SECURITIES AND EXCHANGE COMMISSIONWASHINGTON, DC
20549

FORM 10-Q

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

For the quarterly period ended September 30,
2009

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

For the transition period from ______________
to ______________

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      |  | (I.R.S. Employer Identification
|of Incorporation or Organization) |  | Number)                        

1801 North Military Trail, Suite 203
Boca Raton, FL 33431
(Address of Principal Executive Offices)

(561) 391-6117
(Issuers Telephone Number, Including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to the
filing requirements for the past 90 days.

Yes x     No
o


Indicate by check mark whether the registrant is a large accelerated
filer, accelerated filer, a non-accelerated filer, or a smaller reporting
company. See the definitions of large accelerated filer, accelerated filer
and smaller reporting company in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer o     Accelerated
Filer o     Non-Accelerated
Filer o     Smaller
Reporting Company x

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

Yes x     No
o


The number of shares outstanding of the registrants Class A common
stock as of October 16, 2009 was 16,168,733.

---



TABLE OF CONTENTS

|                                                                                                                      |  |     
|--------------------------------------------------------------------------------------------------------------------- |  | ----
|                                                                                                                      |  | Page
|                                                                                                                      |  |     
|                                                                                                                      |  |     
|PART I. FINANCIAL INFORMATION                                                                                         |  |     
|                                                                                                                      |  |     
|Item 1. Financial Statements                                                                                          |  |     
|                                                                                                                      |  |     
|Balance Sheets as of September 30,
 2009 (Unaudited) and June 30, 2009                                                |  | 3   
|                                                                                                                      |  |     
|Condensed Statements of Operations for the
 Three Months Ended September 30, 2009 and 2008 (Unaudited)                |  | 4   
|                                                                                                                      |  |     
|Condensed Statement of Changes in Stockholders
 Deficiency for the Three Months Ended September 30, 2009 (Unaudited) |  | 5   
|                                                                                                                      |  |     
|Condensed Statements of Cash Flows for the
 Three Months Ended September 30, 2009 and 2008 (Unaudited)                |  | 6   
|                                                                                                                      |  |     
|Notes to the Condensed Unaudited Financial
 Statements as of September 30, 2009 and 2008                              |  | 7   
|                                                                                                                      |  |     
|Item 2. Managements Discussion and
 Analysis of Financial Condition and Results of Operations                        |  | 11  
|                                                                                                                      |  |     
|Item 3. Quantitative and Qualitative
 Disclosures About Market Risk                                                   |  | 16  
|                                                                                                                      |  |     
|Item 4T. Controls and Procedures                                                                                      |  | 17  
|                                                                                                                      |  |     
|PART II. OTHER
 INFORMATION                                                                                           |  |     
|                                                                                                                      |  |     
|Item 1. Legal Proceedings                                                                                             |  | 18  
|                                                                                                                      |  |     
|Item 1A. Risk Factors                                                                                                 |  | 18  
|                                                                                                                      |  |     
|Item 2. Unregistered Sales of Equity
 Securities and Use of Proceeds                                                  |  | 19  
|                                                                                                                      |  |     
|Item 3. Defaults Upon Senior
 Securities                                                                              |  | 19  
|                                                                                                                      |  |     
|Item 4. Submission of Matters to a
 Vote of Security Holders                                                          |  | 19  
|                                                                                                                      |  |     
|Item 5. Other Information                                                                                             |  | 19  
|                                                                                                                      |  |     
|Item 6. Exhibit Index                                                                                                 |  | 19  
|                                                                                                                      |  |     
|SIGNATURES                                                                                                            |  | 20  
|                                                                                                                      |  |     
|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, 2009 |            | June 30, 2009 |  
|                                                                                                                      |  | (Unaudited)        |            | (Audited)     |  
|                                                                                                                      |  |                    |            |               |  
|                                                                                                                      |  |                    |            |               |   |            |  
|ASSETS                                                                                                                |  |                    |            |               |   |            |  
|                                                                                                                      |  |                    |            |               |   |            |  
|CURRENT ASSETS                                                                                                        |  |                    |            |               |   |            |  
|Cash                                                                                                                  |  | $                  | 2,406      |               | $ | 5,179      |  
|                                                                                                                      |  |                    |            |               |   |            |  
|Total Current Assets                                                                                                  |  |                    | 2,406      |               |   | 5,179      |  
|                                                                                                                      |  |                    |            |               |   |            |  
|TOTAL ASSETS                                                                                                          |  | $                  | 2,406      |               | $ | 5,179      |  
|                                                                                                                      |  |                    |            |               |   |            |  
|                                                                                                                      |  |                    |            |               |   |            |  
|LIABILITIES AND STOCKHOLDERS DEFICIENCY                                                                              |  |                    |            |               |   |            |  
|                                                                                                                      |  |                    |            |               |   |            |  
|CURRENT LIABILITIES                                                                                                   |  |                    |            |               |   |            |  
|Accrued expenses and other current
 liabilities                                                                       |  | $                  | 76,498     |               | $ | 80,670     |  
|Convertible judgment debt payable                                                                                     |  |                    | 214,016    |               |   | 210,354    |  
|Affiliated party debt                                                                                                 |  |                    | 248,877    |               |   | 235,318    |  
|                                                                                                                      |  |                    |            |               |   |            |  
|Total Current Liabilities                                                                                             |  |                    | 539,391    |               |   | 526,342    |  
|                                                                                                                      |  |                    |            |               |   |            |  
|                                                                                                                      |  |                    |            |               |   |            |  
|COMMITMENTS AND CONTINGENCIES                                                                                         |  |                    |            |               |   |            |  
|                                                                                                                      |  |                    |            |               |   |            |  
|STOCKHOLDERS DEFICIENCY                                                                                              |  |                    |            |               |   |            |  
|Preferred stock, $0.01 par value,
 25,000,000 shares authorized, no shares issued and outstanding                     |  |                    |           |               |   |           |  
|Common stock, $.001 par value, 500,000,000
 shares authorized, 16,168,733 shares issued and outstanding, respectively |  |                    | 16,169     |               |   | 16,169     |  
|Additional paid-in capital                                                                                            |  |                    | 2,833,241  |               |   | 2,833,241  |  
|Accumulated deficit                                                                                                   |  |                    | (3,386,395 | )             |   | (3,370,573 | )
|                                                                                                                      |  |                    |            |               |   |            |  
|Total Stockholders Deficiency                                                                                        |  |                    | (536,985   | )             |   | (521,163   | )
|                                                                                                                      |  |                    |            |               |   |            |  
|TOTAL LIABILITIES & STOCKHOLDERS DEFICIENCY                                                                          |  | $                  | 2,406      |               | $ | 5,179      |  
|                                                                                                                      |  |                    |            |               |   |            |  

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, |           
|                                                      |  | 2009                             |            | 2008 |  
|                                                      |  |                                  |            |      |  
|                                                      |  |                                  |            |      |   |            |  
|Revenue                                               |  | $                                |           |      | $ |           |  
|                                                      |  |                                  |            |      |   |            |  
|General and administrative expenses                   |  |                                  | 5,102      |      |   | 7,383      |  
|                                                      |  |                                  |            |      |   |            |  
|Loss from operations                                  |  |                                  | (5,102     | )    |   | (7,383     | )
|                                                      |  |                                  |            |      |   |            |  
|Other (expenses) income:                              |  |                                  |            |      |   |            |  
|Interest expense                                      |  |                                  | (10,720    | )    |   | (8,774     | )
|                                                      |  |                                  |            |      |   |            |  
|                                                      |  |                                  |            |      |   |            |  
|Net loss                                              |  |                                  | (15,822    | )    | $ | (16,157    | )
|                                                      |  |                                  |            |      |   |            |  
|                                                      |  |                                  |            |      |   |            |  
|Net loss per common share:                            |  |                                  |            |      |   |            |  
|Basic and fully diluted                               |  | $                                | (0.001     | )    | $ | (0.001     | )
|                                                      |  |                                  |            |      |   |            |  
|                                                      |  |                                  |            |      |   |            |  
|Weighted average number of common shares
 outstanding |  |                                  |            |      |   |            |  
|Basic                                                 |  |                                  | 16,168,733 |      |   | 16,168,733 |  
|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, 2009
(Unaudited)

|                              |  |                 |              |  |         |            |         |                    |        |       |   |           |  |   |            |   |   |          |  
|----------------------------- |  | --------------- | ------------ |  | ------- | ---------- | ------- | ------------------ | ------ | ----- | - | --------- |  | - | ---------- | - | - | -------- | -
|                              |  | PreferredShares |              |  |         | Additional |         | AccumulatedDeficit |        |       |  
|                              |  |                 | Common Stock |  | Paid-In |            |         |                    |       
|                              |  |                 | Shares       |  | Amount  |            | Capital |                    |        | Total |  
|                              |  |                 |              |  |         |            |         |                    |        |       |   |           | 
|                              |  |                 |              |  |         |            |         |                    |        |       |   |           | 
|Balance at June 30, 2009      |  |                 |              |  |         | 16,168,733 |         | $                  | 16,169 |       | $ | 2,833,241 |  | $ | (3,370,573 | ) | $ | (521,163 | )
|                              |  |                 |              |  |         |            |         |                    |        |       |   |           |  |   |            |   |   |          |  
|Net Loss                      |  |                 |              |  |         |            |         |                    |        |       |   |           |  |   | (15,822    | ) |   | (15,822  | )
|                              |  |                 |              |  |         |            |         |                    |        |       |   |           |  |   |            |   |   |          |  
|Balance at September 30, 2009 |  |                 |             |  |         | 16,168,733 |         | $                  | 16,169 |       | $ | 2,833,241 |  | $ | (3,386,395 | ) | $ | (536,985 | )
|                              |  |                 |              |  |         |            |         |                    |        |       |   |           |  |   |            |   |   |          |  

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, |        
|                                                                             |  | 2009                              |         | 2008 |  
|                                                                             |  |                                   |         |      |  
|                                                                             |  |                                   |         |      |   |         |  
|CASH FLOWS FROM OPERATING ACTIVITIES:                                        |  |                                   |         |      |   |         |  
|Net loss                                                                     |  | $                                 | (15,822 | )    | $ | (16,157 | )
|                                                                             |  |                                   |         |      |   |         |  
|Adjustments to reconcile net loss to net
 cash used in operating activities: |  |                                   |         |      |   |         |  
|Changes in operating assets and liabilities:                                 |  |                                   |         |      |   |         |  
|Increase (Decrease) in accrued expenses and
 other current liabilities       |  |                                   | (4,172  | )    |   | (5,427  | )
|Increase in convertible judgment debt
 payable                               |  |                                   | 3,662   |      |   | 3,662   |  
|                                                                             |  |                                   |         |      |   |         |  
|Total adjustments                                                            |  |                                   | (510    | )    |   | (1,765  | )
|                                                                             |  |                                   |         |      |   |         |  
|Net cash used in operating activities                                        |  |                                   | (16,332 | )    |   | (17,922 | )
|                                                                             |  |                                   |         |      |   |         |  
|                                                                             |  |                                   |         |      |   |         |  
|CASH FLOWS FROM FINANCING ACTIVITIES:                                        |  |                                   |         |      |   |         |  
|Increase in affiliated party debt                                            |  |                                   | 13,559  |      |   | 16,612  |  
|                                                                             |  |                                   |         |      |   |         |  
|Net cash provided by financing activities                                    |  |                                   | 13,559  |      |   | 16,612  |  
|                                                                             |  |                                   |         |      |   |         |  
|NET (DECREASE) IN CASH                                                       |  |                                   | (2,773  | )    |   | (1,310  | )
|CASH - BEGINNING OF YEAR                                                     |  |                                   | 5,179   |      |   | 1,384   |  
|                                                                             |  |                                   |         |      |   |         |  
|CASH - END OF PERIOD                                                         |  | $                                 | 2,406   |      | $ | 74      |  
|                                                                             |  |                                   |         |      |   |         |  
|                                                                             |  |                                   |         |      |   |         |  
|SUPPLEMENTAL CASH FLOW DATA:                                                 |  |                                   |         |      |   |         |  
|Cash paid for interest                                                       |  | $                                 |        |      | $ |        |  
|                                                                             |  |                                   |         |      |   |         |  
|                                                                             |  |                                   |         |      |   |         |  
|Cash paid for income taxes                                                   |  | $                                 |        |      | $ |        |  
|                                                                             |  |                                   |         |      |   |         |  

See accompanying notes to the condensed
unaudited financial statements

6

---



Monarch Investment Properties, Inc.Notes to Condensed Unaudited Financial Statements
September 30, 2009
(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 flow at September 30, 2009 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 statement for the years ended June 30, 2009 and 2008
included in the Annual Report filed with the Securities and Exchange Commission
on Form 10-K.

The results of operations for the period ended September 30, 2009 are
not necessarily indicative of the operating results for the full year.

Note 2  Significant Accounting Policies

The significant accounting policies are summarized as follows:

Use of Estimates

Management of Monarch 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.

7

---



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 shareholder
payable approximate their fair market value based on the short-term maturity of
these instruments.

FASB ASC 820 - Fair Value Measurements and Disclosures 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, 2009 and June 30, 2009. 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.

Recent Accounting Pronouncements

There were various accounting standards and interpretations issued
recently, none of which are expected to have a material impact on the companys
financial position, operations or cash flows.

In June 2009, the FASB issued SFAS No. 168 (SFAS 168), Accounting
Standards Codification  and the Hierarchy of Generally Accepted Accounting
Principles. The FASB Accounting Standards Codification (Codification) has become the source of authoritative
accounting principles recognized by the FASB to be applied by nongovernmental
entities in the preparation of financial statements in accordance with GAAP.
All existing accounting standard documents are superseded by the Codification
and any accounting literature not included in the Codification will not be
authoritative. However, rules and interpretive releases of the Securities
Exchange Commission (SEC) issued under the authority of federal securities
laws will continue to be sources of authoritative GAAP for SEC registrants.
SFAS 168 is effective for interim and annual reporting periods ending after
September 15, 2009. Therefore, beginning with our quarter ending September 30,
2009, all references made by it to GAAP in its consolidated financial
statements now use the new Codification numbering system. The Codification does
not change or alter existing GAAP and, therefore, it is not having an impact on
our financial position, results of operations and cash flows.

8

---



Note 3  Going Concern

As reflected in the accompanying financial statements, the Company
incurred a net loss of $15,822, negative cash flow from operations of $16,332
for the three months ended September 30, 2009, has an accumulated deficit of
$3,386,395 and a stockholders deficiency of $536,985 at September 30, 2009.
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.

Note 4  Accrued Expenses and Other Current
Liabilities

|                                                      |  |                    |        |               |   |        | 
|----------------------------------------------------- |  | ------------------ | ------ | ------------- | - | ------ | 
|                                                      |  | September 30, 2009 |        | June 30, 2009 |  
|                                                      |  |                    |        |               |   |        | 
|Legal fees                                            |  | $                  | 43,675 |               | $ | 47,567 | 
|Accounting and Auditing                               |  |                    | 16,500 |               |   | 16,500 | 
|Miscellaneous, other                                  |  |                    | 16,323 |               |   | 16,603 | 
|                                                      |  |                    |        |               |   |        | 
|Total accrued expenses and other current
 liabilities |  | $                  | 76,498 |               | $ | 80,670 | 
|                                                      |  |                    |        |               |   |        | 

Note 5  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. Unpaid portions of the
JJFN Judgment bear simple interest at the statutory interest rate of 9% per
annum:

|                                          |  |   |            |  
|----------------------------------------- |  | - | ---------- | -
|Original judgment                         |  | $ | 1,100,000  |  
|Interest 1999 through June 2005           |  |   | 643,500    |  
|Partial payment made November 2004        |  |   | (155,000   | )
|                                          |  |   |            |  
|                                          |  |   |            |  
|Balance, June 30, 2005                    |  |   | 1,588,500  |  
|Interest June 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 June 2008      |  |   | 14,648     |  
|                                          |  |   |            |  
|                                          |  |   |            |  
|Balance, June 30, 2008                    |  |   | 195,707    |  
|Interest July 2008 through June 2009      |  |   | 14,647     |  
|                                          |  |   |            |  
|                                          |  |   |            |  
|Balance, June 30, 2009                    |  |   | 210,354    |  
|Interest July 2009 through September 2009 |  |   | 3,662      |  
|                                          |  |   |            |  
|                                          |  |   |            |  
|Balance, September 30, 2009               |  | $ | 214,016    |  
|                                          |  |   |            |  

9

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Note 6  Affiliated Party Debt-Related Party
Transactions

To date, our operations have been funded by Strategic Capital
Resources, Inc. (Strategic), which is an entity controlled by one of our
executive officers, who is also our majority shareholder. Listed below is a
summary of the debt we owe to Strategic.

|                                                        |  |                                        |         |                           |   |         | 
|------------------------------------------------------- |  | -------------------------------------- | ------- | ------------------------- | - | ------- | 
|                                                        |  | Three Months Ended
 September 30, 2009 |         | Year Ended
 June 30, 2009 |  
|                                                        |  |                                        |         |                           |   |         | 
|Due to major shareholder/creditor, beginning
 of period |  | $                                      | 235,318 |                           | $ | 161,083 | 
|Additional borrowings                                   |  |                                        | 13,559  |                           |   | 74,235  | 
|Repayments                                              |  |                                        |        |                           |   |        | 
|                                                        |  |                                        |         |                           |   |         | 
|End of period                                           |  | $                                      | 248,877 |                           | $ | 235,318 | 
|                                                        |  |                                        |         |                           |   |         | 

Additional borrowing for the three months ended September 30, 2009
comprised of $5,000 of Cash Advances, Interest on Debt of $7,059, and
Management Fees of $1,500.

See Note 7 to the audited financial statements for the years ended June
30, 2009 and 2008.

Note 7  Income Taxes

FASB ASC 740 - 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.

10

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Note 8  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 are
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 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, 2009 and 2008, respectively, and the
financial condition of the Company at September 30, 2009. 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, 2009 and 2008 on Form 10-K
filed with the Securities Exchange Commission.

Forward-looking Statements

Statements included in the Quarterly Report filed on Form 10-QB 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 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 Form 10-K filed for the fiscal year ended
June 30, 2009.

11

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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 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.

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.

12

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Accrued Expenses and Other Liabilities

Accrued expenses at September 30, 2009 and June 30, 2009 consisted
primarily of professional fees. Listed below is a summary of the transactions
related to accrued expenses and other liabilities:

|                                              |  |                     |        |                |   |                      |  |   |        |  
|--------------------------------------------- |  | ------------------- | ------ | -------------- | - | -------------------- |  | - | ------ | -
|                                              |  | September 30,
 2009 |        | June 30,
 2009 |   | Increase
 (Decrease) | 
|                                              |  |                     |        |                |   |                      |  |   |        |  
|Legal fees                                    |  | $                   | 43,675 |                | $ | 47,567               |  | $ | (3,892 | )
|Accounting fees                               |  |                     | 16,500 |                |   | 16,500               |  |   | 0      |  
|Miscellaneous, other                          |  |                     | 16,323 |                |   | 16,603               |  |   | (280   | )
|                                              |  |                     |        |                |   |                      |  |   |        |  
|Total Accrued Expenses and Other
 Liabilities |  | $                   | 76,498 |                | $ | 80,670               |  | $ | (4,172 | )
|                                              |  |                     |        |                |   |                      |  |   |        |  

Accrued legal fees are primarily the result of costs incurred in early
2008 related to our filing of the registration statement on Form 14C with the
Securities and Exchange Commission and our failed merger. For further
information on the failed Merger, refer to the Financial Statements and Note 4
in our Annual Report on Form 10-K for the year ended June 30, 2009.

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. Unpaid portions
of the JJFN Judgment bear simple interest at the rate of 9% per annum:

|                                          |  |   |            |  
|----------------------------------------- |  | - | ---------- | -
|Original judgment                         |  | $ | 1,100,000  |  
|Interest 1999 through June 2005           |  |   | 643,500    |  
|Partial payment made November 2004        |  |   | (155,000   | )
|                                          |  |   |            |  
|                                          |  |   |            |  
|Balance, June 30, 2005                    |  |   | 1,588,500  |  
|Interest June 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 27 through June 2008        |  |   | 14,648     |  
|                                          |  |   |            |  
|                                          |  |   |            |  
|Balance, June 30, 2008                    |  |   | 195,707    |  
|Interest July 2008 through June 2009      |  |   | 14,647     |  
|                                          |  |   |            |  
|                                          |  |   |            |  
|Balance, June 30, 2009                    |  |   | 210,354    |  
|Interest July 2009 through September 2009 |  |   | 3,662      |  
|                                          |  |   |            |  
|                                          |  |   |            |  
|Balance, September 30, 2009               |  | $ | 214,016    |  
|                                          |  |   |            |  

13

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Affiliated Party Debt

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

|                            |  |   |         | 
|--------------------------- |  | - | ------- | 
|Balance, June 30, 2009      |  | $ | 235,318 | 
|Advances                    |  |   | 5,000   | 
|Interest                    |  |   | 7,059   | 
|Management Fee              |  |   | 1,500   | 
|                            |  |   |         | 
|Balance, September 30, 2009 |  | $ | 248,877 | 
|                            |  |   |         | 

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, 2009
Compared to the Three Months Ended September 30, 2008

General and administrative expenses were $5,102 for the three months
ended September 30, 2009, as compared to $7,383 for the three months ended
September 30, 2008, a decrease of $2,281.

|                    |  |      |       |      |   |       | 
|------------------- |  | ---- | ----- | ---- | - | ----- | 
|                    |  | 2009 |       | 2008 |  
|                    |  |      |       |      |   |       | 
|Accounting Fees     |  | $    | 2,000 |      | $ | 2,000 | 
|Legal Fees          |  |      | 518   |      |   | 2,678 | 
|Management Fees     |  |      | 1,500 |      |   | 1,500 | 
|Stock Transfer Fees |  |      | 240   |      |   | 315   | 
|Miscellaneous Fees  |  |      | 844   |      |   | 890   | 
|                    |  |      |       |      |   |       | 
|TOTAL               |  | $    | 5,102 |      | $ | 7,383 | 
|                    |  |      |       |      |   |       | 

We accrued $2,000 for accounting fees related to quarterly filing of
Form 10-Q. The Company records a management fee of $500 per month for the use
of office space and for administrative and management services provided by
Strategic Capital Resources, Inc., a related party. The Miscellaneous fees are
primarily the result of edgarization costs associated with the filing of Form
10-Q.

14

---



Interest expense was $10,720 for the three months ended September 30,
2009, compared to $8,774 for the three months ended September 30, 2008, an
increase of $1,946. The increase was the result of higher affiliated party debt
at September 30, 2009 compared to 2008, resulting in higher interest expense
for the three months ended September 30, 2009.

Liquidity and Capital Resources

At September 30, 2009, our cash balance was $2,406 and we had a working
capital deficit of $536,985.

The 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, 2009, we had negative cash
flows from operating activities of $16,332 compared to negative cash flows of
$17,922 for the three months ended September 30, 2008. We have been dependent
upon proceeds of loans from Strategic to fund continuing activities. For the
three months ended September 30, 2009, our loans from Strategic increased by
$13,559.

We currently do not have sufficient cash reserves to meet any 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 fiscal year ended June 30, 2009 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.

15

---



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.

FASB ASC 820  Fair Value Measurements and Disclosures 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, 2009 and 2008. 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 5 to our audited financial statements for the fiscal years
ended June 30, 2009 and 2008 on Form 10-K filed with the Securities Exchange
Commission.

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. QUANTITATIVE AND QUALITATIVE
DISCLOURES ABOUT MARKET RISK

The Company does not have exposure to many market risks, such as
potential loss arising from adverse change in market rates and prices, such as
foreign currency exchange and interest rates. We do not hold any derivatives or
other financial instruments for trading or speculative purposes.

16

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ITEM 4T. CONTROLS AND PROCEDURES

Evaluation of disclosure 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, 2009, 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.

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.

Changes in internal controls

Our Certifying Officers have indicated that there were no significant
changes in our internal controls or other factors that could significantly
affect such controls subsequent to the date of their evaluation, and there were
no such control actions with regard to significant deficiencies and material
weaknesses.

Sarbanes  Oxley Act 404 compliance

The Company anticipates that it will be fully compliant with Section
404 of the Sarbanes-Oxley Act of 2002 by the required date for smaller
reporting companies and it is in the process of reviewing its internal control
systems in order to be compliant with Section 404 of the Sarbanes-Oxley Act.
However, at this time the Company makes no representation that its systems of
internal control comply with Section 404 of the Sarbanes-Oxley Act.

17

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PART II. OTHER
INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None

ITEM 1A. RISK FACTORS

You should carefully consider all the risks described as previously
discussed on our June 30, 2009 Form 10-K, which constitute the material risks
facing us. If any of those risks actually occur, our business could be harmed.
In connection with our preparation of this quarterly report, management has
reviewed and considered these risk factors and has determined that the
following risk factors should be read in connection with the existing risk
factors disclosed in our Annual Report on Form 10-K for the fiscal year ended
June 30, 2009. Please also refer to the other information about us contained in
this Form 10-Q, including our financial statements and related notes.

Deterioration of economic conditions could
negatively impact our Company.

Our Company may be adversely affected by changes in domestic and/or
international economic conditions, including changes in inflation, interest or
exchange rates, availability of capital markets and the effects of governmental
initiatives to manage economic conditions.

The recent disruptions in credit and freeze in the current market, as
well as deterioration of national and global economic conditions could, among
other things:

| |   |                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------
| | · | Impair our
 ability to access additional funds,                                                          
| |   |                                                                                                          
| | · | Make it more
 difficult or costly for us to obtain financing in order to execute our
 business plan,     
| |   |                                                                                                          
| | · | Impair our
 efforts to identify potential investors and business combination
 opportunities,             
| |   |                                                                                                          
| | · | Significantly
 affect our ability to issue shares or debt securities to complete a business
 combination.

18

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We are unsure of the duration and severity of this economic crisis. If
the crisis persist or worsens and economic conditions remain weak over a long
period, the likelihood of the crisis will have a significant impact on our
Company.

Proposed merger with All American, as filed
on Form Pre 14C on February 14, 2008, as well as the definitive information
statement, will not be consummated.

The merger was terminated and the Company may be subject to a number of
other risks. The Company has expended a substantial amount of time, effort and
incurred the expenses associated with attempting to effectuate the merger. The
failure to consummate the merger could have an adverse impact on the financial
condition of the Company and the value of its equity interests.

All American is obligated to reimburse us for costs in connection with
the proposed merger. As of September 30, 2009 there is no assurance that we
will be reimbursed or that the $315,972 due us will be collectible.

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

None

ITEM 5. OTHER INFORMATION

None

ITEM 6. EXHIBITS

|     |   |                                                                                                    
|---- | - | ---------------------------------------------------------------------------------------------------
|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                                

19

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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, thereunto duly
authorized.

|                                                     |                   | 
|---------------------------------------------------- | ----------------- | 
|MONARCH
 INVESTMENT PROPERTIES, INC.
 (Registrant)  
|                                                    
|Date:
 October 16, 2009                             
|                                                     |                   | 
|By:                                                  | /s/ Philip
 Bloom | 
|                                                     |                   | 
|Philip Bloom                                        
|Treasurer
 and Chief Financial Officer              
|(Principal
 Financial and Accounting Officer)       
|                                                     |                   | 
|Date:
 October 16, 2009                             
|                                                     |                   | 
|By:                                                  | /s/ David
 Miller | 
|                                                     |                   | 
|David Miller                                        
|President
 and Director(Principal Executive Officer)

20

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