| Colorado                            | 84-1124170                                               |
|-------------------------------------|----------------------------------------------------------|
|  (State of      incorporation) |   (I.R.S.      Employer Identification Number) |

|   | Large accelerated      filer  o |  Accelerated      filer  o               |
|--------|--------------------------------------|----------------------------------------------------|
|   | Non-accelerated      filer  o   |  Smaller      reporting company   x |

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| Item 1.  | Financial      Statements |   | Page      No. |
|---------------|---------------------------|--------|---------------|

|   |   | Condensed      Balance Sheets March      31, 2010 (unaudited) and June 30, 2009 |  2 |
|--------|--------|---------------------------------------------------------------------------------|---------|

|   |   | Condensed      Statements of Operations Three      Months Ended March 31, 2010 and 2009 andNine      Months Ended March 31, 2010 and 2009 andfrom      July 1, 2002 (date of inception) through March 31, 2010      (unaudited) |   3 |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|

|   |   | Condensed      Statements of Cash Flows Nine Months      Ended March 31, 2010 and 2009 andfrom      July 1, 2002 (date of inception) through March 31, 2010      (unaudited) |   4 |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|

|   |   | Notes      to Condensed Financial Statements (unaudited) | 5 |
|--------|--------|----------------------------------------------------------|---|

| Item 2.  | Management’s      Discussion and Analysis or Plan of Operation    |   | 9 |
|---------------|----------------------------------------------------------------------------------------|--------|---|

| Item 3.  | Quantitative and      Qualitative Disclosures About Market Risk    |   | 10 |
|---------------|-----------------------------------------------------------------------------------|--------|----|

| Item 4T.  | Controls and      Procedures  |   | 10 |
|----------------|------------------------------------|--------|----|

| Item 1.  | Legal      Proceedings |   | 11 |
|---------------|------------------------|--------|----|

| Item 2 . | Unregistered Sales of      Equity Securities and Use of Proceeds |   | 11 |
|---------------|------------------------------------------------------------------|--------|----|

| Item 3. | Defaults Upon Senior      Securities |   | 11 |
|---------|--------------------------------------|--------|----|

| Item 4. | Submission of Matters      to a Vote of Security Holders |   | 11 |
|---------|----------------------------------------------------------|--------|----|

| Item 5. | Other      Information  |   | 11 |
|---------|------------------------------|--------|----|

| Item 6 | Exhibits |   | 11 |
|--------|----------|--------|----|

----

|                                                                                                           |   | March 31, 2010 |     |   | June 30, 2009 |   |
|----------------------------------------------------------------------------------------------------------------|--------|----------------|----------|--------|---------------|--------|
|                                                                                                           |   | (Unaudited)    |     |   | (audited)     |   |
| ASSETS                                                                                                         |   |           |     |   |          |   |
| Current      assets:                                                                                           |   |           |     |   |          |   |
| Cash                                                                                                           |   | $              | 9,847    |   |          | $      | 3,868 |   |
| Prepaid      Expenses                                                                                          |   |           | 395      |   |          |   | 395 |   |
|                                                                                                           |   |           |     |   |          |   |   |   |
|    Total      current assets                                                                    |   |           | 10,242   |   |          |   | 4,263 |   |
|                                                                                                           |   |           |     |   |          |   |   |   |
| Total      assets                                                                                              |   | $              | 10,242   |   |          | $      | 4,263 |   |
|                                                                                                           |   |           |     |   |          |   |   |   |
| LIABILITIES      AND SHAREHOLDERS’ (DEFICIT)                                                             |   |           |     |   |          |   |   |   |
| Current      liabilities:                                                                                      |   |           |     |   |          |   |   |   |
| Accounts      payable                                                                                          |   | $              | 680      |   |          | $      | 87 |   |
| Accounts      payable - related party                                                                          |   |           | 7,500    |   |          |   | 6,000 |   |
| Accrued      expense - related party                                                                           |   |           | 13,419   |   |          |   | 8,753 |   |
| Note      payables - related party                                                                             |   |           | 105,000  |   |          |   | 78,000 |   |
|                                                                                                           |   |           |     |   |          |   |   |   |
|   Total      current liabilities                                                                     |   |           | 126,599  |   |          |   | 92,840 |   |
|                                                                                                           |   |           |     |   |          |   |   |   |
| SHAREHOLDERS’      (DEFICIT) (Note 2)                                                                    |   |           |     |   |          |   |   |   |
| Preferred      stock, authorized 50,000,000 shares, no par value,                                              |   |           |     |   |          |   |   |   |
|     none      issued or outstanding                                                        |   |           | -        |   |          |   | - |   |
| Common      stock, authorized 500,000,000 shares, no par value,                                                |   |           |     |   |          |   |   |   |
|     1,708,123      issued and outstanding                                                  |   |           | 65,613   |   |          |   | 65,613 |   |
| Additional      paid in capital                                                                                |   |           | 152,877  |   |          |   | 152,877 |   |
| Deferred      loan fee, net of amortization                                                                    |   |           | (1,814   | )      |          |   | (2,564 | ) |
| Accumulated      (deficit)                                                                                     |   |           | (5,173   | )      |          |   | (5,173 | ) |
| Accumulated      (deficit) during development stage                                                            |   |           | (327,860 | )      |          |   | (299,330 | ) |
|                                                                                                           |   |           |     |   |          |   |   |   |
|          Total      shareholders’ (deficit)                 |   |           | (116,357 | )      |          |   | (88,577 | ) |
|                                                                                                           |   |           |     |   |          |   |   |   |
|          Total      liabilities and shareholders’ (deficit) |   | $              | 10,242   |   |          | $      | 4,263 |   |

----

|                                                   |   | Three Months      endedMarch      31, 2010 |      |   | Three Months      ended March      31, 2009 |   |      | Nine Months      ended March      31, 2010 |   |   | Nine Months      endedMarch      31, 2009 |   |   | Period      July 1, 2002 (Date of Commencement of Development Stage) to March 31, 2010 |      |
|--------------------------------------------------------|--------|-------------------------------------------------|-----------|--------|-------------------------------------------------------|--------|-----------|------------------------------------------------------|--------|--------|------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------|-----------|
|                                                   |   |                                            |      |   |                                                  |   |      |                                                 |   |   |                                           |   |   |                                                                                        |      |
| Revenues                                               |   | $                                               | -         |   |                                                  | $      | -         |                                                 |   | $      | -                                              |   |   | $                                                                                           | -         |   |   | $ | - |   |
|                                                   |   |                                            |      |   |                                                  |   |      |                                                 |   |   |                                           |   |   |                                                                                        |      |   |   |   |   |   |
| Operating      expenses:                               |   |                                            |      |   |                                                  |   |      |                                                 |   |   |                                           |   |   |                                                                                        |      |   |   |   |   |   |
| Accounting      fees                                   |   |                                            | 1,100     |   |                                                  |   | 1,800     |                                                 |   |   | 6,100                                          |   |   |                                                                                        | 7,250     |   |   |   | 49,900 |   |
| Legal      fees                                        |   |                                            | 265       |   |                                                  |   | 245       |                                                 |   |   | 928                                            |   |   |                                                                                        | 612       |   |   |   | 47,823 |   |
| Shareholder      expense                               |   |                                            | 654       |   |                                                  |   | 627       |                                                 |   |   | 2,586                                          |   |   |                                                                                        | 2,189     |   |   |   | 24,113 |   |
| General      and administrative expense, related party |   |                                            | 4,500     |   |                                                  |   | 4,500     |                                                 |   |   | 13,500                                         |   |   |                                                                                        | 13,500    |   |   |   | 58,500 |   |
| Other      general and administrative expense          |   |                                            | -         |   |                                                  |   | 100       |                                                 |   |   | -                                              |   |   |                                                                                        | 729       |   |   |   | 10,312 |   |
| Total      operating expenses                          |   |                                            | 6,519     |   |                                                  |   | 7,272     |                                                 |   |   | 23,114                                         |   |   |                                                                                        | 24,280    |   |   |   | 190,648 |   |
|                                                   |   |                                            |      |   |                                                  |   |      |                                                 |   |   |                                           |   |   |                                                                                        |      |   |   |   |   |   |
| Net      (loss) from operations                        |   |                                            | (6,519    | )      |                                                  |   | (7,272    | )                                                    |   |   | (23,114                                        | )      |   |                                                                                        | (24,280   | ) |   |   | (190,648 | ) |
|                                                   |   |                                            |      |   |                                                  |   |      |                                                 |   |   |                                           |   |   |                                                                                        |      |   |   |   |   |   |
| Other      income (expense)                            |   |                                            |      |   |                                                  |   |      |                                                 |   |   |                                           |   |   |                                                                                        |      |   |   |   |   |   |
| Other      income                                      |   |                                            | -         |   |                                                  |   | -         |                                                 |   |   | -                                              |   |   |                                                                                        | -         |   |   |   | 25,000 |   |
| Amortized      loan fee (expense)                      |   |                                            | (247      | )      |                                                  |   | (247      | )                                                    |   |   | (750                                           | )      |   |                                                                                        | (751      | ) |   |   | (3,186 | ) |
| Interest      (expense)                                |   |                                            | (1,538    | )      |                                                  |   | (1,208    | )                                                    |   |   | (4,666                                         | )      |   |                                                                                        | (3,395    | ) |   |   | (13,419 | ) |
| Total      other income (expense)                      |   |                                            | (1,785    | )      |                                                  |   | (1,455    | )                                                    |   |   | (5,416                                         | )      |   |                                                                                        | (4,146    | ) |   |   | 8,395 |   |
|                                                   |   |                                            |      |   |                                                  |   |      |                                                 |   |   |                                           |   |   |                                                                                        |      |   |   |   |   |   |
| Net      (loss) from continuing operations             |   |                                            | (8,304    | )      |                                                  |   | (8,727    | )                                                    |   |   | (28,530                                        | )      |   |                                                                                        | (28,426   | ) |   |   | (182,253 | ) |
|                                                   |   |                                            |      |   |                                                  |   |      |                                                 |   |   |                                           |   |   |                                                                                        |      |   |   |   |   |   |
| Discontinued      operations:                          |   |                                            |      |   |                                                  |   |      |                                                 |   |   |                                           |   |   |                                                                                        |      |   |   |   |   |   |
| (Loss)      from discontinued operations               |   |                                            |      |   |                                                  |   |      |                                                 |   |   |                                           |   |   |                                                                                        |      |   |   |   |   |   |
| (including      loss on disposal in 2006 of $52,017)   |   |                                            | -         |   |                                                  |   | -         |                                                 |   |   | -                                              |   |   |                                                                                        | -         |   |   |   | (121,232 | ) |
|                                                   |   |                                            |      |   |                                                  |   |      |                                                 |   |   |                                           |   |   |                                                                                        |      |   |   |   |   |   |
| Net      (loss)                                        |   | $                                               | (8,304    | )      |                                                  | $      | (8,727    | )                                                    |   | $      | (28,530                                        | )      |   | $                                                                                           | (28,426   | ) |   | $ | (303,485 | ) |
|                                                   |   |                                            |      |   |                                                  |   |      |                                                 |   |   |                                           |   |   |                                                                                        |      |   |   |   |   |   |
|                                                   |   |                                            |      |   |                                                  |   |      |                                                 |   |   |                                           |   |   |                                                                                        |      |   |   |   |   |   |
| Net      (loss) per common share                       |   | $                                               | (0.00     | )      |                                                  | $      | (0.01     | )                                                    |   | $      | (0.02                                          | )      |   | $                                                                                           | (0.02     | ) |   |   |   |   |
|                                                   |   |                                            |      |   |                                                  |   |      |                                                 |   |   |                                           |   |   |                                                                                        |      |   |   |   |   |   |
|                                                   |   |                                            |      |   |                                                  |   |      |                                                 |   |   |                                           |   |   |                                                                                        |      |   |   |   |   |   |
| Weighted      average number of                        |   |                                            |      |   |                                                  |   |      |                                                 |   |   |                                           |   |   |                                                                                        |      |   |   |   |   |   |
| common      shares outstanding                         |   |                                            | 1,708,123 |   |                                                  |   | 1,708,123 |                                                 |   |   | 1,708,123                                      |   |   |                                                                                        | 1,708,123 |   |   |   |   |   |

----

|                                                          |   | Nine Months      ended March      31, 2010 |    |   | Nine Months      ended March      31, 2009 |   |    | Period      July 1, 2002 (Date of Commencement of Development Stage) to March 31, 2010 |   |
|---------------------------------------------------------------|--------|------------------------------------------------------|---------|--------|------------------------------------------------------|--------|---------|---------------------------------------------------------------------------------------------|--------|
| Cash      flows from operating activities:                    |   |                                                 |    |   |                                                 |   |    |                                                                                        |   |
| Operating      activities from continuing operations          |   |                                                 |    |   |                                                 |   |    |                                                                                        |   |
| Net      (loss)                                               |   | $                                                    | (28,530 | )      |                                                 | $      | (28,426 | )                                                                                           |   | $ | (303,485 | ) |
| Less:      Net (loss) discontinued operations                 |   |                                                 | -       |   |                                                 |   | -       |                                                                                        |   |   | (121,232 | ) |
| Net      (loss) from continuing operations                    |   |                                                 | (28,530 | )      |                                                 |   | (28,426 | )                                                                                           |   |   | (182,253 | ) |
|                                                          |   |                                                 |    |   |                                                 |   |    |                                                                                        |   |   |   |   |
| Changes      in assets and liabilities continuing operations: |   |                                                 |    |   |                                                 |   |    |                                                                                        |   |   |   |   |
| Amortized      loan fee                                       |   |                                                 | 750     |   |                                                 |   | 750     |                                                                                        |   |   | 3,186 |   |
| Prepaid      expenses                                         |   |                                                 | -       |   |                                                 |   | 395     |                                                                                        |   |   | (395 | ) |
| Accounts      payable                                         |   |                                                 | 593     |   |                                                 |   | 161     |                                                                                        |   |   | (15,337 | ) |
| Accounts      payable, related party                          |   |                                                 | 1,500   |   |                                                 |   | 3,000   |                                                                                        |   |   | 7,500 |   |
| Accrued      expenses                                         |   |                                                 | 4,666   |   |                                                 |   | 3,396   |                                                                                        |   |   | 13,419 |   |
| Net      cash (used in) operating activities                  |   |                                                 |    |   |                                                 |   |    |                                                                                        |   |   |   |   |
|  by      continuing operations                           |   |                                                 | (21,021 | )      |                                                 |   | (20,724 | )                                                                                           |   |   | (173,880 | ) |
|                                                          |   |                                                 |    |   |                                                 |   |    |                                                                                        |   |   |   |   |
| Cash      flow from financing activities:                     |   |                                                 |    |   |                                                 |   |    |                                                                                        |   |   |   |   |
| Additional      paid-in capital                               |   |                                                 | -       |   |                                                 |   | -       |                                                                                        |   |   | 2,424 |   |
| Advances      from related party                              |   |                                                 | -       |   |                                                 |   | -       |                                                                                        |   |   | 85,936 |   |
| Proceeds      from shareholder loans                          |   |                                                 | 27,000  |   |                                                 |   | 15,000  |                                                                                        |   |   | 105,000 |   |
| Net      cash provided by financing activities                |   |                                                 | 27,000  |   |                                                 |   | 15,000  |                                                                                        |   |   | 193,360 |   |
|                                                          |   |                                                 |    |   |                                                 |   |    |                                                                                        |   |   |   |   |
| Net      cash (used in) provided by activities                |   |                                                 |    |   |                                                 |   |    |                                                                                        |   |   |   |   |
|  of      continuing operations                           |   |                                                 | 5,979   |   |                                                 |   | (5,724  | )                                                                                           |   |   | 19,480 |   |
|                                                          |   |                                                 |    |   |                                                 |   |    |                                                                                        |   |   |   |   |
| Cash      flow from (used in):                                |   |                                                 |    |   |                                                 |   |    |                                                                                        |   |   |   |   |
| Discontinued      operations                                  |   |                                                 | -       |   |                                                 |   | -       |                                                                                        |   |   | (12,613 | ) |
| Net      cash (used in) discontinued operations               |   |                                                 | -       |   |                                                 |   | -       |                                                                                        |   |   | (12,613 | ) |
|                                                          |   |                                                 |    |   |                                                 |   |    |                                                                                        |   |   |   |   |
| NET      (DECREASE) INCREASE IN CASH                          |   |                                                 | 5,979   |   |                                                 |   | (5,724  | )                                                                                           |   |   | 6,867 |   |
| CASH,      BEGINNING OF THE PERIOD                            |   |                                                 | 3,868   |   |                                                 |   | 5,916   |                                                                                        |   |   | 2,980 |   |
| CASH      AND CASH EQUIVALENTS, END OF THE PERIOD             |   | $                                                    | 9,847   |   |                                                 | $      | 192     |                                                                                        |   | $ | 9,847 |   |
|                                                          |   |                                                 |    |   |                                                 |   |    |                                                                                        |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURE OF NONCASH FINANCING ACTIVITIES: |   |                                                 |    |   |                                                 |   |    |                                                                                        |   |
| Construction      in progress financed by advance payable     |   |                                                 |    |   |                                                 |   |    |                                                                                        |   |   |   |   |
| from      related party including accrued interest            |   | $                                                    | -       |   |                                                 | $      | -       |                                                                                        |   | $ | 406,945 |   |
| Exchange      of real estate for note payable and other       |   |                                                 |    |   |                                                 |   |    |                                                                                        |   |   |   |   |
| liabilities                                                   |   | $                                                    | -       |   |                                                 | $      | -       |                                                                                        |   | $ | (549,183 | ) |
|                                                          |   |                                                 |    |   |                                                 |   |    |                                                                                        |   |   |   |   |
| SUPPLEMENTAL      CASH FLOW                                   |   |                                                 |    |   |                                                 |   |    |                                                                                        |   |   |   |   |
| Cash      paid for interest                                   |   | $                                                    | -       |   |                                                 | $      | -       |                                                                                        |   | $ | - |   |
| Cash      paid for income taxes                               |   | $                                                    | -       |   |                                                 | $      | -       |                                                                                        |   | $ | - |   |

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| Exhibit      No | Description                                                                                                                                                                                |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1            | Certification      of Company’s Chief Executive Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002                                                               |
| 31.2            | Certification      of Company’s Chief Financial Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002                                                               |
| 32.1            | Certification      of Company’s Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as      adopted pursuant to Section 906 of the Sarbanes-Oxley Act      of  2002 |
| 32.2            | Certification      of Company’s Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as      adopted pursuant to Section 906 of the Sarbanes-Oxley Act      of  2002 |

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|   | BIRCH      BRANCH, INC. |                                                                                  |
|--------|-------------------------|---------------------------------------------------------------------------------------|
|   |                    |                                                                                  |   |
|   | By:                     | /s/ Timothy      Brasel                                                          |   |
|   |                    | Timothy      Brasel                                                                   |   |
|   |                    | President,      Principal Executive Officer and      Principal      Financial Officer |   |
|   |                    |                                                                                  |   |

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