---

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-QSB

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

For the quarterly period ended September 30, 2007

SALAMON GROUP, INC.(Name
of Small Business Registrant in its charter)

|Nevada                                       | 93-1324674                          
|-------------------------------------------- | ------------------------------------
|(State or other jurisdiction of              | (I.R.S. Employer Identification no.)
|incorporation or organization)               |                                     
|                                             | V6E 1A3                             
|302-1028 Alberni Street                      | (Zip Code)                          
|Vancouver, British Columbia, Canada, V6E 1A3 |                                     
|(Address of principal executive offices)     |                                     

(604) 408-3861(Issuer's telephone number)

Securities to be registered under Section 12(b) of the Act:

|Title of each class | Name of each exchange on which registered
|------------------- | -----------------------------------------
|None                | None                                     

Securities to be registered under Section 12(g) of the Act:

Common Stock, $0.001 par value per share(Title of class)

Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past 12 months
(or for 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 is a shell company
(as defined in Rule 12b-2 of the Exchange Act). Yes [X]   No
[   ]

State the number of shares outstanding of each of the issuers
classes of common equity, as of the latest practicable date.
**15,604,480 as of October 24, 2007.**

Copies of Communications Sent to: Claudia Losie Boughton
Law Corporation 595 Burrard Street, Suite 1000 Vancouver, British
Columbia, Canada, V7X 1S8 Tel: (604) 687-6789 Fax: (604) 683-5317

---

TABLE OF CONTENTS

|PART I.  | FINANCIAL INFORMATION                                                     | 3 
|-------- | ------------------------------------------------------------------------- | --
|         |                                                                           |   
|         | ITEM 1. FINANCIAL STATEMENTS                                              | 3 
|         |                                                                           |   
|         | ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN
      OF OPERATION   | 10
|         |                                                                           |   
|         | ITEM 3. CONTROLS AND PROCEDURES                                           | 12
|         |                                                                           |   
|PART II. | OTHER INFORMATION                                                         | 13
|         |                                                                           |   
|         | ITEM 1. LEGAL PROCEEDINGS                                                 | 13
|         |                                                                           |   
|         | ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE
      OF PROCEEDS | 13
|         |                                                                           |   
|         | ITEM 3. DEFAULTS UPON SENIOR SECURITIES                                   | 13
|         |                                                                           |   
|         | ITEM 4. SUBMISSIONS OF MATTERS TO A VOTE OF SECURITY HOLDERS              | 13
|         |                                                                           |   
|         | ITEM 5. OTHER INFORMATION                                                 | 13
|         |                                                                           |   
|         | ITEM 6. EXHIBITS                                                          | 14
|         |                                                                           |   
|         | SIGNATURES                                                                | 14

2

---

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

3

---

SALAMON GROUP, INC.(A Development Stage Company)
BALANCE SHEET

|                                                                                      |   | September 30, |  
|------------------------------------------------------------------------------------- | - | ------------- | -
|                                                                                      |   | 2007          |  
|                                                                                      |   | (unaudited)   |  
|ASSETS                                                                                |   |               |  
|Current assets:                                                                       |   |               |  
|Cash                                                                                  | $ | 92            |  
|Prepaid expense                                                                       |   | 1,610         |  
|Total assets                                                                          | $ | 1,702         |  
|                                                                                      |   |               |  
|                                                                                      |   |               |  
|LIABILITIES AND STOCKHOLDERS DEFICIT                                                 |   |               |  
|Current liabilities:                                                                  |   |               |  
|Accounts payable                                                                      | $ | 20,712        |  
|Due to related party                                                                  |   | 77,751        |  
|Total
      current liabilities                                                       |   | 98,463        |  
|                                                                                      |   |               |  
|Commitments and contingencies                                                         |   |               |  
|                                                                                      |   |               |  
|Stockholders deficit:                                                                |   |               |  
|Preferred stock, no par
      value; 10,000,000 shares authorized; no shares issued   |   |               |  
|and
      outstanding                                                                 |   | -             |  
|Common stock, $0.001
      par value; 40,000,000 shares authorized; 15,604,480 shares |   |               |  
|issued and
      outstanding                                                          |   | 15,605        |  
|Additional paid-in
      capital                                                      |   | 579,590       |  
|Deficit accumulated during the
      development stage                                |   | (691,956      | )
|Total stockholders deficit                                                           |   | (96,761       | )
|                                                                                      |   |               |  
|                                                                                      | $ | 1,702         |  

4

---

SALAMON GROUP, INC.(A Development Stage
Company) STATEMENTS OF OPERATIONS (unaudited)

PeriodFrom April 27,2001(Inception) toThree Months Ended September
      
      
      Nine Months Ended September 30,
      
      
      September 30,30,2007
      
      
      2006
      
      
      2007
      
      
      2006
      
      
      2007EXPENSES:General and administrative
      $
      27,921
      
      $
      7,184 $
      
      
      112,064
      
      $
      15,226
      
      $
      340,601Research and development
      
      -
      
      
      -
      
      
      315,000
      
      
      -
      
      
      315,000Operating loss
      
      27,921
      
      
      7,184
      
      
      427,064
      
      
      15,226
      
      
      655,601Interest expense
      
      -
      
      
      -
      
      
      35,833
      
      
      52
      
      
      36,355Net loss
      $
      (27,921
      )
      $
      (7,184
      )
      $
      (462,897
      )
      $
      (15,278
      )
      $
      (691,956
      )Loss per share - basic and diluted
      $
      (0.00
      )
      $
      (0.00
      )
      $
      (0.04
      )
      $
      (0.00
      )Weighted average shares outstandingBasic and diluted
      
      15,604,480
      
      
      8,962,820
      
      
      12,356,735
      
      
      8,962,820


5

---

SALAMON GROUP, INC.(A Development Stage Company)
STATEMENTS OF CASH FLOWS (unaudited)

|                                                                       |   | For The Nine  |   |   | For The Nine  |   |   | Accumulated From |  
|---------------------------------------------------------------------- | - | ------------- | - | - | ------------- | - | - | ---------------- | -
|                                                                       |   | Months Ended  |   |   | Months Ended  |   |   | April 27, 2001   |  
|                                                                       |   | September 30, |   |   | September 30, |   |   | (Inception) to   |  
|                                                                       |   | 2007          |   |   | 2006          |   |   | September 30,    |  
|                                                                       |   |               |   |   |               |   |   | 2007             |  
|                                                                       |   |               |   |   |               |   |   |                  |  
|Cash flows from operating activities:                                  |   |               |   |   |               |   |   |                  |  
|Net loss                                                               | $ | (462,897      | ) | $ | ( 15,278      | ) | $ | (691,956         | )
|Adjustments to reconcile net
      loss to net cash used in            |   |               |   |   |               |   |   |                  |  
|operating
      activities:                                            |   |               |   |   |               |   |   |                  |  
|Amortization of intangible asset                                       |   | -             |   |   | -             |   |   | 55,000           |  
|Issuance of shares for patents                                         |   | 315,000       |   |   | -             |   |   | 315,000          |  
|Beneficial conversion                                                  |   | 35,833        |   |   | -             |   |   | 35,833           |  
|Depreciation of property and equipment                                 |   | -             |   |   | 279           |   |   | 4,515            |  
|Estimated fair value of common stock issued for
      services         |   | 25,000        |   |   | -             |   |   | 46,779           |  
|Changes in operating assets and liabilities:                           |   |               |   |   |               |   |   |                  |  
|Prepaid expense                                                        |   | (1,610        | ) |   | -             |   |   | (1,610           | )
|Accounts payable                                                       |   | 3,619         |   |   | (9,360        | ) |   | 20,712           |  
|                                                                       |   |               |   |   |               |   |   |                  |  
|Net cash used in operating activities                                  |   | (85,055       | ) |   | (24,359       | ) |   | (215,727         | )
|                                                                       |   |               |   |   |               |   |   |                  |  
|Cash flows from investing activities:                                  |   |               |   |   |               |   |   |                  |  
|Purchase of property and
      equipment                               |   | -             |   |   | -             |   |   | (4,515           | )
|Purchase of license                                                    |   | -             |   |   | -             |   |   | (50,000          | )
|                                                                       |   |               |   |   |               |   |   |                  |  
|Net cash used in investing activities                                  |   | -             |   |   | -             |   |   | (54,515          | )
|                                                                       |   |               |   |   |               |   |   |                  |  
|Cash flows from financing activities:                                  |   |               |   |   |               |   |   |                  |  
|Advances from related party                                            |   | 85,117        |   |   | 24,381        |   |   | 167,334          |  
|Issuance of common stock for cash                                      |   | -             |   |   | -             |   |   | 103,000          |  
|                                                                       |   |               |   |   |               |   |   |                  |  
|Net cash provided by financing activities                              |   | 85,117        |   |   | 24,381        |   |   | 270,334          |  
|                                                                       |   |               |   |   |               |   |   |                  |  
|Change in cash                                                         |   | 62            |   |   | 22            |   |   | 92               |  
|                                                                       |   |               |   |   |               |   |   |                  |  
|Cash, beginning of period                                              |   | 30            |   |   | 25            |   |   | -                |  
|                                                                       |   |               |   |   |               |   |   |                  |  
|Cash, end of period                                                    | $ | 92            |   | $ | 47            |   | $ | 92               |  
|                                                                       |   |               |   |   |               |   |   |                  |  
|                                                                       |   |               |   |   |               |   |   |                  |  
|Supplemental disclosure of cash flow
      information:                |   |               |   |   |               |   |   |                  |  
|Cash paid during the period for:                                       |   |               |   |   |               |   |   |                  |  
|Interest                                                               | $ | -             |   | $ | -             |   | $ | -                |  
|                                                                       |   |               |   |   |               |   |   |                  |  
|Income tax                                                             | $ | -             |   | $ | -             |   | $ | -                |  
|                                                                       |   |               |   |   |               |   |   |                  |  
|                                                                       |   |               |   |   |               |   |   |                  |  
|Noncash:                                                               |   |               |   |   |               |   |   |                  |  
|Issuance of stock for conversion of amounts
      due to related party | $ | 89,583        |   | $ |               |   | $ | 89,583           |  
|                                                                       |   |               |   |   |               |   |   |                  |  
|Estimated fair value of common stock issued
      for license          | $ | -             |   | $ | -             |   | $ | 5,000            |  

6

---

**SALAMON GROUP, INC. 
  (A Development Stage Company) 
  NOTES TO FINANCIAL STATEMENTS**
  (unaudited)

|1. | Nature of Operations and Continuance of
Business                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   | Salamon Group, Inc. (the "Company") was incorporated in
      the State of Nevada, USA, on April 27, 2001 (Inception). The Company is
      a development stage company whose principal business plan is to seek
      earnings by exploiting its technology.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   | These financial statements have been prepared in
      accordance with accounting principles generally accepted in the United
      States of America applicable to a going concern. At September 30, 2007,
      the Company has no revenues to date, has accumulated losses of $691,956
      and a working capital deficit of $96,761 and expects to incur further
      losses in the development of its business, all of which raise substantial
      doubt about the Companys ability to continue as a going concern.
      Management plans to continue to provide for the Company's capital needs
      during the year ending December 31, 2007 by issuing debt and equity
      securities and by the continued support of a related party. The 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 be necessary should the Company be unable to
      continue in existence. There is no assurance that funding will be
      available to continue the Companys business operations.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   | On July 5, 2001, the Company entered into a licensing
      agreement with Space Globe Technologies Ltd. ("Space Globe"), a Canadian
      corporation. The agreement allowed the Company to use certain technology
      with respect to a power cell technology used for internal and external
      electrical applications.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   | In January 2005, Space Globe and Salamon Group in mutual
      agreement replaced the license agreement with an Agreement that was
      amended September 30, 2007, which transferred 100% ownership of and rights
      to Space Globes technology related to electrical power generation to
      Salamon Group for no further considration. John Salamon, the Companys
      Chief Executive Officer and majority shareholder also assigned to Salamon
      Group a 99% interest in the rights to the patent pending.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   | In June 2007 Space Globe transferred to Salamon
        Group 100% ownership of and rights to Space Globe’s technology related
        to wireless electrical power generation, including a 99% interest in three
        patent applications, for a total 4,500,000 shares of Salamon Group’s
        common stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|2. | Summary of Significant Accounting Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

7

---

SALAMON GROUP, INC.(A Development Stage Company)NOTES TO FINANCIAL STATEMENTS (unaudited)

|2. | Summary of Significant Accounting Policies
    (continued)
|-- | ----------------------------------------------------------
|   |                                                           
|   | (c)                                                       
|   |                                                           
|   |                                                           
|   |                                                           
|   | (d)                                                       
|   |                                                           
|   |                                                           
|   |                                                           
|   | (e)                                                       
|   |                                                           
|   |                                                           
|   |                                                           
|   | (f)                                                       
|   |                                                           
|   |                                                           
|   |                                                           
|3. | Related Party Transactions                                
|   |                                                           
|   | (a)                                                       

8

---

SALAMON GROUP, INC.(A Development Stage Company)NOTES TO FINANCIAL STATEMENTS (unaudited)

|3. | Related Party Transactions (continued)
|-- | --------------------------------------
|   |                                       
|   | (b)                                   
|   |                                       
|   | (c)                                   
|   |                                       
|   | (d)                                   
|   |                                       
|4. | Stockholders Deficit                 
|   |                                       
|   | (a)                                   
|   |                                       
|   | (b)                                   
|   |                                       
|   | (c)                                   

9

---

Item 2. Management's Discussion and Analysis or Plan of
Operation. Forward-Looking Statements

This Form 10-QSB includes
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. All statements, other than statements of historical facts, included
in this Form 10-QSB which address activities, events or developments which we
expect or anticipate will or may occur in the future, including such things as
future capital expenditures (including the amount and nature thereof), business
strategy, expansion and growth of our business and operations, and other such
matters are forward-looking statements. These statements are based on certain
assumptions and analyses made by Salamon Group, Inc. (hereinafter referred to as
the Company, Salamon Group, we, our or us) in light of our experience
and our perception of historical trends, current conditions and expected future
developments as well as other factors we believe are appropriate in the
circumstances. However, whether actual results or developments will conform with
our expectations and predictions are subject to a number of risks and
uncertainties, general economic market and business conditions; the business
opportunities (or lack thereof) that may be presented to and pursued by us;
changes in laws or regulation; and other factors, most of which are beyond our
control. Consequently, all of the forward-looking statements made in this Form
10-QSB are qualified by these cautionary statements and there can be no
assurance that the actual results or developments anticipated by us will be
realized or, even if substantially realized, that they will have the expected
consequence to or effects on us or our business or operations. We assume no
obligations to update any such forward-looking statements.

Business Development

We were organized under the laws
of the State of Nevada on April 27, 2001. We are a developmental stage company
organized by John E. Salamon. Our aim is to develop, license and/or acquire
certain electrical generator technologies, which we believe to be proprietary.
Our offices are presently located at 302-1028 Alberni Street, Vancouver, British
Columbia, Canada, V6E 1A3, and our telephone number is (604) 408-3861. Our
Nevada registered agent is National Registered Agents, Inc. of NV, 1100 East
William Street, Suite 207, Carson City, NV 89701.

Every public issuer of stock
engaged in interstate business and which has total assets exceeding $1 million
and has more than 750 shareholders is required to register its securities with
the Securities and Exchange Commission under the Exchange Act of 1934. We have
not reached these threshold requirements and are therefore exempt from required
registration under Section 12(g) of the Exchange Act. However, a Form 10-SB
registration statement has been filed on a voluntary basis in order to possibly
enhance shareholder and investor confidence by way of full disclosure of our
current status and financial condition. Registration may also allow us to
establish a trading market on the OTC Bulletin Board. We believe that
registration may assist in securing private investment capital which is needed
to complete product testing, to establish a market for our product and to
continue research and development of additional products.

Since our inception, we have been
involved in organizational and fund raising activities and the licensing,
subsequent acquisition and further development of certain electrical generator
technology from Space Globe Technologies Ltd., a private British Columbia,
Canada corporation (Space Globe Technologies), founded and organized also by
John Salamon. Space Globe Technologies was founded for the purpose of developing
technologies and concepts in the field of Alternative Energy Sources.
Alternative Energy Sources are those which are not supplied by the burning of
fossil fuels or the splitting of atoms. Some of the alternative energy sources
include solar energy, wind power, geothermal, tides and hydro power. Space Globe
Technologies was incorporated in the Province of British Columbia, Canada in
1998 by John Salamon. It was initially established as a management/consulting
company and in which to develop ideas and concepts for power generation. The
assets at present consist of a vehicle, office equipment and investments in us.
Its current operation consists mainly of securing private investment capital to
assist in funding the operations and growth of us. From 1999 to 2001 Space Globe
and Mr. Salamon developed the concept and design of an Electrical Power
Generator (EPG) for home and office use and for emergency power backup
situations. Mr. Salamon filed a patent application in Canada on September 4,
2001 for protection of the design of the EPG. Mr. Salamon filed three additional
patent applications in Canada on May 12, October 10 and November 20, 2006 for
the protection of designs related to wireless EPGs.

We initially distributed to Mr.
Salamon and White & Lee Investments, L.P. a total of 1,500,000 and 500,000
shares, respectively, of common stock, $0.001 par value per share. These
founders shares were issued pursuant to Section 4(2) of the Securities Act of
1933 (the Act).

We were formed by Mr. Salamon for
the purpose of pursuing his business plan of developing technologies and
concepts in the field of Alternative Energy Sources in a newly established
Nevada corporation. All transactions described below between us and Space Globe
Technologies were incidental to the transfer of assets to us in connection with
the reorganization of these two entities under Mr. Salamons common control.

10

---

On July 5, 2001, we entered into
a Technology License Agreement with Space Globe Technologies whereby we agreed
to pay $50,000 cash and issued 5,000,000 shares of common stock to Space Globe
Technologies as license fees for the technology related to the EPG. The cost of
the license was determined to be at an estimated cost of research and
development time and materials expended by Space Globe for the development of
the EPG. The 5,000,000 shares issued in connection with such Technology License
Agreement were issued pursuant to Section 4(2) of the Act at their par value of
$0.001 each and the cash was subsequently paid from proceeds of private
placements in us.

In January 2005, Space Globe
Technologies and Salamon Group replaced the license agreement with an agreement
which transferred 100% ownership of and rights to the EPG technology protected
by the 2001 patent application were transferred from Space Globe Technologies to
us for no additional compensation. John Salamon, through Space Globe, also
assigned all rights to the patent pending to us. In September 2007, we amended
the agreement with Space Globe such that John Salamon retains a 1% interest in
the patent application.

In addition to the foregoing
issuances, from April 2001 through September 30, 2007, we received gross
proceeds of $150,669 (including $103,000 in cash and services valued at $47,669)
from the sale of a total of 2,312,820 shares of common stock in an offering
conducted pursuant to Section 4(2) of the Act and Regulation S. These offerings
were made in the Provinces of British Columbia and Alberta, Canada.

On June 29, 2007, we entered into
  an assignment agreement with Space Globe Technologies whereby Space Globe Technologies
  transferred to us its ownership of and rights to the wireless EPG technology,
  including Space Globe’s 99% interest in the three 2006 patent applications,
  in consideration for the issuance of 4,500,000 shares of common stock to Space
  Globe Technologies (or 1,500,000 shares for each of the three patents applications)
  at a value of $0.07 per share, the estimated fair value of the shares on the
  date of the transaction. John Salamon, who filed the three patent applications,
  retains a 1% interest in the patents pending. The value of the technology was
  determined to be at an estimated cost of research and development time and materials
  expended by Space Globe for the development of the wireless EPG. The 4,500,000
  shares issued in connection with the assignment agreement were issued pursuant
  to Section 4(2) of the Act.

We intend to offer additional
securities under Rule 506 and Regulation S to fund our short and medium term
expansion plans.

As of the date hereof, we have no
other employees or customers.

Plan of Operation

Since its inception, Salamon
Group has conducted no business operations except for organizational and capital
raising activities and the completion of a working model of the Power generator.
For the period from inception (April 27, 2001) through September 30, 2007, we
had no revenue from operations and accumulated operating expenses amounted to
$691,956. We propose to compete in the alternative energy source technology
market.

As reported in the Report of
Independent Registered Public Accounting Firm on our December 31, 2006 financial
statements, we have suffered recurring losses from operations, we have a working
capital deficit and a deficit accumulated during the development stage. These
items, among others, raise substantial doubt about our ability to continue as a
going concern.

We plan to generate revenues
through the sale of manufacturing and marketing licenses on a world-wide basis.

We will also be involved in
research and development activities. We will search for a private investment
group to provide up to $200,000, to cover the costs of product development. All
products will be licensed to other corporations for manufacturing, thus no
additional money is anticipated to be required to manufacture and/or distribute
our products.

Future research and development
  will be focused on smaller, portable EPGs adding a solar power component as
  well as an electric wireless product. Mr. Salamon has a conceptual design and
  prototypes and will proceed with plans when funding allows.

We are not planning to purchase a
plant or equipment at this time but rather to enter into licensing agreements to
manufacture and market the products.

If we are unable to generate
sufficient revenue from operations to implement our plans, we intend to explore
all available alternatives for debt and/or equity financing, including but not
limited to private and public securities offerings. Depending upon the amount of
revenue, if any, generated by us, we anticipate that it will be able to satisfy
our cash requirements for the next nine to twelve months without raising funds
via debt and/or equity financing or from third party funding sources.

Accordingly, we expect that it
will be necessary for us to raise additional funds in the event that we are
unable to generate any revenue from operations and if only a minimal level of
revenue is generated in accordance with our expectations.

11

---

Mr. Salamon, at least initially,
will be responsible for developing our business. However, at such time, if ever,
as sufficient operating capital becomes available, he expects to employ
additional staffing. In addition, we expect to continuously engage in market
research in order to monitor new market trends and other critical information
deemed relevant to our business.

Financial Condition, Capital Resources and Liquidity

As of September 30, 2007, we have
a deficit accumulated during the development stage of $691,956. At September 30,
2007, we had assets totaling $1,702 and current liabilities of $98,463
attributable to loans from Space Globe Technologies provided for license fees,
audit fees and general operating expenses. Since our inception, we have received
$554,362 in cash, assets contributed and services in connection with the
issuance of shares of common stock, including the conversion of $89,583 of
related party advances.

We currently have a negative working
  capital deficit and there can be no assurance that our financial condition will
  improve. We are expected to continue to have minimal working capital or a working
  capital deficit as a result of our development stage. At inception, we issued
  1,500,000 shares of our common stock to Mr. Salamon and 500,000 shares of our
  common stock to White & Lee Investments, LP, an investment vehicle controlled
  by White & Lee LLP, our former legal counsel, as founder shares. From April
  2001 through September 30, 2007, we have received gross proceeds of $103,000
  and received services valued at $46,779 from the issuance of a total of 2,515,010
  and 1,797,810 shares of common stock, respectively.

On June 29, 2007, we issued to
Space Globe Technologies 4,500,000 shares of common stock for the transfer of
the wireless EPG technology and 1,791,660 shares of common stock in settlement
of outstanding indebtedness totaling $89,583 owed to Space Globe Technologies.
We plan to settle additional outstanding indebtedness owed to Space Globe
Technologies by the issuance of shares of common stock on or prior to December
31, 2007, which is our financial year-end. On June 29, 2007, we also issued
350,000 shares of common stock to an independent consultant as compensation for
his services valued at $25,000 in relation to arrangements involving sponsoring
brokerage, negotiations with regulatory agencies, and other consultancy
responsibilities.

Even though we believe, without
assurance, that we will obtain sufficient capital with which to implement our
business plan on a limited scale, we are not expected to continue in operation
without an infusion of capital. In order to obtain additional equity financing,
we may be required to dilute the interest of existing shareholders or forego a
substantial interest of our revenues, if any.

We have no potential capital
resources from any outside sources at the current time. In its initial phase, we
will operate out of the facility provided by Mr. Salamon.

Our ability to continue as a
going concern is dependent upon our ability to attract a sufficiently large and
profitable licensee base to license our electrical generator technology.

To implement such plan, also
during this initial phase, we intend to initiate a self-directed private
placement under Rule 506 in order to raise approximately $200,000. In the event
such placement is successful, we believe that we will have sufficient operating
capital to meet the initial expansion goals and operating costs for a period of
one year.

Net Operating Losses

As of September 30, 2007, we have
a deficit accumulated during the development stage of $691,956.

Research and Development

Until we can secure a qualified
licensee, all further development, testing and commercialization of the EPG will
be completed by us, subject to obtaining the necessary financing. Upon securing
a qualified licensee, any further research, development and commercialization of
the EPG and all related costs will be the responsibility of the licensee.

We, under the direction of Mr.
Salamon, are continually researching and studying Alternative Energy Sources
and plans to develop other power generation devices as capital funding becomes
available. Alternative Energy Sources are those which are not supplied by the
burning of fossil fuels or the splitting of atoms. Some of the alternative
energy sources include solar energy, wind power, geothermal, tides and hydro
power.

We have developed a smaller, portable
  EPG utilizing similar designs and adding a solar power component. We have also
  developed prototypes of EPG products that generate power wirelessly.

Item 3. Controls and procedures

As of September 30, 2007, an
evaluation was carried out under the supervision and with the participation of
our management, including our CEO and our CFO, of the effectiveness of the
design and operation of our disclosure controls and procedures (as defined in
Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934). Based
upon that evaluation, the CEO and CFO concluded that the design and operation of
these disclosure controls and procedures were effective. No significant changes
were made in our internal controls or in other factors that could significantly
affect these controls subsequent to September 30, 2007.



---



(a) Evaluation of Disclosure Controls and Procedures. The
Company carried out an evaluation under the supervision and with the
participation of our management, including our CEO and CFO, of the effectiveness
of our disclosure controls and procedures. Based upon that evaluation, the CEO
and CFO concluded that as of September 30, 2007 our disclosure controls and
procedures were effective in timely alerting them to the material information
relating to us (or our consolidated subsidiaries) required to be included in our
periodic filings with the SEC, subject to the various limitations on
effectiveness set forth below under the heading, LIMITATIONS ON THE
EFFECTIVENESS OF INTERNAL CONTROLS, such that the information relating to us,
required to be disclosed in SEC reports (i) is recorded, processed, summarized
and reported within the time periods specified in SEC rules and forms, and (ii)
is accumulated and communicated to our management, including our CEO and CFO, as
appropriate to allow timely decisions regarding required disclosure.

(b) Changes in internal control over financial reporting. There
  have been no changes in our internal control over financial reporting that occurred
  during the fiscal quarter ended September 30, 2007 that has materially affected,
  or is reasonably likely to materially affect, our internal control over financial
  reporting.

LIMITATIONS ON THE EFFECTIVENESS OF INTERNAL CONTROLS

Our management, including the CEO and CFO, does not expect that
our disclosure controls and procedures or our internal control over financial
reporting will necessarily prevent all fraud and material error. An internal
control system, no matter how well conceived and operated, can provide only
reasonable, not absolute, assurance that the objectives of the control system
are met. Further, the design of the control system must reflect the fact that
there are resource constraints, and the benefits of controls must be considered
relative to their costs. Because of the inherent limitations in all control
systems, no evaluation of controls can provide absolute assurance that all
control issues and instances of fraud, if any, within the Company have been
detected. These inherent limitations include the realities that judgments in
decision-making can be faulty, and that breakdowns can occur because of simple
error or mistake. Additionally, controls can be circumvented by the individual
acts of some persons, by collusion of two or more people, or by management
override of the internal control. The design of any system of controls also is
based in part upon certain assumptions about the likelihood of future events,
and there can be no assurance that any design will succeed in achieving its
stated goals under all potential future conditions. Over time, control may
become inadequate because of changes in conditions, and/or the degree of
compliance with the policies or procedures may deteriorate.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

We know of no legal proceedings
to which we are a party or to which any of our property is the subject which are
pending, threatened or contemplated or any unsatisfied judgments against us.

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

None

Item 3. Defaults Upon Senior Securities

None

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

13

---

No matter was submitted to a vote
of our shareholders, through the solicitation of proxies or otherwise during the
quarterly period ended September 30, 2007.

Item 5. Other Information

None

(a) Market Information.

In September 2006, we executed a
211 Filing Agreement with Spartan Securities Group Ltd. Our shares have been
approved for trading on the NASDs Over-The-Counter Bulletin Board (the OTC
Bulletin Board) under the symbol SLMU. There has been minimal trading
activity to date. Our stock transfer agent is dealing with our shareholders on
the notification to shareholders of record for over 2 years regarding the
issuance of their shares as free trading under the 144k Blanket Release
provisions, CUSIP NO:793893 10 8.

14

---

Item 6. Exhibits

The following exhibits are filed with the Form 10-QSB:

|3.1  | Articles of Incorporation (1)                                                                                                                                                                             
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                           
|3.2  | Bylaws (1)                                                                                                                                                                                                
|     |                                                                                                                                                                                                           
|10.1 | Amendment dated September
        30, 2007 to assignment agreement among Space Globe Technologies, John
        Salamon and the registrant dated January 10, 2005. (2)                                    
|     |                                                                                                                                                                                                           
|31.1 | Certification of Chief Executive
        Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
        Act of 2002. (2)                                                       
|     |                                                                                                                                                                                                           
|32.1 | Certification of Chief Executive
        Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350,
        as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
        (2)

|(1) | Incorporated by reference to the exhibits of the
      Registration Statement on Form 10-SB filed with the Securities and
      Exchange Commission on December 12, 2003.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Filed herewith.                                                                                                                                                          

SIGNATURES

In accordance with Section 13 or
15(d) of the Exchange Act, the registrant caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

Date: October 30, 2007

Salamon Group, Inc.

By:           
 /s/ John E. Salamon
                 
John E. Salamon, President

15

---