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

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

FOR THE QUARTERLY PERIOD ENDED DECEMBER 31,
2007

o TRANSITION REPORT UNDER
SECTION 13 OR 15(d) OF THE EXCHANGE ACT

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 jurisdictionof incorporation or organization) |  | (I.R.S. EmployerIdentification No.)

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

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

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

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

Indicate by
check mark whether the registrant is a shell company (as defined in Rule 12b-2
of the Exchange Act).Yes x No o

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

As of December
31, 2007, there were 16,168,733 outstanding shares of common stock, par value
$0.001 per share.

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

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TABLE OF CONTENTS

|                                                                                                                    |                                                                                         |    |     
|------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------- | -- | ----
|                                                                                                                    |                                                                                         |    |     
|                                                                                                                    |                                                                                         |    | Page
|                                                                                                                    |                                                                                         |    |     
|PART I. FINANCIAL INFORMATION                                                                                       |                                                                                         |   
|                                                                                                                    |                                                                                         |   
|Item 1.                                                                                                             | Financial Statements                                                                    |    |     
|                                                                                                                    |                                                                                         |    |     
|Balance Sheets as of December 31, 2007 (Unaudited) and June 30, 2007                                                |                                                                                         | 3 
|                                                                                                                    |                                                                                         |   
|Condensed Statements of Operations for the Three and Six Months Ended
  December 31, 2007 and 2006 (Unaudited)      |                                                                                         | 4 
|                                                                                                                    |                                                                                         |   
|Condensed Statement of Changes in Stockholders Deficiency for the Six
  Months Ended December 31, 2007 (Unaudited) |                                                                                         | 5 
|                                                                                                                    |                                                                                         |   
|Condensed Statements of Cash Flows for the Six Months Ended December
  31, 2007 and 2006 (Unaudited)                |                                                                                         | 6 
|                                                                                                                    |                                                                                         |   
|Notes to the Condensed Unaudited Financial Statements as of December 31,
  2007 and 2006                            |                                                                                         | 7 
|                                                                                                                    |                                                                                         |   
|Item 2.                                                                                                             | Managements Discussion and Analysis of Financial Condition and
  Results of Operations |    | 12  
|                                                                                                                    |                                                                                         |    |     
|Item 3.                                                                                                             | Controls and Procedures                                                                 |    | 21  
|                                                                                                                    |                                                                                         |    |     
|PART II. OTHER INFORMATION                                                                                          |                                                                                         |   
|                                                                                                                    |                                                                                         |   
|Item 1.                                                                                                             | Legal Proceedings                                                                       |    | 22  
|                                                                                                                    |                                                                                         |    |     
|Item 2.                                                                                                             | Unregistered Sales of Equity Securities and Use of Proceeds                             |    | 22  
|                                                                                                                    |                                                                                         |    |     
|Item 3.                                                                                                             | Defaults Upon Senior Securities                                                         |    | 22  
|                                                                                                                    |                                                                                         |    |     
|Item 4.                                                                                                             | Submission of Matters to a Vote of Security Holders                                     |    | 22  
|                                                                                                                    |                                                                                         |    |     
|Item 5.                                                                                                             | Other Information                                                                       |    | 22  
|                                                                                                                    |                                                                                         |   
|Item 6.                                                                                                             | Exhibits                                                                                |    |     
|                                                                                                                    |                                                                                         |    |     
|SIGNATURES                                                                                                          |                                                                                         | 23
|                                                                                                                    |                                                                                         |    |     
|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

|                                                                                                         |  |                                   |            |                 |   |            |  
|-------------------------------------------------------------------------------------------------------- |  | --------------------------------- | ---------- | --------------- | - | ---------- | -
|                                                                                                         |  | December 31,
  2007
  (Unaudited) |            | June 30,
  2007 |  
|                                                                                                         |  |                                   |            |                 |  
|ASSETS                                                                                                   |  |                                   |            |                 |   |            |  
|CURRENT ASSETS                                                                                           |  |                                   |            |                 |   |            |  
|Cash                                                                                                     |  | $                                 | 4,701      |                 | $ | 3,336      |  
|                                                                                                         |  |                                   |            |                 |   |            |  
|Total current assets                                                                                     |  |                                   | 4,701      |                 |   | 3,336      |  
|                                                                                                         |  |                                   |            |                 |   |            |  
|TOTAL ASSETS                                                                                             |  | $                                 | 4,701      |                 | $ | 3,336      |  
|                                                                                                         |  |                                   |            |                 |   |            |  
|                                                                                                         |  |                                   |            |                 |   |            |  
|LIABILITIES AND STOCKHOLDERS DEFICIENCY                                                                
|                                                                                                         |  |                                   |            |                 |   |            |  
|CURRENT LIABILITIES                                                                                      |  |                                   |            |                 |   |            |  
|                                                                                                         |  |                                   |            |                 |   |            |  
|Accrued expenses and other current
  liabilities                                                         |  | $                                 | 32,881     |                 | $ | 30,718     |  
|Convertible judgment debt payable                                                                        |  |                                   | 188,383    |                 |   | 181,059    |  
|Affiliated party debt                                                                                    |  |                                   | 221,349    |                 |   | 109,252    |  
|                                                                                                         |  |                                   |            |                 |   |            |  
|Total Current Liabilities                                                                                |  |                                   | 442,613    |                 |   | 321,029    |  
|                                                                                                         |  |                                   |            |                 |   |            |  
|                                                                                                         |  |                                   |            |                 |   |            |  
|COMMITMENTS AND CONTINGENCES                                                                             |  |                                   |            |                 |   |            |  
|                                                                                                         |  |                                   |            |                 |   |            |  
|STOCKHOLDERS DEFICIENCY                                                                                 |  |                                   |            |                 |   |            |  
|Preferred stock, $.01 par value 25,000,000
  shares authorized, no shares issues and outstanding         |  |                                   |           |                 |   |           |  
|Common stock, $.001 par value, 500,000,000
  shares authorized, 16,168,733 shares issued and outstanding |  |                                   | 16,169     |                 |   | 16,169     |  
|Additional paid-in capital                                                                               |  |                                   | 2,833,241  |                 |   | 2,833,241  |  
|Accumulated deficit                                                                                      |  |                                   | (3,287,322 | )               |   | (3,167,103 | )
|                                                                                                         |  |                                   |            |                 |   |            |  
|Total Stockholders Deficiency                                                                           |  |                                   | (437,912   | )               |   | (317,693   | )
|                                                                                                         |  |                                   |            |                 |   |            |  
|TOTAL LIABILITIES & STOCKHOLDERS
DEFICIENCY                                                             |  | $                                 | 4,701      |                 | $ | 3,336      |  
|                                                                                                         |  |                                   |            |                 |   |            |  

See accompanying notes to the condensed
unaudited financial statements

3

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

|                                                      |  |                                  |            |                                |   |            |  |      |            |   |   |            |  
|----------------------------------------------------- |  | -------------------------------- | ---------- | ------------------------------ | - | ---------- |  | ---- | ---------- | - | - | ---------- | -
|                                                      |  | Three Months Ended
 December 31, |            | Six Months Ended
 December 31, |  
|                                                      |  | 2007                             |            | 2006                           |   | 2007       |  | 2006 |           
|                                                      |  |                                  |            |                                |  
|Revenue                                               |  | $                                |           |                                | $ |           |  | $    |           |   | $ |           |  
|                                                      |  |                                  |            |                                |   |            |  |      |            |   |   |            |  
|General and
 administrative expenses                  |  |                                  | 28,208     |                                |   | 6,409      |  |      | 102,798    |   |   | 12,635     |  
|                                                      |  |                                  |            |                                |   |            |  |      |            |   |   |            |  
|Loss from
 operations                                 |  |                                  | (28,208    | )                              | $ | (6,409)    |  |      | (102,798   | ) |   | (12,635    | )
|                                                      |  |                                  |            |                                |   |            |  |      |            |   |   |            |  
|Other
 (expenses):                                    |  |                                  |            |                                |   |            |  |      |            |   |   |            |  
|Interest expense                                      |  |                                  | (9,664     | )                              |   | (5,918)    |  |      | (17,421    | ) |   | (11,476    | )
|                                                      |  |                                  |            |                                |   |            |  |      |            |   |   |            |  
|Total other (expense)                                 |  |                                  | (9,664     | )                              |   | (5,918)    |  |      | (17,421    | ) |   | (11,476    | )
|                                                      |  |                                  |            |                                |   |            |  |      |            |   |   |            |  
|                                                      |  |                                  |            |                                |   |            |  |      |            |   |   |            |  
|Net loss                                              |  | $                                | (37,872    | )                              | $ | (12,327)   |  | $    | (120,219   | ) | $ | (24,111    | )
|                                                      |  |                                  |            |                                |   |            |  |      |            |   |   |            |  
|                                                      |  |                                  |            |                                |   |            |  |      |            |   |   |            |  
|Net loss per
 common share:                           |  |                                  |            |                                |   |            |  |      |            |   |   |            |  
|Basic and fully diluted                               |  | $                                | (0.002     | )                              | $ | (0.001)    |  | $    | (0.007     | ) | $ | (0.001     | )
|                                                      |  |                                  |            |                                |   |            |  |      |            |   |   |            |  
|                                                      |  |                                  |            |                                |   |            |  |      |            |   |   |            |  
|Weighted
 average number of common shares outstanding |  |                                  |            |                                |   |            |  |      |            |   |   |            |  
|Basic and
 fully diluted                              |  |                                  | 16,168,733 |                                |   | 16,168,733 |  |      | 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 SIX MONTHS ENDED DECEMBER 31, 2007
(Unaudited)

|                             |  |                   |        |              |        |                                |                      |   |        |  |   |           |  |   |            |   |   |          |  
|---------------------------- |  | ----------------- | ------ | ------------ | ------ | ------------------------------ | -------------------- | - | ------ |  | - | --------- |  | - | ---------- | - | - | -------- | -
|                             |  |                   |        |              |        | Additional
 Paid - In
 Capital |                      |   |        |  |  
|                             |  | Preferred
 Shares |        | Common Stock |        |                                | Accumulated
 Deficit |   |        | 
|                             |  |                   | Shares |              | Amount |                                |                      |   | Total  | 
|                             |  |                   |        |              |        |                                |                      |   |        |  |   |           | 
|Balance at June 30, 2007     |  |                   |       |              |        | 16,168,733                     |                      | $ | 16,169 |  | $ | 2,833,241 |  | $ | (3,167,103 | ) | $ | (317,693 | )
|                             |  |                   |        |              |        |                                |                      |   |        |  |   |           |  |   |            |   |   |          |  
|Net Loss                     |  |                   |        |              |        |                                |                      |   |        |  |   |           |  |   | (120,219   | ) |   | (120,219 | )
|                             |  |                   |        |              |        |                                |                      |   |        |  |   |           |  |   |            |   |   |          |  
|Balance at December 31, 2007 |  |                   |       |              |        | 16,168,733                     |                      | $ | 16,169 |  | $ | 2,833,241 |  | $ | (3,287,322 | ) | $ | (437,912 | )
|                             |  |                   |        |              |        |                                |                      |   |        |  |   |           |  |   |            |   |   |          |  

See accompanying notes to the condensed
unaudited financial statements

5

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

|                                                                             |  |                                |          |      |   |         |  
|---------------------------------------------------------------------------- |  | ------------------------------ | -------- | ---- | - | ------- | -
|                                                                             |  | Six Months Ended
 December 31, |         
|                                                                             |  | 2007                           |          | 2006 |  
|                                                                             |  |                                |          |      |  
|CASH FLOWS FROM OPERATING ACTIVITIES:                                        |  |                                |          |      |   |         |  
|Net loss                                                                     |  | $                              | (120,219 | )    | $ | (24,111 | )
|                                                                             |  |                                |          |      |   |         |  
|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       |  |                                | 2,163    |      |   | (4,238  | )
|Increase in convertible judgment debt
 payable                               |  |                                | 7,324    |      |   | 7,384   |  
|                                                                             |  |                                |          |      |   |         |  
|                                                                             |  |                                |          |      |   |         |  
|Total adjustments                                                            |  |                                | 9,487    |      |   | 3,146   |  
|                                                                             |  |                                |          |      |   |         |  
|Net cash used in operating activities                                        |  |                                | (110,732 | )    |   | (20,965 | )
|                                                                             |  |                                |          |      |   |         |  
|CASH FLOWS
 FROM FINANCING ACTIVITIES:                                       |  |                                |          |      |   |         |  
|Increase in affiliated party debt                                            |  |                                | 112,097  |      |   | 18,093  |  
|                                                                             |  |                                |          |      |   |         |  
|Net cash provided by financing activities                                    |  |                                | 112,097  |      |   | 18,093  |  
|                                                                             |  |                                |          |      |   |         |  
|NET INCREASE
 (DECREASE) IN CASH                                             |  |                                | 1,365    |      |   | (2,872  | )
|CASH -
 BEGINNING OF YEAR                                                    |  |                                | 3,336    |      |   | 4,334   |  
|                                                                             |  |                                |          |      |   |         |  
|CASH - END
 OF PERIOD                                                        |  | $                              | 4,701    |      | $ | 1,462   |  
|                                                                             |  |                                |          |      |   |         |  
|                                                                             |  |                                |          |      |   |         |  
|SUPPLEMENTAL
 CASH FLOW DATA:                                                |  |                                |          |      |   |         |  
|Cash paid for interest                                                       |  | $                              |         |      | $ |        |  
|                                                                             |  |                                |          |      |   |         |  
|                                                                             |  |                                |          |      |   |         |  
|Cash paid for income taxes                                                   |  | $                              |         |      | $ |        |  
|                                                                             |  |                                |          |      |   |         |  

See accompanying notes to the condensed unaudited financial
statements

6

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Monarch Investment Properties, Inc. Notes to Condensed Unaudited Financial Statements 
December 31, 2007 
(Unaudited)

Note 1  Condensed Financial Statements

The
accompanying financial statements have been prepared by the Company without
audit. In the opinion of management, all adjustments (which include only normal
recurring adjustments) necessary to present fairly the financial position,
results of operations and cash flows at December 31, 2007 and for all periods
presented have been made.

Certain information
and footnote disclosures normally included in financial statements prepared in
accordance with accounting principles generally accepted in the United States
of America have been condensed or omitted. These condensed financial statements
should be read in conjunction with the audited financial statements for the
years ended June 30, 2007 and 2006 included in Amendment Number 1 to the
Companys Registration Statement on Form 10-SB/A filed with
the Securities and Exchange Commission (SEC) on September 27,
2007. The Companys Registration Statement became effective by statute on October 7,
2007.

The results of
operations for the period ended December 31, 2007 are not necessarily
indicative of the operating results for the full year.

Note 2  Agreement and Plan of Merger

On December
18, 2007 the Company and All American Home Products, LLC, a Florida limited
liability company (All American), entered into an Agreement and Plan of
Merger (the Merger Agreement), pursuant to which All American will merge
with, and into, the Company (the Merger). The Board of Directors of the
Company has unanimously approved the Merger Agreement.

All American
is a distribution and installation company providing impact and storefront
windows, doors, accordion shutters, protective panels and other hurricane
related products and services to the new construction, commercial and retail
markets. All American is headquartered in Pompano Beach, Florida.

Upon the terms
and subject to the conditions of the Merger Agreement, at the effective time of
the Merger, All American will be merged with, and into, the Company and the
separate existence of All American will cease. The Company will be the
surviving corporation in the Merger and will continue its corporate existence
under the laws of the State of Nevada. The directors and officers of All
American, immediately prior to the effective time, will become the directors
and officers of the Company upon consummation of the Merger.

7

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In accordance
with the terms of the Merger Agreement, at the effective time of the Merger,
each unit representing a membership interest of All American (collectively, the
Membership Interests) will be converted into
and become 1.2192383 fully paid and non-assessable shares of common stock, par
value $0.001 per share, of the Company (Common Stock). At the effective time
of the Merger, the Membership Interests of All American will no longer be
outstanding and shall automatically be cancelled and retired and cease to
exist, and each All American member shall cease to have any rights with respect
to the Membership Interests of All American, except the right to receive the
merger shares. No fractions of a share of Common Stock will be issued, and in
lieu of such issuance, an All American member who would otherwise be entitled
to a fraction of a share of Common Stock as a result of the exchange of shares
contemplated by the Merger Agreement will receive from us one additional share
of Common Stock.

The
consummation of the Merger is subject to certain conditions, including approval
of the members of All American and the Companys stockholders and the
completion of a 1 for 16.168733 reverse stock split (the reverse split) to be
effectuated by the Company prior to the merger, pursuant to which each
16.168733 old shares of the Companys common stock issued and outstanding prior
to such reverse stock split will be converted and exchanged into one share of
new Common Stock following such reverse stock split, with any fractional shares
being rounded up to the next whole share.

The Merger
Agreement contains certain termination rights for both the Company and All
American, including without limitation, the mutual right to terminate the
Merger Agreement if for any reason the closing has not occurred on or before
March 1, 2008. Consummation of the Merger is also subject to customary closing
conditions, and representation, warranties and covenants from each of the
Company and All American.

Conversion of Judgment Debt

On March 14,
2005, the Company issued to Strategic Capital Resources, Inc. (Strategic) a
seven-year warrant to purchase 1,100,000 shares of Common Stock, at an exercise
price of $.001 per share (Strategic Warrant), in consideration for
modification of a promissory note (the JJFN Note) between the Company and JJFN Holdings, Inc.,
a wholly-owned subsidiary of Strategic (JJFN). The Strategic Warrant contains
certain anti-dilution provisions which provide that if at any time the number
of shares of Common Stock is reduced through subdivision, recapitalization,
reclassification or otherwise, or if the Company declares a dividend on its
Common Stock or Preferred Stock payable in shares of Common Stock, or if the
Company merges or consolidates with or into another entity or sells all or
substantially all of its assets, the number and nature of the Common Stock
issuable or issued on the exercise of the Strategic Warrant will be adjusted so
that each holder of a Strategic Warrant or the original holder of the exercised
shares of Common Stock outstanding at the time of such event will have the
right to purchase the same kind and amount of securities at the original
exercise price which the holder would have received if such event has not taken
place. The Strategic Warrant also contains a cashless exercise provision
providing that payment of the exercise price may be made by surrendering to the
Company that number of shares of Common Stock having a fair market value equal
to the exercise price. The Strategic Warrant also provides certain piggyback
registration rights whereby the Company is required to provide prior written
notice to Strategic of its intention to file a registration statement under the
Securities Act and upon the request of Strategic to include those registrable
shares underlying the Strategic Warrant in such registration statement.



8

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The Merger
Agreement also provides that, at the Closing payment in full will be made on
all obligations the Company owes to JJFN, which consists of amounts owed by the
Company under the JJFN Note.
The judgment
held by an affiliate of the Companys principal stockholder was $184,721 at
September 30, 2007 (principal balance with accrued interest at December 31,
2007 is $188,383). Pursuant to the Merger Agreement, the principal balance of
the JJFN Note, plus any accrued but unpaid interest
thereon, will be converted into Company Common Stock at a conversion price of
$.10 per share immediately before the Reverse Stock Split and deemed satisfied
in full. Upon such conversion, Strategic will cause to be filed a Satisfaction
of Judgment with the Supreme Court of the State of New York, County of Queens,
relating to a judgment previously obtained by JJFN against the Company.

Conversion of Strategic Warrant

The Strategic Warrant which is outstanding is exercisable for 1,100,000 shares of
pre-reverse merger Common Stock at an exercise price of .001 per share. The
Company anticipates the warrant will be exercised on the closing date of the Merger into 1,100,000
shares of Common Stock on a pre-reverse split basis which will then be subject to the 16.168733 reverse stock
split resulting in the increase of new Common Stock of 68,031 in exchange for
the old shares.

Accounting Treatment for the Merger

The Merger will be treated as a reverse acquisition for
accounting purposes, with AAHP being the successor reporting entity. The Company
has no operations or revenues and the only asset that it had on December 31,
2007 is a cash balance of $4,701.

The Company is
considered to be a shell company prior to the acquisition. In connection
with the proposed acquisition of AAHP, the members of AAHP will receive
approximately 19 million shares of post reverse - split Common Stock, or approximately
95% of the total outstanding shares prior to the conversion of the Companys
judgment debt and the Strategic Warrant. The Companys current
stockholders will ultimately retain approximately 1 million shares, or 5%, of
the Companys stock prior to the conversion of the judgment debt and the Strategic Warrant.

Common Stock
To Be Outstanding Upon Consummation of Merger

|                                                                                                                    |  |  |            | 
|------------------------------------------------------------------------------------------------------------------- |  |  | ---------- | 
|Current shares outstanding                                                                                          |  |  | 16,168,733 | 
|                                                                                                                    |  |  |            | 
|                                                                                                                   
|Reverse stock split adjustment of Companys
 shares to existing stockholders at the reverse stock rate of 16.168733 |  |  |            | 
|                                                                                                                   
|New shares to be issued upon completion of
 Merger in exchange for old shares                                       |  |  | 1,000,000  | 
|                                                                                                                   
|Approximate number of shares to be issued
 upon conversion of judgment debt                                         |  |  | 116,510    | 
|                                                                                                                   
|Approximate number of shares to be issued
 upon conversion of the Strategic Warrant                                 |  |  | 68,031     | 
|                                                                                                                   
|Approximate number of new shares to be
 issued for acquisition of AAHP                                              |  |  | 19,000,000 | 
|                                                                                                                    |  |  |            | 
|                                                                                                                   
|Approximate total number of shares to be
 outstanding after consummation of the proposed Merger                     |  |  | 20,184,541 | 
|                                                                                                                    |  |  |            | 

9

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Note 3  Accounting Policies

Use of Estimates

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

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
approximated their fair market value based on the short-term maturity of these
instruments.

SFAS No. 107
requires disclosures about the fair value for all financial instruments,
whether or not recognized, for financial statement purposes. Disclosures about
fair value of financial instruments are based on pertinent information
available to management as of December 31, 2007. 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.

Note 4- Going Concern

As reflected
in the accompanying financial statements, the Company incurred a net loss of
$120,219, negative cash flow from operations of $110,732 for the six months
ended December 31, 2007, has an accumulated deficit of $3,287,322 and a
stockholders deficiency of $437,912 at December 31, 2007. The ability of the
Company to continue as a going concern is dependent upon its ability to obtain
financing and achieve profitable operations. The financial statements do not
include any adjustments that might be necessary should the Company be unable to continue as a going
concern. These matters raise substantial doubt about the companys ability to
continue as a going concern.

10

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Note 5  Accrued Expenses and Other Current
Liabilities

|                                                       |  |                   |        |               |   |        | 
|------------------------------------------------------ |  | ----------------- | ------ | ------------- | - | ------ | 
|                                                       |  | December 31, 2007 |        | June 30, 2007 |  
|                                                       |  |                   |        |               |  
|Legal fees                                             |  | $                 | 12,842 |               | $ | 7,500  | 
|Accounting and Auditing                                |  |                   | 7,000  |               |   | 11,000 | 
|Miscellaneous, other                                   |  |                   | 13,039 |               |   | 12,218 | 
|                                                       |  |                   |        |               |   |        | 
|Total accrued expenses and other current
  liabilities |  | $                 | 32,881 |               | $ | 30,718 | 
|                                                       |  |                   |        |               |   |        | 

Note 6  Affiliated Party Debt Transaction

|                                                         |  |                   |         |               |   |         | 
|-------------------------------------------------------- |  | ----------------- | ------- | ------------- | - | ------- | 
|                                                         |  | December 31, 2007 |         | June 30, 2007 |  
|                                                         |  |                   |         |               |  
|Due to major shareholder/creditor,
  beginning of period |  | $                 | 109,252 |               | $ | 59,926  | 
|Additional borrowings and accrued interest               |  |                   | 112,097 |               |   | 49,326  | 
|Repayments                                               |  |                   |        |               |   |        | 
|                                                         |  |                   |         |               |   |         | 
|End of year                                              |  | $                 | 221,349 |               | $ | 109,252 | 
|                                                         |  |                   |         |               |   |         | 

See Note 2 
Agreement and Plan of Merger and Note 9 to the audited financial statements
included in the Companys Registration Statement on Form 10-SB/A for the year
ended June 30, 2007.

Note 7  Income Taxes

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

11

---



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 $188,383 convertible debt into 1,883,830 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 and six months ended
December 31, 2007 and 2006, respectively, and the financial condition of the
Company at December 31, 2007. The discussion and analysis should be read in
conjunction with the condensed financial statements and accompanying notes
included herein, as well as the Companys audited financial statements for the
years ended June 30, 2007 and 2006 included in Amendment Number 1 to the
Companys Registration Statement on Form 10-SB/A filed with the SEC on September 27, 2007. The Companys
Registration Statement became effective by statute on October 7, 2007.

Forward-looking Statements

Statements
included in the Quarterly Report filed on Form 10-QSB that do not relate to
present or historical conditions are forward-looking statements.
Forward-looking statements may include, without limitation, statements relating
to our plans, strategies, objectives, expectations and intentions and are
intended to be made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Words such as believes,
forecasts, intends, possible, estimates, anticipates, and
plans and
similar expressions are intended to identify forward-looking statements. Our
ability to predict projected results or the effect of events on our operating
results is inherently uncertain. Forward-looking statements involve a number of
risks, uncertainties and other factors that could cause actual results to
differ materially from those discussed in or implied by 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 or implied by in the statements. Important factors that could cause actual performance or
results to differ materially from those expressed in or implied by,
forward-looking statements include, but are not limited to: (i) industry
competition, conditions, performance and consolidation, (ii) legislative and/or
regulatory developments, (iii) our ability to find to find an acceptable merger
candidate, (iv) the effects of adverse general economic conditions, both within
the United States and globally, and (v) other factors described under Risk
Factors contained in the Companys Amendment Number 1 to
the Registration Statement on Form 10-SB/A filed with
the Securities and Exchange Commission on September 27, 2007. The Companys Registration
Statement became effective by statute on October 7, 2007.

12

---



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, due to 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 company. We intend to effect a business combination
with a target company, which we believe has significant growth potential. The
business combination may be with a financially stable, mature company or a
company that is in its early stages of development or growth.

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

13

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The Company
does not currently engage in any business activities that provide cash flow.
During the next twelve months we anticipate incurring costs and expenses
related to filing of Exchange Act reports with the SEC under the Securities
Exchange Act of 1934 (Exchange Act) and consummating a business combination.
Management anticipates that financing the costs and expenses to be incurred with
such activities through loans or further investment in the Company to be made
by them or their affiliates as and when necessary. There is no assurance of
such funding will continue.

On December
18, 2007 the Company and All American Home Products, LLC, a Florida limited
liability company (All American), entered into an Agreement and Plan of
Merger (the Merger Agreement), pursuant to which All American will merge
with, and into, the Company (the Merger). The Board of Directors of the
Company has unanimously approved the Merger Agreement.

All American
is a distribution and installation company providing impact and storefront
windows, doors, accordion shutters, protective panels and other hurricane
related products and services to the new construction, commercial and retail
markets. All American is headquartered in Pompano Beach, Florida.

Upon the terms
and subject to the conditions of the Merger Agreement, at the effective time of
the Merger, All American will be merged with, and into, the Company and the
separate existence of All American will cease. We will be the surviving
corporation in the Merger and will continue our corporate existence under the
laws of the State of Nevada. The directors and officers of All American,
immediately prior to the effective time, shall become the directors and
officers of the Company upon consummation of the Merger. Consummation of the
Merger is subject to the approval of the Company stockholders and the members
of All American.

In accordance
with the terms of the Merger Agreement, at the effective time of the Merger,
each unit representing a membership interest of All American (collectively, the
Membership Interests) will be converted into and become 1.2192383 fully paid
and non-assessable shares of common stock, par value $0.001 per share, of the
Company. At the effective time of the Merger, the Membership Interests of All
American will no longer be outstanding and shall automatically be cancelled and
retired and cease to exist, and each All American member shall cease to have
any rights with respect to the Membership Interests of All American, except the
right to receive the merger shares. No fractions of a share of Common Stock
will be issued, and in lieu of such issuance, an All American member who would
otherwise be entitled to a fraction of a share of Common Stock as a result of
the exchange of shares contemplated by the Merger Agreement will receive from
us one additional share of Common Stock.

The
consummation of the Merger is subject to certain conditions, including the
completion of a 1 for 16.168733 reverse stock split to be effectuated by the
Company prior to the merger, pursuant to which each 16.168733 shares of the
Companys Common Stock issued and outstanding prior to such reverse stock split
will be converted and exchanged into one share of Common Stock following such
reverse stock split, with
any fractional shares being rounded up to the next whole share.

The Merger
Agreement contains certain termination rights for both the Company and All
American, including without limitation, the mutual right to terminate the
Merger Agreement if for any reason the closing has not occurred on or before
March 1, 2008. Consummation of the Merger is also subject to customary closing
conditions, and representation, warranties and covenants from each of the
Company and All American.

14

---



The Merger will be treated as a reverse acquisition for accounting
purposes, with AAHP being the successor reporting entity. The Company has no
operations or revenues and the only asset that it had on December 31, 2007 is a
cash balance of $4,701.

The Company is
considered to be a shell company prior to the acquisition. In connection
with the proposed acquisition of AAHP, the members of AAHP will receive
approximately 19 million shares of post reverse - split Common Stock, or approximately
95% of the total outstanding shares prior to the conversion of the Companys
judgment debt and the Strategic Warrant. The Companys
stockholders will ultimately retain approximately 1 million shares, or 5%, of
the Companys stock prior to the conversion of the judgment debt and the Strategic Warrant.

Conversion of Judgment Debt

On March 14,
2005, the Company issued to Strategic a seven-year warrant to purchase
1,100,000 shares of Common Stock, at an exercise price of $.001 per share
(Strategic Warrant), in consideration for modification of the promissory note
between the Company and JJFN Holdings. The Strategic Warrant contains certain
anti-dilution provisions which provide that if at any time the number of shares
of Common Stock is reduced through subdivision, recapitalization, reclassification
or otherwise, or if the Company declares a dividend on its Common Stock or
Preferred Stock payable in shares of Common Stock, or if the Company merges or
consolidates with or into another entity or sells all or substantially all of
it assets, the number and nature of the Common Stock issuable or issued on the
exercise of the Strategic Warrant will be adjusted so that each holder of a
Strategic Warrant or the original holder of the exercised shares of Common
Stock outstanding at the time of such event will have the right to purchase the
same kind and amount of securities at the original exercise price which the
holder would have received if such event has not taken place. The Strategic
Warrant also contains a cashless exercise provision providing that payment of
the exercise price may be made by surrendering to the Company that number of
shares of Common Stock having a fair market value equal to the exercise price.
The Strategic Warrant also provides certain piggyback registration rights
whereby the Company is required to provide prior written notice to Strategic of
its intention to file a registration statement under the Securities Act and
upon the request of Strategic to include those registrable shares underlying
the Strategic Warrant in such registration statement.

The Merger
Agreement provides, at the Closing payment in full will be made to discharge all obligations due to the
Companys principal stockholder. The judgment held by an affiliate of the
Companys principal stockholder in the amount of $184,721 at September 30, 2007
(balance at December 31, 2007 of $188,383), plus any accrued but unpaid
interest thereon, will be converted into the Companys Common Stock at a conversion
price of $.10 per share immediately before the Companys Reverse Stock Split and
deemed satisfied in full. Upon such conversion, Strategic will cause to be filed a
Satisfaction of Judgment with the issuing court.

15

---



Conversion of Strategic Warrant

The Strategic Warrant which is outstanding is exercisable for 1,100,000 shares of
pre-reverse merger Common Stock at an exercise price of .001 per share. The Company anticipates the Strategic
Warrant will be exercised on the closing date of the Merger into 1,100,000
shares of Common Stock on a pre-reverse split basis which will then be subject to the 16.168733 reverse stock
split resulting in the increase of new Common Stock of 68,031 in exchange for
the old shares.

The Company is
considered to be a shell company prior to the acquisition. In connection
with the proposed acquisition of AAHP, the members of AAHP will receive
approximately 19 million shares of post reverse Common Stock, or approximately
95% of the total outstanding shares prior to the conversion of the Companys
judgment debt and the Strategic Warrant. The current Company
stockholders will ultimately retain approximately 1 million shares, or 5%, of
the Companys stock prior to the conversion of the judgment debt and  the Strategic Warrant.

Common Stock To Be Outstanding Upon
Consummation of Merger

|                                                                                                                     |  |  |            | 
|-------------------------------------------------------------------------------------------------------------------- |  |  | ---------- | 
|Current shares outstanding                                                                                           |  |  | 16,168,733 | 
|                                                                                                                     |  |  |            | 
|                                                                                                                     |  |  |            | 
|Reverse stock split adjustment of Companys
  shares to existing stockholders at the reverse stock rate of 16.168733 |  |  |            | 
|                                                                                                                     |  |  |            | 
|New shares to be issued upon completion of
  Merger in exchange for old shares                                       |  |  | 1,000,000  | 
|                                                                                                                     |  |  |            | 
|Approximate number of shares to be issued
  upon conversion of judgment debt                                         |  |  | 116,510    | 
|                                                                                                                     |  |  |            | 
|Approximate number of shares to be issued
  upon conversion of the Strategic Warrant                                 |  |  | 68,031     | 
|                                                                                                                     |  |  |            | 
|Approximate number of new shares to be
  issued for acquisition of AAHP                                              |  |  | 19,000,000 | 
|                                                                                                                     |  |  |            | 
|                                                                                                                     |  |  |            | 
|Approximate total number of shares to be
  outstanding after consummation of the proposed Merger                     |  |  | 20,184,541 | 
|                                                                                                                     |  |  |            | 

16

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Financial Condition and Changes

Cash

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

Accrued Expenses and Other Liabilities

Accrued
expenses at December 31, 2007 and June 30, 2007 consisted primarily of
professional fees. Listed below is a summary of the transactions related to
accrued expenses and other liabilities:

|                                               |  |                     |        |                 |   |                       |  |   |        |  
|---------------------------------------------- |  | ------------------- | ------ | --------------- | - | --------------------- |  | - | ------ | -
|                                               |  | December 31,
  2007 |        | June 30,
  2007 |   | Increase
  (Decrease) | 
|                                               |  |                     |        |                 |   |                       | 
|Legal fees                                     |  | $                   | 12,842 |                 | $ | 7,500                 |  | $ | 5,342  |  
|Accounting fees                                |  |                     | 7,000  |                 |   | 11,000                |  |   | (4,000 | )
|Miscellaneous, other                           |  |                     | 13,039 |                 |   | 12,218                |  |   | 821    |  
|                                               |  |                     |        |                 |   |                       |  |   |        |  
|Total Accrued Expenses and Other
  Liabilities |  | $                   | 32,881 |                 | $ | 30,718                |  | $ | 2,163  |  
|                                               |  |                     |        |                 |   |                       |  |   |        |  

The increase
in accrued legal fees was the result of costs related to our filing of our
September 30, 2007 Form 10-QSB with the Securities and Exchange Commission, as
well as due diligence and preparation of the merger agreement.

The reduction
in accrued accounting fees was the result of payments made during the current
fiscal year for prior years audit and tax fees in connection with our filing
of the registration statement on Form 10-SB/A with the Securities and Exchange
Commission. This reduction was partially offset by accruals for the current
year.

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  |  
|Partial
  payment made November 2004       |  |   | (155,000   | )
|Interest
  1999 through June 2005          |  |   | 643,500    |  
|                                           |  |   |            |  
|Balance June
  30, 2005                    |  |   | 1,588,500  |  
|Interest
  July 2005 through June 2006     |  |   | 77,902     |  
|Amount
  exchanged for Common Stock        |  |   | (1,500,000 | )
|                                           |  |   |            |  
|Balance June
  30, 2006                    |  |   | 166,402    |  
|Interest
  July 2006 through June 2007     |  |   | 14,657     |  
|                                           |  |   |            |  
|Balance June
  30, 2007                    |  |   | 181,059    |  
|Interest
  July 2007 through December 2007 |  |   | 7,324      |  
|                                           |  |   |            |  
|Balance
  December 31, 2007                |  | $ | 188,383    |  
|                                           |  |   |            |  

17

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On March 14,
2005, the Company issued to Strategic a seven-year warrant to purchase
1,100,000 shares of Common Stock, at an exercise price of $.001 per share
(Strategic Warrant), in consideration for modification of the promissory note
between the Company and JJFN Holdings. The Strategic Warrant contains certain
anti-dilution provisions which provide that if at any time the number of shares
of Common Stock is reduced through subdivision, recapitalization,
reclassification or otherwise, or if the Company declares a dividend on its
Common Stock or Preferred Stock payable in shares of Common Stock, or if the
Company merges or consolidates with or into another entity or sells all or
substantially all of it assets, the number and nature of the Common Stock issuable
or issued on the exercise of the Strategic Warrant will be adjusted so that
each holder of a Strategic Warrant or the original holder of the exercised
shares of Common Stock outstanding at the time of such event will have the
right to purchase the same kind and amount of securities at the original
exercise price which the holder would have received if such event has not taken
place. The Strategic Warrant also contains a cashless exercise provision
providing that payment of the exercise price may be made by surrendering to the
Company that number of shares of Common Stock having a fair market value equal
to the exercise price. The Strategic Warrant also provides certain piggyback
registration rights whereby the Company is required to provide prior written
notice to Strategic of its intention to file a registration statement under the
Securities Act and upon the request of Strategic to include those registrable
shares underlying the Strategic Warrant in such registration statement.

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, 2007     |  | $ | 109,252 | 
|Advances                    |  |   | 102,000 | 
|Interest                    |  |   | 10,097  | 
|Repayments                  |  |   |        | 
|                            |  |   |         | 
|Balance,
 December 31, 2007 |  | $ | 221,349 | 
|                            |  |   |         | 

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 with
an operating entity. 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.

18

---



Three Months Ended December 31, 2007 Compared
to the Three Months Ended December 31, 2006

General and
administrative expenses were $28,208 for the three months ended December 31,
2007, as compared to $6,409 for the three months ended December 31, 2006, an
increase of $21,799. Accounting fees were
higher as a result of our Securities and Exchange Commission reporting
requirements. Legal fees were higher as a result of preparations of merger
agreement and performing due diligence with the merger candidate, as well as
various Securities and Exchange Commission filings. The increase in
Miscellaneous Fees was primarily the result of $4,455 in edgarization costs
associated with various Securities and Exchange Commission filings. Listed
below is a summary of these expenses:

|                     |  |      |        |      |   |       | 
|-------------------- |  | ---- | ------ | ---- | - | ----- | 
|                     |  | 2007 |        | 2006 |  
|                     |  |      |        |      |  
|Accounting
 Fees     |  | $    | 4,500  |      | $ | 2,500 | 
|Legal Fees           |  |      | 17,370 |      |   |      | 
|Management
 Fees     |  |      | 1,500  |      |   | 1,500 | 
|Edgarization
 Fees   |  |      | 4,455  |      |   |      | 
|Stock
 Transfer Fees |  |      | 150    |      |   | 910   | 
|Miscellaneous
 Fees  |  |      | 233    |      |   | 1,499 | 
|                     |  |      |        |      |   |       | 
|TOTAL                |  | $    | 28,208 |      | $ | 6,409 | 
|                     |  |      |        |      |   |       | 

Interest
expense was $9,664 for the three months ended December 31, 2007, compared to
$5,918 for the three months ended December 31, 2006, an increase of $3,746. The
increase was the result of higher affiliated party debt at December 31, 2007
compared to 2006, resulting in higher interest expense for the three months
ended December 31, 2007.

Six Months Ended December 31, 2007 Compared
to the Six Months Ended December 31, 2006

General and
administrative expenses were $102,798 for the six months ended December 31,
2007, as compared to $12,635 for the six months ended December 31, 2006, an
increase of $90,163. Accounting and Legal expenses for the six months ended
December 31, 2007 were higher primarily as a result of our filing the
Registration Statement on Form 10-SB/A with the Securities and Exchange
Commission. Legal and Accounting fees of $54,176 and $10,300, respectively,
were related to the filing of this Registration Statement on Form 10-SB.
Additional Accounting and Legal fees of $9,000 and $4,340 respectively, were
related to the filing of two Form 10-QSBs. Approximately $10,400 of legal fees
related to due diligence and the Merger Agreement. The increase in
Miscellaneous fees was primarily the result of $7,871 in edgarization costs
associated with various Securities and Exchange Commission filings. Listed
below is a summary of these expenses:

|                     |  |      |         |      |   |        | 
|-------------------- |  | ---- | ------- | ---- | - | ------ | 
|                     |  | 2007 |         | 2006 |  
|                     |  |      |         |      |  
|Accounting
 Fees     |  | $    | 19,300  |      | $ | 5,000  | 
|Legal Fees           |  |      | 71,546  |      |   |       | 
|Management
 Fees     |  |      | 3,000   |      |   | 3,000  | 
|Edgarization
 Costs  |  |      | 7,871   |      |   |       | 
|Stock
 Transfer Fees |  |      | 400     |      |   | 1,635  | 
|Miscellaneous
 Fees  |  |      | 681     |      |   | 3,000  | 
|                     |  |      |         |      |   |        | 
|TOTAL                |  | $    | 102,798 |      | $ | 12,635 | 
|                     |  |      |         |      |   |        | 

Interest
expense was $17,421 for the six months ended December 31, 2007, compared to
$11,476 for the six months ended December 31, 2006, an increase of $5,945. The
increase was the result of higher affiliated party debt at December 31, 2007
compared to 2006, resulting in
higher interest expense for the six months ended December 31, 2007.

19

---



Liquidity and Capital
Resources

At December
31, 2007, our cash balance was $4,701 and we had a working capital deficit of
$437,912.

To date, our
operations have been funded by a company which is controlled by our President.
This funding included paying professional and edgarization fees, as well as
accruing interest on the affiliated debt and $500 per month for management
fees.

For the six
months ended December 31, 2007, we had negative cash flows from operating
activities of $110,732 compared to negative cash flows of $20,965 for the six
months ended December 31, 2006, an increase of $89,767. We have been dependent
upon proceeds of loans from affiliates to fund continuing activities. For the
six months ended December 31, 2007, our loans from this company increased by
$112,097 to pay the above described professional fees. We currently do not have
sufficient cash reserves to meet all of our anticipated obligations for the
next twelve months and there can be no assurance we will ultimately obtain the
necessary financing. In addition to any third-party financing that may be
obtained, we currently expect that loans from our stockholders may be a
continuing source of liquidity to meet our obligations. Accordingly, we will
need to seek funding in the near future. Our independent auditors have issued a
going concern paragraph in their opinion on the financial statements for the
year ended June 30, 2007 that states there is substantial doubt about our
ability to continue as a going concern. The ability to continue as a going
concern is dependent on our ability to access capital through debt and equity
funding.

Significant
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.

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

20

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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 3 to our
audited financial statements for the fiscal years ended June 30, 2007 and 2006,
included in Amendment Number 1 to our Registration Statement on Form 10-SB/A
filed with the Securities and Exchange Commission on
September 27, 2007. The Companys Registration Statement became effective by
statute on October 7, 2007.

Off-Balance Sheet
Arrangements

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

ITEM 3.     CONTROLS AND PROCEDURES

The Companys
management, with the participation of its principal executive officer and
principal financial officer, evaluated the effectiveness of the Companys
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) as of the end of the period covered by this report. Based on
this evaluation, the principal executive officer and principal financial
officer concluded that, as of December 31, 2007, the Companys disclosure
controls and procedures were effective, at the reasonable assurance level, to
ensure that (i) information required to be disclosed by the Company in the
reports that it files or submits under the Exchange Act is recorded, processed,
summarized, and reported within the time periods specified in the Securities
and Exchange Commissions (SEC) rules and forms and (ii) information required
to be disclosed by the Company in the reports that it files or submits under
the Exchange Act is accumulated and communicated to the Companys management
including its principal executive and principal financial officers, or persons
performing similar functions, as appropriate to allow timely decisions
regarding required disclosure.

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.

21

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During the
quarter ended December 31, 2007, there were no changes in the Companys
internal control over financial reporting that have materially affected or are
reasonably likely to materially affect its internal control over financial
reporting.

PART
II. OTHER INFORMATION

|        |                                                            
|------- | -----------------------------------------------------------
|ITEM 1. | LEGAL PROCEEDINGS                                          
|        |                                                            
|None    |                                                            
|        |                                                            
|ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|        |                                                            
|None    |                                                            
|        |                                                            
|ITEM 3. | DEFAULTS UPON SENIOR SECURITIES                            
|        |                                                            
|None    |                                                            
|        |                                                            
|ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS        
|        |                                                            
|None    |                                                            
|        |                                                            
|ITEM 5. | OTHER INFORMATION                                          
|        |                                                            
|None    |                                                            
|        |                                                            
|ITEM 6. | EXHIBITS                                                   

|        |                                                                                                                                                                                                                                                                                             
|------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2.1    | Agreement and Plan of Merger by and among, Monarch Investment
 Properties, Inc. and All American Home Products, LLC, dated as of December
 18, 2007 (incorporated by reference to the exhibit filed with the registrants
 Current Report on Form 8-K for the event dated December 18, 2007)
|        |                                                                                                                                                                                                                                                                                             
|31.1   | Certification
 of Principal Executive Officer Pursuant to Section 302 of Sarbanes-Oxley
 Act of 2002                                                                                                                                                                                        
|        |                                                                                                                                                                                                                                                                                             
|31.2   | Certification
 of Principal Financial Officer Pursuant to Section 302 of Sarbanes-Oxley
 Act of 2002                                                                                                                                                                                        
|        |                                                                                                                                                                                                                                                                                             
|32     | Certification
 Pursuant to Section 906 of Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                        

22

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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: | January 15, 2008 | 

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

|                              |                  |  | 
|----------------------------- | ---------------- |  | 
|Date:                         | January 15, 2008 | 
|                             
|By:                           | /s/ David Miller
|                              |                 
|DAVID MILLER                 
|President
 and Director      
|(Principal Executive Officer)

23

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