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 December 31,
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 February 8, 2010 was 16,168,733.

---



TABLE OF CONTENTS

|                                                                                                                    |                                                                                         |    |     
|------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------- | -- | ----
|                                                                                                                    |                                                                                         |    | Page
|                                                                                                                    |                                                                                         |    |     
|PART I. FINANCIAL
 INFORMATION                                                                                      |                                                                                         |   
|                                                                                                                    |                                                                                         |    |     
|Item
 1.                                                                                                            | Financial
 Statements                                                                   |    |     
|                                                                                                                    |                                                                                         |    |     
|Balance Sheets as of December 31, 2009 (Unaudited)
 and June 30, 2009                                               |                                                                                         | 3 
|                                                                                                                    |                                                                                         |    |     
|Condensed Statements of Operations for the
 Three and Six months Ended December 31, 2009 and 2008 (Unaudited)       |                                                                                         | 4 
|                                                                                                                    |                                                                                         |    |     
|Condensed Statement of Changes in
 Stockholders Deficiency for the Six Months Ended December 31, 2009
 (Unaudited) |                                                                                         | 5 
|                                                                                                                    |                                                                                         |    |     
|Condensed Statements of Cash Flows for the
 Six Months Ended December 31, 2009 and 2008 (Unaudited)                 |                                                                                         | 6 
|                                                                                                                    |                                                                                         |    |     
|Notes to the Condensed Unaudited Financial
 Statements as of December 31, 2009 and 2008                             |                                                                                         | 7 
|                                                                                                                    |                                                                                         |    |     
|Item 2.                                                                                                             | Managements Discussion and Analysis of
 Financial Condition and Results of
 Operations |    | 10  
|                                                                                                                    |                                                                                         |    |     
|Item 3.                                                                                                             | Quantitative and Qualitative Disclosures
 About Market Risk                             |    | 15  
|                                                                                                                    |                                                                                         |    |     
|Item 4T.                                                                                                            | Controls and Procedures                                                                 |    | 15  
|                                                                                                                    |                                                                                         |    |     
|PART II. OTHER
 INFORMATION                                                                                         |                                                                                         |   
|                                                                                                                    |                                                                                         |    |     
|Item 1.                                                                                                             | Legal Proceedings                                                                       |    | 16  
|                                                                                                                    |                                                                                         |    |     
|Item 1A.                                                                                                            | Risk Factors                                                                            |    | 16  
|                                                                                                                    |                                                                                         |    |     
|Item 2.                                                                                                             | Unregistered Sales of Equity Securities and Use of Proceeds                             |    | 17  
|                                                                                                                    |                                                                                         |    |     
|Item 3.                                                                                                             | Defaults Upon Senior Securities                                                         |    | 17  
|                                                                                                                    |                                                                                         |    |     
|Item 4.                                                                                                             | Submission of Matters to a Vote of Security Holders                                     |    | 17  
|                                                                                                                    |                                                                                         |    |     
|Item 5.                                                                                                             | Other Information                                                                       |    | 17  
|                                                                                                                    |                                                                                         |    |     
|Item 6.                                                                                                             | Exhibit Index                                                                           |    | 17  
|                                                                                                                    |                                                                                         |    |     
|SIGNATURES                                                                                                          |                                                                                         | 18
|                                                                                                                    |                                                                                         |   
|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

---



PART I. FINANCIAL INFORMATION

ITEM
1. FINANCIAL STATEMENTS

MONARCH INVESTMENT PROPERTIES, INC.BALANCE SHEETS

|                                                                                                                      |  |                                |            |                           |   |            |  
|--------------------------------------------------------------------------------------------------------------------- |  | ------------------------------ | ---------- | ------------------------- | - | ---------- | -
|                                                                                                                      |  | December 31, 2009
 (Unaudited) |            | June 30, 2009 
 (Audited) |  
|                                                                                                                      |  |                                |            |                           |  
|ASSETS                                                                                                                |  |                                |            |                           |   |            |  
|                                                                                                                      |  |                                |            |                           |   |            |  
|CURRENT ASSETS                                                                                                        |  |                                |            |                           |   |            |  
|Cash                                                                                                                  |  | $                              | 1,865      |                           | $ | 5,179      |  
|                                                                                                                      |  |                                |            |                           |   |            |  
|Total Current Assets                                                                                                  |  |                                | 1,865      |                           |   | 5,179      |  
|                                                                                                                      |  |                                |            |                           |   |            |  
|TOTAL ASSETS                                                                                                          |  | $                              | 1,865      |                           | $ | 5,179      |  
|                                                                                                                      |  |                                |            |                           |   |            |  
|                                                                                                                      |  |                                |            |                           |   |            |  
|LIABILITIES AND STOCKHOLDERS DEFICIENCY                                                                              |  |                                |            |                           |   |            |  
|                                                                                                                      |  |                                |            |                           |   |            |  
|CURRENT LIABILITIES                                                                                                   |  |                                |            |                           |   |            |  
|Accrued expenses and other current
 liabilities                                                                       |  | $                              | 74,423     |                           | $ | 80,670     |  
|Convertible judgment debt payable                                                                                     |  |                                | 217,678    |                           |   | 210,354    |  
|Affiliated party debt                                                                                                 |  |                                | 262,949    |                           |   | 235,318    |  
|                                                                                                                      |  |                                |            |                           |   |            |  
|Total Current Liabilities                                                                                             |  |                                | 555,050    |                           |   | 526,342    |  
|                                                                                                                      |  |                                |            |                           |   |            |  
|                                                                                                                      |  |                                |            |                           |   |            |  
|COMMITMENTS AND CONTINGENCES                                                                                          |  |                                |            |                           |   |            |  
|                                                                                                                      |  |                                |            |                           |   |            |  
|STOCKHOLDERS DEFICIENCY                                                                                              |  |                                |            |                           |   |            |  
|Preferred stock, $0.01 par value, 25,000,00
 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                                                                                                   |  |                                | (3,402,595 | )                         |   | (3,370,573 | )
|                                                                                                                      |  |                                |            |                           |   |            |  
|Total Stockholders Deficiency                                                                                        |  |                                | (553,185   | )                         |   | (521,163   | )
|                                                                                                                      |  |                                |            |                           |   |            |  
|TOTAL LIABILITIES
 & STOCKHOLDERS DEFICIENCY                                                                         |  | $                              | 1,865      |                           | $ | 5,179      |  
|                                                                                                                      |  |                                |            |                           |   |            |  

See accompanying notes to the condensed
unaudited financial statements

3

---



MONARCH INVESTMENT PROPERTIES, INCCONDENSED STATEMENTS OF OPERATIONS
(Unaudited)

|                                                       |  |                                  |            |                                |   |            |   |      |            |   |   |            |  
|------------------------------------------------------ |  | -------------------------------- | ---------- | ------------------------------ | - | ---------- | - | ---- | ---------- | - | - | ---------- | -
|                                                       |  | Three Months Ended
 December 31, |            | Six Months Ended
 December 31, |  
|                                                       |  |                                  |            |                                |   |            |   |      |           
|                                                       |  | 2009                             |            | 2008                           |   | 2009       |   | 2008 |           
|                                                       |  |                                  |            |                                |   |            |   |      |           
|Revenue                                                |  | $                                |           |                                | $ |           |   | $    |           |   | $ |           |  
|General and administrative expenses                    |  |                                  | 4,966      |                                |   | 6,811      |   |      | 10,068     |   |   | 14,194     |  
|                                                       |  |                                  |            |                                |   |            |   |      |            |   |   |            |  
|Loss from operations                                   |  |                                  | (4,966     | )                              |   | (6,811     | ) |      | (10,068    | ) |   | (14,194    | )
|                                                       |  |                                  |            |                                |   |            |   |      |            |   |   |            |  
|Other (expense) income:                                |  |                                  |            |                                |   |            |   |      |            |   |   |            |  
|Interest expense                                       |  |                                  | (11,234    | )                              |   | (9,167     | ) |      | (21,954    | ) |   | (17,941    | )
|                                                       |  |                                  |            |                                |   |            |   |      |            |   |   |            |  
|Total Other (expense)                                  |  |                                  | (11,234    | )                              |   | (9,167     | ) |      | (21,954    | ) |   | (17,941    | )
|                                                       |  |                                  |            |                                |   |            |   |      |            |   |   |            |  
|Net Loss                                               |  | $                                | (16,200    | )                              | $ | (15,978    | ) | $    | (32,022    | ) | $ | (32,135    | )
|                                                       |  |                                  |            |                                |   |            |   |      |            |   |   |            |  
|                                                       |  |                                  |            |                                |   |            |   |      |            |   |   |            |  
|                                                       |  |                                  |            |                                |   |            |   |      |            |   |   |            |  
|Net Loss per common share:                             |  |                                  |            |                                |   |            |   |      |            |   |   |            |  
|Basic and fully diluted                                |  | $                                | (0.001     | )                              | $ | (0.001     | ) | $    | (0.002     | ) | $ | (0.002     | )
|                                                       |  |                                  |            |                                |   |            |   |      |            |   |   |            |  
|                                                       |  |                                  |            |                                |   |            |   |      |            |   |   |            |  
|Weighted average number of common shares
 outstanding: |  |                                  |            |                                |   |            |   |      |            |   |   |            |  
|Basic                                                  |  |                                  | 16,168,733 |                                |   | 16,168,733 |   |      | 16,168,733 |   |   | 16,168,733 |  
|Fully diluted                                          |  |                                  | 16,168,733 |                                |   | 16,168,733 |   |      | 16,168,733 |   |   | 16,168,733 |  

See accompanying notes to the condensed
unaudited financial statements

4

---



MONARCH INVESTMENT
PROPERTIES, INC.CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS DEFICIENCY
FOR THE SIX MONTHS ENDED DECEMBER 31, 2009
(Unaudited)

|                             |  |                 |        |              |        |                           |  |                    |        |  |   |           |  |   |            |   |   |          |  
|---------------------------- |  | --------------- | ------ | ------------ | ------ | ------------------------- |  | ------------------ | ------ |  | - | --------- |  | - | ---------- | - | - | -------- | -
|                             |  | PreferredShares |        | Common Stock |        | AdditionalPaid-In Capital |  | AccumulatedDeficit |        |  |  
|                             |  |                 | Shares |              | Amount |                           |  |                    | Total  | 
|                             |  |                 |        |              |        |                           |  |                    |        |  |   |           | 
|Balance at June 30, 2009     |  |                 |        |              |        | 16,168,733                |  | $                  | 16,169 |  | $ | 2,833,241 |  | $ | (3,370,573 | ) | $ | (521,163 | )
|                             |  |                 |        |              |        |                           |  |                    |        |  |   |           |  |   |            |   |   |          |  
|Net Loss                     |  |                 |        |              |        |                           |  |                    |        |  |   |           |  |   | (32,022    | ) |   | (32,022  | )
|                             |  |                 |        |              |        |                           |  |                    |        |  |   |           |  |   |            |   |   |          |  
|Balance at December 31, 2009 |  |                 |       |              |        | 16,168,733                |  | $                  | 16,169 |  | $ | 2,833,241 |  | $ | (3,402,595 | ) | $ | (553,185 | )
|                             |  |                 |        |              |        |                           |  |                    |        |  |   |           |  |   |            |   |   |          |  

See accompanying notes to the condensed
unaudited financial statements

5

---



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

|                                                                             |  |                                |         |      |   |         |  
|---------------------------------------------------------------------------- |  | ------------------------------ | ------- | ---- | - | ------- | -
|                                                                             |  | Six Months Ended
 December 31, |        
|                                                                             |  | 2009                           |         | 2008 |  
|                                                                             |  |                                |         |      |  
|CASH FLOWS FROM OPERATING ACTIVITIES:                                        |  |                                |         |      |   |         |  
|Net loss                                                                     |  | $                              | (32,022 | )    | $ | (32,135 | )
|                                                                             |  |                                |         |      |   |         |  
|Adjustments to reconcile net loss to net
 cash used in operating activities: |  |                                |         |      |   |         |  
|Changes in operating assets and
 liabilities:                                |  |                                |         |      |   |         |  
|Decrease in accrued expenses and other
 current liabilities                  |  |                                | (6,247  | )    |   | (5,029  | )
|Increase in convertible judgment debt
 payable                               |  |                                | 7,324   |      |   | 7,324   |  
|                                                                             |  |                                |         |      |   |         |  
|                                                                             |  |                                |         |      |   |         |  
|Total adjustments                                                            |  |                                | 1,077   |      |   | 2,295   |  
|                                                                             |  |                                |         |      |   |         |  
|Net cash used in operating activities                                        |  |                                | (30,945 | )    |   | (29,840 | )
|                                                                             |  |                                |         |      |   |         |  
|                                                                             |  |                                |         |      |   |         |  
|CASH FLOWS FROM FINANCING ACTIVITIES:                                        |  |                                |         |      |   |         |  
|Increase in affiliated party debt                                            |  |                                | 27,631  |      |   | 30,618  |  
|                                                                             |  |                                |         |      |   |         |  
|Net cash provided by financing activities                                    |  |                                | 27,631  |      |   | 30,618  |  
|                                                                             |  |                                |         |      |   |         |  
|NET INCREASE (DECREASE) IN CASH                                              |  |                                | (3,314  | )    |   | 778     |  
|CASH - BEGINNING OF YEAR                                                     |  |                                | 5,179   |      |   | 1,384   |  
|                                                                             |  |                                |         |      |   |         |  
|CASH - END OF PERIOD                                                         |  | $                              | 1,865   |      | $ | 2,162   |  
|                                                                             |  |                                |         |      |   |         |  
|                                                                             |  |                                |         |      |   |         |  
|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
December 31, 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 December 31, 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 December 31, 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.

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 December 31, 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.

7

---



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.

Note 3  Going Concern

As reflected in the accompanying financial statements, the Company
incurred a net loss of $32,022, negative cash flow from operations of $30,945
for the six months ended December 31, 2009, has an accumulated deficit of
$3,402,595 and a stockholders deficiency of $553,185 at December 31, 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

|                                                      |  |                   |        |               |   |        | 
|----------------------------------------------------- |  | ----------------- | ------ | ------------- | - | ------ | 
|                                                      |  | December 31, 2009 |        | June 30, 2009 |  
|                                                      |  |                   |        |               |  
|Legal fees                                            |  | $                 | 47,283 |               | $ | 47,567 | 
|Accounting and Auditing                               |  |                   | 14,000 |               |   | 16,500 | 
|Miscellaneous, other                                  |  |                   | 13,140 |               |   | 16,603 | 
|                                                      |  |                   |        |               |   |        | 
|Total accrued expenses and other current
 liabilities |  | $                 | 74,423 |               | $ | 80,670 | 
|                                                      |  |                   |        |               |   |        | 

8

---



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 December 2009 |  |   | 7,324      |  
|                                         |  |   |            |  
|                                         |  |   |            |  
|                                         |  | $ | 217,678    |  
|                                         |  |   |            |  

Note 6  Affiliated Party Debt Transaction

|                                                        |  |                                     |         |                           |   |         | 
|------------------------------------------------------- |  | ----------------------------------- | ------- | ------------------------- | - | ------- | 
|                                                        |  | Six Months Ended
 December 31, 2009 |         | Year Ended
 June 30, 2009 |  
|                                                        |  |                                     |         |                           |  
|Due to major shareholder/creditor,
 beginning of period |  | $                                   | 235,318 |                           | $ | 161,083 | 
|Additional borrowings                                   |  |                                     | 27,631  |                           |   | 74,235  | 
|Repayments                                              |  |                                     |        |                           |   |        | 
|                                                        |  |                                     |         |                           |   |         | 
|End of period                                           |  | $                                   | 262,949 |                           | $ | 235,318 | 
|                                                        |  |                                     |         |                           |   |         | 

Additional borrowings for the six months ended December 31, 2009
comprised of $10,000 of cash advances, interest on debt of $14,631 and
Management Fee of $3,000.

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.

9

---



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 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 outstanding warrants and the potential conversion of
the $217,678 convertible debt into 2,176,780 shares are both anti-dilutive due
to the Companys net loss, no diluted per share amounts are presented.

Note 9  Subsequent
Events

The Company has evaluated subsequent events
through February 8, 2010, and has determined that there were no subsequent
events to recognize or disclose in these financial statements.

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 and six months ended December 31, 2009 and 2008, respectively, and
the financial condition of the Company at December 31, 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-Q 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 Form 10-K filed for the fiscal year ended June 30, 2009.

10

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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.

This Space Intentionally Left Blank

11

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Accrued Expenses and Other Liabilities

Accrued expenses at December 31, 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:

|                                              |  |                   |        |               |   |                     |  |   |        |  
|--------------------------------------------- |  | ----------------- | ------ | ------------- | - | ------------------- |  | - | ------ | -
|                                              |  | December 31, 2009 |        | June 30, 2009 |   | Increase (Decrease) | 
|                                              |  |                   |        |               |   |                     | 
|Legal fees                                    |  | $                 | 47,283 |               | $ | 47,567              |  | $ | (284   | )
|Accounting fees                               |  |                   | 14,000 |               |   | 16,500              |  |   | (2,500 | )
|Miscellaneous, other                          |  |                   | 13,140 |               |   | 16,603              |  |   | (3,463 | )
|                                              |  |                   |        |               |   |                     |  |   |        |  
|Total Accrued Expenses and Other
 Liabilities |  | $                 | 74,423 |               | $ | 80,670              |  | $ | (6,247 | )
|                                              |  |                   |        |               |   |                     |  |   |        |  

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 December 2009 |  |   | 7,324      |  
|                                         |  |   |            |  
|Balance,
 December 31, 2009              |  | $ | 217,678    |  
|                                         |  |   |            |  

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                    |  |   | 10,000  | 
|Interest                    |  |   | 14,631  | 
|Management
 Fee             |  |   | 3,000   | 
|                            |  |   |         | 
|Balance,
 December 31, 2009 |  | $ | 262,949 | 
|                            |  |   |         | 

12

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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 December 31, 2009 Compared to the Three Months Ended
December 31, 2008

General and administrative expenses were $4,966 for the three months
ended December 31, 2009, as compared to $6,811 for the three months ended
December 31, 2008, a decrease of $1,845.

|                     |  |      |       |      |   |       | 
|-------------------- |  | ---- | ----- | ---- | - | ----- | 
|                     |  | 2009 |       | 2008 |  
|                     |  |      |       |      |  
|Accounting
 Fees     |  | $    | 2,000 |      | $ | 2,000 | 
|Legal Fees           |  |      | 349   |      |   | 1,000 | 
|Management
 Fees     |  |      | 1,500 |      |   | 1,500 | 
|Stock
 Transfer Fees |  |      | 715   |      |   | 651   | 
|Edgarized
 Fees      |  |      | 402   |      |   | 1,660 | 
|                     |  |      |       |      |   |       | 
|TOTAL                |  | $    | 4,966 |      | $ | 6,811 | 
|                     |  |      |       |      |   |       | 

General and administrative expenses were $10,068 for the six months
ended December 31, 2009, as compared to $14,194 for the six months ended
December 31, 2008, a decrease of $4,126.

Six months ended December 31, 2009 compared to the six months ended
December 31, 2008.

Listed below
is a summary of these expenses:

|                     |  |      |        |      |   |        | 
|-------------------- |  | ---- | ------ | ---- | - | ------ | 
|                     |  | 2009 |        | 2008 |  
|                     |  |      |        |      |  
|Accounting
 Fees     |  | $    | 4,000  |      | $ | 4,000  | 
|Legal Fees           |  |      | 867    |      |   | 3,678  | 
|Management
 Fees     |  |      | 3,000  |      |   | 3,000  | 
|Edgarization
 Costs  |  |      | 1,246  |      |   | 1,101  | 
|Stock
 Transfer Fees |  |      | 955    |      |   | 966    | 
|Miscellaneous        |  |      |       |      |   | 1,449  | 
|                     |  |      |        |      |   |        | 
|TOTAL                |  | $    | 10,068 |      | $ | 14,194 | 
|                     |  |      |        |      |   |        | 

Liquidity and Capital Resources

At December 31, 2009, our cash balance was $1,865 and we had a working
capital deficit of $553,185.

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.

13

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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 six months ended December 31, 2009, we had
negative cash flows from operating activities of $30,945 compared to negative
cash flows of $29,840 for the six months ended December 31, 2008. We have been
dependent upon proceeds of loans from Strategic to fund continuing activities.
For the six months ended December 31, 2009, our loans from Strategic increased
by $27,631.

We currently do not have sufficient cash to meet any of our current or
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.

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 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 December 31, 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.

14

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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.

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 December 31, 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.

15

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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.

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 or the following
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 effect our
 ability to issue shares or debt securities to complete a business
 combination.

16

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We are unsure of the duration and severity of
this economic crisis. If the crisis persists 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 December 31, 2009 there is
not 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

17

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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: February 8, 2010                       |                 
|                                             |                 
|By:                                          | /s/ Philip Bloom | 
|                                             |                  | 
|Philip Bloom                                 |                 
|Treasurer and
 Chief Financial Officer       |                 
|(Principal Financial and Accounting Officer) |                 
|                                             |                  | 
|Date: February 8, 2010                       |                 
|                                             |                  | 
|By:                                          | /s/ David Miller | 
|                                             |                  | 
|David Miller                                 |                 
|President and Director                       |                 
|(Principal Executive Officer)                |                 

18

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