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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, 2008

[   ] 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: 000-50530

SALAMON GROUP, INC.(Exact
name of registrant as specified in its charter)

|Nevada                                                               | 93-1324674                          
|-------------------------------------------------------------------- | ------------------------------------
|(State or other jurisdiction of incorporation or
      organization) | (I.R.S. Employer Identification no.)
|                                                                     |                                     
|4080 Paradise Road #15-901, Las Vegas, Nevada, USA                   | 89169                               
|(Address of principal executive offices)                             | (Zip Code)                          

702.241.0145(Registrant's telephone number,
including area code)

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

Indicate by check mark whether the registrant (1) filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 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 large
accelerated filer, an accelerated filer, a non-accelerated filer, or a
smaller reporting company. See the definitions of large accelerated filer,
accelerated filer and smaller reporting company in Rule 12b-2 of the
Exchange Act.

|Larger accelerated filer [   ]                | Accelerated
      filer                     
      [   ]
|--------------------------------------------- | --------------------------------------------------------
|Non-accelerated filer   
       [   ]         | Smaller reporting company [X]                           
|(Do not check if a smaller reporting company) |                                                         

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

Indicate the number of shares outstanding of each of the
issuers classes of common stock, as of the latest practicable date.As of
November 10, 2008, the Issuer had 19,224,610 shares of common stock outstanding
with a par value per share of $0.001.

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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
      4T. 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

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PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

3

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

|                                                                                    |   | September 30, |   |   | December 31, |  
|----------------------------------------------------------------------------------- | - | ------------- | - | - | ------------ | -
|                                                                                    |   | 2008          |   |   | 2007         |  
|                                                                                    |   | (unaudited)   |   |   |              |  
|ASSETS                                                                              |   |               |   |   |              |  
|Current assets:                                                                     |   |               |   |   |              |  
|Cash                                                                                | $ | 20            |   | $ | 74           |  
|Prepaid expense                                                                     |   | 689           |   |   | 1,298        |  
|Total assets                                                                        | $ | 709           |   | $ | 1,372        |  
|                                                                                    |   |               |   |   |              |  
|                                                                                    |   |               |   |   |              |  
|LIABILITIES AND STOCKHOLDERS DEFICIT                                               |   |               |   |   |              |  
|Current liabilities:                                                                |   |               |   |   |              |  
|Accounts payable                                                                    | $ | 43,288        |   | $ | 9,493        |  
|Due to related parties                                                              |   | 17,821        |   |   | 31,460       |  
|Total
      current liabilities                                                     |   | 61,109        |   |   | 40,953       |  
|                                                                                    |   |               |   |   |              |  
|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, 17,233,643 and  |   |               |   |   |              |  
|16,122,820 shares issued
      and outstanding, respectively                        |   | 17,234        |   |   | 16,123       |  
|Additional paid-in
      capital                                                    |   | 741,750       |   |   | 656,823      |  
|Deficit accumulated during the
      development stage                              |   | (819,384      | ) |   | (712,527     | )
|Total stockholders deficit                                                         |   | (60,400       | ) |   | (39,581      | )
|                                                                                    |   |               |   |   |              |  
|                                                                                    | $ | 709           |   | $ | 1,372        |  

4

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

For The PeriodFrom April 27,2001(Inception) toThree Months Ended
      
      
      Nine Months Ended
      
      
      September 30,September 30
      
      
      September 302008
      
      
      2007
      
      
      2008
      
      
      2007
      
      
      2008EXPENSES:General and administrative
      $
      34,593
      
      $
      27,921
      
      $
      106,857
      
      $
      112,064
      
      $
      468,551Interest expense
      
      -
      
      
      -
      
      
      -
      
      
      35,833
      
      
      35,833Research and development
      
      -
      
      
      -
      
      
      -
      
      
      315,000
      
      
      315,000Net loss
      $
      (34,593
      )
      $
      (27,921
      )
      $
      (106,857
      )
      $
      (462,897
      )
      $
      ( 819,384
      )Loss per share - basic and diluted
      $
      (0.00
      )
      $
      (0.00
      )
      $
      (0.01
      )
      $
      (0.04
      )Weighted average shares outstanding
      
      16,663,463
      
      
      15,604,480
      
      
      16,380,582
      
      
      12,356,735


5

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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   |  
|                                                                           |   | 2008          |   |   | 2007          |   |   | September 30,    |  
|                                                                           |   |               |   |   |               |   |   | 2008             |  
|                                                                           |   |               |   |   |               |   |   |                  |  
|Cash flows from operating activities:                                      |   |               |   |   |               |   |   |                  |  
|Net loss                                                                   | $ | (106,857      | ) | $ | (462,897      | ) | $ | (819,384         | )
|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                                     |   | -             |   |   | -             |   |   | 4,515            |  
|Estimated fair value of common stock issued for
      services             |   | 7,000         |   |   | 25,000        |   |   | 53,779           |  
|Changes in operating assets and liabilities:                               |   |               |   |   |               |   |   |                  |  
|Prepaid expense                                                            |   | 609           |   |   | (1,610        | ) |   | (689             | )
|Accounts payable                                                           |   | 33,795        |   |   | 3,619         |   |   | 43,288           |  
|                                                                           |   |               |   |   |               |   |   |                  |  
|Net cash used in operating activities                                      |   | (65,453       | ) |   | (85,055       | ) |   | (312,658         | )
|                                                                           |   |               |   |   |               |   |   |                  |  
|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 parties                                              |   | 65,399        |   |   | 85,117        |   |   | 264,193          |  
|Issuance of common stock for cash                                          |   | -             |   |   | -             |   |   | 103,000          |  
|Net cash provided by financing
      activities                            |   | 65,399        |   |   | 85,117        |   |   | 367,193          |  
|                                                                           |   |               |   |   |               |   |   |                  |  
|Change in cash                                                             |   | (54           | ) |   | 62            |   |   | 20               |  
|                                                                           |   |               |   |   |               |   |   |                  |  
|Cash, beginning of period                                                  |   | 74            |   |   | 30            |   |   | -                |  
|                                                                           |   |               |   |   |               |   |   |                  |  
|Cash, end of period                                                        | $ | 20            |   | $ | 92            |   | $ | 20               |  
|                                                                           |   |               |   |   |               |   |   |                  |  
|                                                                           |   |               |   |   |               |   |   |                  |  
|Supplemental schedule of noncash investing and financing
      activities: |   |               |   |   |               |   |   |                  |  
|Estimated fair value of common stock issued
      upon conversion          |   |               |   |   |               |   |   |                  |  
|of amounts due to related party                                            | $ | 79,038        |   | $ | 89,583        |   | $ | 246,372          |  
|                                                                           |   |               |   |   |               |   |   |                  |  
|Estimated fair value of common stock issued for license                    | $ | -             |   | $ | -             |   | $ | 5,000            |  

6

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

|1. | Nature of Operations and Continuance of
      Business                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | Salamon Group, Inc. (the "Company") was
      incorporated in the state of Nevada on April 27, 2001
      (Inception). The Company is a development stage company whose
      principal business plan is to seek earnings by exploiting technology in
      the field of alternative energy sources, which technology includes four
      patents pending related to electrical power generation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | 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, 2008,
      the Company has no revenues to date, has accumulated losses of $819,384
      and a working capital deficit of $60,400 and expects to incur further
      losses in the development of its business, all of which cast 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, 2008 by issuing debt and equity
      securities and by the continued support of its related parties (see Note
      3). The financial statements do not include any adjustments relating to
      the recoverability and classification of recorded asset amounts or
      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 allows the Company to use certain
      technology with respect to a power cell technology used for internal and
      external electrical applications. The sole shareholder and sole director
      of Space Globe is John Salamon who is the President and a Director of the
      Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | In January 2005, Space Globe and the Company 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 the Company for no further consideration. 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 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 the Companys common stock
      (see Note 4).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | The Company has prepared the accompanying financial
      statements in accordance with United States generally accepted accounting
      principles (GAAP) for interim financial information and with the
      instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly,
      they do not include all of the information and disclosures required by
      GAAP for annual financial statements. In the opinion of the Companys
      management, the accompanying financial statements contain all the
      adjustments necessary (consisting only of normal recurring accruals) to
      make the financial position of the Company as of September 30, 2008, the
      results of operations for three and nine months ended September 30, 2008
      and 2007 and cash flows for the nine months ended September 30, 2008 and
      2007 and for the period from Inception through September 30, 2008 not
      misleading. The financial statements should be read in conjunction with
      the audited financial statements for the year ended December 31, 2007
      contained in Form 10-KSB filed on April 14, 2008 with the Securities and
      Exchange Commission (SEC).
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|2. | Summary of Significant Accounting
  Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

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

| | (b) | Basic and diluted net loss per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |     | The Company computes net loss per share in accordance
      with SFAS No. 128, Earnings per Share which requires presentation of
      both basic and diluted loss per share (EPS) on the face of the
      statement of operations. Basic EPS is computed by dividing net loss
      available to common shareholders (numerator) by the weighted average
      number of common shares outstanding (denominator) during the period.
      Diluted EPS gives effect to all dilutive potential common shares
      outstanding during the period, including stock options using the treasury
      stock method, convertible preferred stock, and convertible debt using the
      if-converted method. In computing diluted EPS, the average stock price for
      the period is used in determining the number of shares assumed to be
      purchased from the exercise of stock options or warrants. Diluted EPS
      excludes all potentially dilutive common shares if their effect is
      antidilutive. At September 30, 2008 and 2007, there were no potentially
      dilutive instruments outstanding.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | (c) | Revenue recognition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |     | Revenues from the sale of products will be recorded when
      the product is shipped, title and risk of loss have transferred to the
      purchaser, payment terms are fixed or determinable and payment is
      reasonably assured. Revenues from service contracts will be recognized
      when performance of the service is complete or over the term of the
      contract.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | (d) | Foreign currency transactions/balances                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |     | Transactions in currencies other than the U.S. dollar are
      translated at the rate in effect on the transaction date. Any balance
      sheet items denominated in foreign currencies are translated into U.S.
      dollars using the rate in effect on the balance sheet date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | (e) | Income Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |     | The Company determines its income taxes under the asset
      and liability method in accordance with SFAS No. 109, "Accounting for
      Income Taxes," which requires the recognition of deferred tax assets and
      liabilities for the expected future tax consequences of events that have
      been included in the financial statements or tax returns. Under this
      method, deferred income taxes are recognized for the tax consequences in
      future years of differences between the tax bases of assets and
      liabilities and their financial reporting amounts at each year-end based
      on enacted tax laws and statutory tax rates applicable to the periods in
      which the differences are expected to affect taxable income. Valuation
      allowances are established, when necessary, to reduce deferred tax assets
      to the amount expected to be realized.                                                                                                                                                                                                              
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | (f) | 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 amounts reported in these financial statements and the accompanying
      notes. Actual results could differ from those estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | (g) | Financial Instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |     | The fair values of cash, accounts payable, and amounts
      due to related parties approximate their carrying values due to the
      immediate or short-term maturity of these financial instruments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | (h) | Issuance of Stock for Non-cash Consideration                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |     | All issuances of the Companys common stock for non-cash
      consideration have been assigned a dollar amount equaling either the
      market value of the shares issued or the value of consideration received
      whichever is more readily determinable. The majority of the non-cash
      consideration received pertains to services rendered by consultants and
      others and has been valued at the market value of the shares issued. In
      certain issuances, the Company may discount the value assigned to the
      stock issued for illiquidity and restrictions on
resale.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

---

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

| |     | The Companys accounting policy for equity instruments
      issued to consultants and vendors in exchange for goods and services
      follows the provisions of Emerging Issues Task Force (EITF) Issue
      No. 96-18, Accounting for Equity Instruments That are Issued to Other
      Than Employees for Acquiring, or in Conjunction with Selling, Goods or
      Services and EITF Issue No. 00-18, Accounting Recognition for Certain
      Transactions Involving Equity Instruments Granted to Other Than
      Employees. The measurement date for the fair value of the equity
      instruments issued is determined at the earlier of (i) the date at which a
      commitment for performance by the consultant or vendor is reached or (ii)
      the date at which the consultant or vendors performance is complete. In
      the case of equity instruments issued to consultants, the fair value of
      the equity instrument is recognized over the term of the consulting
      agreement.                                                                                                                                                                                                                                                                                                                                                                                             
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | (i) | New Accounting Pronouncements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |     | In December 2007, the FASB issued SFAS No. 141(R),
      "Business Combinations." SFAS No. 141(R) provides companies with
      principles and requirements on how an acquirer recognizes and measures in
      its financial statements the identifiable assets acquired, liabilities
      assumed, and any noncontrolling interest in the acquiree as well as the
      recognition and measurement of goodwill acquired in a business
      combination. SFAS No. 141(R) also requires certain disclosures to enable
      users of the financial statements to evaluate the nature and financial
      effects of the business combination. Acquisition costs associated with the
      business combination will generally be expensed as incurred. SFAS No.
      141(R) is effective for business combinations occurring in fiscal years
      beginning after December 15, 2008. Early adoption of SFAS No. 141(R) is
      not permitted. The Company is currently evaluating the impact SFAS No.
      141(R) will have on any future business combinations.                                                                                                                                                                                                                                                                                                                                                
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |     | In June 2007, the FASB ratified a consensus opinion
      reached on EITF Issue No. 07-3, Accounting for Nonrefundable Advance
      Payments for Goods or Services Received for Use in Future Research and
      Development Activities. The guidance in EITF Issue No. 07-3 requires the
      Company to defer and capitalize nonrefundable advance payments made for
      goods or services to be used in research and development activities until
      the goods have been delivered or the related services have been performed.
      If the goods are no longer expected to be delivered nor the services
      expected to be performed, the Company would be required to expense the
      related capitalized advance payments. The consensus in EITF Issue No. 07-3
      is effective for fiscal years, and interim periods within those fiscal
      years, beginning after December 15, 2007 and is to be applied
      prospectively to new contracts entered into on or after December 15, 2007.
      Early adoption is not permitted. Retrospective application of EITF Issue
      No. 07-3 is also not permitted. The Company adopted EITF Issue No. 07-3
      effective January 1, 2008. The impact of applying this consensus will
      depend on the terms of the Companys future research and development
      contractual arrangements entered into on or after December 15,
  2007.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |     | Other recent accounting pronouncements issued by the FASB
      (including the EITF) and the American Institute of Certified Public
      Accountants did not or are not believed by management to have a material
      impact on the Companys present or future financial
  statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

|3. | Related Party Transactions
|-- | --------------------------
|   |                           
|   | (a)                       
|   |                           
|   | (b)                       
|   |                           
|   | (c)                       
|   |                           
|   | (d)                       

---

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

| | (e) | On April 16, 2008, the Company issued 331,158 shares of
      common stock to Space Globe at a price of $0.095 per share (the estimated
      fair value) to settle indebtedness of $31,460 owed to Space Globe for loan
      advances.                                                                                                       
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                
| | (f) | During the year ended December 31, 2007, Mr. Salamon,
      through his company, Space Globe, contributed patent applications to the
      Company in exchange for 4,500,000 shares of common stock (see Notes 1 and
      4).                                                                                                                 
| |     |                                                                                                                                                                                                                                                                                                                                                
| | (g) | During the year ended December 31, 2007, Space Globe
      converted advances made to the Company into 2,310,000 shares of common
      stock (see Note 4).                                                                                                                                                                                    
| |     |                                                                                                                                                                                                                                                                                                                                                
| | (h) | On July 5, 2001, the Company purchased a license related
      to certain power cell technology for cash of $50,000 and five million
      common shares of the Company valued at $5,000 from Space Globe. In
      addition, the Company agreed to pay Space Globe a royalty equal to 3% of
      the gross sales derived from the technology.

|4. | Stockholders Deficit
|-- | ---------------------
|   |                      
|   | (a)                  
|   |                      
|   | (b)                  
|   |                      
|   | (c)                  
|   |                      
|   | (d)                  
|   |                      
|   | (e)                  
|   |                      
|   | (f)                  
|   |                      
|   | (g)                  
|   |                      
|   | (h)                  
|   |                      
|   | (i)                  
|   |                      
|   | (j)                  
|   |                      
|   | (k)                  

---

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

|5. | Contingencies
|-- | -------------
|   |              
|   | (a)          
|   |              
|   |              
|   |              
|   | (b)          
|   |              
|   |              
|   |              
|   | (c)          

During Year Ended
    Minimum Total Sales of ProductsDecember 31, 2008
    CDN$0.00December 31, 2009
    CDN$20,000December 31, 2010
    CDN$30,000December 31, 2011
    CDN$40,000December 31, 2012
    CDN$50,000December 31, 2013
    CDN$60,000December 31, 2014
    CDN$70,000


|6. | Subsequent Events                                                                                                                                                                                                                                               
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                 
|   | In November 2008, the Company issued 891,050 shares of
      unrestricted common stock to Space Globe at a price of $0.02 per share
      (the estimated fair value) to settle indebtedness of $17,821 owed to Space
      Globe for loan advances (see Note 3).

---

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATION.

The following discussion of the financial condition, changes in
financial condition and results of operations of Salamon Group, Inc.
(hereinafter referred to as the Company, Salamon Group,
we, our or us) for the three and nine months ended
September 30, 2008 should be read in conjunction with Salamon Groups unaudited
financial statements and related notes for the nine months ended September 30,
2008.

Cautionary Statements Regarding Forward-Looking
Statements

This Form 10-Q 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
(the Exchange Act), as amended. All statements, other than statements
of historical facts, included in this Form 10-Q 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
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-Q 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.

Overview

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 4080 Paradise Road #15-901, Las Vegas,
Nevada, USA 89169, and our telephone number is (702) 241-0145. Our Nevada
registered agent is National Registered Agents, Inc. of NV, 1000 East William
Street, Suite 204, 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. We have not
reached these threshold requirements and are therefore exempt from required
registration under Section 12(g) of the Exchange Act. However, we filed a Form
10-SB registration statement 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 a certain electrical generator
technology from Space Globe Technologies Ltd., a private British Columbia,
Canada corporation (Space Globe), founded and organized also by John
Salamon. Space Globe 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 was incorporated in
the Province of British Columbia, Canada in 1998 by John Salamon. It was
initially established as a management/consulting company in which to develop
ideas and concepts for power generation. Space Globes primary assets consist of
office equipment and investments in us. Effective June 29, 2007, in connection
with our acquisition of ownership and rights to certain patents and wireless EPG
technology from Space Globe, we no longer considered ourself a shell company
and our current operations are focused on developing and licensing such
technologies. 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 and on March 10, 2008, as requested by the Canadian Patent Office, we filed
additional information regarding this patent pending. Mr. Salamon filed a second
patent application in Canada on May 12, 2006 and two more patent applications
later in 2006 for the protection of designs related to wireless EPGs.

We initially distributed to Mr.
Salamon and White & Lee Investments, L.P., our former legal counsel, 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 were
incidental to the transfer of assets to us in connection with the reorganization
of these two entities under Mr. Salamons common control.

On July 5, 2001, we entered into
a Technology License Agreement with Space Globe whereby we agreed to pay $50,000
cash and issued 5,000,000 shares of common stock to Space Globe 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 an estimated fair value of $5,000 and the cash was
subsequently paid from proceeds of our private placements.

On January 10, 2005, we replaced
the license agreement with Space Globe with an agreement under which Space Globe
transferred 100% ownership of and rights to the EPG technology, protected by the
2001 patent application, to us for no additional compensation. John Salamon,
through Space Globe, also assigned all rights to the patent pending to us. On
September 30, 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, 2008, we received gross
proceeds of $403,151 (including $103,000 in cash, conversion of $246,372 of
amounts due to a related party, and services valued at $53,779) from the
issuance of a total of 6,733,650 shares of common stock in offerings 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 whereby Space Globe 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 (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.

On June 20, 2008, we entered into
a license agreement with 482229 B.C. Ltd. (482229), a private company
based in Kelowna, British Columbia, whereby we granted 482229 the exclusive
rights to manufacture, market, distribute and sell in Canada all electrical
power generation products derived from our 2001 patent pending. The license is
for an initial term of seven years. 482229 has agreed to pay us a one time
licensing fee of CDN$15,000 on or before June 20, 2009 and additional fees equal
to 3% of 482229s gross revenues derived from the sale of products, payable
quarterly. In order to maintain the license, 482229 must meet or exceed the
following minimum sale requirements:

|During Year Ended | Minimum Total Sales of Products
|----------------- | -------------------------------
|December 31, 2008 | CDN$0.00                       
|December 31, 2009 | CDN$20,000                     
|December 31, 2010 | CDN$30,000                     
|December 31, 2011 | CDN$40,000                     
|December 31, 2012 | CDN$50,000                     
|December 31, 2013 | CDN$60,000                     
|December 31, 2014 | CDN$70,000                     

We are actively seeking to
purchase real estate and an operating casino in Las Vegas, Nevada. We intend to
move our corporate headquarters into the casino. The purchase of the casino will
allow us to start generating revenues so that we can further our business plan
to develop, license and/or acquire technologies and concepts in the field of
Alternative Energy Sources. Once we locate a suitable casino, we intend to
enter into a letter of intent to purchase the casino. At that time we will
undertake a non-brokered private placement under Rule 506 of Regulation D, to
raise the funds required to purchase the casino. There is no assurance that we
will succeed in identifying and purchasing a casino or that funding will be
available to us for this purpose. There is also no assurance that any casino we
might purchase will generate revenues sufficient for us to carry out our
business plan related to alternative energy sources.

---

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

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

Plan of Operation

Since our inception, we have been
involved in organizational activities, have completed offerings of shares of
common stock in which we have received gross proceeds in the amount of $103,000
from the issuance of 2,515,010 shares of common stock, have concluded the
licensing and subsequent acquisition of an EPG from Space Globe, and have
completed a working model of the power generator. For the period from inception
(April 27, 2001) through September 30, 2008, we had no revenue from operations
and accumulated operating expenses amounted to $819,384. 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, 2007 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 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 $500,000 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. 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.

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, 2008, we have
a deficit accumulated during the development stage of $819,384. At September 30,
2008, we had assets totaling $709 and current liabilities of $61,109
attributable to amounts due to related parties and accounts payable.

We currently have a 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.

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 our initial phase, we
will operate out of the facility provided by Mr. Salamon. On August 19, 2008,
Mr. Bruce Larway, one of our directors, converted debt for funds advanced, into
shares of our common stock at a price of $0.07 per share.

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 $500,000. 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, 2008, we have
a deficit accumulated during the development stage of $819,384.

Research and Development

482229 is now responsible for all
further development, testing and commercialization of all EPG products derived
from our 2001 patent pending. Until we can secure other qualified licensees
regarding the EPG products derived from our other patents pending, all further
development, testing and commercialization of those EPG products will be
completed by us, subject to obtaining the necessary financing. Upon securing
such other qualified licensees, any further research, development and
commercialization of those EPG products 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 plan 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.

Off-Balance Sheet Arrangements

We have no significant
off-balance sheet arrangements that have or are reasonably likely to have a
current or future effect on our financial condition, revenues or expenses,
results of operations, liquidity, capital expenditures or capital resources.

Material Commitments for Capital Expenditures

We had no contingencies or
long-term commitments at September 30, 2008.

Critical Accounting Policies

There were no changes to the critical accounting policies as
discussed in our 2007 Form 10-KSB filed in April 2008.

ITEM 4T. CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures. Under the
supervision and with the participation of our management, including our Chief
Executive Officer (CEO) and our Chief Financial Officer (CFO),
we carried out an evaluation of the effectiveness of our disclosure controls and
procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act)
as of the end of the period covered by this quarterly report (the Evaluation
Date). Based upon that evaluation, the CEO and CFO has concluded that as of
the Evaluation Date, 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 Securities and
Exchange Commission (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
  were no changes in our internal control over financial reporting during the
  fiscal quarter ended September 30, 2008 that have materially affected, or are
  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

On August 19, 2008, we issued 476,129 shares of our common
stock to Space Globe Technologies at a price of $0.07 per share to settle
indebtedness of $33,329 owed to Space Globe Technologies for loan advances. The
shares were issued to a non-United States resident in reliance upon an exemption
from registration under Regulation S of the Securities Act as a private
transaction under Section 4(2) of the Securities Act.

On August 19, 2008, we issued 203,543 shares of our common
stock to Bruce Larway at a price of $0.07 per share to settle indebtedness of
$14,248 owed to Bruce Larway for loan advances. The shares were issued to a
non-United States resident in reliance upon an exemption from registration under
Regulation S of the Securities Act as a private transaction under Section 4(2)
of the Securities Act.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

No matter was submitted to a vote
of our shareholders, through the solicitation of proxies or otherwise, during
the quarter ended September 30, 2008.

ITEM 5. OTHER INFORMATION

On October 1, 2008, the Company
accepted the resignation of Mr. Bruce Larway as a director of the Company. Mr.
Larways resignation was not due to any disagreement with the Company. No funds
are owed to Mr. Larway by the Company or its sole officer John Salamon
(including Space Globe Technologies Ltd.).

ITEM 6. EXHIBITS

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

|3.1  | Articles of Incorporation (1)                                                                                                                            
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                          
|3.2  | Bylaws (1)                                                                                                                                               
|     |                                                                                                                                                          
|10.1 | Technology License Agreement between
        Space Globe and the registrant dated July 5, 2001. (1)                                                      
|     |                                                                                                                                                          
|10.2 | Assignment Agreement between Space
        Globe and the registrant dated January 10, 2005. (2)                                                          
|     |                                                                                                                                                          
|10.3 | Consulting Agreement between Alvin
        Mirman and the registrant dated September 8, 2006. (5)                                                        
|     |                                                                                                                                                          
|10.4 | Assignment Agreement between Space
        Globe, John Salamon and the registrant dated June 29, 2007. (3)                                               
|     |                                                                                                                                                          
|10.5 | Debt Settlement Agreement between Space
        Globe and the registrant dated June 29, 2007. (3)                                                        
|     |                                                                                                                                                          
|10.6 | Amendment dated September 30, 2007
        to Assignment Agreement dated January 10, 2005 among Space Globe, John
        Salamon and the registrant. (4)
|     |                                                                                                                                                          
|10.7 | Debt Settlement Agreement between Space
        Globe and the registrant dated November 6, 2007. (5)                                                     
|     |                                                                                                                                                          
|10.8 | Debt Settlement Agreement between Space
        Globe and the registrant dated April 15, 2008. (6)                                                       

---

|10.9  | License Agreement between 482229 B.C.
        Ltd. and the registrant dated June 20, 2008. (6)                                                                                                            
|----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      |                                                                                                                                                                                                           
|10.10 | Consulting
        Agreement between Harold Schneider and the registrant dated September
        1, 2008 (7)                                                                                              
|      |                                                                                                                                                                                                           
|31.1  | Certification
        of Chief Executive Officer and Chief Financial Officer pursuant to Section
        302 of the Sarbanes-Oxley Act of 2002. (7)                                                       
|      |                                                                                                                                                                                                           
|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. (7)

|(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) | Incorporated by reference to the exhibits of the Quarterly
        Report on Form 10-QSB filed with the Securities and Exchange Commission
        on January 15, 2005.      
|(3) | Incorporated by reference to the exhibits of the Quarterly
        Report on Form 10-QSB filed with the Securities and Exchange Commission
        on August 20, 2007.       
|(4) | Incorporated by reference to the exhibits of the Quarterly
        Report on Form 10-QSB filed with the Securities and Exchange Commission
        on November 6, 2007.      
|(5) | Incorporated by reference to the exhibits of the Annual
        Report on Form 10-KSB filed with the Securities and Exchange Commission
        on April 14, 2008.           
|(6) | Incorporated by reference to the exhibits of the Quarterly
        Report on Form 10-Q filed with the Securities and Exchange Commission
        on August 14, 2008.         
|(7) | Filed herewith.                                                                                                                                                              

SIGNATURES

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

Date: November 14, 2008

SALAMON GROUP, INC.

|By: | /s/ John E. Salamon             
|--- | --------------------------------
|    | John E. Salamon                 
|    | President                       
|    | (Principal Executive Officer and
|    | Principal Financial Officer)    

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