---

UNITED STATES
SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549 FORM 10-QSB (Mark One)


x QUARTERLY REPORT UNDER
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF1934


FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30,
2007

oTRANSITION REPORT UNDER
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

COMMISSION FILE NUMBER 000-52754

MONARCH INVESTMENT PROPERTIES, INC.(Exact name of small business issuer as specified in its
charter)

|                                                                   |  |                                       
|------------------------------------------------------------------ |  | --------------------------------------
|Nevada                                                             |  | 84-1251553                            
|                                                                   |  |                                       
|(State or other jurisdiction 
 of incorporation or 
 organization) |  | (I.R.S. Employer Identification 
 No.)

1801 North Military Trail, Suite 203
Boca Raton, FL 33431
(Address of principal executive offices)

(561) 391-6117
(Issuers telephone number)

(Former name,
former address and former fiscal year, if changed since last report)

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

Indicate by
check mark whether the registrant is a shell company (as defined in Rule 126-2
of the Exchange Act). Yes x No o

APPLICABLE ONLY TO CORPORATE ISSUERS

State the
number of shares outstanding of each of the issuers classes of common equity,
as of the latest practicable date:

As of
September 30, 2007, there were 16,168,733 outstanding shares of common
stock, par value $0.001 per share.

Transitional
Small Business Disclosure Format (check one): 
Yes o  No x

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TABLE OF CONTENTS

|                                                                                                                      |                                                                                        |      |    |  | 
|--------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------- | ---- | -- |  | 
|                                                                                                                      |                                                                                        |      |   
|                                                                                                                      |                                                                                        | Page
|                                                                                                                      |                                                                                        |     
|                                                                                                                      |                                                                                        |      |    | 
|PART I.                                                                                                               | FINANCIAL INFORMATION                                                                  |      |    | 
|                                                                                                                      |                                                                                        |      |   
|Item 1.                                                                                                               | Financial Statements                                                                   |      |    | 
|                                                                                                                      |                                                                                        |      |   
|Balance Sheets as of September 30, 2007 (Unaudited) and June 30,
 2007                                                |                                                                                        | 3    |   
|                                                                                                                      |                                                                                        |      |   
|Condensed Statements of Operations for the Three Months Ended
 September 30, 2007 and 2006 (Unaudited)                |                                                                                        | 4    |   
|                                                                                                                      |                                                                                        |      |   
|Condensed Statement of Changes in Stockholders Deficiency for the
 Three Months Ended September 30, 2007 (Unaudited) |                                                                                        | 5    |   
|                                                                                                                      |                                                                                        |      |   
|Condensed Statements of Cash Flows for the Three Months Ended
 September 30, 2007 and 2006 (Unaudited)                |                                                                                        | 6    |   
|                                                                                                                      |                                                                                        |      |   
|Notes to the Condensed Unaudited Financial Statements as of September
 30, 2007 and 2006                              |                                                                                        | 7    |   
|                                                                                                                      |                                                                                        |      |   
|Item 2.                                                                                                               | Managements Discussion and Analysis of Financial Condition and
 Results of Operations |      | 9  | 
|                                                                                                                      |                                                                                        |      |    | 
|Item 3.                                                                                                               | Controls and Procedures                                                                |      | 14 | 
|                                                                                                                      |                                                                                        |      |    | 
|PART II.                                                                                                              | OTHER INFORMATION                                                                      |      |    | 
|                                                                                                                      |                                                                                        |      |    | 
|Item 1.                                                                                                               | Legal Proceedings                                                                      |      | 15 | 
|                                                                                                                      |                                                                                        |      |    | 
|Item 2.                                                                                                               | Unregistered Sales of Equity Securities and Use of Proceeds                            |      | 15 | 
|                                                                                                                      |                                                                                        |      |    | 
|Item 3.                                                                                                               | Defaults Upon Senior Securities                                                        |      | 15 | 
|                                                                                                                      |                                                                                        |      |    | 
|Item 4.                                                                                                               | Submission of Matters to a Vote of Security Holders                                    |      | 15 | 
|                                                                                                                      |                                                                                        |      |    | 
|Item 5.                                                                                                               | Other Information                                                                      |      | 15 | 
|                                                                                                                      |                                                                                        |      |   
|SIGNATURES                                                                                                            |                                                                                        | 16   |   
|                                                                                                                      |                                                                                        |      |   
|Item 6.                                                                                                               | Exhibit Index                                                                          |      |    | 
|                                                                                                                      |                                                                                        |      |   
|EX-31.1                                                                                                               | Section 302
 Certification of Principal Executive Officer                              |      |    | 
|                                                                                                                      |                                                                                        |      |    | 
|EX-31.2                                                                                                               | Section 302
 Certification of Principal Financial Officer                              |      |    | 
|                                                                                                                      |                                                                                        |      |    | 
|EX-32                                                                                                                 | Section 906
 Certification of Officers                                                 |      |    | 
|                                                                                                                      |                                                                                        |     

2

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PART
I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

MONARCH INVESTMENT PROPERTIES, INC.BALANCE SHEETS

|                                                                                                        |  |                                |            |               |   |            |  
|------------------------------------------------------------------------------------------------------- |  | ------------------------------ | ---------- | ------------- | - | ---------- | -
|                                                                                                        |  | September
30, 2007
(Unaudited) |            | June 30,
2007 |  
|                                                                                                        |  |                                |            |               |  
|ASSETS                                                                                                  |  |                                |            |               |   |            |  
|                                                                                                        |  |                                |            |               |   |            |  
|CURRENT ASSETS                                                                                          |  |                                |            |               |   |            |  
|Cash                                                                                                    |  | $                              | 2,597      |               | $ | 3,336      |  
|                                                                                                        |  |                                |            |               |   |            |  
|Total current assets                                                                                    |  |                                | 2,597      |               |   | 3,336      |  
|                                                                                                        |  |                                |            |               |   |            |  
|TOTAL ASSETS                                                                                            |  | $                              | 2,597      |               | $ | 3,336      |  
|                                                                                                        |  |                                |            |               |   |            |  
|                                                                                                        |  |                                |            |               |   |            |  
|LIABILITIES AND STOCKHOLDERS DEFICIENCY                                                                |  |                                |            |               |   |            |  
|                                                                                                        |  |                                |            |               |   |            |  
|CURRENT LIABILITIES                                                                                     |  |                                |            |               |   |            |  
|                                                                                                       
|Accrued expenses and other current
 liabilities                                                         |  | $                              | 55,570     |               | $ | 30,718     |  
|Convertible judgment debt payable                                                                       |  |                                | 184,721    |               |   | 181,059    |  
|Affiliated party debt                                                                                   |  |                                | 162,346    |               |   | 109,252    |  
|                                                                                                        |  |                                |            |               |   |            |  
|Total Current Liabilities                                                                               |  |                                | 402,637    |               |   | 321,029    |  
|                                                                                                        |  |                                |            |               |   |            |  
|                                                                                                        |  |                                |            |               |   |            |  
|COMMITMENTS AND CONTINGENCES                                                                            |  |                                |            |               |   |            |  
|                                                                                                        |  |                                |            |               |   |            |  
|STOCKHOLDERS DEFICIENCY                                                                                |  |                                |            |               |   |            |  
|Preferred stock, $.01 par value 25,000,000
 shares authorized, no shares issues and outstanding         |  |                                |           |               |   |           |  
|Common stock, $.001 par value, 500,000,000 shares
 authorized, 16,168,733 shares issued and outstanding |  |                                | 16,169     |               |   | 16,169     |  
|Additional paid-in capital                                                                              |  |                                | 2,833,241  |               |   | 2,833,241  |  
|Accumulated deficit                                                                                     |  |                                | (3,249,450 | )             |   | (3,167,103 | )
|                                                                                                        |  |                                |            |               |   |            |  
|Total Stockholders Deficiency                                                                          |  |                                | (400,040   | )             |   | (317,693   | )
|                                                                                                        |  |                                |            |               |   |            |  
|TOTAL
 LIABILITIES & STOCKHOLDERS DEFICIENCY                                                           |  | $                              | 2,597      |               | $ | 3,336      |  
|                                                                                                        |  |                                |            |               |   |            |  

See
accompanying notes to the condensed unaudited financial statements

3

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MONARCH INVESTMENT PROPERTIES, INC.CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)

|                                                      |  |                                    |            |      |   |            |  
|----------------------------------------------------- |  | ---------------------------------- | ---------- | ---- | - | ---------- | -
|                                                      |  | Three Months Ended 
 September 30, |           
|                                                      |  | 2007                               |            | 2006 |  
|                                                      |  |                                    |            |      |  
|                                                      |  |                                    |            |      |   |            |  
|Revenue                                               |  | $                                  |           |      | $ |           |  
|                                                      |  |                                    |            |      |   |            |  
|General and
 administrative expenses                  |  |                                    | 74,590     |      |   | 6,226      |  
|                                                      |  |                                    |            |      |   |            |  
|Loss from
 operations                                 |  |                                    | (74,590    | )    |   | (6,226     | )
|                                                      |  |                                    |            |      |   |            |  
|Other
 (expenses) income:                             |  |                                    |            |      |   |            |  
|Interest expense                                      |  |                                    | (7,757     | )    |   | (5,558     | )
|                                                      |  |                                    |            |      |   |            |  
|Total other (expense)                                 |  |                                    | (7,757     | )    |   | (5,558     | )
|                                                      |  |                                    |            |      |   |            |  
|                                                      |  |                                    |            |      |   |            |  
|Net loss                                              |  | $                                  | (82,347    | )    | $ | (11,784    | )
|                                                      |  |                                    |            |      |   |            |  
|                                                      |  |                                    |            |      |   |            |  
|Net loss per
 common share:                           |  |                                    |            |      |   |            |  
|Basic and fully diluted                               |  | $                                  | (0.005     | )    | $ | (0.001     | )
|                                                      |  |                                    |            |      |   |            |  
|                                                      |  |                                    |            |      |   |            |  
|Weighted
 average number of common shares outstanding |  |                                    |            |      |   |            |  
|Basic and fully diluted                               |  |                                    | 16,168,733 |      |   | 16,168,733 |  

See accompanying notes to the
condensed unaudited financial statements

4

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MONARCH
INVESTMENT PROPERTIES, INC.CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS DEFICIENCY
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2007
(Unaudited)

|                              |  |                    |        |              |        |                   |  |                       |        |       |   |           |  |   |            |   |   |          |  
|----------------------------- |  | ------------------ | ------ | ------------ | ------ | ----------------- |  | --------------------- | ------ | ----- | - | --------- |  | - | ---------- | - | - | -------- | -
|                              |  |                    |        |              |        |                   |  | Additional            |        |       |   |           | 
|                              |  | Preferred
  Shares |        | Common Stock |        | Paid-In
  Capital |  | Accumulated
  Deficit |        | Total |  
|                              |  |                    | Shares |              | Amount |                   |  |                       |       
|                              |  |                    |        |              |        |                   |  |                       |        |       |   |           | 
|Balance at June 30, 2007      |  |                    |        |              |        | 16,168,733        |  | $                     | 16,169 |       | $ | 2,833,241 |  | $ | (3,167,103 | ) | $ | (317,693 | )
|                              |  |                    |        |              |        |                   |  |                       |        |       |   |           |  |   |            |   |   |          |  
|Net Loss                      |  |                    |        |              |        |                   |  |                       |        |       |   |           |  |   | (82,347    | ) |   | (82,347  | )
|                              |  |                    |        |              |        |                   |  |                       |        |       |   |           |  |   |            |   |   |          |  
|Balance at September 30, 2007 |  |                    |       |              |        | 16,168,733        |  | $                     | 16,169 |       | $ | 2,833,241 |  | $ | (3,249,450 | ) | $ | (400,040 | )
|                              |  |                    |        |              |        |                   |  |                       |        |       |   |           |  |   |            |   |   |          |  

See accompanying notes to the
condensed unaudited financial statements

5

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MONARCH INVESTMENT
PROPERTIES, INC.CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)

|                                                                              |  |                                    |         |      |   |         |  
|----------------------------------------------------------------------------- |  | ---------------------------------- | ------- | ---- | - | ------- | -
|                                                                              |  | Three Months Ended
  September 30, |        
|                                                                              |  | 2007                               |         | 2006 |  
|                                                                              |  |                                    |         |      |  
|CASH FLOWS FROM OPERATING
  ACTIVITIES:                                       |  |                                    |         |      |   |         |  
|Net loss                                                                      |  | $                                  | (82,347 | )    | $ | (11,784 | )
|                                                                              |  |                                    |         |      |   |         |  
|Adjustments to reconcile net loss
  to net cash used in operating activities: |  |                                    |         |      |   |         |  
|Changes in operating assets and
  liabilities:                                |  |                                    |         |      |   |         |  
|Increase in accrued expenses and
  other current liabilities                  |  |                                    | 24,852  |      |   | 522     |  
|Increase in convertible judgment
  debt payable                               |  |                                    | 3,662   |      |   | 3,662   |  
|                                                                              |  |                                    |         |      |   |         |  
|                                                                              |  |                                    |         |      |  
|Total adjustments                                                             |  |                                    | 28,514  |      |   | 4,184   |  
|                                                                              |  |                                    |         |      |   |         |  
|Net cash used in operating
  activities                                       |  |                                    | (53,833 | )    |   | (7,600  | )
|                                                                              |  |                                    |         |      |   |         |  
|                                                                             
|CASH FLOWS FROM FINANCING
  ACTIVITIES:                                       |  |                                    |         |      |   |         |  
|Increase in affiliated party debt                                             |  |                                    | 53,094  |      |   | 5,897   |  
|                                                                              |  |                                    |         |      |   |         |  
|Net cash provided by financing
  activities                                   |  |                                    | 53,094  |      |   | 5,897   |  
|                                                                              |  |                                    |         |      |   |         |  
|NET (DECREASE) IN CASH                                                        |  |                                    | (739    | )    |   | (1,703  | )
|CASH - BEGINNING OF YEAR                                                      |  |                                    | 3,336   |      |   | 4,334   |  
|                                                                              |  |                                    |         |      |   |         |  
|CASH - END OF YEAR                                                            |  | $                                  | 2,597   |      | $ | 2,631   |  
|                                                                              |  |                                    |         |      |   |         |  
|                                                                             
|SUPPLEMENTAL CASH FLOW DATA:                                                  |  |                                    |         |      |   |         |  
|Cash paid for interest                                                        |  | $                                  |        |      | $ |        |  
|                                                                              |  |                                    |         |      |   |         |  
|Cash paid for income taxes                                                    |  | $                                  |        |      | $ |        |  
|                                                                              |  |                                    |         |      |   |         |  

See accompanying notes to the
condensed unaudited financial statements

6

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Monarch Investment
Properties, Inc.Notes to Condensed Unaudited Financial Statements
September 30, 2007
(Unaudited)

Note 1 - Condensed
Financial Statements

The
accompanying financial statements have been prepared by the Company without
audit. In the opinion of management, all adjustments (which include only normal
recurring adjustments) necessary to present fairly the financial position,
results of operations and cash flows at September 30, 2007 and for all periods
presented have been made.

Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with accounting principles generally accepted in the
United States of America have been condensed or omitted. These condensed
financial statements should be read in conjunction with the audited financial
statements for the years ended June 30, 2007 and 2006 included in Amendment Number
1 to the Companys Registration Statement on Form 10-SB/A filed on September
27, 2007.

The
results of operations for the period ended September 30, 2007 are not
necessarily indicative of the operating results for the full year.

Note 2 - Use of Estimates

The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
expenses during the reporting period. Actual results could differ from those
estimates.

Note 3 - Going Concern

As
reflected in the accompanying financial statements, the Company incurred a net
loss of $82,347, negative cash flow from operations of $53,833 for the three
months ended September 30, 2007, has an accumulated deficit of $3,249,450 and a
stockholders deficiency of $400,040 at September 30, 2007. The ability of the
Company to continue as a going concern is dependent upon its ability to obtain
financing and achieve profitable operations. The financial statements do not
include any adjustments that might be necessary should the Company be unable to
continue as a going concern. These matters raise substantial doubt about the
companys ability to continue as a going concern.

7

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Note 4 - Accrued Expenses
and Other Current Liabilities

|                                                       |  |                      |        |               |   |        | 
|------------------------------------------------------ |  | -------------------- | ------ | ------------- | - | ------ | 
|                                                       |  | September 30,
  2007 |        | June 30, 2007 |  
|                                                       |  |                      |        |               |  
|Legal fees                                             |  | $                    | 31,695 |               | $ | 7,500  | 
|Accounting and Auditing                                |  |                      | 11,800 |               |   | 11,000 | 
|Miscellaneous, other                                   |  |                      | 12,075 |               |   | 12,218 | 
|                                                       |  |                      |        |               |   |        | 
|Total accrued expenses and other
  current liabilities |  | $                    | 55,570 |               | $ | 30,718 | 
|                                                       |  |                      |        |               |   |        | 

Note 5 - Affiliated Party
Debt Transaction

|                                                         |  |                      |         |               |   |         | 
|-------------------------------------------------------- |  | -------------------- | ------- | ------------- | - | ------- | 
|                                                         |  | September 30,
  2007 |         | June 30, 2007 |  
|                                                         |  |                      |         |               |  
|Due to major shareholder/creditor,
  beginning of period |  | $                    | 109,252 |               | $ | 59,926  | 
|Additional borrowings                                    |  |                      | 53,094  |               |   | 49,326  | 
|Repayments                                               |  |                      |        |               |   |        | 
|                                                         |  |                      |         |               |   |         | 
|End of year                                              |  | $                    | 162,346 |               | $ | 109,252 | 
|                                                         |  |                      |         |               |   |         | 

See
Note 9 to the audited financial statements for the years ended June 30, 2007
and 2006 included in Amendment Number 1 to the Companys Registration Statement
on Form 10-SB/A filed on September 27, 2007.

Note 6 - Income Taxes

SFAS
No. 109, Accounting for Income Taxes, provides for the recognition and measurement
of deferred income tax benefits based on the likelihood of their realization in
future years. A valuation allowance must be established to reduce deferred
income tax benefits if it is more likely than not that, a portion of the
deferred income tax benefits will not be realized. Therefore, a valuation
allowance equal to the potential deferred tax benefit has been established in
full, resulting in no deferred tax benefit as of the balance sheet dates.

Note 7 - Earnings (Loss)
Per Share

Basic
earnings (loss) per share is computed by dividing net income  (loss) available to common stockholders by
the weighted average number of common shares outstanding for the period.
Diluted earnings per share is computed assuming the exercise or conversion of
common stock equivalent shares, if dilutive, consisting of unissued shares under
options and warrants. Since the 1,100,000 shares under

8

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outstanding
warrants and the potential conversion of the $184,721 convertible debt into
1,847,210 shares are both anti-dilutive due to the Companys net loss, no
diluted per share amounts are presented.

ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS
OR PLAN OF OPERATION

The following
discussion and analysis presents a review of the operating results of Monarch
Investment Properties, Inc. (the Company) for the three months ended
September 30, 2007 and 2006, respectively, and the financial condition of the
Company at September 30, 2007. The discussion and analysis should be read in
conjunction with the condensed financial statements and accompanying notes
included herein, as well as the Companys audited financial statements for the
years ended June 30, 2007 and 2006 included in Amendment Number 1 to the
Companys Registration Statement on Form 10-SB/A filed on September 27, 2007.

Forward-looking Statements

Statements
included in the Quarterly Report filed on Form 10-QSB that do not relate to
present or historical conditions are forward-looking statements.
Forward-looking statements may include, without limitation, statements relating
to our plans, strategies, objectives, expectations and intentions and are
intended to be made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Words such as believes,
forecasts, intends, possible, estimates, anticipates, and
plans and
similar expressions are intended to identify forward-looking statements. Our
ability to predict projected results or the effect of events on our operating
results is inherently uncertain. Forward-looking statements involve a number of
risks, uncertainties and other factors that could cause actual results to
differ materially from those discussed in this document. Forward-looking
statements should not be read as a guarantee of future performance or results,
and will not necessarily be accurate indications of the times at, or by which,
such performance or results will be achieved. Forward-looking information is
based on information available at the time and/or managements good faith
belief with respect to future events, and is subject to risks and uncertainties
that could cause actual performance or results to differ materially from those
expressed in the statements. Important factors that could cause actual
performance or results to differ materially from those expressed in or implied
by, forward-looking statements include, but are not limited to: (i) industry
competition, conditions, performance and consolidation, (ii) legislative and/or
regulatory developments, (iii) our ability to find to find an acceptable merger
candidate, (iv) the effects of adverse general economic conditions, both within
the United States and globally, and (v) other factors described under Risk
Factors contained in the Companys Amendment Number 1 to the Registration
Statement on Form 10-SB/A filed with the Securities and Exchange Commission on
September 27, 2007.

Forward-looking
statements speak only as of the date the statements are made. The Company
assumes no obligations to update forward-looking statements to reflect actual
results, changes in assumptions

9

---



or changes in
other factors affecting forward-looking information except to the extent
required by applicable securities laws. If the Company updates one or more
forward-looking statements, no inference should be drawn that it will make
additional updates with respect thereto or with respect to other
forward-looking statements.

Overview

We have
virtually no operating history and due to the uncertain nature of the markets
we address or intend to address, it is difficult to predict our future results
of operations.

Our Business Strategy

Our current
business plan is to serve as a vehicle for the acquisition of or merger or
consolidation with a target business. We intend to effect a business
combination with a target business which we believe has significant growth
potential. The business combination may be with a financially stable,
mature company or a company that is in its early stages of development or
growth.

The Company
will not restrict its potential candidate target business to any specific
business, industry or geographical location and, thus, may acquire any type of
business. However, our management intends to focus on businesses having at
least a majority of their assets, based on either a historical balance sheet
valuation or a fair market valuation, represented by real estate or other
physical assets, or which utilize these types of assets to derive at least a
majority of its revenue. The description of our business objectives is
extremely general and is not meant to restrict the discretion of our management
to search for and enter into potential business opportunities. We have not
chosen the particular business in which we will engage and have not conducted
any market studies with respect to any business or industry for you to evaluate
the possible merits or risks of the target business or the particular industry
in which we may ultimately operate. To the extent we enter into a business
combination with a financially unstable company or an entity in its early stage
of development or growth, including entities without established records of
sales or earnings, we will become subject to numerous risks inherent in the
business and operations of financially unstable and early stage or potential
emerging growth companies. In addition, to the extent that we effect a business
combination with an entity in an industry characterized by a high level of
risk, we will become subject to the currently unascertainable risks of that
industry. An extremely high level of risk frequently characterizes certain
industries that experience rapid growth. In addition, although we will endeavor
to evaluate the risks inherent in a particular industry or target business, we
cannot guarantee that we will properly ascertain or assess all significant risk
factors.

The Company
does not currently engage in any business activities that provide cash flow.
During the next twelve months we anticipate incurring costs and expenses
related to filing of Exchange Act reports and investigating and consummating a
business combination. Management will fund the costs and expenses to be
incurred with such

10

---



activities
through loans or further investment in the Company to be made by them as and
when necessary.

Financial Condition
and Changes

Cash

We have
minimal cash and are dependent in the short term on affiliated parties to
continue to infuse capital to meet our obligations. There is no assurance that
this funding will continue.

Accrued Expenses and Other Liabilities

Accrued
expenses at September 30, 2007 and June 30, 2007 consisted primarily of
professional fees. Listed below is a summary of the transactions related to
accrued expenses and other liabilities:

| |                                                |  |                    |        |               |   |                     |  |   |        | 
| | ---------------------------------------------- |  | ------------------ | ------ | ------------- | - | ------------------- |  | - | ------ | 
| |                                                |  | September 30,
2007 |        | June 30,
2007 |   | Increase
(Decrease) | 
| |                                                |  |                    |        |               |   |                     | 
| | Legal fees                                     |  | $                  | 31,695 |               | $ | 7,500               |  | $ | 24,195 | 
| | Accounting fees                                |  |                    | 11,800 |               |   | 11,000              |  |   | 800    | 
| | Miscellaneous, other                           |  |                    | 12,075 |               |   | 12,218              |  |   | (143)  | 
| |                                                |  |                    |        |               |   |                     |  |   |        | 
| | Total Accrued Expenses and Other
  Liabilities |  | $                  | 55,570 |               | $ | 30,718              |  | $ | 24,852 | 
| |                                                |  |                    |        |               |   |                     |  |   |        | 

The increase
in accrued legal fees was the result of costs related to our filing of the
Registration Statement on Form 10-SB with the Securities and Exchange
Commission.

Convertible Judgment Debt Payable

Listed below
is a summary of the transactions related to the JJFN Judgment obtained by JJFN
Holdings against us in November 2004. See Liquidity and Capital Resources.
Unpaid portions of the JJFN Judgment bear simple interest at the rate of 9% per
annum:

| |                                           |  |   |            |  
| | ----------------------------------------- |  | - | ---------- | -
| | Original judgment                         |  | $ | 1,100,000  |  
| | Partial payment made November 2004        |  |   | (155,000   | )
| | Interest 1999 through June 2005           |  |   | 643,500    |  
| |                                           |  |   |           
| | Balance June 30, 2005                     |  |   | 1,588,500  |  
| | Interest July 2005 through June 2006      |  |   | 77,902     |  
| | Amount exchanged for Common Stock         |  |   | (1,500,000 | )
| |                                           |  |   |           
| | Balance June 30, 2006                     |  |   | 166,402    |  
| | Interest July 2006 through June 2007      |  |   | 14,657     |  
| |                                           |  |   |           
| | Balance June 30, 2007                     |  |   | 181,059    |  
| | Interest July 2007 through September 2007 |  |   | 3,662      |  
| |                                           |  |   |           
| | Balance September 30, 2007                |  | $ | 184,721    |  
| |                                           |  |   |           

11

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Affiliated Party Debt

To date, our
operations have been funded by Strategic Capital Resources, Inc. (Strategic)
which is controlled by our Chief Executive Officer and majority shareholder. Listed
below is a summary of the transactions related to the debt we owe to Strategic:

| |                             |  |   |         | 
| | --------------------------- |  | - | ------- | 
| | Balance, June 30, 2007      |  | $ | 109,252 | 
| | Advances                    |  |   | 49,000  | 
| | Interest                    |  |   | 4,094   | 
| | Repayments                  |  |   |        | 
| |                             |  |   |         | 
| | Balance, September 30, 2007 |  | $ | 162,346 | 
| |                             |  |   |         | 

Results of Operations

We have
generated no revenues since our fiscal year ended 1998 and will not generate
revenues until, at the earliest, the completion of a business combination.
There can be no assurance that we will be able to consummate a business
combination on terms acceptable to us and our stockholders or at all.

Three Months Ended September 30, 2007
Compared to the Three Months Ended September 30, 2006

General and
administrative expenses were $74,590 for the three months ended September 30,
2007, as compared to $6,226 for the three months ended September 30, 2006, an
increase of $68,364. Accounting and Legal expenses for the three months ended
September 30, 2007 were higher as a result of our filing the Registration
Statement on Form 10-SB with the Securities and Exchange Commission. Legal and
Accounting fees of $54,176 and $10,300, respectively, were related to the
filing of this Registration Statement on Form 10-SB. Additional Accounting fees
of $4,500 were related to the filing of this Form 10-QSB. The increase in
Miscellaneous fees was primarily the result of $3,415 in edgarization costs
associated with the filing of the Registration Statement on Form 10-SB. Listed
below is a summary of these expenses:

| |                       |  |      |        |      |   |       | 
| | --------------------- |  | ---- | ------ | ---- | - | ----- | 
| |                       |  | 2007 |        | 2006 |  
| |                       |  |      |        |      |  
| | Accounting
  Fees     |  | $    | 14,800 |      | $ | 2,500 | 
| | Legal Fees            |  |      | 54,176 |      |   |      | 
| | Management
  Fees     |  |      | 1,500  |      |   | 1,500 | 
| | Stock
  Transfer Fees |  |      | 250    |      |   | 725   | 
| | Miscellaneous
  Fees  |  |      | 3,864  |      |   | 1,501 | 
| |                       |  |      |        |      |   |       | 
| | TOTAL                 |  | $    | 74,590 |      | $ | 6,226 | 
| |                       |  |      |        |      |   |       | 

Interest
expense was $7,757 for the three months ended September 30, 2007, compared to
$5,558 for the three months ended September 30, 2006, an increase of $2,199.
The increase was the result of higher affiliated party debt at September 30,
2007 compared to 2006, resulting in higher interest expense for the three
months ended September 30, 2007.

12

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Liquidity and Capital Resources

At September
30, 2007, our cash balance was $2,597 and we had a working capital deficit of
$400,040.

A lawsuit
filed in June 1999 by JJFN Holdings against us and our subsidiaries resulted in
a JJFN Judgment against us for $1,100,000 as well as interest computed at the
simple rate of 9% per annum. In November 2004, the former principals of the
Company made a partial payment in the amount of $155,000. In December 2005,
Strategic agreed to convert $1,500,000 of the then $1,638,000 balance owed to
it under the JJFN Judgment into 15,000,000 shares of our Common Stock.

To date, the
Companys operations have been funded by Strategic which is controlled by the
Companys President. This funding included paying professional fees, interest
on the affiliated debt as well as accruing $500 per month for management fees.

For the three
months ended September 30, 2007, we had negative cash flows from operating
activities of $53,833 compared to negative cash flows of $7,600 for the three
months ended September 30, 2006, an increase of $46,233. We have been dependent
upon proceeds of loans from Strategic to fund continuing activities. For the
three months ended September 30, 2007, our loans from Strategic increased by
$53,094.

We currently
do not have sufficient cash reserves to meet all of our anticipated obligations
for the next twelve months and there can be no assurance we will ultimately
obtain the necessary financing. In addition to any third-party financing that
may be obtained, we currently expect that loans from our stockholders may be a
continuing source of liquidity to meet our obligations. Accordingly, we will
need to seek funding in the near future. Our independent auditors have issued a
going concern paragraph in their opinion on the financial statements for the
year ended June 30, 2007 that states there is substantial doubt about our
ability to continue as a going concern. The ability to continue as a going
concern is dependent on our ability to access capital through debt and equity funding.

Critical Accounting Policies

The significant accounting policies are summarized as follows:

Use of Estimates

Our management has made a number of estimates and assumptions relating to the reporting of assets and
liabilities and the disclosure
of contingent assets and liabilities to prepare these financial statements in conformity with
accounting principles generally
accepted in the United States of America. Actual results could differ from those estimates.

13

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Fair Value of Financial Instruments

The carrying amounts reported in the balance sheet for cash, accounts payable and accrued expenses,
convertible judgment debt payable
and stockholder payable approximate their fair market value based on the short-term maturity of these
instruments.

Statement of Financial Accounting Standards (SFAS) No. 107 requires disclosures about the fair
value for all financial instruments,
whether or not recognized, for financial statement purposes. Disclosures about fair value of
financial instruments are based
on pertinent information available to management as of September 30, 2007 and
2006. Accordingly, the estimates presented in these statements are not necessarily indicative of the amounts that could be realized on
disposition of the
financial instruments.

Management has estimated the fair values of cash, accounts payable and accrued expenses to be
approximately their respective carrying values reported on these statements because of their short maturities.

Our accounting
policies and recent accounting pronouncements are described in Note 3 to our
audited financial statements for the fiscal years ended June 30, 2007 and 2006,
included in Amendment Number 1 to our Registration Statement on Form 10 SB/A
filed on September 27, 2007.

Off-Balance Sheet Arrangements

We do not have
any off-balance sheet arrangements, investments in special purpose entities or
undisclosed borrowings or debt. Additionally, we are not a party to any
derivative contracts or synthetic leases.

ITEM
3. CONTROLS AND PROCEDURES

The Companys
management, with the participation of its principal executive officer and
principal financial officer, evaluated the effectiveness of the Companys
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) as of the end of the period covered by this report. Based on
this evaluation, the principal executive officer and principal financial
officer concluded that, as of September 30, 2007, the Companys disclosure
controls and procedures were effective, at the reasonable assurance level, to
ensure that (i) information required to be disclosed by the Company in the
reports that it files or submits under the Exchange Act is recorded, processed,
summarized, and reported within the time periods specified in the Securities
and Exchange Commissions (SEC) rules and forms and (ii) information required
to be disclosed by the Company in the reports that it files or submits under
the Exchange Act is accumulated and communicated to the Companys management
including its principal executive and principal financial officers, or persons
performing similar functions, as appropriate to allow timely decisions
regarding required disclosure.

14

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A control
system, no matter how well conceived and operated, can provide only reasonable,
not absolute, assurance that the objective 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. Because
of the inherent limitations in a cost- effective control system, misstatements
due to error or fraud may occur and not be detected.

PART II. OTHER INFORMATION

ITEM
1. LEGAL PROCEEDINGS

None

ITEM
2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

ITEM
3. DEFAULTS UPON SENIOR SECURITIES

None

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

On September
11, 2007, the board of directors and holders of a majority of the Companys
shares of common stock outstanding approved an amendment and restatement of the
Articles of Incorporation of the Company to, among other things, decrease the
number of authorized shares of the Companys capital stock, from Five Hundred
Twenty Five Million (525,000,000) shares to One Hundred Twenty Five Million
(125,000,000) shares, of which One Hundred Million (100,000,000) shares are
common stock, par value $0.001 per share, and Twenty Five Million (25,000,000)
shares are preferred stock, par value $0.01 per share. Holders of an aggregate
of 15,420,000 shares of the Companys 16,168,733 shares of common stock outstanding
approved the amendment and restatement of the Articles of Incorporation by
written consent. The Amended and Restated Articles of Incorporation of the
Company were filed with the Secretary of State of the State of Nevada on
September 25, 2007. A copy of the Amended and Restated Articles of
Incorporation was filed as Exhibit 3.1.4 to the Companys Amendment Number 1 to
the Registration Statement on Form 10-SB/A filed on September 27, 2007 and is
incorporated by reference.

ITEM
5. OTHER INFORMATION

None

15

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ITEM
6. EXHIBITS

|      |   |                                                                                                                                                                          
|----- | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3.1.4 |   | Amended and Restated Articles of Incorporation of Monarch Investment Properties, Inc. as filed with the Secretary of
State of the State of Nevada on September 25, 2007.*
|      |   |                                                                                                                                                                          
|31.1  |  | Certification
 of Principal Executive Officer Pursuant to Section 302 of Sarbanes-Oxley
 Act of 2002                                                                     
|      |   |                                                                                                                                                                          
|31.2  |  | Certification
 of Principal Financial Officer Pursuant to Section 302 of Sarbanes-Oxley
 Act of 2002                                                                     
|      |   |                                                                                                                                                                          
|32    |  | Certification
 Pursuant to Section 906 of Sarbanes-Oxley Act of 2002                                                                                                     
|      |   |                                                                                                                                                                          
|*     |   | Previously filed on September 27, 2007 with the Registrants Amendment Number 1 to the Registration Statement on
Form 10 SB/A.                                           

16

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SIGNATURES

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

MONARCH INVESTMENT PROPERTIES, INC.
(Registrant)

Date:   November 14, 2007


|                                                                                                        |                     
|------------------------------------------------------------------------------------------------------- | --------------------
|                                                                                                        |                     
|                                                                                                        |                     
|By:                                                                                                     | /s/ Stephen M. Gould
|                                                                                                        |                     
|STEPHEN M. GOULD
 Treasurer and Chief
 Financial
 Officer (Principal Financial and
 Accounting Officer)

Date:   November 14, 2007


|                                                                |                 
|--------------------------------------------------------------- | ----------------
|                                                                |                 
|                                                                |                 
|By:                                                             | /s/ David Miller
|                                                                |                 
|DAVID MILLERPresident and Director (PrincipalExecutive Officer)

17

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