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

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

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

|   |   | Condensed      Statements of Operations Three      Months Ended December 31, 2009 and 2008 andSix      Months Ended December 31, 2009 and 2008 andfrom      July 1, 2002 (date of inception) through December 31, 2009      (unaudited) |   3 |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|

|   |   | Condensed      Statements of Cash Flows Six      Months Ended December 31, 2009 and 2008 andfrom      July 1, 2002 (date of inception) through December 31, 2009      (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 |
|--------|----------|--------|----|

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|                                                                                                           |   | December 31, 2009 |     |   | June 30, 2009 |   |
|----------------------------------------------------------------------------------------------------------------|--------|-------------------|----------|--------|---------------|--------|
|                                                                                                           |   | (Unaudited)       |     |   | (audited)     |   |
| ASSETS                                                                                                         |   |              |     |   |          |   |
| Current      assets:                                                                                           |   |              |     |   |          |   |
| Cash                                                                                                           |   | $                 | 1,032    |   |          | $      | 3,868 |   |
| Prepaid      Expenses                                                                                          |   |              | 395      |   |          |   | 395 |   |
|                                                                                                           |   |              |     |   |          |   |   |   |
|    Total      current assets                                                                    |   |              | 1,427    |   |          |   | 4,263 |   |
|                                                                                                           |   |              |     |   |          |   |   |   |
| Total      assets                                                                                              |   | $                 | 1,427    |   |          | $      | 4,263 |   |
|                                                                                                           |   |              |     |   |          |   |   |   |
| LIABILITIES      AND SHAREHOLDERS’ (DEFICIT)                                                             |   |              |     |   |          |   |   |   |
| Current      liabilities:                                                                                      |   |              |     |   |          |   |   |   |
| Accounts      payable                                                                                          |   | $                 | 1,846    |   |          | $      | 87 |   |
| Accounts      payable - related party                                                                          |   |              | 3,000    |   |          |   | 6,000 |   |
| Accrued      expense - related party                                                                           |   |              | 11,881   |   |          |   | 8,753 |   |
| Note      payables - related party                                                                             |   |              | 93,000   |   |          |   | 78,000 |   |
|                                                                                                           |   |              |     |   |          |   |   |   |
|   Total      current liabilities                                                                     |   |              | 109,727  |   |          |   | 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                                                                    |   |              | (2,060   | )      |          |   | (2,564 | ) |
| Accumulated      (deficit)                                                                                     |   |              | (5,173   | )      |          |   | (5,173 | ) |
| Accumulated      (deficit) during development stage                                                            |   |              | (319,557 | )      |          |   | (299,330 | ) |
|                                                                                                           |   |              |     |   |          |   |   |   |
|          Total      shareholders’ (deficit)                 |   |              | (108,300 | )      |          |   | (88,577 | ) |
|                                                                                                           |   |              |     |   |          |   |   |   |
|          Total      liabilities and shareholders’ (deficit) |   | $                 | 1,427    |   |          | $      | 4,263 |   |
|                                                                                                           |   |              |     |   |          |   |   |   |

----

|                                                                                                  |   | Three Months      ended December      31, 2009 |      |   | Three Months      ended December      31, 2008 |   |      | Six Months      ended December      31, 2009 |   |   | Six Months      ended December      31, 2008 |   |   | Period      July 1, 2002 (Date of Commencement of Development Stage) to December 31,      2009 |      |
|-------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|-----------|--------|----------------------------------------------------------|--------|-----------|--------------------------------------------------------|--------|--------|--------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------|-----------|
|                                                                                                  |   |                                                     |      |   |                                                     |   |      |                                                   |   |   |                                                   |   |   |                                                                                                |      |
| Revenues                                                                                              |   | $                                                        | -         |   |                                                     | $      | -         |                                                   |   | $      | -                                                      |   |   | $                                                                                                   | -         |   |   | $ | - |   |
|                                                                                                  |   |                                                     |      |   |                                                     |   |      |                                                   |   |   |                                                   |   |   |                                                                                                |      |   |   |   |   |   |
| Operating      expenses:                                                                              |   |                                                     |      |   |                                                     |   |      |                                                   |   |   |                                                   |   |   |                                                                                                |      |   |   |   |   |   |
| Accounting      fees                                                                                  |   |                                                     | 1,100     |   |                                                     |   | 1,800     |                                                   |   |   | 5,000                                                  |   |   |                                                                                                | 5,450     |   |   |   | 48,800 |   |
| Legal      fees                                                                                       |   |                                                     | 663       |   |                                                     |   | -         |                                                   |   |   | 663                                                    |   |   |                                                                                                | 368       |   |   |   | 47,559 |   |
| Shareholder      expense                                                                              |   |                                                     | 1,328     |   |                                                     |   | 1,341     |                                                   |   |   | 1,932                                                  |   |   |                                                                                                | 1,561     |   |   |   | 23,459 |   |
| General      and administrative expense, related party                                                |   |                                                     | 4,500     |   |                                                     |   | 4,500     |                                                   |   |   | 9,000                                                  |   |   |                                                                                                | 9,000     |   |   |   | 54,000 |   |
| Other      general and administrative expense                                                         |   |                                                     | -         |   |                                                     |   | 630       |                                                   |   |   | -                                                      |   |   |                                                                                                | 630       |   |   |   | 10,312 |   |
| Total      operating expenses                                                                         |   |                                                     | 7,591     |   |                                                     |   | 8,271     |                                                   |   |   | 16,595                                                 |   |   |                                                                                                | 17,009    |   |   |   | 184,130 |   |
|                                                                                                  |   |                                                     |      |   |                                                     |   |      |                                                   |   |   |                                                   |   |   |                                                                                                |      |   |   |   |   |   |
| Net      (loss) from operations                                                                       |   |                                                     | (7,591    | )      |                                                     |   | (8,271    | )                                                      |   |   | (16,595                                                | )      |   |                                                                                                | (17,009   | ) |   |   | (184,130 | ) |
|                                                                                                  |   |                                                     |      |   |                                                     |   |      |                                                   |   |   |                                                   |   |   |                                                                                                |      |   |   |   |   |   |
| Other      income (expense)                                                                           |   |                                                     |      |   |                                                     |   |      |                                                   |   |   |                                                   |   |   |                                                                                                |      |   |   |   |   |   |
| Other      income                                                                                     |   |                                                     | -         |   |                                                     |   | -         |                                                   |   |   | -                                                      |   |   |                                                                                                | -         |   |   |   | 25,000 |   |
| Amortized      loan fee (expense)                                                                     |   |                                                     | (252      | )      |                                                     |   | (252      | )                                                      |   |   | (504                                                   | )      |   |                                                                                                | (504      | ) |   |   | (2,939 | ) |
| Interest      (expense)                                                                               |   |                                                     | (1,752    | )      |                                                     |   | (1,198    | )                                                      |   |   | (3,128                                                 | )      |   |                                                                                                | (2,186    | ) |   |   | (11,881 | ) |
| Total      other income (expense)                                                                     |   |                                                     | (2,004    | )      |                                                     |   | (1,450    | )                                                      |   |   | (3,632                                                 | )      |   |                                                                                                | (2,690    | ) |   |   | 10,180 |   |
|                                                                                                  |   |                                                     |      |   |                                                     |   |      |                                                   |   |   |                                                   |   |   |                                                                                                |      |   |   |   |   |   |
| Net      (loss) from continuing operations                                                            |   |                                                     | (9,595    | )      |                                                     |   | (9,721    | )                                                      |   |   | (20,227                                                | )      |   |                                                                                                | (19,699   | ) |   |   | (173,950 | ) |
|                                                                                                  |   |                                                     |      |   |                                                     |   |      |                                                   |   |   |                                                   |   |   |                                                                                                |      |   |   |   |   |   |
| Discontinued      operations:                                                                         |   |                                                     |      |   |                                                     |   |      |                                                   |   |   |                                                   |   |   |                                                                                                |      |   |   |   |   |   |
| (Loss)      from discontinued operations                                                              |   |                                                     |      |   |                                                     |   |      |                                                   |   |   |                                                   |   |   |                                                                                                |      |   |   |   |   |   |
|               (including loss on disposal in 2006 of $52,017) |   |                                                     | -         |   |                                                     |   | -         |                                                   |   |   | -                                                      |   |   |                                                                                                | -         |   |   |   | (121,232 | ) |
|                                                                                                  |   |                                                     |      |   |                                                     |   |      |                                                   |   |   |                                                   |   |   |                                                                                                |      |   |   |   |   |   |
| Net      (loss)                                                                                       |   | $                                                        | (9,595    | )      |                                                     | $      | (9,721    | )                                                      |   | $      | (20,227                                                | )      |   | $                                                                                                   | (19,699   | ) |   | $ | (295,182 | ) |
|                                                                                                  |   |                                                     |      |   |                                                     |   |      |                                                   |   |   |                                                   |   |   |                                                                                                |      |   |   |   |   |   |
|                                                                                                  |   |                                                     |      |   |                                                     |   |      |                                                   |   |   |                                                   |   |   |                                                                                                |      |   |   |   |   |   |
| Net      (loss) per common share                                                                      |   | $                                                        | (0.01     | )      |                                                     | $      | (0.01     | )                                                      |   | $      | (0.01                                                  | )      |   | $                                                                                                   | (0.01     | ) |   |   |   |   |
|                                                                                                  |   |                                                     |      |   |                                                     |   |      |                                                   |   |   |                                                   |   |   |                                                                                                |      |   |   |   |   |   |
|                                                                                                  |   |                                                     |      |   |                                                     |   |      |                                                   |   |   |                                                   |   |   |                                                                                                |      |   |   |   |   |   |
| Weighted      average number of                                                                       |   |                                                     |      |   |                                                     |   |      |                                                   |   |   |                                                   |   |   |                                                                                                |      |   |   |   |   |   |
| common      shares outstanding                                                                        |   |                                                     | 1,708,123 |   |                                                     |   | 1,708,123 |                                                   |   |   | 1,708,123                                              |   |   |                                                                                                | 1,708,123 |   |   |   |   |   |

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|                                                                                                     |   | Six Months      ended December      31, 2009 |    |   | Six Months      ended December      31, 2008 |   |    | Period      July 1, 2002 (Date of Commencement of Development Stage) to December 31,      2009 |   |
|----------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------|---------|--------|-------------------------------------------------------------|--------|---------|-----------------------------------------------------------------------------------------------------|--------|
| Cash      flows from operating activities:                                                               |   |                                                        |    |   |                                                        |   |    |                                                                                                |   |
| Operating      activities from continuing operations                                                     |   |                                                        |    |   |                                                        |   |    |                                                                                                |   |
| Net      (loss)                                                                                          |   | $                                                           | (20,227 | )      |                                                        | $      | (19,699 | )                                                                                                   |   | $ | (295,182 | ) |
| Less:      Net (loss) discontinued operations                                                            |   |                                                        | -       |   |                                                        |   | -       |                                                                                                |   |   | (121,232 | ) |
| Net      (loss) from continuing operations                                                               |   |                                                        | (20,227 | )      |                                                        |   | (19,699 | )                                                                                                   |   |   | (173,950 | ) |
|                                                                                                     |   |                                                        |    |   |                                                        |   |    |                                                                                                |   |   |   |   |
| Changes      in assets and liabilities continuing operations:                                            |   |                                                        |    |   |                                                        |   |    |                                                                                                |   |   |   |   |
| Amortized      loan fee                                                                                  |   |                                                        | 504     |   |                                                        |   | 504     |                                                                                                |   |   | 2,940 |   |
| Prepaid      expenses                                                                                    |   |                                                        | -       |   |                                                        |   | -       |                                                                                                |   |   | (395 | ) |
| Accounts      payable                                                                                    |   |                                                        | 1,759   |   |                                                        |   | -       |                                                                                                |   |   | (14,171 | ) |
| Accounts      payable, related party                                                                     |   |                                                        | (3,000  | )      |                                                        |   | -       |                                                                                                |   |   | 3,000 |   |
| Accrued      expenses                                                                                    |   |                                                        | 3,128   |   |                                                        |   | 2,187   |                                                                                                |   |   | 11,881 |   |
| Net      cash (used in) operating activities                                                             |   |                                                        |    |   |                                                        |   |    |                                                                                                |   |   |   |   |
|  by      continuing operations                                                                      |   |                                                        | (17,836 | )      |                                                        |   | (17,008 | )                                                                                                   |   |   | (170,695 | ) |
|                                                                                                     |   |                                                        |    |   |                                                        |   |    |                                                                                                |   |   |   |   |
| Cash      flow from financing activities:                                                                |   |                                                        |    |   |                                                        |   |    |                                                                                                |   |   |   |   |
| Additional      paid-in capital                                                                          |   |                                                        | -       |   |                                                        |   | -       |                                                                                                |   |   | 2,424 |   |
| Advances      from related party                                                                         |   |                                                        | -       |   |                                                        |   | -       |                                                                                                |   |   | 85,936 |   |
| Proceeds      from shareholder loans                                                                     |   |                                                        | 15,000  |   |                                                        |   | 15,000  |                                                                                                |   |   | 93,000 |   |
| Net      cash provided by financing activities                                                           |   |                                                        | 15,000  |   |                                                        |   | 15,000  |                                                                                                |   |   | 181,360 |   |
|                                                                                                     |   |                                                        |    |   |                                                        |   |    |                                                                                                |   |   |   |   |
| Net      cash (used in) provided by activities                                                           |   |                                                        |    |   |                                                        |   |    |                                                                                                |   |   |   |   |
|  of      continuing operations                                                                      |   |                                                        | (2,836  | )      |                                                        |   | (2,008  | )                                                                                                   |   |   | 10,665 |   |
|                                                                                                     |   |                                                        |    |   |                                                        |   |    |                                                                                                |   |   |   |   |
| Cash      flow from (used in):                                                                           |   |                                                        |    |   |                                                        |   |    |                                                                                                |   |   |   |   |
| Discontinued      operations                                                                             |   |                                                        | -       |   |                                                        |   | -       |                                                                                                |   |   | (12,613 | ) |
| Net      cash (used in) discontinued operations                                                          |   |                                                        | -       |   |                                                        |   | -       |                                                                                                |   |   | (12,613 | ) |
|                                                                                                     |   |                                                        |    |   |                                                        |   |    |                                                                                                |   |   |   |   |
| NET      (DECREASE) INCREASE IN CASH                                                                     |   |                                                        | (2,836  | )      |                                                        |   | (2,008  | )                                                                                                   |   |   | (1,948 | ) |
| CASH,      BEGINNING OF THE PERIOD                                                                       |   |                                                        | 3,868   |   |                                                        |   | 5,916   |                                                                                                |   |   | 2,980 |   |
| CASH      AND CASH EQUIVALENTS, END OF THE PERIOD                                                        |   | $                                                           | 1,032   |   |                                                        | $      | 3,908   |                                                                                                |   | $ | 1,032 |   |
|                                                                                                     |   |                                                        |    |   |                                                        |   |    |                                                                                                |   |   |   |   |
| 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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