UNITED STATES SECURITIES & EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES

AND EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2010

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE

ACT OF 1934

Commission File Number 0-29711

Subjex Corporation

(Exact name of issuer in its charter)

Minnesota (State or other jurisdiction of incorporation or organization)	41-1596056 (IRS Employer Identification No.)
3240 Aldrich Ave S Suite 301, Minneapolis MN (Address of Principal Executive Offices)	55408 (Zip Code)

612-382-5566

(Issuer’s telephone number)

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Exchange Act: None

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

Common Stock, no par value

Check whether the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act. [ ]

Check whether the registrant: (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter periods that the issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES [X] NO [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.

Large accelerated filer [ ] Accelerated filer [ ]

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

Traditional Small Business Disclosure Format: Yes [ ] No [X]

As of November 19, 2010 there were 140,806,887 outstanding shares of common stock, no par value.

The aggregate market value of the common stock of the issuer held by non-affiliates of the issuer on November 19, 2010 based on the closing price of the common stock as reported on the OTC Bulletin Board on such date was $15,489.

SUBJEX CORPORATION INDEX

PART I FINANCIAL INFORMATION			Page Number

	ITEM 1.	FINANCIAL STATEMENTS

		Balance Sheets as of September 30, 2010 (unaudited and unreviewed) and December 31, 2009 (audited)	4

		Statements of Operations for the three months and nine months ended September 30, 2010 and 2009 (unaudited and unreviewed)	5

		Statements of Cash Flows for the nine months ended September 30, 2010 and 2009 (unaudited and unreviewed)	6

		Notes to the Financial Statements	7

	ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

		CONDITION AND RESULTS OF OPERATIONS	8

	ITEM 3	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT

		MARKET RISK	9

	ITEM 4.	CONTROLS AND PROCEDURES	10

	ITEM 4T.	CONTROLS AND PROCEDURES	10

PART II OTHER INFORMATION			10

	ITEM 1.	LEGAL PROCEEDINGS

	ITEM 2	CHANGE IN SECURITIES AND USE OF PROCEEDS

	ITEM 3	DEFAULTS UPON SENIOR SECURITIES

	ITEM 4	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

	ITEM 5	OTHER INFORMATION

	ITEM 6	EXHIBITS AND REPORTS ON FORM 8-K

		Certification Pursuant to Section 06 of the Sarbanes-Oxley Acto of 2002

		Certifications signatures	13

References to the “Company,” the “Registrant,” “we”, “us” or “our” in this Quarterly Report on Form 10-Q refer to Subjex Corporation., unless the context indicates otherwise.


SUBJEX CORPORATION
BALANCE SHEETS
		(Unaudited)			(Audited)
		(Unreviewed)
		September 30,			December 31,
	2010				2009

ASSETS
Current Assets:
Cash		$	-		$	147

Total current assets			-			147

Total assets		$	-		$	147


LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities:
Short-term notes payable		$	17,677		$	17,677
Subordinated convertible notes payable			23,000			23,000
Accounts payable			205,908			224,017
Accrued expenses:
Accrued expenses-Related party			46,976			629,903
Payroll and payroll taxes			18,266			18,266
Accrued interest			29,290			27,589
Accrued expenses			4,207			4,207

Total current liabilities			345,324			944,659

Total liabilities			345,324			944,659

Stockholders' Deficit:
Common stock, no par or stated value;
200,000,000 shares authorized: 140,806,887 and
99,903,131 shares issued and outstanding at
September 30, 2010 and December 31, 2009, respectively			6,905,923			6,215,609
Subscriptions received			14,000			-
Accumulated deficit			(7,265,246	)		(7,160,121	)

Total stockholders' Deficit			(345,324	)		(944,512	)


Total liabilities and stockholders’ deficit		$	0		$	147


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

SUBJEX CORPORATION
STATEMENTS OF OPERATIONS
(Unaudited and Unreviewed)

		Three Months Ended September 30,							Nine Months Ended September 30,
			2010			2009			2010			2009


Revenues:
	Gross revenue		$	-		$	3,000		$	49		$	11,025

Expenses:
	Selling, general and administrative			12,453			15,369			103,474			128,473

	Total operating expense			12,453			15,369			103,474			25,629

	Operating loss			(12,453	)		(12,369	)		(103,425	)		(117,448	)

Other income (expense):

	Interest expense			(567	)		(567	)		(1,701	)		(2,389	)

Net loss			$	(13,020	)	$	(12,936	)	$	(105,126	)	$	(119,837	)

Net loss per basic and diluted common share			$	(0.0001	)	$	(0.001	)	$	(0.0007	)	$	(0.001	)


Weighted average common shares
	outstanding - basic and diluted			140,806,887			99,574,566			140,806,887			99,574,566


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

SUBJEX CORPORATION
STATEMENTS OF CASH FLOWS
(Unaudited and Unreviewed)
	Nine Months Ended September 30,
	2010			2009


Cash flows from operating activities:
Net loss	$	(105,126	)	$	(119,837	)
Adjustments to reconcile net loss to
net cash flows from operating activities:
Non cash common stock issued for consulting services		65,000			(44,000	)
Non cash common stock issued to settle other liability		581,814			-
Changes in operating assets and liabilities:
Accounts receivable		-			3,010
Accounts payable		(18,109	)		22,200
Accrued expenses		-			(1,241	)
Accrued expenses-Related party		(582,927	)		415,858
Payroll and payroll taxes payable		-			(20,443	)
Accrued interest		1,701			1,701

Net cash flows used in operating activities		(57,647	)		257,248


Cash flows from financing activities:
Proceeds from issuance of common stock		43,500			(258,788	)
Subscriptions received		14,000			-
Shares retired-Related party		-			-

Net cash flows provided by financing activities		57,500			(258,788	)


Net increase (decrease) in cash and equivalents		(147	)		(1,540	)
Cash and cash equivalents at beginning of period		147			1,546

Cash and cash equivalents at end of period	$	-		$	7

Supplemental cash flow information:
Cash paid for interest	$	-		$	-
Cash paid for income taxes	$	-		$	-

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

Notes to the Financial Statements (unaudited and unreviewed)

Note 1. Basis of Presentation

The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Form 10-K filed with the SEC as of and for the period ended December 31, 2009. In the opinion of management, all adjustments necessary in order for the financial statements to be not misleading have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.

Note 2. Acquisition of Assets

None.

Note 3. Going Concern

The Company had a working capital deficit and recurring net losses from operations in the third quarter ending September 30, 2010 and had insufficient cash on hand to support its ongoing operations. These factors create doubt about the Company's ability to continue as a going concern.

Note 4. Payroll and Payroll Taxes

The Company owes the IRS related to employee payroll withholdings and payroll taxes aggregating approximately $7,000 at September 30, 2010. This liability is included in accrued expenses – payroll and payroll taxes. Until all amounts owed are paid to the IRS, the IRS will maintain a federal tax lien on the Company’s property.

Note 5. Stockholders’ Deficit

During the third quarter of 2010, the Company issued 1 million shares of common stock for operational funds. Also the Company did receive Subscription Agreements. The Company is diligently working hard to grow its revenues without future dilution.

ITEM 2. Management’s Discussion and Analysis

CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Statements in this discussion which are not historical facts may be considered "forward looking statements" within the meaning of Section 21E of the Securities Act of 1934, as amended. The words "believe", "expect", "anticipate", "estimate", and similar expressions identify forward looking statements. Any forward looking statement involves risks and uncertainties that could cause actual events or results to differ, perhaps materially, from the events described in the forward looking statements. Readers are cautioned not to place undue reliance on these forward looking statements. The Company undertakes no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise. The risks associated with the Company's forward looking statements include, but are not limited to, risks associated with the Company's losses and uncertain profitability, sales and marketing strategies, competition, general economic conditions, reliance on key management and production people, current and future capital needs, dilution, effects of outstanding notes and convertible debentures, limited public market for the Company’s capital stock, low stock price, and lack of liquidity.

The following discussion and analysis should be read in conjunction with the Financial Statements, related notes and other information included in this quarterly report on Form 10-Q and the annual report Form 10K for 12-31-2009.

Description of Business

Subjex Corporation is a Minnesota corporation formed in 1999, for the creation, custom development and incubation of artificial intelligence technologies. We translate our advanced technology development methods into extreme value solutions for specialized industries. Our goal is to develop products that our clientele bring to the market directly or as a private labeled product.

Since 1999, Subjex Corporation has developed and added to its software cache an impressive array of technology. Our development projects have included SEO (Search Engine Optimization) “cloaking” software, e-commerce advertising, search engine technology and other products for the capital markets, and the development of auction technology. See http://subjex.com/assets.html

Forecast Market Software (FMS), a trade timing and index forecasting engine that forecasts large indices such as the NASDAQ-100. During its operation as measured from 2006 through 2009, FMS provided average percentage gains of approximatly 20% average annual returns. This technology has been taken offline to rework its business model.

Subjex Corporation developed one the first semi-autonomous virtual agent Customer Service Representative (CSR) products in the market in 2001. “SubjexCSR” as it was called originally was tested on over 500 e-commerce business web sites for over 4 years. Our latest artificial intelligence CSR/CRM project called AiNDEE (http://www.AiNDEE.com) was introduced in 2008. Unlike conventional CSR/CRM software solutions on the market that are mainly auto responder “dialogue based” (stimulus response) products, AiNDEE is one of the most highly advanced artificial intelligent CRM/sales solutions available. It incorporates many new ground breaking advancements in virtual communication and human interaction. Able to engage in real “interview” conversation, where it asks users questions about what they just asked (multi-tiered bi-directional dialogue).

Principal Product Development and Resulting Services

Subjex Corporation is advancing its go-to-market strategy for its technology with bold new ideas and methods that management expects to grow from a grass roots initiative. Several of these initiatives are expected to launch this year. See “Recent Developments” for more details.

Trademarks and Patents

The Company has held trademarks and patent pending protection for most of its business that management feels is necessary to protect the Company’s interests. However the Company provides most of its technology as a proprietary service offering, (black box) which maintains the interworking of the technology secret to clients and resellers.

Environmental Compliance

The Company feels it is in complete compliance with all Federal and State Environmental Compliance laws.

Employees

The Company had employees, and a team of outside consultants and contractors to fit the Company’s operational needs. The Company’s employees and consultants are not represented by any labor unions. The Company considers its relations with its consultants and contractors to be outstanding.

Competition

The Company is aware of other companies selling solutions that appear to be similar to Subjex; however management is not aware of any companies that are selling identical solutions as we offer. In addition, management continues to market it products to businesses through the use of third party resellers. The Company believes that its solutions are more effective than its competition. Management believes that while some companies may have greater resources than us, we have more advanced products which continue to grow in power and client usage.

Recent Developments

Subjex Corporation has recently initated a sales and development project to bring its interactive dialogue artificial intelligent CSR/CRM solution “AiNDEE” to various business models, thus creating revenue share opportunities. Subjex expects to have licencing revenue in 2010 as a result of this project. To Further expand its revenue opportunities Subjex expects to licence some of its software libraries and intellectual property to outside projects and further expand its possible revenue sources.

The Company’s basis of accounting contemplates the realization of assets and the satisfaction of its liabilities and commitments in the normal course of operations. Since inception, the Company has incurred losses of $7,265,246 and has a working capital deficit of $345,324 as of September 30, 2010. The Company had a working capital deficit and recurring net losses from operations in 2009 as well. Despite the net losses of past years operations, the funds spent have resulted in a significant ownership and control of technology and infrastructure which the company expects to generate considerable earnings in the future.

The Company’s operating expenses for the three months and nine months ended September 30, 2010 was $12,453 and $103,474 as compared to $15,369 and $128,473 for the three and nine months ended September 30, 2009. Operating expenses decreased overall due to the company’s revenue outlook. The Company had $0 and $49 in revenues for the three and nine months ended September 30, 2010 as compared to $3,000 and $11,025 for the three and nine months ended September 30, 2009. Revenue levels in the third quarter of 2010 were not sufficient to sustain the Company's operations; therefore funds were raised from the sale of common stock and Subscription Agreements for the sale of common stock to the Company's investor base to meet its financial needs.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The Company is subject to certain market risks, including changes in interest rates and currency exchange rates. The Company does not undertake any specific actions to limit those exposures.

Before deciding to buy, hold or sell our common stock, you should carefully consider the risks described below, in addition to the other information contained in this report and in our other filings with the Securities and Exchange Commission, including our reports on Forms 10-Q and 8-K. The risks and uncertainties described below are what we consider our most significant risks. Additional risks and uncertainties not presently known or that are currently deemed immaterial may also affect our business.

If any of these known or unknown risks or uncertainties actually occurs, they could have a material adverse effect on our business, financial condition, results of operations and cash flow. In that event, the market price for our common stock could decline and you may lose all or part of your investment.

Revenue growth from the AiNDEE technology will primarily be as a result of finding new customers. Revenue from this technology did not grow during 2009 due to a focus on other projects. In 2008 and 2009 a significant upgrade to the model has been preformed. With many new features, it is being demonstrated to a select few prospects. While the AiNDEE technology is being well received in 2010 the Company cannot guarantee that sales of any significance will be made in 2010.

Further the Company stock is thinly traded. Accordingly, you may not be able to resell your shares of common stock at or above the price you paid for them. The Company’s common stock has historically maintained a low trading volume of shares per day. However management feels that this trend is not likely to continue if future revenue expectations from its initiatives occur.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Based on their most recent review, as of the end of the period covered by this report, the Company’s principal executive officer has concluded that the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to the Company’s management as appropriate to allow timely decisions regarding required disclosure and are effective to ensure that such information is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. There were no significant changes in the Company’s internal controls or in other factors that could significantly affect those controls subsequent to the date of their evaluation.

ITEM 4T. Controls and Procedures

Pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934 ("Exchange Act"), the Company carried out an evaluation, with the participation of the Company's management, including the Company's Chief Executive Officer ("CEO") and Board of Directors of the effectiveness of the Company's disclosure controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Company's CEO and Board of Directors concluded that the Company's disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to the Company's management, including the Company's CEO and Board of Directors as appropriate, to allow timely decisions regarding required disclosure.

Management's Report on Internal Controls over Financial Reporting

Internal control over financial reporting is a process to provide reasonable assurance regarding the reliability of consolidated financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles. There has been no change in the Company's internal control over financial reporting during the quarter ended September 30, 2010 that has materially affected, or is reasonably likely to materially affect,

the Company's internal control over financial reporting.

Our management does not expect that our disclosure controls and internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent

limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by

management or board override of the control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent

limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

This quarterly report does not include an attestation report of the Company's registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Company's registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Company to provide only management's report in this quarterly report.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

On September 28, 2009 an “Order Granting Summary Judgment” was issued. Halleland, Lewis, Nilan & Johnson, PA plaintiffs, were granted a judgment in the amount of $72,346 against Subjex Corporation and Andrew Dean Hyder for providing legal sevices in another, now settled case. The Company is in the process of making long-term payoff arrangements with the Plaintiffs on terms with possible future revenues. No specific outcome can be assured.

There were no other legal proceedings pending or, to the Company's knowledge, that would be material to the financial position of the Company.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults on Senior Securities

None.

Item 4. Submission of Matters to a Vote of Security Holders

None

Item 5. Other Information

None.

Item 6. Exhibits and reports on form 8-K

No reports were filed in the period ending September 30, 2010.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities and Exchange Act of 1934, the Issuer has duly caused this report to be signed on its behalf by the undersigned officers and/or Directors, there unto duly authorized.

Subjex Corporation

Date: November 19, 2010

NAME TITLE

/s/ Andrew D. Hyder President and Chief Executive Officer

SUBJEX CORP 10-Q