment

Property and equipment consists of the following at June 30, 2007:

Computer and equipment	$	10,450
Furniture and fixture		4,287
		14,737
Less: accumulated depreciation		(13,318	)
Net property and equipment	$	1,419

Depreciation expenses for the six months ended June 30, 2007 and 2006 were $501 and $25,632, respectively.

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Note 4 - Investments

In 2003, Techone invested $125,967 in a 10% voting stock of Mirae Sojae Company, a Korean entity.  The investment is recorded under the equity method.  The fair value of this investment as of June 30, 2007 was $105,679.

Note 5 - Related Party Transactions

As of June 30, 2007, the Company has loans payable totaling $400,502 to officers, directors and shareholders of the Company and other related individuals. These amounts are non-interest bearing and payable on demand.

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 June 30, 2007.

The Company has contingent liabilities of $274,610 to various creditors of a predecessor company. Management determined that it is reasonably certain that the amounts will be paid in future.

Note 7 - Notes Payable

Notes payable consisted of the following at June 30, 2007:

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

Deferred income tax assets amounted to approximately $2,045,000 as of the June 30, 2007, resulting primarily from net operating loss carryforwards.  The Company established valuation allowance for these deferred taxes and did not recognize them as assets, as it is more likely than not that these assets will not be realized in the near future.

Note 9 - Stock Option Plan

The Company accounts for its stock options in accordance with SFAS 123(R) "Accounting for Stock - Based Compensation" and SFAS 148 "Accounting for Stock - Based compensation - Transition and Disclosure." Value of options granted has been estimated by the Black Scholes option pricing model. The assumptions are evaluated annually and revised as necessary to reflect market conditions and additional experience.

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On September 14, 2000, the Company adopted a Non-Qualified Stock Option Plan (the "2000 Plan") under which options to acquire common stock of the Company may be granted to employees and consultants of the Company or its subsidiaries.  Under this Plan, a total of 250,000 (post-split) shares of options, subject to certain restrictions, are authorized to be granted.  The exercise price of each option is determined by the Board of Directors on the date of grant.  The Board also determines the term, restrictions on vesting and exercise dates with expected life of the option term not exceeding 5 years.

While 147,000 options remain available for grant under the 2000 plan, there were no stock options granted during the period ended June 30, 2007.

Note 10 - Other Comprehensive Income (Loss)

The Company reports other comprehensive income in accordance with Statement of Financial Accounting Standards No. 130, “Reporting Comprehensive Income” (“SFAS No. 130").  SFAS No. 130 establishes standards for reporting in the financial statements all changes in equity during a period, except those resulting from investments by and distributions to owners.  The cumulative effect of foreign currency translation adjustments from South Korean Won to U.S. dollars, which is included in other comprehensive income in the stockholders’ equity section, consisted of the following:

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

Note 11 - Convertible Notes Payable

The Company has the following convertible debenture notes outstanding as of June 30, 2007:

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

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

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

Cautionary Statement Regarding Forward-looking Statements

This report may contain “forward-looking” statements. Examples of forward-looking statements include, but are not limited to: (a) projections of revenues, capital expenditures, growth, prospects, dividends, capital structure and other financial matters; (b) statements of plans and objectives of our management or Board of Directors; (c) statements of future economic performance; (d) statements of assumptions underlying other statements and statements about us and our business relating to the future; and (e) any statements using the words “anticipate,” “expect,” “may,” “project,” “intend” or similar expressions.

Overview

Effective December 8, 2004, we acquired a majority control (90.16%) of Techone Company, Ltd., a Republic of South Korea corporation (“Techone” ), through an investment of $1,585,000 financed through the sale of our restricted common stock to two accredited investors. During February 2006, the Company changed the name of Techone to Lexon Semiconductor Corporation (“Lexon Semi”). Lexon Semi is a corporation that manufactures and sells Low Temperature Cofired Ceramic (LTCC) components. The Company has operated Lexon Semi as a majority-owned subsidiary and the business of Lexon Semi has been the operating business of the Company.

To date, our source of liquidity has been proceeds from the sale of our common stock, and the issuance of convertible notes and promissory notes to finance operations and business activities. In each year we incurred significant losses which evidently resulted in the suspension of the business operations of Lexon Semi as of July 2006.

Due to our sole reliance on debt and equity financing to fund our operations to date, we have incurred a loss and decided to shift our primary focus to seeking joint venture partners, business acquisitions and business alliances in an effort to commence business operations outside the LTCC-related market, although we have not reached any definitive agreements to date.

Results of Operation for Six Months Ended June 30, 2007 Compared to June 30, 2006

Revenues.  Due to the suspension of the business operations of Lexon Semiconductor Corporation (“Lexon Semi”) since July 2006, we had no revenues for the six months ended June 30, 2007 and no revenues for the prior year period.

Operating Expenses. Operating expenses for the six months ended June 30, 2007 were $80,346, consisting of $79,845 in selling, general and administrative expenses, and $501 in depreciation and amortization.  Operating expenses for the prior year period were $575,636, consisting of $527,481 in selling, general and administrative expenses, $22,523 in research and development, and $25,632 in depreciation and amortization.  The decrease in operating expenses for the current period is due to the suspension of the business operations of Lexon Semi since July 2006 and our efforts to reduce expenses because resources have not been available.  

Operating expenses since inception (July 18, 2001) total $4,555,248.  Our net earnings per share for the six months ended June 30, 2007 was $0.02, based on a weighted average of 34,183,778 shares outstanding.

Other Income. Other income for the six months ended June 30, 2007 consisted of $883,909, consisting of $888,000 as gain on forgiveness of debt by former Chairman, J. Jehy Lah, in the amount of $591,250, and Secretary, Ben Hwang, in the amount of $296,750, and $4,091 in interest expense. Other expense for the prior year period totaled $5,712 in interest expense, a loss of $17,520 on the sale of assets, and $714 in interest income.

Liquidity and Capital Resources

At June 30, 2007, we had current assets of $21,537 and current liabilities of $2,005,849 for negative working capital of $1,984,312.  Current assets consisted primarily of cash and cash equivalents of $21,537.

At June 30, 2007, we had property and equipment, net totaling $1,419, consisting of computer and equipment, furniture and fixtures in the amount of $14,737 less the accumulated depreciation of $13,318.  We had other assets of $111,834 in investments, deposits and other assets, for total assets of $134,790.

Current liabilities at June 30, 2007, consisted of accounts payable of $542,996, accounts payable - related parties of $400,502, accrued expenses of $800,409, convertible notes payable of $86,960 and notes payable of $174,982. We also had contingent liabilities of $274,610, including accrued payables to creditors.

For the six months ended June 30, 2007, net cash flows used in operating activities totaled $78,862 compared to net cash flows used in operating activities of $382,880 in the prior year period.  Our operating activities since inception have been funded primarily by the sale of our common stock and the issuance of convertible notes and promissory notes.

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For the six months ended June 30, 2007, net cash used in investing activities totaled $1,460 compared to net cash provided in operating activities of $410,764 in the prior year period.

Net cash received in financing activities for the six months ended June 30, 2007 consisted of $108,367 cash paid on notes payable. In the prior year period, cash used by financing activities totaled $156.

To date, our primary source of liquidity has been proceeds from the sale of our common stock and notes payable to finance operations and business activities. In each year we incurred significant losses which have resulted in an accumulated deficit of $5,121,007 at June 30, 2007, a working capital deficit and limited internal financial resources.  Accordingly, our financial statements include a going concern qualification raising substantial doubt about Lexon’s ability to continue as a going concern.  Our management hopes to be able to find additional sources of funding and/or a possible business opportunity in order to commence revenue producing business operations during fiscal year 2007. No definitive terms or agreements for funding or a business combination have been reached at the date of this Report.

ITEM 3. CONTROLS AND PROCEDURES

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

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PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

To the best knowledge of management, there are no legal proceedings pending or threatened against the Company.

ITEM 2. CHANGES IN SECURITIES

None.

ITEM 3. DEFAULT BY THE COMPANY ON ITS SENIOR SECURITIES

None.

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

No matters were submitted to the shareholders during the quarter ended June 30, 2007.

ITEM 5. OTHER INFORMATION

Executive Compensation

The Company has accrued an aggregate of unpaid compensation owed to its former officers in the amount of $1,688,409. The Company reached an agreement with J. Jehy Lah and Ben Hwang in which the former officers agreed to collectively waive an aggregate of $888,000 in unpaid compensation to reduce the total corporate liabilities of the Company. As a result of such waiver, the Company’s adjusted accrued unpaid compensation that is owed to its former officers is $800,409 as of June 30, 2007.

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ITEM 6. EXHIBITS

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

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

Exhibit 32 - CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002.

SIGNATURES

In accordance with the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, duly authorized.

Date: June 17, 2007

LEXON TECHNOLOGIES, INC.

/S/Hyung Soon Lee, President, Chief Executive Officer, Chief Financial Officer

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO THE SECURITIES EXCHANGE ACT OF 1934,

RULES 13a-14 AND 15d-14

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Hyung Soon Lee, certify that:

1. I have reviewed this Quarterly Report of Lexon Technologies, Inc. for the period ended June 30, 2007;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;

4. The small business issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the small business issuer and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) evaluated the effectiveness of the small business issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c) disclosed in this report any change in the small business issuer’s internal control over financial reporting that occurred during the small business issuer’s most recent fiscal quarter (the small business issuer’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer’s internal control over financial reporting; and

5. The small business issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer’s auditors and the audit committee of the small business issuer’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer’s internal control over financial reporting.

Date: June 17, 2007

/S/Hyung Soon Lee

Chief Executive Officer and President

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIALOFFICER

PURSUANT TO THE SECURITIES EXCHANGE ACT OF 1934,

RULES 13a-14 AND 15d-14

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Hyung Soon Lee, certify that:

1. I have reviewed this Quarterly Report of Lexon Technologies, Inc. for the period ended June 30, 2007;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;

4. The small business issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the small business issuer and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) evaluated the effectiveness of the small business issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c) disclosed in this report any change in the small business issuer’s internal control over financial reporting that occurred during the small business issuer’s most recent fiscal quarter (the small business issuer’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer’s internal control over financial reporting; and

5. The small business issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer’s auditors and the audit committee of the small business issuer’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer’s internal control over financial reporting.

Date: June 17, 2007

/S/Hyung Soon Lee

Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Lexon Technologies, Inc. (“Company”) on Form 10-QSB for the period ended June 30, 2007, as filed with the Securities and Exchange Commission on the date hereof (“Report” ), I, Hyung Soon Lee, Principal Executive Officer and Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: June 17, 2007

/S/Hyung Soon Lee

Principal Executive Officer

Principal Financial Officer