UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549



FORM 10-Q

|(Mark one)
|----------
|          
|x         

For the Quarterly Period Ended September
30, 2012

OR

| | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
| | -----------------------------------------------------------------------------------------

For the transition period from _________________to

|                               
|-------------------------------
|Commission File Number: 0-53266
|                               

MONSTER OFFERS

(Exact name
of registrant as specified in its charter)

|Nevada                            |  | 27-1548306         
|--------------------------------- |  | -------------------
|(State or Other Jurisdiction      |  | (I.R.S. Employer   
|of Incorporation or Organization) |  | Identification No.)



|27665 Forbes Road, Laguna Niguel  CA     |  | 92677     
|---------------------------------------- |  | ----------
|(Address of principal executive offices) |  | (Zip Code)

(760) 208-4905(Registrant’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 such
filing requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark whether the registrant
has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted
and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter
period that the registrant was required to submit and post such files). Yes [X] No [ ]

Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

|Large accelerated filero | Accelerated filero | Non-accelerated filero | Smaller reporting company [X]
|------------------------ | ------------------ | ---------------------- | -----------------------------

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

APPLICABLE ONLY TO REGISTRANTS INVOLVED
IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate
by check mark whether the registrant has filed all documents and reports required to be filed by Section S 12, 13 or 15(d) of the
Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. YesoNo [X]

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer’s
classes of common stock, as of the latest practicable date.

As of December 19, 2012, the registrant’s
outstanding common stock consisted of 31,324,066 shares, $0.001 par value. Authorized – 75,000,000 shares.







Table of Contents

Monster Offers

Index to Form 10-Q

For the Quarterly Period Ended September 30,
2012

|PART I   | Financial Information                                                                 | 3 
|-------- | ------------------------------------------------------------------------------------- | --
|         |                                                                                       |   
|ITEM 1.  | Financial Statements                                                                  | 3 
|         | Balance Sheets                                                                        | 3 
|         | Unaudited Statements of Operations                                                    | 4 
|         | Unaudited Statements of Cash Flows                                                    | 5 
|         | Notes to the Unaudited Financial Statements                                           | 6 
|         |                                                                                       |   
|ITEM 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 17
|         |                                                                                       |   
|ITEM 3.  | Quantitative and Qualitative Disclosures About Market Risk                            | 24
|         |                                                                                       |   
|ITEM 4T. | Controls and Procedures                                                               | 24
|         |                                                                                       |   
|PART II  | Other Information                                                                     | 27
|         |                                                                                       |   
|ITEM 1.  | Legal Proceedings                                                                     | 27
|         |                                                                                       |   
|ITEM 1A. | Risk Factors                                                                          | 27
|         |                                                                                       |   
|ITEM 2.  | Unregistered Sales of Equity Securities and Use of Proceeds                           | 27
|         |                                                                                       |   
|ITEM 3   | Defaults Upon Senior Securities                                                       | 27
|         |                                                                                       |   
|ITEM 4   | Submission of Matters to a Vote of Security Holders                                   | 27
|         |                                                                                       |   
|ITEM 5   | Other Information                                                                     | 27
|         |                                                                                       |   
|ITEM 6   | Exhibits                                                                              | 28
|         |                                                                                       |   
|         | SIGNATURES                                                                            | 29
|         |                                                                                       |   









2









Monster Offers

(A Development Stage Company)

Balance Sheets

(Unaudited)

|                                                       | September 30,                    | December 31,      
|------------------------------------------------------ | -------------------------------- | ------------------
|                                                       | 2012                             | 2011              
|                                                       |                                  |                   
|ASSETS                                                 |                                  |                   
|                                                       |                                  |                   
|Current assets                                         |                                  |                   
|Cash                                                   | $                            189 | $            3,817
|Accounts receivable                                    | 2,423                            | 9,423             
|Prepaid expenses                                       | 89,477                           | 26,272            
|Total current assets                                   | 92,089                           | 39,512            
|                                                       |                                  |                   
|Other assets                                           |                                  |                   
|Unamortized financing fees                             | -                                | 2,421             
|Investment in Iconosys                                 | 100,000                          | 100,000           
|Total other assets                                     | 100,000                          | 102,421           
|                                                       |                                  |                   
|TOTAL ASSETS                                           | $                     192,089    | $        141,933  
|                                                       |                                  |                   
|LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)         |                                  |                   
|                                                       |                                  |                   
|Current liabilities                                    |                                  |                   
|Accounts payable                                       | $                       48,979   | $          58,229 
|Accrued interest                                       | 6,085                            | 9,341             
|                                                       |                                  |                   
|Unearned revenue                                       | -                                | 33,333            
|Due to related party                                   | 6,700                            | -                 
|Notes payable                                          | 13,250                           | -                 
|Convertible notes payable, net of unamortized discount |                                  |                   
|of $ 0 and $37,131, respectively                       | 60,667                           | 176,330           
|Total current liabilities                              | 135,681                          | 277,233           
|                                                       |                                  |                   
|Total liabilities                                      | 135,681                          | 277,233           
|                                                       |                                  |                   
|Stockholders' equity (deficit)                         |                                  |                   
|Common stock - $0.001 par value,                       |                                  |                   
|75,000,000 shares authorized, 3,384,361                |                                  |                   
|and 220,568 shares issued and outstanding              |                                  |                   
|as of 9/30/2012 and 12/31/2011, respectively           | 3,384                            | 221               
|Additional paid in capital                             | 4,157,590                        | 910,385           
|Common stock payable                                   | 450,750                          | 486,575           
|Accumulated deficit during development stage           | (4,555,316)                      | (1,532,481)       
|Total stockholders' equity (deficit)                   | 56,408                           | (135,300)         
|                                                       |                                  |                   
|TOTAL LIABILITES AND STOCKHOLDERS' EQUITY (DEFICIT)    | $                     192,089    | $        141,933  



The accompanying notes are an integral part
of these financial statements.



3

Monster Offers

(A Development Stage Company)

Statements of Operations

(Unaudited)



|                                   |                            |                           |                        |              | Inception                
|---------------------------------- | -------------------------- | ------------------------- | ---------------------- | ------------ | -------------------------
|                                   | For the three months ended | For the nine months ended | (February 23, 2007) to
|                                   | September 30,              | September 30,             | September 30,         
|                                   | 2012                       | 2011                      | 2012                   | 2011         | 2012                     
|                                   |                            |                           |                        |              |                          
|REVENUES                           |                            |                           |                        |              |                          
|Commission revenue                 | $          5,750           | $         79,373          | $           36,250     | $    105,123 | $                 193,635
|Commission revenue - related party | -                          | -                         | -                      | 2,572        | 326,247                  
|License revenue                    | -                          | 25,000                    | 33,333                 | 41,667       | 100,000                  
|Services                           | -                          | -                         | 8,585                  | -            | 8,585                    
|Services - related party           | -                          | (233)                     | -                      | 390          | 73,201                   
|Total revenues                     | 5,750                      | 104,140                   | 78,168                 | 149,752      | 701,668                  
|                                   |                            |                           |                        |              |                          
|Cost of goods                      |                            |                           |                        |              |                          
|Commission paid - related party    | -                          | -                         | -                      | -            | 249,828                  
|Total cost of goods                | -                          | -                         | -                      | -            | 249,828                  
|                                   |                            |                           |                        |              |                          
|Gross profit                       | 5,750                      | 104,140                   | 78,168                 | 149,752      | 451,840                  
|                                   |                            |                           |                        |              |                          
|EXPENSES                           |                            |                           |                        |              |                          
|Advertising                        | -                          | 4,930                     | -                      | 9,079        | 35,901                   
|Bad debt expense                   | -                          | -                         | 1,250                  | -            | 1,250                    
|Amortization                       | -                          | 11,250                    | -                      | 24,565       | 24,565                   
|Audit fees                         | 6,700                      | 4,275                     | 22,150                 | 21,605       | 69,624                   
|Expenses of spinoff                | -                          | -                         | -                      | 200          | 5,810                    
|General and administrative         | 26,686                     | 46,240                    | 188,958                | 105,508      | 470,770                  
|Professional fees                  | -                          | (100)                     | 855                    | 18,908       | 25,578                   
|Officer compensation               | 1,150                      | 33,400                    | 20,806                 | 103,100      | 225,006                  
|Strategic alliance costs           | 3,583                      | 3,582                     | 10,748                 | 6,470        | 20,801                   
|Impairment loss                    | -                          | -                         | -                      | -            | 425,435                  
|Consulting services                | 147,718                    | 70,522                    | 261,588                | 280,244      | 996,766                  
|Total operating expenses           | 185,837                    | 174,100                   | 506,355                | 569,679      | 2,301,506                
|                                   |                            |                           |                        |              |                          
|Other expenses                     |                            |                           |                        |              |                          
|Interest expense                   | (1,045)                    | (6,258)                   | (63,635)               | (15,619)     | (82,926)                 
|Financing fees                     | -                          | (30,348)                  | (16,148)               | (96,655)     | (148,315)                
|Gain/(loss) on debt settlement     | -                          | -                         | (2,514,865)            | 587          | (2,508,409)              
|Refund of expense                  | -                          | -                         | -                      | -            | 34,000                   
|Total other expenses               | (1,045)                    | (36,606)                  | (2,594,648)            | (111,687)    | (2,705,409)              
|                                   |                            |                           |                        |              |                          
|Net loss                           | $      (181,132)           | $     (106,565)           | $    (3,022,835)       | $  (531,614) | $             (4,555,316)
|                                   |                            |                           |                        |              |                          
|Net loss per share - basic         | $            (0.06)        | $(0.50)                   | $(1.61)                | $(2.57)      |                          
|                                   |                            |                           |                        |              |                          
|Weighted average number of common  |                            |                           |                        |              |                          
|shares outstanding – basic         | 3,196,056                  | 211,956                   | 1,881,816              | 206,533      |                          





The accompanying notes are an integral part
of these financial statements.



4







Monster Offers

(A Development Stage Company)

Statements of Cash Flows

(Unaudited)





|                                             |                           |                        | Inception                   
|-------------------------------------------- | ------------------------- | ---------------------- | ----------------------------
|                                             | For the nine months ended | (February 23, 2007) to
|                                             | September 30,             | September 30,         
|                                             | 2012                      | 2011                   | 2012                        
|                                             |                           |                        |                             
|OPERATING ACTIVITIES                         |                           |                        |                             
|Net loss                                     | $   (3,022,835)           | $    (531,614)         | $   (4,555,316)             
|Adjustments to reconcile net iloss           |                           |                        |                             
|to net cash used by operating activities:    |                           |                        |                             
|Impairment loss                              | -                         | -                      | 425,435                     
|License revenue - non cash                   | -                         | (41,667)               | (66,667)                    
|(Gain) loss on settlement of debt            | 2,514,865                 | (587)                  | 2,514,019                   
|Financing fees                               | 15,000                    | 95,811                 | 144,839                     
|Bad debt                                     | 1,250                     | -                      | 1,250                       
|Common shares issued for services            | 418,797                   | 169,280                | 1,060,684                   
|Strategic alliance costs                     | -                         | 6,470                  | 10,053                      
|Amortization of financing fees               | 2,421                     | 24,565                 | 26,986                      
|Changes in operating assets and liabilities: |                           |                        |                             
|                                             |                           |                        |                             
|Increase in prepaid stock compensation       | -                         | 51,667                 | -                           
|Decrease (increase) in accounts receivable   | 5,750                     | (31,874)               | (2,679)                     
|(Increase) in unamortized financing fees     | -                         | (1,010)                | (9,340)                     
|Increase (decrease) in accounts payable      | 18,573                    | 52,397                 | 73,450                      
|Unearned revenue                             | (33,333)                  | -                      | (33,333)                    
|Increase in accrued interest                 | 63,634                    | 13,619                 | 83,170                      
|                                             |                           |                        |                             
|Net cash used by operating activities        | (15,878)                  | (192,943)              | (322,091)                   
|                                             |                           |                        |                             
|FINANCING ACTIVITIES                         |                           |                        |                             
|Proceeds from exercise of options            | 5,000                     | -                      | 5,000                       
|Advances from related party                  | 13,250                    | -                      | 13,250                      
|Proceeds from convertible notes payable      | -                         | 152,500                | 240,500                     
|                                             |                           |                        |                             
|Proceeds from issuance of common             |                           |                        |                             
|Stock                                        |                           | 11,045                 | 68,545                      
|Payments on convertible notes                | (6,000)                   | -                      | (6,000)                     
|Contributed capital                          | -                         | -                      | 985                         
|                                             |                           |                        |                             
|Net cash provided by financing activities    | 12,250                    | 163,545                | 322,280                     
|                                             |                           |                        |                             
|NET CHANGE IN CASH                           | (3,628)                   | (29,398)               | 189                         
|                                             |                           |                        |                             
|CASH AND CASH EQUIVALENTS -                  |                           |                        |                             
|BEGINNING OF PERIOD                          | 3,817                     | 36,531                 | -                           
|                                             |                           |                        |                             
|CASH AND CASH EQUIVALENTS -                  |                           |                        |                             
|END OF PERIOD                                | $                 189     | $            7,133     | $                        189



|SUPPLEMENTAL DISCLOSURES:                        |                            |                             |                           
|------------------------------------------------ | -------------------------- | --------------------------- | --------------------------
|Interest paid                                    | $                        - | $                         - | $                        -
|Income taxes paid                                | $                        - | $                         - | $                        -
|Non-cash investing and financing activities:     |                            |                             |                           
|Stock issued for purchase of license             | $                        - | $               450,000     | $              450,000    
|Stock issued for conversion of notes payable     | $                32,541    | $               151,157     | $              235,089    
|Shares issued to settle notes payable            | $              185,135     | $                         - | $              185,135    
|Investment in Iconosys                           | $                        - | $               100,000     | $              100,000    
|Stock issued to settle stock payable to Iconosys | $                35,825    | $                         - | $                35,825   
|Increase in prepaid stock compensation           | $              470,500     | $               156,000     | $              470,500    





The accompanying notes are an integral part
of these financial statements.



5

Monster Offers

(A Development Stage Company)

Notes to the Financial Statements





NOTE 1 - FINANCIAL STATEMENTS



The accompanying unaudited financial statements
have been prepared by the Company in accordance with accounting principles generally accepted in the United States for interim
financial information and regulation S-X as promulgated by the U.S. Securities and Exchange Commission ("SEC"). In the
opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial
position, results of operations and cash flows at September 30, 2012 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. It is suggested that these financial statements be read in conjunction with the financial
statements and notes thereto included in the Company's December 31, 2011 audited financial statements. The results of operations
for the three and nine months ended September 30, 2012 are not necessarily indicative of the operating results for the full year.





NOTE 2 - GOING CONCERN



These financial statements have been prepared
in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of
assets and the satisfaction of liabilities and commitments in the normal course of business. Since inception (February 23, 2007)
through September 30, 2012, the Company recognized an accumulated deficit during development stage of approximately ($4,555,316).
The Company's ability to continue as a going concern is contingent upon its ability to achieve and maintain profitable operations,
and the Company’s ability to raise additional capital as required.





Management plans to raise equity capital to
finance the operating and capital requirements of the Company, and also plans to pursue acquisition opportunities of other revenue-generating
companies that provide complementary capabilities to that of the Company. Amounts raised will be used for further development of
the Company's products and services, to provide financing for marketing and promotion, to secure additional property and equipment,
and for other working capital purposes. While the Company is devoting its best efforts to achieve the above plans, there is no
assurance that any such activity will generate funds that will be available for operations.



These conditions raise substantial doubt about
the Company's ability to continue as a going concern. These financial statements do not include any adjustments relating to the
recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from
this uncertainty.





NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES



Year-end

The Company’s fiscal year-end is December
31.



6







Monster Offers

(A Development Stage Company)

Notes to the Financial Statements





Cash and Cash Equivalents

The Company considers all short-term investments
with a maturity of three months or less at the date of purchase to be cash equivalents. As of September 30, 2012 and December 31,
2011, there are no cash equivalents.



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 and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results
could differ from those estimates.



Revenue Recognition

In accordance with ASC 605 and SEC Staff Accounting
Bulletin 104, fee revenue is recognized in the period that the Company's advertiser customer generates a sale or other agreed-upon
action on the Company's affiliate marketing networks or as a result of the Company's other services, provided that no significant
Company obligations remain, collection of the resulting receivable is reasonably assured, and the fees are fixed or determinable.
All transactional services revenues are recognized on a gross basis in accordance with the provisions of ASC Subtopic 605-45, due
to the fact that the Company is the primary obligor, and bears all credit risk to its customer, and publisher expenses that are
directly related to a revenue-generating event are recorded as a component of commission paid.





Earnings per Share

Historical net (loss) per common share is computed
using the weighted average number of common shares outstanding. Diluted earnings per share include additional dilution from common
stock equivalents, such as stock issuable pursuant to the exercise of securities or other contracts to issue common stock that
were exercised or converted into common stock or resulted in the issuance of common stock that shared in the earnings of the entity.





Accounts receivable

Accounts receivable are stated at the amount
management expects to collect from balances outstanding at year end. Management provides for probable uncollectible amounts through
a charge to earnings and a credit to an allowance based on its assessment of the current status of individual accounts. Balances
that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation
allowance. As of September 30, 2012 and December 31, 2011, the accounts receivable balance is $2,423 and $9,423, respectively.





7







Monster Offers

(A Development Stage Company)

Notes to the Financial Statements





Fair Value of Financial Instruments

The carrying amounts of the financial instruments,
including cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities, approximate fair value due
to the short maturities of these financial instruments. The notes payable are also considered financial instruments whose carrying
amounts approximate fair values.





Intangible assets

The
Company follows Financial Accounting Standard Board’s (FASB) Codification Topic 350-10 (“ASC 350-10”), “Intangibles
– Goodwill and Other” to determine the method of amortization of its intangible assets. The Company’s intangible
assets are capitalized at historical cost and are amortized over their useful lives. The
Company amortized its license of SSL5 intellectual property using the straight-line method over an estimated useful life of 10
years (see Note 11).



Stock-based compensation

The Company records stock based compensation
in accordance with the guidance in ASC Topic 718 which requires the Company to recognize expenses related to the fair value of
its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value
and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of
all share-based awards on a graded vesting basis over the vesting period of the award.



ASC 505, "Compensation-Stock Compensation",
establishes standards for the accounting for transactions in which an entity exchanges its equity instruments to non-employees
for goods or services. Under this transition method, stock compensation expense includes compensation expense for all stock-based
compensation awards granted on or after January 1, 2006, based on the grant-date fair value estimated in accordance with the provisions
of ASC 505.





Income Taxes

The Company accounts for its income taxes in
accordance with Income Taxes Topic of the FASB ASC 740, which requires recognition of deferred tax assets and liabilities for future
tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities
and their respective tax bases and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax
rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.
The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes
the enactment date.





Recent Accounting Pronouncements

We
have examined all recent accounting pronouncements and believe that none of them will have a material impact on the financial statements
of our company.





8







Monster Offers

(A Development Stage Company)

Notes to the Financial Statements



NOTE 4 - STOCKHOLDERS' EQUITY (DEFICIT)



Common Stock



The Company is authorized to issue 75,000,000
shares of its $0.001 par value common stock.



On February 14, 2012, the Company issued 10,753
shares of common stock to Asher Enterprises for the conversion of $10,000 in principal of outstanding convertible notes payable.
See Note 6 for further details of these conversions.



On February 23, 2012, the Company issued 834
shares of common stock to Iconosys to satisfy $35,825 of stock payable as part of the license agreement entered into on May 16,
2011. See Note 11.



On March 13, 2012, the Company issued 10,186
shares of common stock to Asher Enterprises for the conversion of $5,500 in principal of outstanding convertible notes payable.
See Note 6 for further details of these conversions.



On April 17, 2012, the Company issued 11,217
shares of common stock to Asher Enterprises for the conversion of $1,300 in principal of outstanding convertible notes payable
and $831 in accreted discount. See Note 6 for further details of these conversions.



During the second quarter, Asher Enterprises
took actions that were not beneficial to the Company or its Shareholders. On April 26, 2012, the Company issued a total of 2,700,000
shares of common stock to two related-party investors in exchange for them paying off $73,500 in our convertible notes to Asher
Enterprises and forgiving $21,121 in other advances the shareholders had made to the Company, a total liability of $94,621. Though
these shares are unregistered and restricted, the SEC requires that they be valued as though they were not. Accordingly, these
shares were valued at the fair value of $1 per share and we recognized a non-cash loss on settlement of debt associated with this
stock issuance of $2,514,865 million. See note 7.



On April 9, 2012, the Company issued 5,000
shares of its $0.001 par value common stock for service rendered by a consultant. On June 28, 2012, the Company issued 150,000
shares of its $0.001 par value common stock for service rendered by a consultant. On June 28,, 2012, the Company issued 25,000
shares of its $0.001 par value common stock for service rendered by a consultant.





On July 1 and September 7, 2012, the Company
issued a total of 250,000 shares for the exercise of 250,000 cashless stock options issued to consultants in the previous quarter.





9







Monster Offers

(A Development Stage Company)

Notes to the Financial Statements



Stock Options



On March 14, 2011, as part of the Strategic
Alliance and Licensing agreement mentioned above, the Company entered into a consulting agreement with SSL5, providing stock options
and a seat on the Monster Offers board of directors to develop ongoing product strategy and development services. In accordance
with the terms of the agreement, the consulting company is entitled to purchase a total of 6,667 unregistered restricted shares
of the Company over the term of the agreement of two years. Upon the completion of each 6-month period, a total of 1,667 shares
will become vested and available for purchase by the Consultant. The price of these shares will be at $0.30 per share. In the event
that the Company is sold or merged with another company, all remaining unvested shares will become fully vested immediately prior
to any such transaction.



As of September 13, 2011, 1,667 shares fully
vested in accordance with the agreement and were revalued at $12,192 using the Black-Scholes option pricing model based upon the
following assumptions: term of 1.5 years, risk free interest rate of 0.21%, a dividend yield of 0% and a volatility rate of 183%.





As of March 13, 2012, 1,667 shares fully vested
in accordance with the agreement and were revalued at $2,241 using the Black-Scholes option pricing model based upon the following
assumptions: term of 1 year, risk free interest rate of 0.20%, a dividend yield of 0% and a volatility rate of 220%.





As of September 13, 2012, 1,667 shares fully
vested in accordance with the agreement and were revalued at $1,424 using the Black-Scholes option pricing model based upon the
following assumptions: term of .5 years, risk free interest rate of 0.13%, a dividend yield of 0% and a volatility rate of 299%.





A pro-rated portion of the unvested stock options
for the service period from September 14 to September 30, 2012, totaling 139 shares, have been valued at $117 using the Black-Scholes
option pricing model based upon the following assumptions: term of .45 years, risk free interest rate of 0.14%, a dividend yield
of 0% and a volatility rate of 297%.



During nine month period ended September 30,
2012, we also issued the following shares to consultants, in exchange for their services:



Shares                 
Value/Share      Value attributed to Consulting Services

5,000                    
$1.95                     $9,750

25,000                  
$1.00                     $25,000



All shares are valued at the quoted value of
our stock on the day of issue, based on our determination that the fair value of our stock is more reliably measurable than the
value of the services we received.



In addition, on April 17, 2012, we issued 11,217
shares of its $0.001 par value common stock in accordance with an existing conversion feature in certain notes payable.



10







Monster Offers

(A Development Stage Company)

Notes to the Financial Statements





Finally, we issued 150,000 options to a consultant
that were immediately exercised (cashless), recording a $135,090 charge to expense.



At September 30, 2012, we had 3,384,361 common
shares outstanding.





NOTE 5 - DRAWDOWN EQUITY FINANCING AGREEMENT



During the three months ended September 30,
2012 no additional sales have been made in accordance with this agreement.





NOTE 6 - CONVERTIBLE NOTES PAYABLE





On April 25, 2011, a fourth convertible note
payable in the amount of $40,000 was entered into with Asher Enterprises, the maturity date being January 27, 2012, with interest
accruing at 8% per annum. The original issue discount note, as described in ASC 480-55, may not be prepaid in whole or in part.
If the Note is not paid in full with interest on the maturity date, the note holder has the right to convert this Note into restricted
common shares of the Company. The conversion price shall equal the "Variable Conversion Price" (subject to equitable
adjustments for stock splits, stock dividends or rights offerings by the Borrower). The "Variable Conversion Price" shall
mean 61% multiplied by the Market Price (representing a discount rate of 39%). "Market Price" means the average of the
lowest three (3) Trading Prices for the Common Stock during the ten (10) Trading Day period ending one Trading Day prior to the
date the Conversion Notice is sent by the Holder to the Borrower via facsimile. If the Note is not paid in full with interest on
the maturity date, the note holder has the same right to convert this Note into restricted common shares of the Company with the
same discount as the prior notes. On February 14, 2012, $10,000 of the principal balance was converted into 10,753 shares. On March
13, 2012, an additional $5,500 of the principal balance was converted into 10,186 shares. On April 17, 2012, $1,300 of the principal
balance was converted into 11,217 shares. The remaining principal after this conversion was $23,200 and the discount had been fully
amortized. See Note 7 for details on how all Asher convertible debt was disposed of during the three months ending June 30, 2012.



On May 16, 2011, the Company entered into an
agreement with Tangiers Investors, LP, a Delaware limited partnership, an accredited investor, whereby Tangiers Investors loaned
the Company the aggregate principal amount of $50,000, less $500 for costs of the loan transaction and $4,000 fee to be paid to
a third party, together with any interest at the rate of seven percent (7%) per annum, until the maturity date of May 7, 2012.
The original issue discount note, as described in ASC 480-55, may not be prepaid in whole or in part. If the Note is not paid in
full with interest on the maturity date, the note holder has the right to convert this Note into restricted common shares of the
Company. The conversion price shall equal the "Variable Conversion Price" (subject to equitable adjustments for stock
splits, stock dividends or rights offerings by the Borrower). The "Variable Conversion Price" shall mean 75% multiplied
by the Market Price (representing a discount rate of 25%). "Market Price" means the lowest





11







Monster Offers

(A Development Stage Company)

Notes to the Financial Statements





trading price for the Common Stock during the
seven (7) Trading Day period ending one Trading Day prior to the date the Conversion Notice is sent by the Holder to the Borrower
via facsimile. During the three months ended June 30, 2012, $5,000 in principal was paid to Tangiers Investors, reducing the principle
balance to $45,000 at June 30, 2012, and we amortized the remaining discount of $2,083, leaving no unamortized discount at September
30, 2012. During the three months ended September 30, 2012, $1,000 in principal was paid to Tangiers Investors, reducing the principle
balance to $4,400. During the quarter ended September 30, 2012, the lending party agreed to extend the terms of the convertible
note to allow the maturity date to be delayed until January 25, 2013. See Note 12, Subsequent Events, for details of an additional
extension subsequent to the date of these financial statements.



On June 1, 2011, a fifth convertible note payable
in the amount of $32,500 was entered into with Asher Enterprises. The original issue discount note, as described in ASC 480-55,
may not be prepaid in whole or in part. If the Note is not paid in full with interest on the maturity date, the note holder has
the right to convert this Note into restricted common shares of the Company. The conversion price shall equal the "Variable
Conversion Price" (subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower).
The "Variable Conversion Price" shall mean 55% multiplied by the Market Price (representing a discount rate of 45%).
"Market Price" means the average of the lowest three (3) Trading Prices for the Common Stock during the ten (10) Trading
Day period ending one Trading Day prior to the date the Conversion Notice is sent by the Holder to the Borrower via facsimile.
The original issue discount note is for $32,500 and the discount has been fully amortized as of March 31, 2012. See Note 7 for
details on how all Asher convertible debt was disposed of during the three months ending June 30, 2012.





NOTE 7 - ASHER ENTERPRISES CONVERTIBLE NOTE
RETIREMENT



On March 13, 2012, the Company issued 10,186
shares of common stock to Asher Enterprises for the conversion of $5,500 in principal of outstanding convertible notes payable.



On April 17, 2012, the Company issued 11,217
shares of common stock to Asher Enterprises for the conversion of $1,300 in principal of outstanding convertible notes payable
and $831 in accreted discount. See Note 6 for further details of these conversions.



During the second quarter, Asher Enterprises
took actions that were not beneficial to the Company or its Shareholders. On April 26, 2012, the Company issued a total of 2,700,000
shares of common stock to two related-party investors in exchange for them paying off $73,500 in our convertible notes to Asher
Enterprises and forgiving $21,121 in other advances the shareholders had made to the Company, a total liability of $94,621. Though
these shares are unregistered and restricted, the SEC requires that they be valued as though they were not. Accordingly, these
shares were valued at $1 per share and we recognized a non-cash loss on settlement of debt associated with this stock issuance
of $2,514,865.





12







Monster Offers

(A Development Stage Company)

Notes to the Financial Statements





NOTE 8 – CONSULTING AGREEMENT



On April 21, 2011, the Company entered into
a consulting agreement for services related to raising funds for the Company. The terms of the agreement call for a percentage
of monies received by contacts provided by the consultant in the following scale:



|Up to $1 million raised  | 8.00%
|------------------------ | -----
|$1,000,001 to $2 million | 6.50%
|$2,000,001 to $4 million | 5.50%
|$4,000,001 and above     | 4.50%



As of September 30, 2012, the Company has received
$50,000 in convertible notes payable from contacts gained from this agreement and has paid 8 percent of those monies received,
in accordance with this agreement, to the consultant for a total of $4,000.





NOTE 9 – SIGNIFICANT SOURCE OF REVENUE



On June 14, 2011, the Company executed a Services
Agreement with Gannett, Inc., a Delaware corporation. In accordance with the Agreement, Monster Offers will track the performance
of mutually agreed upon third-party "deal of the day" sites ("DOTD") that serve users in the applicable Gannett
Markets, and will create reports describing the performance of deals distributed on such DOTD sites.



This Agreement commenced on July 1, 2011 and
ended on October 6, 2011. This agreement accounted for approximately 60% of the Company’s revenues at the time.





NOTE 10 - RELATED PARTY TRANSACTIONS



The Company does not lease or rent any property.
Office services are provided without charge by a director. Such costs are immaterial to the financial statements and, accordingly,
have not been reflected therein. The officers and directors of the Company are involved in other business and may, in the future,
become involved in other business opportunities. If a specific business opportunity becomes available, such persons may face a
conflict in selecting between the Company and their other business interests. The Company has not formulated a policy for the resolution
of such conflicts.



During the quarter ended September 30, 2012,
the Company had certain debts paid on behalf of the Company by Iconosys, a related party. The amount paid totaled $6,700 as of
September 30, 2012 and has been recorded as amounts due to related party on the balance sheet.





13







Monster Offers

(A Development Stage Company)

Notes to the Financial Statements





NOTE 11 – STRATEGIC ALLIANCE & LICENSING
AGREEMENTS



SSL5



On March 14, 2011, Monster Offers (the "Company")
entered into a Strategic Alliance and Licensing Agreement with SSL5, a Nevada corporation. SSL5 has developed technology services
pertaining to a mobile financial services platform, which provides secure person-to-person mobile money transfer services. Monster
Offers and SSL5 formed a strategic alliance with respect to the integration, use and commercialization of Monster Offers and SSL5
Existing Intellectual Property to create new and derivative intellectual property to introduce to various markets. Monster Offers
obtained a license of the Existing SSL5 Intellectual Property for the exclusive use of the strategic alliance. As consideration
for this license, Monster Offers issued 10,000 of its unregistered restricted shares to SSL5. These shares were valued at the market
rate of $45 per share, for a total of $450,000 and recorded as stock payable.



At year end, management performed an impairment
analysis on the license and determined that the license was impaired due to the fact that as of December
31, 2011 the Company had not had significant forward-moving activity or use of the licensed intellectual property and could not
reasonably predict the use of the license at year end. The Company does however still plan to pursue further development and marketing
activities associated with this License. An impairment loss of $425,435 was recognized during the year ended December 31, 2011.
The remaining book value of is $0 as of December 31, 2011. Amortization expense for the years ended December 31, 2011 and 2010
was $24,565 and $0, respectively.



Monster Offers and SSL5 plan to establish a
new company as a 100% owned subsidiary of Monster Offers, in the State of Nevada, and to contribute the license of the Existing
SSL5 Intellectual Property into the new subsidiary for its use and future development of new and derivative intellectual property.
Any new and derivative intellectual property developed in conjunction with this Strategic Alliance and Licensing Agreement shall
be owned exclusively by the new subsidiary. As of September 30, 2012, the subsidiary entity had not yet been established.



As further consideration, the Company entered
into a consulting agreement with SSL5, providing stock options and a seat on the Monster Offers board of directors to develop ongoing
product strategy and development services. In accordance with the terms of the agreement, the Consulting Company is entitled to
purchase a total of 6,667 unregistered restricted shares of the Company over the term of the agreement of two years. Upon the completion
of each 6-month period, a total of 1,667 options will become vested and available for purchase by the Consultant. In the event
that the Company is sold or merged with another company, all remaining unvested options will become fully vested immediately prior
to any such transaction.



As of March 13, 2012, 1,667 shares fully vested
in accordance with the agreement and were revalued at $2,241 using the Black-Scholes option pricing model based upon the following
assumptions: term of 1 year, risk free interest rate of 0.20%, a dividend yield of 0% and a volatility rate of 220%. As of September
13, 2011, 1,667 options have fully vested in accordance with the agreement and were revalued at $12,192 using the Black-Scholes
option pricing model based upon the following assumptions: term of 1.5 years, risk free interest rate of 0.21%, a dividend yield
of 0% and a volatility rate of 183%.



14





Monster Offers

(A Development Stage Company)

Notes to the Financial Statements





As of September 13, 2012, 1,667 shares fully
vested in accordance with the agreement and were revalued at $1,424 using the Black-Scholes option pricing model based upon the
following assumptions: term of .5 years, risk free interest rate of 0.13%, a dividend yield of 0% and a volatility rate of 299%.





A pro-rated portion of the unvested stock options
for the service period from September 14 to September 30, 2012, totaling 139 shares, have been valued at $117 using the Black-Scholes
option pricing model based upon the following assumptions: term of .45 years, risk free interest rate of 0.14%, a dividend yield
of 0% and a volatility rate of 297%.



Iconosys



On May 16, 2011, the Company entered into a
Strategic Alliance and License Agreement with Iconosys, Inc., a California corporation. Iconosys has developed proprietary mobile
applications and technology and engaged in the business of mobile communication application design related services. Monster Offers
and Iconosys formed a strategic alliance with respect to the integration, use and commercialization of Monster Offers and Iconosys
existing Intellectual Property to create new and derivative intellectual property to introduce to various markets.



Iconosys obtained a license of the Existing
Monster Offers Tier 1 Zala Merchant license with the ability to promote and sign up Zala account holders and participate in a revenue
sharing model with Monster Offers. As consideration for this license, Iconosys issued 3,333 of its unregistered restricted shares
to Monster Offers. Since Iconosys is not a publicly-traded corporation, these shares were valued at a fair value based upon a fair
value of similar shares sold under a private placement memorandum by Iconosys at rate of $30 per share, for a total of $100,000.
The shares of Iconosys common stock received were recorded as an investment in Iconosys on the balance sheet for $100,000. The
investment is evaluated for indicators of impairment on an annual basis, in accordance with ASC 350-10 "Intangibles - Goodwill
and Other".



The Company recognized a value in the intellectual
property exchange with Iconosys. The fair value of the shares $100,000 was recognized as unearned license revenue and is being
recognized over one year, the term of the license agreement. As of September 30, 2012, the Company had recognized $100,000 in license
revenue.



In accordance with the terms of the agreement,
Iconosys will provide services to Monster Offers relating to its Deal Buzzer mobile application and to integrate the Monster Offers
existing intellectual property into mobile applications it currently designs and produces. As consideration for the services performed
by Iconosys, Monster Offers issued 834 shares of unregistered, restricted common stock, an initial cash payment of $500, and future
payments as part of a revenue share participation portion of the agreement. The 834 shares issued to Iconosys were valued at the
market value $43 per share for a total of $35,825 in prepaid expenses that will be recognized over the term of the agreement. For
the three months ended March 31, 2012, the Company recognized $3,583 in strategic alliance expenses. On February 23, 2012, the
Company issued the 834 shares from stock payable for a total of $35,825.



15







Monster Offers

(A Development Stage Company)

Notes to the Financial Statements





The term of the strategic alliance and this
agreement commenced on May 6, 2011 and will end on November 5, 2013, unless terminated earlier in accordance with the agreement.





NOTE 12 – SUBSEQUENT EVENTS



Convertible Note Extension Agreement





On November 7, 2012, the Company agreed to
pay Tangiers Investors, LP a fee of $6,500 to extend the terms on the Convertible note until January 25, 2013 and make a one-time
payment of 5,000 restricted shares as added consideration for this extension.





Merger





On November 9, 2012, Monster Offers, a Nevada
corporation (the "Registrant" or “the Company” or the “Parent”), Monster Offers Acquisition Corporation,
a Nevada corporation ("Merger Sub") and Ad Shark, Inc., a privately-held California corporation (“Ad Shark”),
entered into a Acquisition Agreement and Plan of Merger (collectively the "Agreement") pursuant to which the Registrant,
through its wholly-owned subsidiary, Merger Sub, acquired Ad Shark in exchange for 27,939,705 shares of the Registrant's unregistered
restricted common stock (the “Merger Shares”), which were issued to the holders of Ad Shark based on their pro-rata
ownership (the “Merger”). Following the Merger, the Parent will change its corporate name to Monster Mobile Marketing,
Inc., which management believes reflects the Registrant’s post-acquisition business focus. The transaction contemplated by
the Agreement was intended to be a "tax-free" reorganization pursuant to the provisions of Section 351 and 368(a)(1)(A)
of the Internal Revenue Code of 1986, as amended.



Shareholders holding a majority of the voting
power of Ad Shark have approved the acquisition, and as of the closing date of the Merger and after giving effect to the issuance
of the Merger Shares, owners of the Merger Shares (and former Ad Shark shareholders) now own approximately 89.6% of the Registrant's
common stock outstanding as of November 9, 2012.



Under Nevada law, the Registrant did not need
the approval of its stockholders to consummate the acquisition and Merger, as the constituent corporations in the Merger were Merger
Sub and Ad Shark, which are business entities incorporated under the laws of Nevada and California, respectively, and are in the
same general business. The Registrant is not a constituent corporation in the Merger.



For accounting purposes, this transaction will
be accounted for as a reverse merger (“Reverse Acquisition”), since immediately following the Merger, (i) the shareholders
of Ad Shark would own a majority of the issued and outstanding shares of common stock of the Registrant, and (ii) the directors
and executive officers of Ad Shark would become the directors and executive officers of the Registrant, such that the new board
for the Registrant would consist of three directors. This Reverse Acquisition is considered to be a related party transaction as
the largest shareholder of the Registrant is a director and affiliate of both Ad Shark and Monster Offers.



16









Item 2. - Management's Discussion and Analysis of Financial Condition
and Results of Operations



Forward-Looking Information



The Company from time to time may make written or oral "forward-looking
statements" including statements contained in this report and in other communications by the Company, which are made in good
faith by the Company pursuant to the "safe harbor" provisions of the Private Securities Litigation

Reform Act of 1995.



These forward-looking statements include statements of the Company's
plans, objectives, expectations, estimates and intentions, which are subject to change based on various important factors (some
of which are beyond the Company's control). The following factors, in addition to others not listed, could cause the Company's
actual results to differ materially from those expressed in forward looking statements: the strength of the domestic and local
economies in which the Company conducts operations, the impact of current uncertainties in global economic conditions and the ongoing
financial crisis affecting the domestic and foreign banking system and financial markets, including the impact on the Company's
suppliers and customers, changes in client needs and consumer spending habits, the impact of competition and technological change
on the Company, the Company's ability to manage its growth effectively, including its ability to successfully integrate any business
which it might acquire, and currency fluctuations. All forward-looking statements in this report are based upon information available
to the Company on the date of this report. The Company undertakes no obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events, or otherwise, except

as required by law.



Critical Accounting Policies



There have been no material changes to our critical accounting policies
and estimates from the information provided in Item 7, "Management's Discussion and Analysis of Financial Condition and Results
of Operations", included in our Annual report on Form 10-K for the fiscal year ended December 31, 2011.



Results of Operations



Overview of Current Operations



Monster Offers (“Registrant” or the “Company")
was incorporated in the State of Nevada on February 23, 2007, under the name Tropical PC Acquisition Company. On December 11, 2007,
the Company amended its Articles of Incorporation changing its name to Monster Offers. The Company was originally incorporated
as a wholly owned subsidiary of Tropical PC, Inc., a Nevada corporation. Tropical PC was incorporated September 22, 2004. On December
11, 2007, the Company amended its Articles of Incorporation changing its name from Tropical PC Acquisition Corporation to Monster
Offers.









17







On November 9, 2012, Monster Offers, Monster
Offers Acquisition Corporation, a Nevada corporation and Ad Shark, Inc., a privately-held California corporation (“Ad Shark”),
entered into a Acquisition Agreement and Plan of Merger pursuant to which the Registrant, through its wholly-owned subsidiary,
Merger Sub, acquired Ad Shark in exchange for 27,939,705 shares of the Registrant's unregistered restricted common stock, which
were issued to the holders of Ad Shark stock based on their pro-rata ownership.





Our Business



Monster Offers is a daily deal aggregator, collecting daily deals
from multiple sites in local communities across the U.S. and Canada. Focused on providing innovation and utility for Daily Deal
consumers and providers, the company collects and publishes thousands of daily deals and allows consumers to organize these deals
by geography or product categories, or to personalize the results using keyword search.

We utilize proprietary technology that we have developed, acquired,
and/or licensed to deploy our products and services.



Our primary services include the aggregation and promotion of Daily
Deals to consumers via our primary website; www.monsteroffers.com which provides search capabilities for users to quickly find
Daily Deals based on filtering algorithms, zip code, predictive text search by city, and by user preferences.

The Company earns fees from data reporting services, traffic generation,
and from our affiliate partners via marketing services including the online promotion of its affiliate partners daily deals through
its website www.monsteroffers.com, selling of industry data and analysis reports, and executing internet and social marketing campaigns
for customers. Our affiliate program partners are also offered search result placement and other benefits including the ability
to participate in early release or beta programs for new innovations that the Company offers.



Current and potential customers include media and content publishers,
advertisers, direct marketers, and advertising agencies seeking to increase brand impressions, sales, and customer contact through
online marketing initiatives. Our customers also utilize our products and services to analyze the competitive landscape within
their target markets. All transactional services revenues are recognized on a gross basis.



AdShark’s Business



Ad Shark organizes advertising sales efforts
by constructing media and advertising delivery systems for Smartphone and Tablet app developers. Ad Shark's corporate mission is
to capitalize on the growth of the mobile marketing industry, which some analysts have estimated to be increasing at an annual
rate of about 100% per year.



Ad Shark's approach to integrating traditional
internet advertising with optimized media and cutting edge ad delivery methods, all tailored specifically for the applicable Smart
Device, OS or screen resolution platform, puts the company in an ideal position to compete for engagements involving advertising
campaigns for mobile marketing services and products. At present, Ad Shark has more than 2,000 clients. For more on Ad Shark, Inc.,
see Ad Shark’s website: http://www.adshark.mobi. (The information on Ad Shark’s website is for reference purposes only,
and is not meant or intended to be included as description of Ad Shark in this Current Report.)



18









Ad Shark, acts as the servicing vehicle for
mobile communication advertising services sold to commercial clients. Ad Shark is developing a series of advertising accessories
to establish a platform position in mobile marketing for the company with specific families of mobile devices.



In addition, Ad Shark serves as the marketing
and sales support arm for Travel America Visitor Guide (“TAVG”) directories, which is currently operated as a division
of Iconosys and is gaining visibility and traction as a preferred mode of business advertising for smaller-to-mid-sized businesses
throughout the U.S. With the Ad Shark opportunity, the Company sees itself as being in an excellent position to take advantage
of the mobile marketing industry, which is projected to grow over the next 3 years. Management believes this growth will come primarily
from Internet-enabled Smartphones.



COMPETITION



The advertising and marketing industry is highly
competitive, subject to rapid change and has relatively low barriers to entry, as compared with other industries or industry segments.
Management believes that its ability to compete depends in part on a number of factors, which includes but are not limited to:



•the ability to hire,
retain and motivate qualified personnel;

•the price at which
the Company offers comparable services and products; and

•the extent of our responsiveness
to customer needs.



Competition in the Mobile Marketing industry
may increase in the future, partly due to low barriers to entry, the emergence of larger, more dominant and perhaps better funded
competitors, as well as from the emergence of new mobile communications technologies and/or social or economic trends now in existence
or developed or emerging in the future. Increased competition could result in price reductions, reduced margins or loss of market
share and greater competition for qualified personnel. The prospect of increased competition is particularly likely in the mobile
advertising industry, where such larger players as Google, Apple, and ValueClick have already entered the arena through their respective
purchases of AdMob, Quattro Wireless, and Greystripe. There can be no assurance that we will be able to compete successfully against
current and future competitors. If we are unable to compete effectively, or if competition results in a deterioration of market
conditions, our business and results of operations could be adversely affected.



Iconosys



On May 16, 2011, the Company entered into a
Strategic Alliance and License Agreement with Iconosys, Inc., a California corporation. Iconosys has developed proprietary mobile
applications and technology and engaged in the business of mobile communication application design related services. Monster Offers
and Iconosys formed a strategic alliance with respect to the integration, use and commercialization of Monster Offers and Iconosys
existing Intellectual Property to create new and derivative intellectual property to introduce to various markets.













19









Iconosys obtained a license of the Existing
Monster Offers Tier 1 Zala Merchant license with the ability to promote and sign up Zala account holders and participate in a revenue
sharing model with Monster Offers. As consideration for this license, Iconosys issued 3,333 of its unregistered restricted shares
to Monster Offers. Since Iconosys is not a publicly-traded corporation, these shares were valued at a fair value based upon a fair
value of similar shares sold under a private placement memorandum by Iconosys at rate of $30 per share, for a total of $100,000.
The shares of Iconosys common stock received were recorded as an investment in Iconosys on the balance sheet for $100,000. The
investment is evaluated for indicators of impairment on an annual basis, in accordance with ASC 350-10 "Intangibles - Goodwill
and Other".



The Company recognized a value in the intellectual
property exchange with Iconosys. The fair value of the shares $100,000 was recognized as unearned license revenue and is being
recognized over one year, the term of the license agreement. As of September 30, 2012, the Company had recognized $100,000 in license
revenue.



In accordance with the terms of the agreement,
Iconosys will provide services to Monster Offers relating to its Deal Buzzer mobile application and to integrate the Monster Offers
existing intellectual property into mobile applications it currently designs and produces. As consideration for the services performed
by Iconosys, Monster Offers issued 834 shares of unregistered, restricted common stock, an initial cash payment of $500, and future
payments as part of a revenue share participation portion of the agreement. The term of the strategic alliance and this agreement
commenced on May 6, 2011 and will end on November 5, 2013, unless terminated earlier in accordance with the agreement.





Results of Operations for the three and nine months ended September
30, 2012 and 2011



Revenues



During the three month period ended September 30, 2012, the Company
generated $5,750 in revenues as compared to $104,140 for the same period last year. During the nine month period ended September
30, 2012, the Company generated $78,168 in revenues as compared to $149,752 for the same period last year. Management does not
expect to receive any significant related party revenues through the end of its fiscal year. There can be no assurances that the
Company can be profitable or that the Company will not incur operating losses in the future.



For the three months ending September 30, 2012, the Company experienced
general and administrative expenses of $26,686 as compared to general and administrative expenses of $46,240 for the same period
last year. For the three months ending September 30, 2012, the Company expensed advertising fees of $0 as compared to $4,930 in
advertising fees for the same period last year. For the three months ending September 30, 2012, the Company expensed officer compensation
of $1,150 as compared to $33,400 in officer compensation for the same period last year. For the three months ending September 30,
2012, the Company expensed audit fees of $6,700 as compared to $4,275 in audit fees for the same period last year. For the three
months ending September 30, 2012, the Company expensed strategic alliance costs of $3,583 as compared to $3,582 in strategic alliance
costs for the same period last year. For the three months ending September 30, 2012, the Company expensed consulting costs of $147,718
as compared to $70,522 in consulting costs for the same period last year. Total operating expenses for the quarter ending September
30, 2012 were $185,837 versus $174,100 for the same period last year.



20









For the nine months ending September 30, 2012, the Company experienced
general and administrative expenses of $188,958 as compared to general and administrative expenses of $105,508 for the same period
last year. For the nine months ending September 30, 2012, the Company expensed officer compensation of $20,806 as compared to $103,100
in officer compensation for the same period last year. For the nine months ending September 30, 2012, the Company expensed audit
fees of $22,150 as compared to $21,605 in audit fees for the same period last year. For the nine months ending September 30, 2012,
the Company expensed strategic alliance costs of $10,748 as compared to $6,470 in strategic alliance costs for the same period
last year. For the nine months ending September 30, 2012, the Company expensed consulting costs of $261,588 as compared to $280,244
in consulting costs for the same period last year. Total operating expenses for the nine months ending September 30, 2012 were
$506,355 versus $569,679 for the same period last year. Operating expenses decreased due to reductions in general and administrative
fees and reduced outside consulting fees.



For the three months ended September 30, 2012, the Company had $(181,132)
in net losses or $(0.06) per share as compared to a net loss of $(106,565) or $(0.50) for the same period last year. For the nine
months ended September 30, 2012, the Company had $(3,022,835) in net losses or $(1.61) per share as compared to a net loss of $(531,614)
or $(2.57) for the same period last year.



Since the Company's inception, on February 23, 2007, the Company
had a net loss of $(4,555,316).



Plan of Operation



Management does not believe that the Company will be able to generate
any significant profit during the coming year. Management believes that general and administrative costs as well as building its
infrastructure will most likely curtail any significant profits.



Notwithstanding, the Company anticipates it will continue to generate
losses and therefore it may be unable to continue operations in the future. Originally, management anticipated a need to raise
$475,000 to fully implement its business plan. After careful consideration and a detailed analysis by new management, the Company
now expects it will need to raise $5,000,000 to forward its business plan, and Monster Offers would have to issue debt or equity
or enter into a strategic arrangement with a third party. There can be no assurance that additional capital will be available to
Monster Offers, especially with the current economic environment.



Based on current cash on hand of $189 as of September 30, 2012,
current assets of $92,089 and $135,681 in current liabilities, management is concerned that Monster Offers may not have sufficient
funds to meet its financial obligations for the next twelve months. Management believes the Company can generate sufficient cash
reserves to keep the Company operational through the fourth quarter. Management will need to obtain outside funding to keep the
Company operational beyond the third quarter. There are no assurances that management will be able to secure outside funding. Management
anticipates that the Company will need to spend a minimum of $30,000 over the next twelve months to pay for audit and legal fees
to keep the company fully reporting. Failure to secure additional funding can result in the company being fully reporting, but
not operational. The Company will require additional funds to build its business infrastructure. In the event the Company requires
additional funds, the Company will have to seek loans or equity placements to cover such cash needs. There are no assurances additional
capital will be available to the Company on acceptable terms.





21









If the Company falls short of capital to keep the Company fully
reporting, our officers/directors have agreed to donate funds to the operations of the Company, in order to keep it fully reporting
for the next twelve (12) months. No agreement exists that our officers/directors will continue to donate funds to the operations
of the Company for the next twelve months; therefore, there is no guarantee that they will continue to do so in the future.



Going Concern



Going Concern - The Company has recognized an accumulated deficit
since inception (February 23, 2007) through September 30, 2012 of $(4,555,316). Although the Company has recognized total revenues
of $701,668 with gross profits of $451,840, since inception (February 23, 2007) through September 30, 2012, the Company's ability
to continue as a going concern is contingent upon the successful completion of additional financing arrangements and its ability
to achieve and maintain profitable operations. The financial statements have been prepared assuming the Company will continue to
operate as a going concern which contemplates the realization of assets and the settlement of liabilities in the normal course
of business. No adjustment has been made to the recorded amount of assets or the recorded amount or classification of liabilities
which would be required if the Company were unable to continue its operations. (See Financial Footnote 2).



Summary of any product research and development that we will
perform for the term of our plan of operation.



We do not anticipate performing any additional significant product
research and development under our current plan of operation.



Expected purchase or sale of plant and significant equipment



We do not anticipate the purchase or sale of any plant or significant
equipment; as such items are not required by us at this time.



Significant changes in the number of employees



As of September 30, 2012, we did not have any employees. We are
dependent upon our officers and directors for our future business development. As our operations expand we anticipate the need
to hire additional employees, consultants and professionals; however, the exact number is not quantifiable at this time.



















22









Liquidity and Capital Resources



The Company has limited financial resources available, which has
had an adverse impact on the Company's liquidity, activities and operations. These limitations have adversely affected the Company's
ability to obtain certain projects and pursue additional business. Without realization of additional capital, it would be unlikely
for the Company to continue as a going concern. In order for the Company to remain a Going Concern it will need to find additional
capital. Additional working capital may be sought through additional debt or equity private placements, additional notes payable
to banks or related parties (officers, directors or stockholders), or from other available funding sources at market rates of interest,
or a combination of these. The ability to raise necessary financing will depend on many factors, including the nature and prospects
of any business to be acquired and the economic and market conditions prevailing at the time financing is sought. No assurances
can be given that any necessary financing can be obtained on terms favorable to the Company, or at all.



As of September 30, 2012, our current assets were $92,089 and our
current liabilities were $135,681. As of September 30, 2012, our total assets were $192,089 compared to total assets of $141,933
as of December 31, 2011. Total assets as of September 30, 2012 consisted of $189 in cash, $2,423 in accounts receivable, and prepaid
expense of $89,477. As of September 30, 2012, our liabilities consisted of $48,979 in accounts payable, $6,085 in accrued interest,
$13,250 in notes payable, $6,700 in due to related party and $60,667 in convertible notes payable.



We have not generated positive cash flows from operating activities.
For the nine months ended September 30, 2012, net cash flow used in operating activities was $(15,878) compared to net cash flow
used in operating activities of $(157,507) for the nine months ended September 30, 2011.



During the nine month periods ended September 30, 2012 and September
30, 2011, net cash flow provided from financing activities was $12,250 and $152,500, respectively.



The Company has no employment agreements in place with its officers,
nor does the Company owe its officers any accrued compensation.



Off-Balance Sheet Arrangements



We do not have any off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses,
results of operations, liquidity, capital expenditures or capital resources that is material to investors.



Critical Accounting Policies and Estimates



Revenue Recognition: We recognize revenue from product sales and
service agreements once all of the following criteria for revenue recognition have been met: persuasive evidence that an agreement
exists; the services have been rendered; the fee is fixed and determinable and not subject to refund or adjustment; and collection
of the amount due is reasonably assured.









23









Item 3. Quantitative and Qualitative Disclosures about Market Risk.



Not applicable.



Item 4T. Controls and Procedures



Evaluation of Disclosure Controls and Procedures



Our disclosure controls and procedures, as defined in Rule 13a-15(e)
and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), are designed to ensure that
information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and
reported within the time periods specified in rules and forms adopted by the SEC, and that such information is accumulated and
communicated to management, including the Chief Executive Officer and the Chief Financial Officer, to allow timely decisions regarding
required disclosures.

Management, with the participation of the Chief Executive Officer
and the Chief Financial Officer, who is also the sole member of our Board of Directors, has evaluated the effectiveness of our
disclosure controls and procedures as of the end of the period covered by this report. Based on such evaluation, the Chief Executive
Officer and the Chief Financial Officer concluded that, our disclosure controls and procedures were not effective. Our disclosure
controls and procedures were not effective because of the "material weaknesses" described below under "Management's
report on internal control over financial reporting," which are in the process of being remediated as described below under
"Management Plan to Remediate Material Weaknesses."





Management's Report on Internal Control over Financial Reporting



Our management is responsible for establishing and maintaining adequate
internal control over financial reporting. Internal control over financial reporting, as defined in rules promulgated under the
Exchange Act, is a process designed by, or under the supervision of, our Chief Executive Officer and Chief Financial Officer and
affected by our Board of Directors, management and other personnel to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. Internal control
over financial reporting includes those policies and procedures that:



- pertain to the maintenance of records that in reasonable detail
accurately and fairly reflect the transactions and dispositions of our assets;

- provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance with GAAP, and that our receipts and expenditures are being
made only in accordance with authorizations of our management and our Board of Directors; and

- provide reasonable assurance regarding prevention or timely detection
of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements









24









Because of its inherent limitations, a system of internal control
over financial reporting can provide only reasonable, not absolute, assurance that the objectives of the control system are met
and may not prevent or detect misstatements. Internal control over financial reporting is a process that involves human diligence
and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial
reporting also can be circumvented by collusion or improper override. Because of such limitations, there is a risk that material
misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent
limitations are known features of the financial reporting process, and it is possible to design into the process safeguards to
reduce, though not eliminate, this risk. Further, over time control may become inadequate because of changes in conditions or the
degree of compliance with the policies or procedures may deteriorate.



Our management assessed the effectiveness of our internal control
over financial reporting as of September 30, 2012. In making its assessment, management used the criteria established in Internal
Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO").
Based on its assessment, management has concluded that we had certain control deficiencies described below that constituted material
weaknesses in our internal controls over financial reporting. As a result, our internal control over financial reporting was not
effective as of September 30, 2012.



A "material weakness" is defined under SEC rules as a
deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility
that a material misstatement of a company's annual or interim financial statements will not be prevented or detected on a timely
basis by the company's internal controls. As a result of management's review of the investigation issues and results, and other
internal reviews and evaluations that were completed after the end of quarter related to the preparation of management's report
on internal controls over financial reporting required for this quarterly report on Form 10-Q, management concluded that we had
material weaknesses in our control environment and financial reporting process consisting of the following:



1)lack of a functioning audit committee due to a lack of a majority of independent members and a lack of a majority of outside
directors on our board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal
controls and procedures;

2)insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and
application of US GAAP and SEC disclosure requirements;



We do not believe the material weaknesses described above caused
any meaningful or significant misreporting of our financial condition and results of operations for the quarter ended September
30, 2012. However, management believes that the lack of a functioning audit committee and the lack of a majority of outside directors
on our board of directors results in ineffective oversight in the establishment and monitoring of required internal controls and
procedures, which could result in a material misstatement in our financial statements in future periods.









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Management Plan to Remediate Material Weaknesses



Management believes that the material weaknesses set forth in item
(2) above did not have an effect on our financial results. However, management believes that the lack of a functioning audit committee
and the lack of a majority of outside directors on our board of directors results in ineffective oversight in the establishment
and monitoring of required internal controls and procedures, which could result in a material misstatement in our financial statements
in future periods. In an effort to remediate the identified material weaknesses and other deficiencies and enhance our internal
controls, we have initiated, or plan to initiate, the following series of measures:



We plan to appoint one or more outside directors to our board of
directors who shall be appointed to an audit committee resulting in a fully functioning audit committee who will undertake the
oversight in the establishment and monitoring of required internal controls and procedures such as reviewing and approving estimates
and assumptions made by management when funds are available to us.



We believe the remediation measures described above will remediate
the material weaknesses we have identified and strengthen our internal control over financial reporting. We are committed to continuing
to improve our internal control processes and will continue to diligently and vigorously review our financial reporting controls
and procedures. As we continue to evaluate and work to improve our internal control over financial reporting, we may determine
to take additional measures to address control deficiencies or determine to modify, or in appropriate circumstances not to complete,
certain of the remediation measures described above.





Changes in Internal Control over Financial Reporting



There were no changes in our internal control over financial reporting
(as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the most recent fiscal quarter that have
materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

This quarterly report does not include an attestation report of
the Corporation's registered public accounting firm regarding internal control over financial reporting. Management's report was
not subject to attestation by the Corporation's registered public accounting firm pursuant to temporary rules of the SEC that permit
the Corporation to provide only the management's report in this quarterly report.









26











PART II. OTHER INFORMATION



Item 1 - Legal Proceedings



From time to time, we may become involved in various lawsuits and
legal proceedings, which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and
an adverse result in these or other matters may arise from time to time that may harm our business.



We are not presently a party to any material litigation, nor to
the knowledge of management is any litigation threatened against us, which may materially affect us.



Item 1A - Risk Factors



See Risk Factors set forth in Part I, Item 1A of the Company's Annual
Report on Form 10-K for the fiscal year ended December 31, 2011 and the discussion in Item 1, above, under "Liquidity and
Capital

Resources."



Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds



On July 1 and September 7, 2012, the Company
issued a total of 250,000 shares for the exercise of cashless stock options issued to consultants in the previous quarter.



On November 7, 2012, the Company agreed to
pay Tangiers Investors, LP a fee of $6,500 to extend the terms on the Convertible note until January 25, 2013 and make a one-time
payment of 5,000 restricted shares as added consideration for this extension.



The shares will be issued pursuant to the exemption from registration
provided by Section 4(2) of the Securities Act. We believed that Section 4(2) was available because the offer and sale did not
involve a public offering and there was not general solicitation or general advertising involved in the offer or sale. The
investors who received the shares are financially sophisticated individuals. Before they received these unregistered securities,
they were known to us and our management, through pre-existing business relationships, as a long standing business associate. We
did not engage in any form of general solicitation or general advertising in connection with this transaction. The investors were provided access to all material information, which they requested and all information necessary to verify
such information and was afforded access to our management in connection with this transaction. The
investorsacquired these securities for investment and not with a view toward distribution, acknowledging such intent to
us. They understood the ramifications of their actions. The shares of common stock issued contained a legend restricting transferability
absent registration or applicable exemption.



Item 3 - Defaults Upon Senior Securities



None.



Item 4 - Submission of Matters to a Vote of Security Holders



None.



Item 5 - Other Information



None.

27











Item 6 - Exhibits







|Exhibit Number |  | Ref |  | Description of Document                                                                                                                                                                                             
|-------------- |  | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|               |  |     |  |                                                                                                                                                                                                                     
|               |  |     |  |                                                                                                                                                                                                                     
|31.1           |  |     |  | Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                             
|               |  |     |  |                                                                                                                                                                                                                     
|32.1           |  |     |  | Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.                               
|               |  |     |  |                                                                                                                                                                                                                     
|101            |  | *   |  | The following materials from this Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, formatted in XBRL (eXtensible Business Reporting Language).:                                              
|               |  |     |  |                                                                                                                                                                                                                     
|               |  |     |  | (1)Balance Sheets at September 30, 2012 (unaudited), and December 31, 2012 (audited).                                                                                                                               
|               |  |     |  |                                                                                                                                                                                                                     
|               |  |     |  | (2)Unaudited Statements of Operations for the three-month period ending September 30, 2012, September 30, 2011, the nine-month period ended September 30, 2012, and the period from inception to September 30, 2012.
|               |  |     |  |                                                                                                                                                                                                                     
|               |  |     |  | (3)Unaudited Statements of Cash Flows for the nine-month period ended September 30, 2012 and September 30, 2011 and from inception to September 30, 2012.                                                           
|               |  |     |  |                                                                                                                                                                                                                     
|               |  |     |  | (4)    Notes to the financial statements.                                                                                                                                                                           
|               |  |     |  |                                                                                                                                                                                                                     



* Pursuant to Rule 406T of Regulation S-T, these interactive data
files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities
Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended,
and otherwise are not subject to liability under those sections.





28









SIGNATURES

Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.





|                  | Monster Offers
        Registrant                                                                   
|----------------- | ----------------------------------------------------------------------------------------------------
|December 19, 2012 | By: /s/ Wayne Irving II                                                                             
|                  | Wayne Irving II
        Director and (principal executive,
        financial and accounting officer)













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