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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-QSB

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

For the quarterly period ended March 31, 2007

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

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

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

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

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

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

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

Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or
for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days.

Yes [X] No [   ]

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

State the number of shares outstanding of each of the issuers
classes of common equity, as of the latest practicable date. 8,962,820 as of
March 31, 2007.

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

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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 3. CONTROLS AND PROCEDURES                                           | 12        
|         |                                                                           |           
|PART II. | OTHER INFORMATION                                                         | 13        
|         |                                                                           |           
|         | ITEM 1. LEGAL PROCEEDINGS                                                 | 13        
|         |                                                                           |           
|         | ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE
      OF PROCEEDS | 13        
|         |                                                                           |           
|         | ITEM 3. DEFAULTS UPON SENIOR SECURITIES                                   | 13        
|         |                                                                           |           
|         | ITEM 4. SUBMISSIONS OF MATTERS TO A VOTE OF SECURITY HOLDERS              | 13        
|         |                                                                           |           
|         | ITEM 5. OTHER INFORMATION                                                 | 13        
|         |                                                                           |           
|         | ITEM 6. EXHIBITS                                                          | 14        
|         |                                                                           |           
|         |                                                                           | SIGNATURES

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 SHEET

|                                                                                     |   | March 31,   |  
|------------------------------------------------------------------------------------ | - | ----------- | -
|                                                                                     |   | 2007        |  
|                                                                                     |   | (unaudited) |  
|ASSETS                                                                               |   |             |  
|Current assets:                                                                      |   |             |  
|Cash                                                                                 | $ | 59          |  
|Total assets                                                                         | $ | 59          |  
|                                                                                     |   |             |  
|LIABILITIES AND STOCKHOLDERS DEFICIT                                                |   |             |  
|Current liabilities:                                                                 |   |             |  
|Accounts payable                                                                     | $ | 41,854      |  
|Due to related party                                                                 |   | 89,583      |  
|Total current
      liabilities                                                      |   | 131,437     |  
|                                                                                     |   |             |  
|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; 8,962,820 shares |   |             |  
|issued and outstanding                                                               |   | 8,963       |  
|Additional paid-in
      capital                                                     |   | 120,816     |  
|Deficit accumulated during the
      development stage                               |   | (261,157    | )
|Total stockholders deficit                                                          |   | (131,378    | )
|                                                                                     |   |             |  
|                                                                                     | $ | 59          |  

4

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

|                                       |   |                                    |   |   |           |   |   | Accumulated    |  
|-------------------------------------- | - | ---------------------------------- | - | - | --------- | - | - | -------------- | -
|                                       |   |                                    |   |   |           |   |   | From April 27, |  
|                                       |   |                                    |   |   |           |   |   | 2001           |  
|                                       |   |                                    |   |   |           |   |   | (Inception) to |  
|                                       |   | Three
      Months Ended March 31, |   |   | March 31, |  
|                                       |   | 2007                               |   |   | 2006      |   |   | 2007           |  
|                                       |   |                                    |   |   |           |   |   |                |  
|GENERAL AND ADMINISTRATIVE             |   |                                    |   |   |           |   |   |                |  
|EXPENSES:                              |   |                                    |   |   |           |   |   |                |  
|Amortization of intangible asset       | $ | -                                  |   | $ | -         |   | $ | 55,000         |  
|Depreciation of property and equipment |   | -                                  |   |   | 70        |   |   | 4,515          |  
|Consulting and technical services      |   | -                                  |   |   | -         |   |   | 11,109         |  
|Foreign exchange                       |   | -                                  |   |   | 24        |   |   | 4,208          |  
|Interest and bank charges              |   | 20                                 |   |   | 13        |   |   | 542            |  
|Office, telephone and miscellaneous    |   | 1,500                              |   |   | 1,500     |   |   | 30,222         |  
|Professional fees                      |   | 27,895                             |   |   | 286       |   |   | 103,154        |  
|Transfer agent and filing fees         |   | 1,183                              |   |   | 130       |   |   | 15,530         |  
|Travel and entertainment               |   | 1,500                              |   |   | 1,500     |   |   | 36,877         |  
|                                       |   |                                    |   |   |           |   |   |                |  
|Net loss                               | $ | (32,098                            | ) | $ | (3,523    | ) | $ | (261,157       | )
|                                       |   |                                    |   |   |           |   |   |                |  
|Loss per share - basic and diluted     | $ | (0.00                              | ) | $ | (0.00     | ) |   |                |  
|                                       |   |                                    |   |   |           |   |   |                |  
|Weighted average shares outstanding    |   | 8,962,820                          |   |   | 8,962,820 |   |   |                |  

5

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

|                                                            |   | For The Three |   |   | For The Three |   |   | Accumulated From |  
|----------------------------------------------------------- | - | ------------- | - | - | ------------- | - | - | ---------------- | -
|                                                            |   | Months Ended  |   |   | Months Ended  |   |   | April 27, 2001   |  
|                                                            |   | March 31,     |   |   | March 31,     |   |   | (Inception) to   |  
|                                                            |   | 2007          |   |   | 2006          |   |   | March 31, 2007   |  
|                                                            |   |               |   |   |               |   |   |                  |  
|Cash flows from operating activities:                       |   |               |   |   |               |   |   |                  |  
|Net loss for the period                                     | $ | (32,098       | ) | $ | (3,523        | ) | $ | (261,157         | )
|Adjustments to reconcile net
      loss to net cash used in |   |               |   |   |               |   |   |                  |  
|operating activities:                                       |   |               |   |   |               |   |   |                  |  
|Amortization of intangible asset                            |   | -             |   |   | -             |   |   | 55,000           |  
|Depreciation of property and equipment                      |   | -             |   |   | 70            |   |   | 4,515            |  
|Estimated fair value of common stock issued for services    |   | -             |   |   | -             |   |   | 21,779           |  
|Changes in
      operating assets and liabilities:          |   |               |   |   |               |   |   |                  |  
|Accounts payable                                            |   | 24,761        |   |   | (2,112        | ) |   | 41,854           |  
|                                                            |   |               |   |   |               |   |   |                  |  
|Net cash used in operating
      activities                 |   | (7,337        | ) |   | (5,565        | ) |   | (138,009         | )
|                                                            |   |               |   |   |               |   |   |                  |  
|Cash flows from investing activities:                       |   |               |   |   |               |   |   |                  |  
|Purchase of property and equipment                          |   | -             |   |   | -             |   |   | (4,515           | )
|Purchase of license                                         |   | -             |   |   | -             |   |   | (50,000          | )
|                                                            |   |               |   |   |               |   |   |                  |  
|Net cash used in investing
      activities                 |   | -             |   |   | -             |   |   | (54,515          | )
|                                                            |   |               |   |   |               |   |   |                  |  
|Cash flows from financing activities:                       |   |               |   |   |               |   |   |                  |  
|Advances from related party, net                            |   | 7,366         |   |   | 5,540         |   |   | 89,583           |  
|Issuance of common stock for
      cash                     |   | -             |   |   | -             |   |   | 103,000          |  
|                                                            |   |               |   |   |               |   |   |                  |  
|Net cash provided by financing
      activities             |   | 7,366         |   |   | 5,540         |   |   | 192,583          |  
|                                                            |   |               |   |   |               |   |   |                  |  
|Change in cash                                              |   | 29            |   |   | (25           | ) |   | 59               |  
|                                                            |   |               |   |   |               |   |   |                  |  
|Cash, beginning of period                                   |   | 30            |   |   | 25            |   |   | -                |  
|                                                            |   |               |   |   |               |   |   |                  |  
|Cash, end of period                                         | $ | 59            |   | $ | -             |   | $ | 59               |  
|                                                            |   |               |   |   |               |   |   |                  |  
|Supplemental disclosure of cash flow
      information:     |   |               |   |   |               |   |   |                  |  
|Cash paid during the period for:                            |   |               |   |   |               |   |   |                  |  
|Interest                                                    | $ | -             |   | $ | -             |   | $ | -                |  
|Income tax                                                  | $ | -             |   | $ | -             |   | $ | -                |  
|                                                            |   |               |   |   |               |   |   |                  |  
|Noncash:                                                    |   |               |   |   |               |   |   |                  |  
|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 (unaudited)

|1. | Nature of Operations and Continuance of
Business                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   | Salamon Group, Inc. (the "Company") was incorporated in
      the State of Nevada, USA, on April 27, 2001 (Inception). The Company is
      a development stage company whose principal business plan is to seek
      earnings by exploiting technology held under a license
agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   | 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 March 31, 2007, the
      Company has no revenues to date, has accumulated losses of $261,157 and a
      working capital deficit of $131,378 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, 2007 by issuing debt and equity securities and by the
      continued support of a related party. The financial statements do not
      include any adjustments relating to the recoverability and classification
      of recorded asset amounts or amounts and classification of liabilities
      that might be necessary should the Company be unable to continue in
      existence. There is no assurance that funding will be available to
      continue the Companys business operations.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   | On July 5, 2001, the Company entered into a licensing
      agreement with Space Globe Technologies Ltd. ("Space Globe"), a Canadian
      corporation. The agreement allows the Company to use certain technology
      with respect to a power cell technology used for internal and external
      electrical applications.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   | In January 2005, Space Globe and Salamon Group in mutual
      agreement replaced the license agreement with an Agreement which
      transferred 100% ownership of and rights to Space Globes technology to
      Salamon Group for no compensation. John Salamon also assigned all rights
      to the patent pending to Salamon Group.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|2. | Summary of Significant Accounting Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

7

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

|2. | Summary of Significant Accounting Policies
    (continued)
|-- | ----------------------------------------------------------
|   |                                                           
|   | (c)                                                       
|   |                                                           
|   |                                                           
|   |                                                           
|   | (d)                                                       
|   |                                                           
|   |                                                           
|   |                                                           
|   | (e)                                                       
|   |                                                           
|   |                                                           
|   |                                                           
|   | (f)                                                       
|   |                                                           
|   |                                                           
|   |                                                           
|   | (g)                                                       
|   |                                                           
|   |                                                           
|   |                                                           
|   | (h)                                                       
|   |                                                           
|   |                                                           
|   |                                                           
|   | (i)                                                       
|   |                                                           
|   |                                                           

8

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

|2. | Summary of Significant Accounting Policies
    (continued)
|-- | ----------------------------------------------------------
|   |                                                           
|   | (j)                                                       
|   |                                                           
|   |                                                           
|   |                                                           
|3. | Related Party Transactions                                
|   |                                                           
|   | (a)                                                       
|   |                                                           
|   | (b)                                                       

9

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Item 2. Management's Discussion and Analysis or Plan of
Operation.

Forward-Looking Statements

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

Business Development.

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

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

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

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

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

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

10

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In January 2005, Space Globe
Technologies and Salamon Group replaced the license agreement with an agreement
which transferred 100% ownership of and rights to the technology were
transferred from Space Globe Technologies to us for no additional compensation.
John Salamon also assigned all rights to the patent pending to us.

In addition to the foregoing
issuances, from April 2001 through March 31, 2007, we received gross proceeds of
$124,779 (including $103,000 in cash and services valued at $21,779) from the
sale of a total of 1,962,820 shares of Common Stock in an offering conducted
pursuant to Section 4(2) of the Act and Regulation S. These offerings were made
in the Provinces of British Columbia and Alberta, Canada.

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

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

Plan of Operation

Since its inception, Salamon
Group, Inc. (hereinafter referred to as the Company, Salamon Group, we,
our or us) has conducted no business operations except for organizational
and capital raising activities and the completion of a working model of the
Power generator. For the period from inception (April 27, 2001) through March
31, 2007, we had no revenue from operations and accumulated operating expenses
amounted to $261,157. We propose to aggressively compete in the alternative
energy source technology market.

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

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

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

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

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

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

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

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

At March 31, 2007, we had assets
totaling $59 and current liabilities of $131,437 attributable to unpaid Space
Globe Technologies license fees, audit fees and general operating expenses.
Since our inception, we have received $124,779 in cash and services in
connection with the issuance of shares of common stock.

We currently have a negative
working capital deficit and there can be no assurance that our financial
condition will improve. We are expected to continue to have minimal working
capital or a working capital deficit as a result of our development stage. At
inception, we issued 1,500,000 shares of our common stock to Mr. Salamon and
500,000 shares of our common stock to White & Lee Investments, LP, an
investment vehicle controlled by White & Lee LLP, our former legal counsel,
as founder shares. From April 2001 through March 31, 2007, we have received
gross proceeds of $103,000 and received services valued at $21,779 from the
issuance of a total of 2,515,010 and 1,447,810 shares of common stock,
respectively. 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.

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

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

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

Net Operating Losses

As of March 31, 2007, we have a
deficit accumulated during the development stage of $261,157.

Research and Development

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

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

We are currently and may develop
a smaller, portable EPG utilizing similar designs and adding a solar power
component as well as an electric wireless product.

Item 3. Controls and procedures

As of March 31, 2007, an
evaluation was carried out under the supervision and with the participation of
our management, including our CEO and our CFO, of the effectiveness of the
design and operation of our disclosure controls and procedures (as defined in
Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934). Based
upon that evaluation, the CEO and CFO concluded that the design and operation of
these disclosure controls and procedures were effective. No significant changes
were made in our internal controls or in other factors that could significantly
affect these controls subsequent to March 31, 2007.

(a) Evaluation of Disclosure Controls and Procedures. The
Company carried out an evaluation under the supervision and with the
participation of our management, including our CEO and CFO, of the effectiveness
of our disclosure controls and procedures. Based upon that evaluation, the CEO
and CFO concluded that as of March 31, 2007 our disclosure controls and
procedures were effective in timely alerting them to the material information
relating to us (or our consolidated subsidiaries) required to be included in our
periodic filings with the SEC, subject to the various limitations on
effectiveness set forth below under the heading, LIMITATIONS ON THE
EFFECTIVENESS OF INTERNAL CONTROLS, such that the information relating to us,
required to be disclosed in SEC reports (i) is recorded, processed, summarized
and reported within the time periods specified in SEC rules and forms, and (ii)
is accumulated and communicated to our management, including our CEO and CFO, as
appropriate to allow timely decisions regarding required disclosure.

Remediation of Material Weakness in Internal Control

(a) Changes in internal control over financial reporting. There
have been no changes in our internal control over financial reporting that
occurred during the fiscal quarter ended March 31, 2007 that has materially
affected, or is reasonably likely to materially affect, our internal control
over financial reporting.

LIMITATIONS ON THE EFFECTIVENESS OF INTERNAL CONTROLS

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

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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. Changes in Securities

None

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
quarterly period ended March 31, 2007.

Item 5. Other Information

None

(a) Market Information.

There has been no established
public trading market for the common stock since our inception on April 27,
2001. In June 2006, we executed a 211 Filing Agreement with Spartan Securities
Group Ltd. We are awaiting a response from the NASD on the trading symbol
status. Our stock transfer agent is dealing with our shareholders on the
notification to shareholders of record for over 2 years regarding the issuance
of their shares as free trading under the 144k Blanket Release provisions, CUSIP
NO:793893 10 8.

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Item 6. Exhibits and Reports on Form 8-K

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

|10.1 | Acknowledgement of Request for Examination
        dated August 29, 2006 (1)                                                                                                                  
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                               
|10.2 | 211 Filing Agreement dated June 5, 2006
        (1)                                                                                                                                           
|     |                                                                                                                                                                                               
|10.3 | Resolution Appointing New Directors
        dated January 15, 2005 (1)                                                                                                                        
|     |                                                                                                                                                                                               
|31.1 | Certification of Chief Executive
        Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
        Act of 2002.                                               
|     |                                                                                                                                                                                               
|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.

SIGNATURES

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

Date: May 9, 2007

Salamon Group, Inc.

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

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