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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended March 31, 2009

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

For the transition period from __________to __________

Commission File Number: 000-50530

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

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

(702) 241-0145(Registrant's telephone number,
including area code)

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

Indicate by check mark whether the registrant (1) filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the past 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.Yes [X]No [ ]

Indicate by check mark whether the
registrant is a large accelerated filer, an accelerated filer, a non-accelerated
filer, or a smaller reporting company. See the definitions of large accelerated
filer, accelerated filer and smaller reporting company in Rule 12b-2 of the
Exchange Act.

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

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

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

As of May 13, 2009, the Issuer had 19,303,880 shares of
common stock outstanding with a par value per share of $0.001.

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TABLE OF CONTENTS

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

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PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.



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

|                                                                                                    |   | March 31,   |   |   | December 31, |  
|--------------------------------------------------------------------------------------------------- | - | ----------- | - | - | ------------ | -
|                                                                                                    |   | 2009        |   |   | 2008         |  
|                                                                                                    |   | (unaudited) |   |   |              |  
|ASSETS                                                                                              |   |             |   |   |              |  
|Current assets:                                                                                     |   |             |   |   |              |  
|Cash                                                                                                | $ | 14          |   | $ | 2            |  
|Prepaid expense                                                                                     |   | 688         |   |   | 688          |  
|Total assets                                                                                        | $ | 702         |   | $ | 690          |  
|                                                                                                    |   |             |   |   |              |  
|                                                                                                    |   |             |   |   |              |  
|LIABILITIES AND STOCKHOLDERS DEFICIT                                                               |   |             |   |   |              |  
|Current liabilities:                                                                                |   |             |   |   |              |  
|Accounts payable                                                                                    | $ | 53,840      |   | $ | 50,538       |  
|Due to related parties                                                                              |   | 4,078       |   |   | 6,427        |  
|Total
      current liabilities                                                                     |   | 57,918      |   |   | 56,965       |  
|                                                                                                    |   |             |   |   |              |  
|Contingencies                                                                                       |   |             |   |   |              |  
|                                                                                                    |   |             |   |   |              |  
|Stockholders deficit:                                                                              |   |             |   |   |              |  
|Preferred stock, no par
      value; 10,000,000 shares authorized, no shares issued and outstanding |   | -           |   |   | -            |  
|Common stock, $0.001 par value; 500,000,000
      shares authorized, 18,103,880 and                 |   |             |   |   |              |  
|17,603,880
      shares issued and outstanding, respectively                                        |   | 18,104      |   |   | 17,604       |  
|Additional paid-in capital                                                                          |   | 794,772     |   |   | 779,272      |  
|Deficit accumulated during
      the development stage                                              |   | (870,092    | ) |   | (853,151     | )
|Total
      stockholders deficit                                                                   |   | (57,216     | ) |   | (56,275      | )
|                                                                                                    |   |             |   |   |              |  
|                                                                                                    | $ | 702         |   | $ | 690          |  

See Accompanying Notes

F-1

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

|                                                              |   |                              |   |   |            |   |   | For The Period |  
|------------------------------------------------------------- | - | ---------------------------- | - | - | ---------- | - | - | -------------- | -
|                                                              |   |                              |   |   |            |   |   | From April 27, |  
|                                                              |   |                              |   |   |            |   |   | 2001           |  
|                                                              |   |                              |   |   |            |   |   | (Inception) to |  
|                                                              |   | Three Months Ended March 31, |   |   | March 31,  |  
|                                                              |   | 2009                         |   |   | 2008       |   |   | 2009           |  
|                                                              |   |                              |   |   |            |   |   |                |  
|EXPENSES:                                                     |   |                              |   |   |            |   |   |                |  
|General and administrative                                    | $ | 16,941                       |   | $ | 34,226     |   | $ | 519,259        |  
|Interest expense                                              |   | -                            |   |   | -          |   |   | 35,833         |  
|Research and development                                      |   | -                            |   |   | -          |   |   | 315,000        |  
|                                                              |   |                              |   |   |            |   |   |                |  
|Net loss                                                      | $ | (16,941                      | ) | $ | (34,226    | ) | $ | (870,092       | )
|                                                              |   |                              |   |   |            |   |   |                |  
|                                                              |   |                              |   |   |            |   |   |                |  
|Loss per share - basic and diluted                            | $ | (0.00                        | ) | $ | (0.00      | ) |   |                |  
|                                                              |   |                              |   |   |            |   |   |                |  
|                                                              |   |                              |   |   |            |   |   |                |  
|                                                              |   |                              |   |   |            |   |   |                |  
|Weighted average shares outstanding 
      basic and diluted |   | 17,873,880                   |   |   | 16,122,820 |   |   |                |  

See Accompanying Notes

F-2

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

|                                                                  |   |           |   |   |           |   |   | For the      |  
|----------------------------------------------------------------- | - | --------- | - | - | --------- | - | - | ------------ | -
|                                                                  |   |           |   |   |           |   |   | Period       |  
|                                                                  |   | For The   |   |   | For The   |   |   | From April   |  
|                                                                  |   | Three     |   |   | Three     |   |   | 27,          |  
|                                                                  |   | Months    |   |   | Months    |   |   | 2001         |  
|                                                                  |   | Ended     |   |   | Ended     |   |   | (Inception)  |  
|                                                                  |   | March 31, |   |   | March 31, |   |   | to March 31, |  
|                                                                  |   | 2009      |   |   | 2008      |   |   | 2009         |  
|                                                                  |   |           |   |   |           |   |   |              |  
|Cash flows from operating activities:                             |   |           |   |   |           |   |   |              |  
|Net loss                                                          | $ | (16,941   | ) | $ | (34,226   | ) | $ | (870,092     | )
|Adjustments to reconcile net loss to net                          |   |           |   |   |           |   |   |              |  
|cash used in operating activities:                                |   |           |   |   |           |   |   |              |  
|Amortization
      of intangible asset                            |   | -         |   |   | -         |   |   | 55,000       |  
|Estimated
      fair value of common stock issued for patents     |   | -         |   |   | -         |   |   | 315,000      |  
|Beneficial
      conversion of amounts due to related party       |   | -         |   |   | -         |   |   | 35,833       |  
|Depreciation
      of property and equipment                      |   | -         |   |   | -         |   |   | 4,515        |  
|Estimated fair
      value of common stock issued                 |   |           |   |   |           |   |   |              |  
|for services                                                      |   | 10,000    |   |   | -         |   |   | 73,791       |  
|Changes in
      operating assets and liabilities:                |   |           |   |   |           |   |   |              |  
|Prepaid expense                                                   |   | -         |   |   | 305       |   |   | (688         | )
|Accounts payable                                                  |   | 3,302     |   |   | 16,655    |   |   | 63,899       |  
|                                                                  |   |           |   |   |           |   |   |              |  
|Net cash used in operating activities                             |   | (3,639    | ) |   | (17,266   | ) |   | (322,742     | )
|                                                                  |   |           |   |   |           |   |   |              |  
|Cash flows from investing activities:                             |   |           |   |   |           |   |   |              |  
|Purchase of property and equipment                                |   | -         |   |   | -         |   |   | (4,515       | )
|Purchase of license                                               |   | -         |   |   | -         |   |   | (50,000      | )
|                                                                  |   |           |   |   |           |   |   |              |  
|Net cash used in investing activities                             |   | -         |   |   | -         |   |   | (54,515      | )
|                                                                  |   |           |   |   |           |   |   |              |  
|Cash flows from financing activities:                             |   |           |   |   |           |   |   |              |  
|Advances from related parties                                     |   | 3,651     |   |   | 17,248    |   |   | 274,271      |  
|Issuance of common stock for cash                                 |   | -         |   |   | -         |   |   | 103,000      |  
|                                                                  |   |           |   |   |           |   |   |              |  
|Net cash provided by financing activities                         |   | 3,651     |   |   | 17,248    |   |   | 377,271      |  
|                                                                  |   |           |   |   |           |   |   |              |  
|Net change in cash                                                |   | 12        |   |   | (18       | ) |   | 14           |  
|                                                                  |   |           |   |   |           |   |   |              |  
|Cash, beginning of period                                         |   | 2         |   |   | 74        |   |   | -            |  
|                                                                  |   |           |   |   |           |   |   |              |  
|Cash, end of period                                               | $ | 14        |   | $ | 56        |   | $ | 14           |  
|                                                                  |   |           |   |   |           |   |   |              |  
|Non cash:                                                         |   |           |   |   |           |   |   |              |  
|Estimated fair value of common stock issued
      upon conversion |   |           |   |   |           |   |   |              |  
|of amounts due to related parties                                 | $ | 6,000     |   | $ | -         |   | $ | 270,193      |  
|Estimated fair value of common stock issued
      for license     | $ | -         |   | $ | -         |   | $ | 5,000        |  
|Estimated fair value of common stock issued in conversion of      |   |           |   |   |           |   |   |              |  
|accounts payable                                                  | $ | -         |   | $ | -         |   | $ | 10,059       |  

See accompanying notes

F-3

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

|1. | Nature of Operations and Continuance of
        Business                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | Salamon Group, Inc. (the "Company")
        was incorporated in the state of Nevada on April 27, 2001 (Inception).
        The Company is a development stage company whose principal business plan
        is to seek earnings by exploiting technology in the field of alternative
        energy sources, which technology includes four patents pending related
        to electrical power generation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | These financial statements have been prepared
        in accordance with accounting principles generally accepted in the United
        States of America applicable to a going concern. At March 31, 2009, the
        Company has no revenues to date, has accumulated losses of $870,092 and
        a working capital deficit of $57,216 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, 2009 by issuing debt and equity securities and
        by the continued support of its related parties (see Note 3). The financial
        statements do not include any adjustments relating to the recoverability
        and classification of recorded asset amounts or 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. The sole shareholder and sole director
        of Space Globe is John Salamon who is the President and a Director of
        the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | In January 2005, Space Globe and the Company
        in mutual agreement replaced the license agreement with an agreement that
        was amended December 31, 2007, which transferred 100% ownership of, and
        rights to, Space Globes technology related to electrical power generation
        to the Company for no further consideration. John Salamon, the Companys
        Chief Executive Officer and majority shareholder, also assigned to Salamon
        Group a 99% interest in the rights to the patent pending.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | In June 2007, Space Globe transferred to Salamon
        Group 100% ownership of rights to Space Globes technology related
        to wireless electrical power generation, including a 99% interest in three
        patent applications, for a total 4,500,000 shares of the Companys
        common stock (see Note 4).
    The Company has prepared the accompanying financial statements in accordance with United States generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by GAAF' for annual financial statements. In the opinion of the Company's management, the accompanying financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to make the financial position of the Company as of March 31,2009, the results of operations and cash flows for three months ended March 31,2009 and 2008 and for the period from Inception through March 3 1,2009 not misleading. The financial statements should be read in conjunction with the audited financial statements for the year ended December 3 1, 2008 contained in Form 10-K filed with the Securities and Exchange Commission ("SEC").
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | The Company has prepared the accompanying
        financial statements in accordance with United States generally accepted
        accounting principles (GAAP) for year end financial
        information.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|2. | Summary of Significant Accounting Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

F-4

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

| | (b) | Basic and diluted net loss per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |     | The Company computes net loss per share in accordance
        with SFAS No. 128, Earnings per Share, which requires presentation
        of both basic and diluted loss per share (EPS) on the
        face of the statement of operations. Basic EPS is computed by dividing
        net loss available to common shareholders (numerator) by the weighted
        average number of common shares outstanding (denominator) during the period.
        Diluted EPS gives effect to all dilutive potential common shares outstanding
        during the period including stock options, using the treasury stock method,
        convertible preferred stock, and convertible debt, using the if-converted
        method. In computing diluted EPS, the average stock price for the period
        is used in determining the number of shares assumed to be purchased from
        the exercise of stock options or warrants. Diluted EPS excludes all potentially
        dilutive common shares if their effect is antidilutive. At March 31, 2009
        and 2008, there were no potentially dilutive instruments outstanding.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | (c) | Revenue recognition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |     | Revenues from the sale of products will be recorded
        when the product is shipped, title and risk of loss have transferred to
        the purchaser, payment terms are fixed or determinable and payment is
        reasonably assured. Revenues from service contracts will be recognized
        when performance of the service is complete or over the term of the contract.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | (d) | Foreign currency transactions/balances                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |     | Transactions in currencies other than the U.S. dollar
        are translated at the rate in effect on the transaction date. Any balance
        sheet items denominated in foreign currencies are translated into U.S.
        dollars using the rate in effect on the balance sheet date. There have
        been no significant transactions in currencies other than the U.S. dollar
        since inception.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | (e) | Income Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |     | The Company determines its income taxes under the asset
        and liability method in accordance with SFAS No. 109, "Accounting for
        Income Taxes," which requires the recognition of deferred tax assets and
        liabilities for the expected future tax consequences of events that have
        been included in the financial statements or tax returns. Under this method,
        deferred income taxes are recognized for the tax consequences in future
        years of differences between the tax bases of assets and liabilities and
        their financial reporting amounts at each year-end based on enacted tax
        laws and statutory tax rates applicable to the periods in which the differences
        are expected to affect taxable income. Valuation allowances are established,
        when necessary, to reduce deferred tax assets to the amount expected to
        be realized.                                                                                                                                                                                                          
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | (f) | Use of Estimates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |     | The preparation of financial statements, in conformity
        with accounting principles generally accepted in the United States of
        America, requires management to make estimates and assumptions that affect
        the amounts reported in these financial statements and the accompanying
        notes. Actual results could differ from those estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | (g) | Financial Instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |     | The fair values of cash, accounts payable, and amounts
        due to related parties approximate their carrying values due to the immediate
        or short-term maturity of these financial instruments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | (h) | Issuance of Stock for Non-cash Consideration                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |     | All issuances of the Companys common stock for
        non-cash consideration have been assigned a dollar amount equaling either
        the market value of the shares issued or the value of consideration received
        whichever is more readily determinable. The majority of the non-cash consideration
        received pertains to services rendered by consultants and others and has
        been valued at the market value of the shares issued.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

F-5

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

| |     | The Companys accounting policy for equity instruments
        issued to consultants and vendors in exchange for goods and services follows
        the provisions of Emerging Issues Task Force (EITF)
        Issue No. 96-18, Accounting for Equity Instruments That are Issued
        to Other Than Employees for Acquiring, or in Conjunction with Selling,
        Goods or Services and EITF Issue No. 00-18, Accounting Recognition
        for Certain Transactions Involving Equity Instruments Granted to Other
        Than Employees. The measurement date for the fair value of
        the equity instruments issued is determined at the earlier of (i) the
        date at which a commitment for performance by the consultant or vendor
        is reached or (ii) the date at which the consultant or vendors performance
        is complete. In the case of equity instruments issued to consultants,
        the fair value of the equity instrument is recognized over the term of
        the consulting agreement.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | (i) | New Accounting Pronouncements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |     | In December 2007, the FASB issued SFAS No. 141(R), "Business
        Combinations." SFAS No. 141(R) provides companies with principles and
        requirements on how an acquirer recognizes and measures in its financial
        statements the identifiable assets acquired, liabilities assumed, and
        any non controlling interest in the acquiree as well as the recognition
        and measurement of goodwill acquired in a business combination. SFAS No.
        141(R) also requires certain disclosures to enable users of the financial
        statements to evaluate the nature and financial effects of the business
        combination. Acquisition costs associated with the business combination
        will generally be expensed as incurred. SFAS No. 141(R) is effective for
        business combinations occurring in fiscal years beginning after December
        15, 2008.  The Company
        is currently evaluating the impact SFAS No. 141(R) will have on any future
        business combinations.     
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |     | Other recent accounting pronouncements issued by the
        FASB (including the EITF) and the American Institute of Certified Public
        Accountants did not or are not believed by management to have a material
        impact on the Companys present or future financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

|3 | Related Party Transactions
|- | --------------------------

| | (a) | Amounts owing to Space Globe are unsecured, non interest
        bearing and are due on demand. The sole shareholder and sole director
        of Space Globe is John Salamon who is the President and a Director of
        the Company. At March 31, 2009 and December 31, 2008, a total of $4,078
        and $6,427, respectively, was due to Space Globe.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                               
| | (b) | During the three months ended March 31, 2009, the Company
        shared office space and travel arrangements with Space Globe. During each
        of the quarters ended March 31, 2009 and 2008, the Company incurred an
        aggregate of approximately $3,000 of allocated rent and travel expense.                                                    
| |     |                                                                                                                                                                                                                                                                                                                                                               
| | (c) | On January 15, 2009, the Company issued 200,000 shares
        of common stock to Space Globe at a price of $0.03 per share (the estimated
        fair value) to settle indebtedness of $6,000 owed to Space Globe for loan
        advances.                                                                                                                
| |     |                                                                                                                                                                                                                                                                                                                                                               
| | (d) | On December 31, 2008, a former director of the Company
        surrendered 1,000,000 shares of his common stock for no consideration.
        Accordingly, the Company has not reflected such shares as issued or outstanding
        at December 31, 2008 as such shares have been cancelled by the Company.                                                 

F-6

---



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



| | (e) | On November 15, 2008, the Company issued 869,050 shares
        of common stock to Space Globe at a price of $0.02 per share (the estimated
        fair value) to settle indebtedness of $17,821 owed to Space Globe for
        loan advances.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                 
| | (f) | On August 19, 2008, the Company issued 476,129 shares
        of common stock to Space Globe at a price of $0.07 per share (the estimated
        fair value) to settle indebtedness of $33,329 owed to Space Globe for
        loan advances.  
| |     |                                                                                                                                                                                                                                                 
| | (g) | On August 19, 2008, the Company issued 203,543 shares
        of common stock to a director at a price of $0.07 per share (the estimated
        fair value) to settle indebtedness of $14,249 owed for working capital
        advances.       

| | (h) | On April 16, 2008, the Company issued 331,158 shares
        of common stock to Space Globe at a price of $0.095 per share (the estimated
        fair value) to settle indebtedness of $31,460 owed to Space Globe for
        loan advances.                                                                                                                                                                                                                       
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | (i) | During the year ended December 31, 2007, Mr. Salamon,
        through his company, Space Globe, contributed patent applications to the
        Company in exchange for 4,500,000 shares of common stock (see Notes 1
        and 4).                                                                                                                                                                                                                                 
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | (j) | During the year ended December 31, 2007, Space Globe
        converted advances made to the Company into 2,310,000 shares of common
        stock (see Note 4).                                                                                                                                                                                                                                                                                                      
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | (k) | On July 5, 2001, the Company purchased a license related
        to certain power cell technology for cash of $50,000 and five million
        common shares of the Company valued at $5,000 from Space Globe. In addition,
        the Company agreed to pay Space Globe a royalty equal to 3% of the gross
    sales derived from the technology. To date, no sales have been made and accordingly no royalties have been earned in connection with this agreement.

|4. | Stockholders Deficit
|-- | ---------------------

| | (a) | As of March 31, 2009, there are no preferred shares
      issued and outstanding.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | (b) | As of March 31, 2009, the Company has not granted
      any stock options or warrants.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | (c) | On October 27, 2008, the Company issued 201,180
      shares of the Companys common stock as payment for services rendered.
      The Company had accrued $10,059 for such services. However, based on the
      estimated fair value of the Companys common stock on the date of conversion,
      the Company has recorded an additional $2,012 of expense.                                                                                                                                                                                                                                                                                                                                                                                                      
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | (d) | In September 2008, the Company issued 1,200,000
      forfeitable shares of common stock to a consultant. In accordance with the
      applicable consulting agreement, the shares are to be earned ratably over
      the one-year term of the agreement through August 2009. During the period
      ended March 31, 2009, the Company recorded $10,000 of expense and recorded
      300,000 common shares as issued and outstanding. During the year ended December
      31, 2008, the Company recorded $15,000 of expense and recorded 400,000 common
      shares as issued and outstanding. As 500,000 of such shares are not considered
      issued for accounting purposes they have been excluded from the Companys
      issued and outstanding shares.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | (e) | In November 2007, the Company issued 518,340 shares
      of common stock to Space Globe for the conversion of advances in the amount
      of $77,751 or $0.15 per share, the estimated fair value (see Note 3).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | (f) | Mr. Salamon and his company Space Globe, contributed
      three patent applications to the Company in June 2007 (see Note 3). In exchange
      for the patents, the Company issued 4,500,000 shares of common stock to
      Space Globe. The shares were valued at $0.07 per share, the estimated fair
      value of the stock on the measurement date. The total value of the shares
      of $315,000 was recorded as research and development expense in the accompanying
      statements of operations as there was no asset value on the books of Space
      Globe at the time of the contribution.                                                                                                                                                       
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | (g) | In June 2007, the Company issued 1,791,660 shares
      of common stock to Space Globe for the conversion of advances in the amount
      of $89,583, or $0.05 per share (see Note 3). Since the estimated fair value
      of the stock at the time of conversion was $0.07 per share, the Company
      recorded interest expense of $35,833 related to the beneficial conversion
      equal to the difference between the value of the shares issued and the advances
      converted in the accompanying statements of operations.                                                                                                                                                                                                                              
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | (h) | In June, 2007, the Company, pursuant to an agreement,
      issued shares to a third party for services provided. According to the terms
      of the agreement, the Company issued 350,000 shares of its common stock,
      which were valued at their estimated fair                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

F-7

---



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



| |     | value of $0.07 per share (based on the fair value of
        the services provided) for total of $25,000. As of December 31, 2007,
        all services related to the agreement have been provided and the value
        of the shares was recorded in general and administrative expense in the
        accompanying statements of operations.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                 
| | (i) | During the year ended December 31, 2003, 183,640 shares
        were issued for cash of $22,460 at an average price of $0.12 per share
        and 245,360 shares were issued for services and other expenses with a
        fair value of $10,676 at an average price of $0.04 per share                                                       
| |     |                                                                                                                                                                                                                                                                                                                                                 
| | (j) | During the year ended December 31, 2002, 481,046 shares
        were issued for cash of $44,008 at an average price of $0.09 per share
        and 500,000 shares were issued for services with a fair value of $10,400
        at an average price of $0.02 per share.                                                                         
| |     |                                                                                                                                                                                                                                                                                                                                                 
| | (k) | During the period ended December 31, 2001, 1,850,324
        shares were issued for cash of $36,532 at an average price of $0.02 per
        share and 702,450 shares were issued for services with a fair value of
        $703 at an average price of $0.001 per share.                                                                       
| |     |                                                                                                                                                                                                                                                                                                                                                 
| | (l) | On July 5, 2001, 5,000,000 shares with a stated par
        value of $0.001 per share were issued as part of the consideration to
        acquire a license (see Note 5).                                                                                                                                                                       

|5. | Contingencies
|-- | -------------

| | (a) | Litigation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |     | From time to time, the Company may become involved in
        various lawsuits and legal proceedings which arise in the ordinary course
        of business. However, litigation is subject to inherent uncertainties,
        and an adverse result in these or other matters may arise from time to
        time that may harm the Company. The Company is currently not aware of
        any such legal proceedings or claims that the Company believes will have,
        individually or in the aggregate, a material adverse affect on its business,
        financial condition or operating results.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | (b) | Indemnities and Guarantees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |     | During the normal course of business, the Company has
        made certain indemnities and guarantees under which it may be required
        to make payments in relation to certain transactions. The Company indemnifies
        its directors, officers, employees and agents to the maximum extent permitted
        under the laws of the State of Nevada. These indemnities include certain
        agreements with the Company's officers under which the Company may be
        required to indemnify such person for liabilities arising out of their
        employment relationship. The duration of these indemnities and guarantees
        varies and, in certain cases, is indefinite. The majority of these indemnities
        and guarantees do not provide for any limitation of the maximum potential
        future payments the Company could be obligated to make. Historically,
        the Company has not been obligated to make significant payments for these
        obligations and no liabilities have been recorded for these indemnities
        and guarantees in the accompanying balance sheets.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | (c) | On June 20, 2008, the Company entered into a license
        agreement with 482229 B.C. Ltd. (482229), a private company
        based in Kelowna, British Columbia, whereby we granted 482229 the exclusive
        rights to manufacture, market, distribute and sell in Canada all electrical
        power generation products derived from our 2001 patent pending. The license
        is for an initial term of seven years. 482229 has agreed to pay us a one
        time licensing fee of CDN$15,000 on or before June 20, 2009 and additional
        fees equal to 3% of 482229s gross revenues derived from the sale
        of products, payable quarterly. In order to maintain the license, 482229
        must meet or exceed the following minimum sale requirements:                                                                                                                                                                                                                                                                                                                                          

F-8

---

| | During Year Ended | Minimum Total Sales of Products
| | ----------------- | -------------------------------
| | December 31, 2008 | CDN$0.00                       
| | December 31, 2009 | CDN$20,000                     
| | December 31, 2010 | CDN$30,000                     

| | December 31, 2011 | CDN$40,000
| | ----------------- | ----------
| | December 31, 2012 | CDN$50,000
| | December 31, 2013 | CDN$60,000
| | December 31, 2014 | CDN$70,000

|6. | Subsequent Events
|-- | -----------------

Effective April 15, 2009, the Company
  entered into an agreement with a consultant for investor relation services for
  which the Company is to issue 700,000 shares of restricted stock. Pursuant to
  the agreement, services are to begin on April 15, 2009 for a period of three
  months.

F-9

---

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

The following discussion of the financial condition, changes in
financial condition and results of operations of Salamon Group, Inc.
(hereinafter referred to as the Company, Salamon Group,
we, our or us) for the three months ended March 31,
2009 should be read in conjunction with Salamon Groups unaudited financial
statements and related notes for the three months ended March 31, 2009.

Cautionary Statements Regarding Forward-Looking
Statements

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

Overview

We were organized under the laws
of the State of Nevada on April 27, 2001. We are a developmental stage company
organized by John E. Salamon. Our aim is to develop, license and/or acquire
certain electrical generator technologies, which we believe to be proprietary.
Our offices are presently located at 4080 Paradise Road #15-901, Las Vegas,
Nevada, USA 89169, and our telephone number is (702) 241-0145. Our Nevada
registered agent is National Registered Agents, Inc. of NV, 1000 East William
Street, Suite 204, Carson City, NV 89701.

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

Since our inception, we have been
involved in organizational and fund raising activities and the licensing,
subsequent acquisition and further development of a certain electrical generator
technology from Space Globe Technologies Ltd., a private British Columbia,
Canada corporation (Space Globe), founded and organized also by John
Salamon. Space Globe was founded for the purpose of developing technologies and
concepts in the field of Alternative Energy Sources. Alternative Energy
Sources are those which are not supplied by the burning of fossil fuels or the
splitting of atoms. Some of the alternative energy sources include solar energy,
wind power, geothermal, tides and hydro power. Space Globe was incorporated in
the Province of British Columbia, Canada in 1998 by John Salamon. It was
initially established as a management/consulting company in which to develop
ideas and concepts for power generation. Space Globes primary assets consist of
office equipment and investments in us. Effective June 29, 2007, in connection
with our acquisition of ownership and rights to certain patents and wireless EPG
technology from Space Globe, we no longer considered ourself a shell company
and our current operations are focused on developing and licensing such
technologies. From 1999 to 2001 Space Globe and Mr. Salamon developed the
concept and design of an Electrical Power Generator (EPG) for home and
office use and for emergency power backup situations. Mr. Salamon filed a patent
application in Canada on September 4, 2001 for protection of the design of the
EPG and on March 10, 2008, as requested by the Canadian Patent Office, we filed
additional information regarding this patent pending. Mr. Salamon filed a second
patent application in Canada on May 12, 2006 and two more patent applications
later in 2006 for the protection of designs related to wireless EPGs.

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

We were formed by Mr. Salamon for the
purpose of pursuing his business plan of developing technologies and concepts in
the field

---

of Alternative Energy Sources in a newly established Nevada
corporation. All transactions described below between us and Space Globe were
incidental to the transfer of assets to us in connection with the reorganization
of these two entities under Mr. Salamons common control.

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

On January 10, 2005, we replaced
the license agreement with Space Globe with an agreement under which Space Globe
transferred 100% ownership of and rights to the EPG technology, protected by the
2001 patent application, to us for no additional compensation. John Salamon,
through Space Globe, also assigned all rights to the patent pending to us. On
September 30, 2007, we amended the agreement with Space Globe such that John
Salamon retains a 1% interest in the patent application.

In addition to the foregoing
issuances, from April 2001 through March 31, 2009, we received gross proceeds of
$446,984 (including $103,000 in cash, conversion of $270,193 of amounts due to a
related party, and services valued at $73,791) from the issuance of a total of
6,733,650 shares of common stock in offerings conducted pursuant to Section 4(2)
of the Act and Regulation S. These offerings were made in the Provinces of
British Columbia and Alberta, Canada.

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

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

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

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

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

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

---

Plan of Operation

Since our inception, we have been
involved in organizational activities, have completed offerings of shares of
common stock in which we have received gross proceeds in the amount of $103,000
from the issuance of 2,515,010 shares of common stock, have concluded the
licensing and subsequent acquisition of an EPG from Space Globe, and have
completed a working model of the power generator. For the period from inception
(April 27, 2001) through March 31, 2009, we had no revenue from operations and
our deficit accumulated during the development stage amounted to $870,092. We
propose to compete in the alternative energy source technology market.

As reported in the Report of
Independent Registered Public Accounting Firm on our December 31, 2008 financial
statements, we have suffered recurring losses from operations, we have a working
capital deficit and a deficit accumulated during the development stage. These
items raise substantial doubt about our ability to continue as a going
concern.

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

We will also be involved in
research and development activities. We will search for a private investment
group to provide up to $500,000 to cover the costs of product development. All
products will be licensed to other corporations for manufacturing, thus no
additional money is anticipated to be required to manufacture and/or distribute
our products.

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

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

If we are unable to generate
sufficient revenue from operations to implement our plans, we intend to explore
all available alternatives for debt and/or equity financing, including but not
limited to private and public securities offerings. Accordingly, we expect that
it will be necessary for us to raise additional funds in the event that we are
unable to generate any revenue from operations and if only a minimal level of
revenue is generated in accordance with our expectations.

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

Financial Condition, Capital Resources and Liquidity

As of March 31, 2009, we have a
deficit accumulated during the development stage of $870,092. At March 31, 2009,
we had assets totaling $702 and current liabilities of $57,918 attributable to
amounts due to related parties and accounts payable.

We currently have a working
capital deficit and there can be no assurance that our financial condition will
improve. We are expected to continue to have minimal working capital or a
working capital deficit as a result of our development stage.

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

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

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

To implement such plan, also
during this initial phase, we intend to initiate a self-directed private
placement under Rule 506 in order to raise approximately $500,000. In the event
such placement is successful, we believe that we will have sufficient operating
capital to meet the initial expansion goals and operating costs for a period of
one year.

---

Net Operating Losses

As of March 31, 2009, we have a deficit accumulated during the
development stage of $870,092.

Research and Development

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

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

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

Off-Balance Sheet Arrangements

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

Material Commitments for Capital Expenditures

We had no contingencies or long-term
commitments at March 31, 2009.

Critical Accounting Policies

There were no changes to the critical accounting policies as
discussed in our 2008 Form 10-K filed on April 15, 2009.

ITEM 4T. CONTROLS AND PROCEDURES

Disclosure controls and procedures are designed to ensure that
information required to be disclosed in the reports filed or submitted under the
Exchange Act is recorded, processed, summarized and reported, within the time
period specified in the SEC's rules and forms. Disclosure controls and
procedures include, without limitation, controls and procedures designed to
ensure that information required to be disclosed in the reports filed under the
Exchange Act is accumulated and communicated to management, including the Chief
Executive Officer covered by this report, we carried out an evaluation, under
the supervision and with the participation of our management, including our
Chief Executive Officer and Chief Financial Officer, of the effectiveness of the
design and operation of our disclosure controls and procedures as of March 31,
2009 (the Evaluation Date). Based upon the evaluation of our disclosure
controls and procedures as of the Evaluation Date, the Chief Executive Officer
and Chief Financial Officer concluded that our disclosure controls and
procedures were not effective because of the identification of  material
weaknesses in our internal control over financial reporting which are identified in
our Managements Report on Internal Control Over Financial Reporting included
with our Annual Report on Form 10-K for the fiscal year ended December 31, 2008,
which we view as an integral part of our disclosure controls and procedures.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial
reporting during the most recently completed quarter that have materially
affected, or are reasonably likely to materially affect, our internal control
over financial reporting.

Limitations on the Effectiveness of Controls

Our management, including our Chief Executive Officer and Chief
Financial Officer, does not expect that our Disclosure Controls and internal
controls will prevent all errors and all fraud. A 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 a 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 a 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 or board override of the
control.

The design of any system of controls also is based in part upon
certain assumptions about the likelihood of future events, and there can be no
assurance that any design will succeed in achieving its stated goals under all
potential future conditions; over time, controls may become inadequate because
of changes in conditions, or the degree of compliance with the policies or
procedures may deteriorate. Because of the inherent limitations in a
cost-effective control system, misstatements due to error or fraud may occur and
not be detected.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

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

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

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

No matter was submitted to a vote
of our shareholders, through the solicitation of proxies or otherwise, during
the quarter ended March 31, 2009.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

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

|3.1   | Articles of Incorporation (1)                                                                                                                        
|----- | -----------------------------------------------------------------------------------------------------------------------------------------------------
|      |                                                                                                                                                      
|3.2   | Bylaws (1)                                                                                                                                           
|      |                                                                                                                                                      
|10.1  | Technology License Agreement between Space Globe and the
      registrant dated July 5, 2001. (1)                                                    
|      |                                                                                                                                                      
|10.2  | Assignment Agreement between Space Globe and the
      registrant dated January 10, 2005. (2)                                                        
|      |                                                                                                                                                      
|10.3  | Consulting Agreement between Alvin Mirman and the
      registrant dated September 8, 2006. (5)                                                      
|      |                                                                                                                                                      
|10.4  | Assignment Agreement between Space Globe, John Salamon
      and the registrant dated June 29, 2007. (3)                                             
|      |                                                                                                                                                      
|10.5  | Debt Settlement Agreement between Space Globe and the
      registrant dated June 29, 2007. (3)                                                      
|      |                                                                                                                                                      
|10.6  | Amendment dated September 30, 2007 to Assignment
      Agreement dated January 10, 2005 among Space Globe, John Salamon and the
      registrant. (4)
|      |                                                                                                                                                      
|10.7  | Debt Settlement Agreement between Space Globe and the
      registrant dated November 6, 2007. (5)                                                   
|      |                                                                                                                                                      
|10.8  | Debt Settlement Agreement between Space Globe and the
      registrant dated April 15, 2008. (6)                                                     
|      |                                                                                                                                                      
|10.9  | License Agreement between 482229 B.C. Ltd. and the
      registrant dated June 20, 2008. (6)                                                         
|      |                                                                                                                                                      
|10.10 | Consulting Agreement between Harold Schneider and the
      registrant dated September 1, 2008                                                       

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|31.1 | Certification
        of Chief Executive Officer and Chief Financial Officer pursuant to Section
        302 of the Sarbanes-Oxley Act of 2002. (6)                                                       
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                           
|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. (6)

|(1) | Incorporated by reference to the exhibits of the
      Registration Statement on Form 10-SB filed with the Securities and
      Exchange Commission on December 12, 2003.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Incorporated by reference to the exhibits of the
      Quarterly Report on Form 10-QSB filed with the Securities and Exchange
      Commission on January 15, 2005.      
|(3) | Incorporated by reference to the exhibits of the
      Quarterly Report on Form 10-QSB filed with the Securities and Exchange
      Commission on August 20, 2007.       
|(4) | Incorporated by reference to the exhibits of the
      Quarterly Report on Form 10-QSB filed with the Securities and Exchange
      Commission on November 6, 2007.      
|(5) | Incorporated by reference to the exhibits of the Annual
      Report on Form 10-KSB filed with the Securities and Exchange Commission on
      April 14, 2008.           
|(6) | Filed herewith.                                                                                                                                                          

SIGNATURES

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

Date: May 19, 2009

SALAMON GROUP, INC.

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

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