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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM
  10-QSB/A**Amendment No. 1**

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

For the quarterly period ended March 31, 2006

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 []

Check if there is no disclosure of delinquent files in response
  to Item 405 of Regulation S-B is not 
  contained in this form, and no disclosure will be contained, to the best of
  registrants knowledge, in 
  definitive proxy or information statements incorporated by reference in Part
  III of this Form 10-KSB or any 
  amendment to this Form 10-KSB. []

State issuers revenues for its most recent quarter. $ 0

---

State the aggregate market value of the voting and non-voting
  common equity held by non-affiliates 
  computed by reference to the price at which the common equity was sold, or the
  average bid and asked 
  price of such common equity, as of a specified date within the past 60 days.
  
  (See definition of affiliate in Rule 12b-2 of the Exchange Act.) N/A. Shares
  have not traded.

Note: If determining whether a person is an affiliate will involve
  an unreasonable effort and 
  expense, the issuer may calculate the aggregate market value of the common equity
  held by non-affiliates 
  on the basis of reasonable assumptions, if the assumptions are stated.

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

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, 2006.

|                                 
|---------------------------------
|                                 
|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              

2

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TABLE OF CONTENTS

|PART I.  | FINANCIAL INFORMATION | 4                                                        
|-------- | --------------------- | ---------------------------------------------------------
|         |                       |                                                          
|         | ITEM 1.               | FINANCIAL STATEMENTS                                     
|         |                       |                                                          
|         | ITEM 2.               | MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
|         |                       | DESCRIPTION OF BUSINESS                                  
|         |                       | RESULTS OF OPERATIONS                                    
|         |                       | LIQUIDITY AND CAPITAL RESOURCES                          
|         |                       |                                                          
|         | ITEM 3.               | CONTROLS AND PROCEDURES                                  
|         |                       |                                                          
|PART II. | OTHER INFORMATION     | 21                                                       
|         |                       |                                                          
|         | ITEM 1.               | LEGAL PROCEEDINGS                                        
|         |                       |                                                          
|         | ITEM 2.               | CHANGES IN SECURITIES                                    
|         |                       |                                                          
|         | ITEM 3.               | DEFAULTS UPON SENIOR SECURITIES                          
|         |                       |                                                          
|         | ITEM 4.               | SUBMISSIONS OF MATTERS TO A VOTE OF SECURITY HOLDERS     
|         |                       |                                                          
|         | ITEM 5.               | OTHER INFORMATION                                        
|         |                       |                                                          
|         | ITEM 6.               | EXHIBITS AND REPORTS ON FORM 8-K                         
|         |                       |                                                          
|         |                       | SIGNATURES                                               

3

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PART I               
  FINANCIAL INFORMATION

Item 1. Financial Statements.

The Financial Statements of the Company and Notes to Financial
Statements required by this Item 1 commence on page F-1 hereof and are
incorporated herein by this reference. The Financial Statements filed as part of
this Report on Form 10-QSB are listed in the Index to Financial Statements
below:

Salamon Group, Inc.(A Development Stage Company)
Financial Statements March 31, 2006 (Expressed in U.S. Dollars)
(Unaudited)

|                                        | Index
|--------------------------------------- | -----
|                                        |      
|Balance
      Sheets                    | 5    
|                                        |      
|Statements
      of Operations          | 6    
|                                        |      
|Statements
      of Cash Flows          | 7    
|                                        |      
|Notes
      to the Financial Statements | 8    

4

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|SALAMON GROUP,
      INC.        
|---------------------------------
|(A Development Stage Company)    
|                                 
|BALANCE SHEETS                   
|                                 
|(unaudited)                      
|(Expressed in U.S.
      dollars)

|                                                              |  | March 31, |   |  | December 31, |  
|------------------------------------------------------------- |  | --------- | - |  | ------------ | -
|                                                              |  | 2006      |   |  | 2005         |  
|                                                              |  | $         |   |  | $            |  
|                                                              |  |           |   |  |              |  
|ASSETS                                                        |  |           |   |  |              |  
|                                                              |  |           |   |  |              |  
|Current                                                       |  |           |   |  |              |  
|                                                              |  |           |   |  |              |  
|Cash                                                          |  | -         |   |  | 25           |  
|                                                              |  |           |   |  |              |  
|Total Current Assets                                          |  | -         |   |  | 25           |  
|                                                              |  |           |   |  |              |  
|Property and equipment (Note 3)                               |  | 209       |   |  | 279          |  
|                                                              |  |           |   |  |              |  
|Total Assets                                                  |  | 209       |   |  | 304          |  
|                                                              |  |           |   |  |              |  
|LIABILITIES AND STOCKHOLDERS' DEFICIT                         |  |           |   |  |              |  
|                                                              |  |           |   |  |              |  
|Current                                                       |  |           |   |  |              |  
|                                                              |  |           |   |  |              |  
|Accounts payable                                              |  | 17,080    |   |  | 19,192       |  
|Due to related party (Note 4)                                 |  | 58,118    |   |  | 52,578       |  
|                                                              |  |           |   |  |              |  
|Total Current
      Liabilities                               |  | 75,198    |   |  | 71,770       |  
|                                                              |  |           |   |  |              |  
|Contingencies and Commitments (Note 1)                        |  |           |   |  |              |  
|                                                              |  |           |   |  |              |  
|Stockholders' Deficit                                         |  |           |   |  |              |  
|                                                              |  |           |   |  |              |  
|Capital stock                                                 |  |           |   |  |              |  
|                                                              |  |           |   |  |              |  
|Authorized                                                    |  |           |   |  |              |  
|                                                              |  |           |   |  |              |  
|10,000,000 of preferred
      shares                          |  |           |   |  |              |  
|40,000,000 of voting common shares                            |  |           |   |  |              |  
|                                                              |  |           |   |  |              |  
|Issued and outstanding                                        |  |           |   |  |              |  
|                                                              |  |           |   |  |              |  
|8,962,820
      common shares with a par value of $0.001 each |  | 8,963     |   |  | 8,963        |  
|                                                              |  |           |   |  |              |  
|Additional paid-in capital                                    |  | 120,816   |   |  | 120,816      |  
|                                                              |  |           |   |  |              |  
|Deficit, accumulated during the development stage             |  | (204,768  | ) |  | (201,245     | )
|                                                              |  |           |   |  |              |  
|Total Stockholders' Deficit                                   |  | (74,989   | ) |  | (71,466      | )
|                                                              |  |           |   |  |              |  
|Total Liabilities and Stockholders' Deficit                   |  | 209       |   |  | 304          |  

5

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|SALAMON GROUP,
      INC.       
|--------------------------------
|(A Development Stage Company)   
|                                
|STATEMENTS OF OPERATIONS        
|                                
|(unaudited)                     
|(Expressed in U.S
      dollars)

|                                        |  |                    |   |  |                |   |  | Accumulated from |  
|--------------------------------------- |  | ------------------ | - |  | -------------- | - |  | ---------------- | -
|                                        |  |                    |   |  |                |   |  | April 27, 2001   |  
|                                        |  | Three Months Ended |   |  | (Inception) to |  
|                                        |  | March 31,          |   |  | March 31,      |  
|                                        |  | 2006               |   |  | 2005           |   |  | 2006             |  
|                                        |  | $                  |   |  | $              |   |  | $                |  
|GENERAL AND ADMINISTRATIVE              |  |                    |   |  |                |   |  |                  |  
|Amortization of
      intangible asset  |  |                   |   |  |               |   |  | 55,000           |  
|Amortization of property and equipment  |  | 70                 |   |  | -              |   |  | 4,306            |  
|Consulting and technical
      services |  |                   |   |  |               |   |  | 11,109           |  
|Foreign
      exchange                  |  | 24                 |   |  | 46             |   |  | 4,232            |  
|Interest and bank charges               |  | 13                 |   |  | 18             |   |  | 459              |  
|Office
      and miscellaneous          |  | 600                |   |  | 111            |   |  | 10,952           |  
|Professional fees                       |  | 286                |   |  | 4,126          |   |  | 65,499           |  
|Telephone                               |  | 900                |   |  | 624            |   |  | 13,270           |  
|Transfer agent and filing
      fees    |  | 130                |   |  | 2721           |   |  | 9,064            |  
|Travel and entertainment                |  | 1,500              |   |  | 326            |   |  | 30,877           |  
|                                        |  |                    |   |  |                |   |  |                  |  
|Net Loss for the Period                 |  | (3,523             | ) |  | (7,972         | ) |  | (204,768         | )
|                                        |  |                    |   |  |                |   |  |                  |  
|Loss per share  Basic                  |  | (0.00              | ) |  | (0.00          | ) |  |                  |  
|                                        |  |                    |   |  |                |   |  |                  |  
|Weighted Average Shares Outstanding     |  | 8,962,820          |   |  | 8,962,820      |   |  |                  |  

6

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|SALAMON GROUP,
      INC.       
|--------------------------------
|(A Development Stage Company)   
|                                
|STATEMENTS OF CASH FLOWS        
|                                
|(unaudited)                     
|(Expressed in U.S
      dollars)

|                                                                              |  | Three Months Ended |  
|----------------------------------------------------------------------------- |  | ------------------ | -
|                                                                              |  | March 31,          |  
|                                                                              |  | 2006               |  
|                                                                              |  | $                  |  
|                                                                              |  |                    |  
|Cash flows from operating activities                                          |  |                    |  
|                                                                              |  |                    |  
|Net loss for the period                                                       |  | (3,523             | )
|                                                                              |  |                    |  
|Adjustments to
      reconcile loss to net cash used by operating activities: |  |                    |  
|                                                                              |  |                    |  
|Amortization of property and equipment                                        |  | 70                 |  
|                                                                              |  |                    |  
|                                                                              |  | (3,453             | )
|                                                                              |  |                    |  
|Changes in operating assets and
      liabilities:                            |  |                    |  
|                                                                              |  |                    |  
|Accounts
      payable                                                        |  | (2,112             | )
|                                                                              |  |                    |  
|Net cash used in operating activities                                         |  | (5,565             | )
|                                                                              |  |                    |  
|Cash flows from investing activities                                          |  |                   |  
|                                                                              |  |                    |  
|Cash flows from financing activities                                          |  |                    |  
|                                                                              |  |                    |  
|Advances
      from related parties                                           |  | 5,540              |  
|                                                                              |  |                    |  
|Net cash provided by financing activities                                     |  | 5,540              |  
|                                                                              |  |                    |  
|Decrease
      in cash and cash equivalents                                   |  | (25                | )
|                                                                              |  |                    |  
|Cash, beginning of period                                                     |  | 25                 |  
|                                                                              |  |                    |  
|Cash, end of period                                                           |  | -                  |  
|                                                                              |  |                    |  
|Supplemental Disclosures                                                      |  |                    |  
|                                                                              |  |                    |  
|Interest paid                                                                 |  |                   |  
|Income tax paid                                                               |  |                   |  

7

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|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. The Company is a development
      stage company whose principal business plan is to seek earnings by
      exploiting technology held under a license agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | In a development stage company, management
        devotes most of its activities in investigating business opportunities
        and further advancing its technologies. The ability of the Company to
        emerge from the development stage with respect to any planned principal
        business activity is dependent upon its successful efforts to raise additional
        equity financing and/or attain profitable operations. There is no guarantee
        that the Company will be able to complete any of the above objectives.
        At March 31, 2006, the Company had a working capital deficit of $75,198
        and an accumulated deficit of $204,768 .
        These factors raise substantial doubt regarding the Company’s ability
        to continue as a going concern.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | 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 Technologies and Salamon
      Group in mutual agreement replaced the license agreement with an Agreement
      which transferred 100% ownership of and rights to the Technology to
      Salamon Group for no additional compensation. John Salamon also assigned
      all rights to the patent pending to Salamon Group.                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|2. | Summary of Significant Accounting Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

Computer equipment
    3 years straight-lineOffice equipment
    5 years straight-line


| | (c) | Basic and Diluted Net Income (Loss) per Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |     | The Company computes net income (loss) per share in
      accordance with SFAS No. 128, Earnings per Share (SFAS 128). SFAS 128
      requires presentation of both basic and diluted earnings per shares (EPS)
      on the face of the income statement. Basic EPS is computed by dividing net
      income (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, and convertible preferred stock, 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
      dilutive potential common shares if their effect is
antidilutive.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | (d) | Revenue recognition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |     | Revenues from the sale of products are 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 are recognized when
      performance of the service is complete or over the term of the
      contract.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

8

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

9

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|2. | Summary of Significant Accounting Policies
    (continued)
|-- | ----------------------------------------------------------
|   |                                                           
|   | (l)                                                       
|   |                                                           
|   |                                                           
|   |                                                           
|   |                                                           
|   |                                                           
|3. | Property and Equipment                                    

| |                    |  |       |  |  |              |  |  | Net book value | 
| | ------------------ |  | ----- |  |  | ------------ |  |  | -------------- | 
| |                    |  |       |  |  | Accumulated  |  |  | March 31,      | 
| |                    |  | Cost  |  |  | Depreciation |  |  | 2006           | 
| |                    |  | $     |  |  | $            |  |  | $              | 
| |                    |  |       |  |  |              |  |  |                | 
| | Computer equipment |  | 3,161 |  |  | 3,161        |  |  | -              | 
| | Office equipment   |  | 1,354 |  |  | 1,145        |  |  | 209            | 
| |                    |  |       |  |  |              |  |  |                | 
| |                    |  | 4,515 |  |  | 4,306        |  |  | 209            | 

|5. | Related Party Transactions                                                                                                                                                                       
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                  
|   | Amounts owing to or from Space Globe are unsecured,
      non-interest bearing and are due on demand. Space Globe is related to the
      Company by way of a director and shareholder in
common.

10

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PART I

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

Plan of Operations

Since
its inception, the Company 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, 2006, the Company had no revenue from operations and
accumulated operating expenses amounted to $204,698. The Company proposes to
aggressively compete in the alternative energy source technology market.

The
Company plans to generate revenues through the sale of manufacturing and
marketing licenses on a world-wide basis.

Salamon
Group will also be involved in research and development activities . The
corporation will search for a private investment group to provide up to $200,000
CAD, 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.

The
Company is 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
the Company is unable to generate sufficient revenue from operations to
implement its plans, management intends 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 the Company, management anticipates that it will be able to satisfy
its cash requirements for the next approximately nine (9) to twelve (12) months
without raising funds via debt and/or equity financing or from third party
funding sources.

Accordingly,
management expects that it will be necessary for Salamon Group to raise
additional funds in the event that the Company is unable to generate any revenue
from operations and if only a minimal level of revenue is generated in
accordance with management's expectations.

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

Financial Condition, Capital Resources and Liquidity

At March 31, 2006, the Company had assets totaling $279 and
current liabilities of $75,198 attributable to unpaid Space Globe Technologies
license fees, audit fees and general operating expenses. Since the Company's
inception, it has received $129,779 in cash and services contributed as
consideration for the issuance of shares of Common Stock.

Salamon Group's working capital is presently minimal and there
  can be no assurance that the Company's financial condition will improve. The
  Company is expected to continue to have minimal working capital or a working
  capital deficit as a result of current liabilities. The Company, at inception,
  issued 1,500,000

11

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shares of the Company's Common Stock to Mr. Salamon, the executive
  officer and director of Salamon Group, and 500,000 shares of the Company's Common
  Stock to White & Lee Investments, LP, an investment vehicle controlled by
  White & Lee LLP, former legal counsel to the Company, as founder shares.
  From April 2001 through March 31, 2006, Salamon Group received gross proceeds
  of $124,279 (including $102,500 in cash and services valued at $21,779) from
  the sale of a total of 1,962,820 shares of Common Stock, $0.001 par value per
  share, in an offering conducted pursuant to Section 4(2) of the Act and Rules
  504 and 901 (See Part II, Item 4. Recent Sales of Unregistered Securities).
  These offerings were made in the Provinces of British Columbia and Alberta,
  Canada. Even though management believes, without assurance, that it will obtain
  sufficient capital with which to implement its business plan on a limited scale,
  the Company is not expected to continue in operation without an infusion of
  capital. In order to obtain additional equity financing, management may be required
  to dilute the interest of existing shareholders or forego a substantial interest
  of its revenues, if any. (See Part I, Item 1. Description of Business;
  See Part I, Item 4. Security Ownership of Certain Beneficial Owners and
  Management and Part I, Item 7. Certain Relationships and Related
  Transactions.)

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

The ability of the Company to continue as a going concern is
dependent upon its ability to attract a sufficiently large and profitable
licensee base to license its electrical generator technology.

To implement such plan, also during this initial phase, the
Company intends to initiate a self-directed private placement under Rule 506 in
order to raise an additional $200,000. In the event such placement is
successful, the Company believes that it will have sufficient operating capital
to meet the initial expansion goals and operating costs for a period of one (1)
year.

Net Operating Losses

As of March 31, 2006, the Company has a net operating loss
carry forward of approximately $204,698.

Forward-Looking Statements

This Form 10-SB 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 the Company expects or
anticipates 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 the Company's business and operations, and
other such matters are forward-looking statements. These statements are based on
certain assumptions and analyses made by the Company in light of its experience
and its perception of historical trends, current conditions and expected future
developments as well as other factors it believes are appropriate in the
circumstances. However, whether actual results or developments will conform with
the Company's expectations and predictions is 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 the
Company; changes in laws or regulation; and other factors, most of which are
beyond the control of the Company. 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 the Company will be realized or, even if substantially realized,
that they will have the expected consequence to or effects on the Company or its
business or operations. The Company assumes no obligations to update any such
forward-looking statements.

Business Development.

SALAMON GROUP, INC. (hereinafter referred to as the Company
  or Salamon Group) was organized under the laws of the State of Nevada
  on April 27, 2001. The Company is a developmental stage company organized by
  John E. Salamon, the President and Director of the Company. The Companys

12

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aim is to develop, license and/or acquire certain electrical
generator technologies which the Company believes to be proprietary. The
Company's offices are presently located at 302-1028 Alberni Street, Vancouver,
B.C., Canada, V6E 1A3 and its telephone number is (604) 408-3861. The Companys
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. The Company has not reached these threshold requirements and is
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 the Companys current status and financial condition.
Registration may also allow the Company 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 its product and to continue research and development of additional
products..

Since
its inception the Company has 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, founder, president and director of
Salamon Group, Inc. 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 Salamon group. Its current operation consists mainly of
securing private investment capital to assist in funding the operations and
growth of Salamon Group. 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.

The
Company initially distributed to Mr. John E. 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).

Mr.
Salamon formed the Company 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 the Company and Space Globe Technologies were incidental to the
transfer of assets to the Company in connection with the reorganization of these
two entities under Mr. Salamons common control.

On
  July 5, 2001, the Company entered into a Technology License Agreement with Space
  Globe Technologies whereby the Company 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 Salamon Group.

13

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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 Salamon Group
for no additional compensation. John Salamon also assigned all rights to the
patent pending to Salamon Group.

In
addition to the foregoing issuances, from April 2001 through December 31, 2005,
Salamon Group 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. (See Part II, Item 4. Recent Sales of Unregistered Securities).
These offerings were made in the Provinces of British Columbia and Alberta,
Canada.

The
Company intends to offer additional securities under Rule 506 and Regulation S
to fund its short and medium term expansion plans. (See Part I, Item 1.
Description of Business -(b) Business of Registrant.)

See
(b) Business of Registrant immediately below for a description of the
Company's proposed business. As of the date hereof, the Company has no other
employees or customers.

Technology/Product

The
EPG device consists of an electric motor, an alternator, a regulator system, an
inverter, a capacitor, an isolator, a primary battery and a secondary battery.
These parts are all contained in a metal or plastic molded encasement. The
primary 12 Volt battery supplies current and voltage to an inverter which
converts the 12V DC voltage to 115V AC voltage. The AC voltage is then supplies
power to any AC powered device such as a television, lamp, radio, small
appliances, etc. (depending on required wattage.)

During
operation of the device, a control system that is powered by the secondary 12V
battery, monitors the primary battery voltage. When the primary battery voltage
drops below a setpoint voltage, the control system starts the electric motor,
which in turn drives an alternator/generator that recharges the primary battery.
The alternator/generator produces AC voltage which is converted to DC voltage
and regulated through a regulator system. The regulator system includes an
isolator which directs the power from the regulator system into the primary
battery allowing the primary battery to be recharged, but the isolator prevents
the direct connection of both batteries. When the primary battery voltage
reaches an upper setpoint voltage, the control system will disable the electric
motor and the recharging of the primary battery will cease. The cycle will
repeat itself again when the primary battery voltage is below the lower setpoint
voltage.

Salamon
Group has not yet tested the EPG to determine how long it can supply power
before both batteries become depleted. A connection to an external power supply
is provided so that the secondary battery can be recharged if for some reason,
such as long dormant storage periods, both batteries become completely depleted.
The external power supply is a power supply that converts household current to
12 VDC. For example, this type of power supply could be a wall transformer type
that converts 115 VAC to 12 VDC.

The
  performance of the EPG is relative to the size of the inverter and the number
  of batteries. For example, a 300 watt inverter can be used to power a TV, laptop
  computer or a lamp, among other things. The proof-of-concept model EPG is 115
  VAC and 300 watts with a 12 VDC outlet. The charging cycle is relative to the
  load on the inverter. The greater the load, the faster the main battery depletes.
  The typical midsize EPG requires no venting as it uses sealed batteries
  and creates a negligible amount of heat. When charging, it produces a noise
  level similar to that of a turntable style microwave. Because there are no emissions
  of any sort, the EPG can be used indoors as opposed to fuel powered generators
  which can only be used outdoors. All components of the EPG are CSA approved
  in Canada. All licensees will be in compliance with Canadian standards and will
  be required to comply with standards of the USA and other countries prior to
  distributing the EPG in those countries.

14

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The
EPG can be used as emergency back-up power for the homeowner in the event of a
power failure. It can also be used to power small appliances/devices in portable
applications such as camping or in a remote cottage setting. It can also power
communication equipment during disaster relief efforts. Any number of devices
can run from the EPG as long as the combined power of the devices do not exceed
the maximum power of the inverter. For example, if a lamp uses 60W and the
inverter is rated at 300W maximum, 5 lamps can be run. If a TV at 160W is to be
powered, and a DVD player at 15W, then only two 60W lamps may be powered. It is
not currently known how long the EPG may run devices until both batteries are
depleted. This will be determined only when the working model described below
has undergone extensive testing.

Proof-of-Concept and Working Models

A
prototype was built by Space Globe in 2002 and was provided to Salamon Group for
further development. In 2004, Salamon Group completed construction of a
proof-of-concept model which is now available for demonstration to potential
licensees. The encasement of the model measures 18L x 11W x 10.5H and weighs
approximately 60 pounds with all the components in it. The primary battery is a
sealed deep cycle battery rated at 33AH with output voltage of 12 VDC and weighs
25 pounds. The secondary battery is also a sealed deep cycle unit with output
voltage of 12 VDC and weighs 9 pounds.

The recharging voltage for both batteries is in the 14.4V to
14.6V range. The charge level is determined by the non-charging/non-discharging
voltage of the battery with 12.80V being a full charge, 12.30V a half charge and
11.80V being fully discharged. The proof-of-concept model does not have the
automated control system. The model was used for the battery testing.

The following are the detailed specifications of the
proof-of-concept model:

Battery and Alternator Specifications:

Primary Battery:

12 Volt/33 Ampere Valve Regulated Lead-Acid Battery

a) Ampere Hour Capacity to 1.75 Volts per Cell @77F:

Discharge in Hours
    Amp-Hr Capacity1.00
    23.52.00
    25.93.00
    27.24.00
    28.15.00
    29.06.00
    29.77.00
    30.28.00
    30.510.00
    31.012.00
    31.520.00
    33.024.00
    33.172.00
    33.8100.00
    34.4 15


---

|b) | Specifications:
|-- | ---------------

| | BCI Group Size        | U1                 | 
| | --------------------- | ------------------ | 
| | Cells per unit        | 6                  | 
| | Full Charge OCV       | 12.84              | 
| | Electrolyte           | Absorbed H2SO4     | 
| | Max Discharge Current | 600 Amps @ 0.1 sec | 
| | Short Circuit Current | 2150 Amps          | 
| | Ohms Imped 60 Hz      | 0.007 Ohms         | 

|c) | Discharge Ratings (in amps) at Constant Discharge Time
      (in hours)
|-- | -----------------------------------------------------------------------

End Point
      Volts/Cell
    .083
    10.0
    100.001.90
    87.0
    2.73
    0.301.85
    101.0
    2.90
    0.331.80
    113.0
    3.02
    0.341.75
    121.0
    3.10
    0.34


|d) | Capacity
|-- | --------

| | 29.0 | Ah @ 5Hr rate to 1.75 volts per cell @ 77`F     
| | ---- | ------------------------------------------------
| | 33.0 | Ah @ 20 hr rate to1.75 volts per cell 2 77`F    
| | 29.6 | Ah @ 10 hr rate to 1.80 volts per cell @ 68`
  F

|e) | Operating Temperature Range
|-- | ---------------------------

Discharge: -40`F to 160`F
Charge:-10`F to +140`F(with temperature compensation)

|f) | Float Charging voltage
|-- | ----------------------

13.5 to 13.8 VDV/unit Average @
77`F

|g) | Recommended Maximum Charging Current
  Limit
|-- | --------------------------------------------

C/5 amperes (6.6 amperes @ 100% depth
of discharge) @ 20 hour rate

|h) | Equalization and Cycle Service Charging
  Voltage
|-- | -------------------------------------------------

14.4 to 14.8 VDC/unit Average @
77`F

|i) | Maximum AC Ripple (Charger)
|-- | ---------------------------

0.5% RMS or 1.5% P-P of float charge
voltage recommended for best results Maximum AC ripple float charge voltage
allowed=(4% P-P) Maximum AC ripple current allowed=1.65 amperes RMS (C/20)

|j) | Self Discharge
|-- | --------------

Battery may be stored for up to 6 months
  @ 77`F and then a refreshing charge is required. For higher temperatures the
  time interval will be shorter.

16

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Secondary Battery:

12 Volt 18 AH Sealed Lead
AcidRecharging specs are similar to the Main battery above.

Alternator Specs:

|Speed:                    | 1300-6000 RPM          
|------------------------- | -----------------------
|Charging capacity:        | 15-16.5A @ 14V @5000RPM
|Output Current Vs. Speed: | ~0A @1000RPM           
|                          | ~3A @2000RPM           
|                          | 9.5-10.5A@3000RPM      
|                          | 13-14A @4000 RPM       

The
Company has now developed and completed the assembly of a working model, which
contains a bigger battery.

The following are the specifications of the working model:

Battery and Alternator Specifications:

Primary Battery:

12 Volt 50 AH Deep-Cycle Sealed Lead-Acid Battery

Secondary Battery:

12 Volt 18 AH Sealed Lead Acid Battery

Alternator Specs:

|Speed:                    | 1300-6000 RPM          
|------------------------- | -----------------------
|Charging capacity:        | 15-16.5A @ 14V @5000RPM
|Output Current Vs. Speed: | ~0A @1000RPM           
|                          | ~3A @2000RPM           
|                          | 9.5-10.5A@3000RPM      
|                          | 13-14A @4000 RPM       

The
working model will require further testing to ensure that the control system is
working as expected, to test the life of the batteries, and to determine if any
component parts need to be upgraded. If required for further testing of the
working model, the Company may engage an independent consulting engineer,
subject to obtaining the necessary capital. To date, no independent evaluations
have been done.

Technical Limitations:

The
  technical limitations of the EPG are related to the recharging of the primary
  battery. The alternator should be large enough to recharge the primary battery
  while the inverter is under full load. If the alternator is not rated to output
  more power than the inverter can draw, then eventually the primary battery will
  be totally depleted and the inverter will cease to produce power. When there
  is no more load on the primary battery, it can be recharged again for future
  use.

17

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The
actual length of time that the EPG can provide power without completely
depleting both batteries will not be known without extensive testing. If the EPG
has sat dormant for a long time and both batteries have become depleted, then an
external power source can be used to recharge the secondary battery. The
external power supply is a power supply that converts household current to 12
VDC. For example, this type of power supply could be a wall transformer type
that converts 115 VAC to 12 VDC. As a result of these technical limitations, the
EPGs utility may be restricted to providing power for only smaller appliances,
which reduce its commercial appeal.

Regulatory Approvals

This
electrical device is made up of various parts, as outlined very carefully in the
schematic drawings. Each and every electrical component contained within the
research models have already been approved in Canada under a set of rules called
CSA. The inverters, control mechanisms, batteries, and all other component
parts have been CSA approved. By extension, all working models, as well as
future commercial units, must contain only CSA approved electrical components,
if manufactured and/or sold within Canada. Further, any licensee, legally
licensed by the Salamon Group to manufacture within the United States of
America, must comply with any and all USA government rules covering the
manufacturing of electrical devices with the USA. A minimum requirement would
involve the manufacturer satisfying rules set down under the set of regulations
called UL. All completed units would have to be labeled UL Approved.
Salamon Group intends to pursue arrangements whereby independent manufacturers
will, under license obligations to the Salamon Group, manufacture and be prime
distributors of the product. Due to the nature of the EPG, any manufacturer must
comply with CSA regulations.

CSA
Certification guidelines require a completed unit to be included with the CSA
Certification application process to satisfy safety testing requirements. The
Company will submit all applications for approvals and to pay all associated
costs.

Patent Pending

Request For Examination of Patent will be filed by September 4, 2006

A
Patent application (2,357,766) was filed in Canada by John Salamon on September
4, 2001. The key element of the Patent application includes the unique assembly
of the component parts. The application is pending and will be examined when
formally requested by Salamon Group. The Company intends to apply for Patents in
the US and other countries as soon as financially possible at a cost of
approximately $20,000. The Company feels it is necessary to file a Patent
application in the United States as this will be one of its largest markets.

Canadian Patent Rules:

Through
a patent, the government grants an inventor the right to exclude others from
making, using or selling the invention from the day the patent is granted to a
maximum of 20 years after the day on which a patent application is filed. The
Patent Office lays open the application 18 months after the filing date of the
application. Anyone may then read about, but not make, use or sell the invention
without the applicants permission until the patent has expired. The application
remains  Patent Pending until a patent is granted or refused. The applicant
must formally request an examination of the Patent Pending application within 5
years of the filing date, otherwise the application will be considered
abandoned. A Patent Pending application provides time to assess the feasibility
and/or marketability of the invention and provides some protection for the
invention without having to fully commit to the patent procedures. Competitors
will likely be wary of infringing on the invention after the application is
published because the inventor could seek retroactive compensation in the event
that a patent is granted.

Manufacturing

At
  this time, the Company is attempting to secure licensees who will be granted
  the rights to commercially produce, manufacture, market and sell the product
  worldwide. The Company will provide

18

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the technological design to the licensee(s) for their use in
producing the product. If licensees cannot be arranged, the Company will seek
financing to manufacture the EPG itself. As yet, neither licensees nor suppliers
of the component parts of the EPG have been secured or arranged.

Sales and Marketing

In
spring 2005, the Company had entered into negotiations to license the world-wide
marketing rights for the EPG for a 5 year period to a marketing company based in
Calgary, Alberta, Canada. The Company determined that the marketing company was
not suitable as a licensee and no formal license agreement was reached between
the parties.

The
Company is seeking other potential qualified licensees, which will be granted
the right to manufacture, market and sell the EPG. A qualified licensee will
have a successful experience in marketing electronic devices, and will have
knowledge of both sales strategies and electronic technology. Furthermore, a
qualified licensee will have the network to place the EPG in appropriate large
chain stores.

We
believe that prospective licensees would not make an issued patent a
precondition for any license payments. There are many products and devices on
the market that have only patent pending status. Having a patent pending does
afford the applicant certain protections. If the licensee believes that the
particular product has a competitive advantage in the marketplace and has a good
prospect for sales to consumers, we believe the licensee will not be deterred by
the fact that the patent has not yet issued in respect of the EPG.

Management

At
this time, the Company is managed by John Salamon. As finances allow, other
personnel will be employed in various management capacities.

Mr.
Salamon began his working career in the oil industry in Alberta, Canada in 1966.
From 1966 to 1985, he performed various jobs in the oilfields and on drilling
platforms for several oil companies in Canada, United States, England, Africa,
Saudi Arabia, Bahrain, Malta and Peru. His duties included repair and
maintenance of electric motors and generators which provided Mr. Salamon with a
comprehensive understanding of the workings of electric powered devices.

From
1986 to 1990 assisted with the development of a shopping mall and other
properties in Northern Alberta. From 1991 to 1998, Mr. Salamon contracted to
Globus Cellular & to Beitler Consulting to provide technical and marketing
services for their products. In 1998, Mr. Salamon formed Space Globe
Technologies to continue research and development of technologies and products
in the field of electric power generation. In 2001, Mr. Salamon formed Salamon
Group, Inc. to license and/or purchase technologies in the field of electric
power generation. From 1998 to date Mr.Salamon has been directing and managing
both companies.

Consultants and Technicians:

The
  Company employs consultants and technicians on a contract and on an as
  needed basis. At present there are no contractual arrangements. During
  2004, Salamon Group engaged Mr. Mike Ewashen to assist in the completion of
  the assembly of the working model of the EPG device. Mr. Ewashen, a certified
  Electronics Technician, has been working in the field of electronics for the
  past 18 years.

19

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Research and Development

Until
the Company can secure a qualified licensee, all further development, testing
and commercialization of the EPG will be completed by the Company, 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.

The
Company, under the direction of Mr. Salamon, is 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.

The
Company is currently developing a smaller, portable EPG utilizing similar
designs and adding a solar power component.

Facilities

In
its initial phase, the Company will operate out of offices provided by Mr.
Salamon. The Company address is 302-1028 Alberni Street, Vancouver, B.C.,
Canada, V6E-1A3. Mr. Salamon will begin researching the real estate market in
order to determine the most appropriate site to locate Salamon Group's offices
and facilities.

Funding

The
  Company plans to raise approximately $200,000 by way of private placements from
  relatives and business associates of John Salamon. As soon as possible, the
  Company will seek public trading status which will enable the Company to raise
  additional development and working capital. The funds will be used to secures
  license agreements, to continue research and development and for general working
  capital. The Company also plans to seek bank financing.

To
implement the initial plan, the Company intends to initiate a private placement
under Rule 506 in order to raise an additional $200,000. In the event such
placement is successful, the Company believes that it will have sufficient
operating capital to meet the initial goals and operating costs for a period of
twelve (12) months.

Competition

The
markets in which the Company is engaged are subject to vigorous competition.
Energy generation is a constantly evolving industry and is dominated by and
impacted by large multi-national oil companies.

There
are many portable products similar to the EPG available on the market, including
gasoline and diesel powered generators, and battery/inverter types of portable
power sources. The Company currently sees its fiercest competition coming from
manufacturers of portable gasoline powered generators.

The
  main advantages of the EPG over a gas or diesel powered generator are that unlike
  fuel-powered generators, the EPG can be used indoors because of its size, it
  has negligible noise level and it does not emit any exhaust. The EPG can be
  used indoors, for example, as emergency back-up power for the homeowner. Another
  significant advantage of the EPG is that no dangerous flammable fuel is required.

20

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While
the EPG is designed to recharge the primary battery to prolong the availability
of power, the extent to which the EPG can provide prolonged availability of
power will not be known without extensive testing. The battery/inverter
systems that are currently on the market must be recharged with an external
source such as a wall transformer or solar panel before they can be used again
after the battery is depleted. Until further testing of the EPG is completed, it
is not known whether its performance is even equivalent to existing battery
inverter products.

Gasoline
generators are more expensive than the EPG. The prices of gasoline generators
vary depending on the size. Gasoline generators in the 900W to 1500W range are
priced in thr range of $475 to $525. The anticipated retail cost of the EPG will
be in the low hundreds of dollars. The anticipated cost of the EPG will be
greater than the battery/inverter units, but will be still be affordable to the
consumer in the non-specialized retail market. The physical size of the EPG
needs to be larger than the battery/inverter system in order to accommodate the
control system, the electric motor, the alternator and the secondary battery..
With a battery/inverter only system, once the battery is depleted, the battery
needs to be recharged before it can be used again. While the EPG is designed to
recharge the primary battery when it depletes, so that the length of time that
power can be provided by the EPG may be increased in comparison to existing
battery inverter products, Salamon Group has not yet tested the EPG to determine
how long the EPG can supply power before both the primary and the secondary
batteries become depleted.

The
Company intends to focus primarily on the large indoor market for homes,
offices, recreational vehicles, cottages, small warehouses, storage units, etc.
We believe that the EPG will be readily accepted in the market place because it
is portable, compact, price competitive, and does not require fuelling. Our
licensees will be soliciting some of the big retailers such as Wal-Mart,
Zellers, Home Depot, Sears and Canadian Tire.

**Item
3.**               **Controls
and procedures**

Management, including our Chief Executive Officer has
established and is currently maintaining disclosure controls and procedures and
internal control over financial reporting for our Company. Our Chief Executive
Officer has evaluated the effectiveness of our disclosure controls and
procedures as required by Exchange Act Rule 13a-15(b) as of the end of the
fiscal year ended December 31, 2005. Based on that evaluation, the Chief
Executive Officer has concluded that these disclosure controls and procedures
are effective for gathering, communicating to management, analyzing, and
disclosing the information we are required to disclose in our reports filed
under the Securities Exchange Act of 1934. There were no changes in our internal
control over financial reporting during the year ended December 31, 2005 that
have materially affected, or are reasonably likely to materially affect, our
internal control over financial reporting.

**PART II**              **OTHER
  INFORMATION**

**Item
1.**               **Legal
Proceedings**

The Company knows of no legal proceedings to which it is a
party or to which any of its property is the subject which are pending,
threatened or contemplated or any unsatisfied judgments against the Company.

**Item
2.**               **Changes
in Securities**

None

**Item
3.**               **Defaults
Upon Senior Securities**

None

21

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

No matter was submitted to a vote of the Companys shareholders,
  through the solicitation of proxies or otherwise during the quarterly period
  ended March 31, 2006.

**Item
5.**               **Other
Information**

Market Price and Dividends on the Common Equity and Related
Stockholder Matters.

No matter covered by this report was submitted during the last
quarterly period to a vote of the Company's shareholders through the
solicitation of proxies or otherwise.

**(a)**               **Market
Information.**

There has been no established public trading market for the
Common Stock since the Company's inception on April 27, 2001.

**(b)**               **Holders**.

As of March 31, 2006, the Company had 41 shareholders of record
of its 8,962,820 outstanding shares of Common Stock.

**(c)**               **Dividends.**

The Company has never paid or declared any dividends on its
Common Stock and does not anticipate paying cash dividends in the foreseeable
future.

**Item
6.**               **Exhibits
and Reports on Form 8-K**

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

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. 22


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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
  16, 2006

Salamon Group, Inc.

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

23

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