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**UNITED STATESSECURITIES AND EXCHANGE COMMISSION** Washington, D.C. 20549

FORM 10-QSB

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

For the quarterly period ended **March 31, 2004**

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

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

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

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

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

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

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

Check whether the issuer (1) filed all reports required to
  be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months
  (or for such shorter period that the registrant was required to file such reports),
  and (2) has been subject to such filing requirements for the past 90 days.
  Yes ** ̈**No **x**

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

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

---

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

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

State the number of shares outstanding of each of the issuer's
  classes of common equity, as of the latest practicable date. 8,962,820 as of
  March 31, 2004.

---

Copies of Communications Sent to:

William H. Caffee 
  White & Lee LLP 
  805 SW Broadway, Suite 2440 
  Portland, Oregon 97205 
  Tel: (503) 419-3002 - Fax: (503) 419-3001

2

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TABLE OF CONTENTS

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

3

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PART I FINANCIAL INFORMATION

Item 1. Financial Statements.

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

4

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|Salamon Group, Inc.                                   |      
|----------------------------------------------------- | -----
|(A Development Stage Company)                         |      
|Financial Statements                                  |      
|March 31, 2004                                        |      
|(U.S. Dollars)                                        |      
|(Unaudited)                                           |      
|                                                      |      
|                                                      | Index
|                                                      |      
|Balance Sheets                                        | F1  
|                                                      |      
|Statements of Operations and Comprehensive
      Loss | F2  
|                                                      |      
|Statements of Cash Flows                              | F3  
|                                                      |      
|Notes to the Financial Statements                     | F4  

F-i

---

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



|                                                  | March 31,   |   | December 31, |  
|------------------------------------------------- | ----------- | - | ------------ | -
|                                                  | 2004        |   | 2003         |  
|                                                  | $           |   | $            |  
|                                                  | (unaudited) |   | (audited)    |  
|ASSETS                                            |             |   |              |  
|                                                  |             |   |              |  
|Current                                           |             |   |              |  
|                                                  |             |   |              |  
|Cash                                              | 2           |   | 2            |  
|Due
      from related parties                    |            |   | 887          |  
|                                                  |             |   |              |  
|Total Current Assets                              | 2           |   | 889          |  
|                                                  |             |   |              |  
|Property and equipment (Note 3)                   | 1,802       |   | 1,926        |  
|                                                  |             |   |              |  
|Intangible asset (Note 4)                         |            |   |             |  
|                                                  |             |   |              |  
|Total Assets                                      | 1,804       |   | 2,815        |  
|                                                  |             |   |              |  
|LIABILITIES AND STOCKHOLDERS' DEFICIT             |             |   |              |  
|                                                  |             |   |              |  
|Current                                           |             |   |              |  
|Accounts payable                                  | 7,336       |   | 10,213       |  
|Due
      to related party (Note 6)               | 5,446       |   |             |  
|                                                  |             |   |              |  
|Total Current Liabilities                         | 12,782      |   | 10,213       |  
|                                                  |             |   |              |  
|Contingencies and Commitments (Notes 1 and 4)     |             |   |              |  
|Subsequent Events (Note 7)                        |             |   |              |  
|                                                  |             |   |              |  
|Stockholders' Deficit                             |             |   |              |  
|                                                  |             |   |              |  
|Capital stock (Note 5)                            |             |   |              |  
|                                                  |             |   |              |  
|Authorized                                        |             |   |              |  
|                                                  |             |   |              |  
|10,000,000 of preferred shares                    |             |   |              |  
|40,000,000 of voting common shares                |             |   |              |  
|                                                  |             |   |              |  
|Issued and outstanding                            |             |   |              |  
|                                                  |             |   |              |  
|8,962,820 common shares                           | 8,963       |   | 8,963        |  
|                                                  |             |   |              |  
|Additional paid-in capital                        | 120,816     |   | 120,816      |  
|                                                  |             |   |              |  
|Deficit, accumulated during the development stage | (140,757    | ) | (137,177     | )
|                                                  |             |   |              |  
|Total Stockholders' Equity (Deficit)              | (10,978     | ) | (7,398       | )
|                                                  |             |   |              |  
|Total Liabilities and Stockholders'
      Deficit | 1,804       |   | 2,815        |  

On behalf of the Board:

|/s/
      John Salamon | Director
|---------------------- | --------



The accompanying notes are an integral part of these financial
  statements 
  F1

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

|                                             |                    |   |                |   | Accumulated from |  
|-------------------------------------------- | ------------------ | - | -------------- | - | ---------------- | -
|                                             |                    |   |                |   | April 27, 2001   |  
|                                             | Three Months Ended |   | (Inception) to |  
|                                             | March 31,          |   | March 31,      |  
|                                             | 2004               |   | 2003           |   | 2004             |  
|                                             | $                  |   | $              |   | $                |  
|GENERAL AND ADMINISTRATIVE                   |                    |   |                |   |                  |  
|Amortization of intangible
      asset       |                   |   | 4,583          |   | 55,000           |  
|Amortization
      of property and equipment | 124                |   | 332            |   | 2,713            |  
|Consulting and technical
      services      |                   |   | 134            |   | 11,109           |  
|Foreign exchange                             | 399                |   | 157            |   | 1,028            |  
|Interest and bank
      charges              | 34                 |   | 23             |   | 329              |  
|Office and miscellaneous                     | 303                |   | 1,465          |   | 7,463            |  
|Professional fees                            | 1,435              |   | 1,697          |   | 35,687           |  
|Telephone                                    | 941                |   | 861            |   | 7,503            |  
|Transfer agent and
      filing fees         | 344                |   | 354            |   | 1,761            |  
|Travel
      and entertainment               |                   |   | 2,363          |   | 18,164           |  
|                                             |                    |   |                |   |                  |  
|Net Loss for the Period                      | (3,580             | ) | (11,969        | ) | (140,757         | )
|                                             |                    |   |                |   |                  |  
|Loss per share  Basic                       | (0.00              | ) | (0.00          | ) |                  |  
|                                             |                    |   |                |   |                  |  
|Weighted Average Shares Outstanding          | 8,962,820          |   | 8,641,070      |   |                  |  

(Diluted loss per share has not been presented as the result is anti-dilutive)

The accompanying notes are an integral part of these financial
  statements 
  F2

---

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

|                                                                              | Three Months Ended |  
|----------------------------------------------------------------------------- | ------------------ | -
|                                                                              | March 31,          |  
|                                                                              | 2004               |  
|                                                                              | $                  |  
|Cash flows from operating activities                                          |                    |  
|Net loss for the period                                                       | (3,580             | )
|Adjustments
      to reconcile loss to net cash used by operating activities: |                    |  
|Amortization of intangible asset                                              |                   |  
|Amortization of property and equipment                                        | 124                |  
|Consulting and technical services                                             |                   |  
|Other expenses                                                                |                   |  
|                                                                              | (3,456             | )
|Changes in operating assets and liabilities:                                  |                    |  
|Increase
      (decrease) in accounts payable                                 | (2,877             | )
|                                                                              | (6,333             | )
|Cash flows from investing activities                                          |                   |  
|Cash flows from financing activities                                          |                    |  
|Advances from (to)
      related parties                                      | 6,333              |  
|Issue
      of share capital for cash                                         |                   |  
|                                                                              | 6,333              |  
|Increase (decrease) in cash and cash equivalents                              |                   |  
|Cash, beginning of period                                                     | 2                  |  
|Cash, end of period                                                           | 2                  |  
|                                                                              |                    |  
|Non-cash Financing Activity                                                   |                    |  
|Shares issued for services and other expenses                                 |                   |  
|                                                                              |                    |  
|Supplemental Disclosures                                                      |                    |  
|Interest paid                                                                 |                   |  
|Income tax paid                                                               |                   |  

The accompanying notes are an integral part of these financial
  statements 
  F3

---

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

|1. | Nature of Operations and Continuance of
        Business                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | Salamon Group, Inc. (the "Company") was
        incorporated in the State of Nevada, USA, on April 27, 2001. The Company
        is a development stage company whose principal business plan is to seek
        earnings by exploiting technology held under a license agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|  
|   | In a development stage company, management
        devotes most of its activities in investigating business opportunities
        and further advancing its technologies. The ability of the Company to
        emerge from the development stage with respect to any planned principal
        business activity is dependent upon its successful efforts to raise additional
        equity financing and/or attain profitable operations. There is no guarantee
        that the Company will be able to complete any of the above objectives.
        At December 31, 2003, the Company had a working capital deficit of $9,324
        and an accumulated deficit of $137,177. These factors raise substantial
        doubt regarding the Company's ability to continue as a going concern.
|  
|   | On July 5, 2001, the Company entered into
        a licensing agreement with Space Globe Technologies Ltd. ("Space Globe"),
        a Canadian corporation. The agreement allows the Company to use certain
        technology with respect to a power cell technology used for internal and
        external electrical applications.                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|  
|2. | Summary of Significant Accounting Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|  
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

|Computer equipment | 3 years straight-line
|------------------ | ---------------------
|Office equipment   | 5 years straight-line

| | (c) | Intangible asset                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |     | The cost to acquire a license was capitalized. The costs will be amortized
      on a straight-line basis over three years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| |     | The carrying value of the license is evaluated in each reporting period
      to determine if there were events or circumstances, which would indicate
      a possible inability to recover the carrying amount. Such evaluation is
      based on various analysis including assessing the Company's ability to bring
      the commercial applications to market, related profitability projections
      and undiscounted cash flows related to each application, which necessarily
      involved significant management judgement. Where an impairment loss has
      been determined, the carrying amount is written-down to fair market value.
      Fair market value is determined as the amount at which the license could
      be sold in a current transaction between willing parties. Management of
      the Company periodically evaluates the recoverability of intangible assets
      and takes into account events or circumstances that warrant revised estimates
      of useful lives or that indicate that an impairment exists.

F4

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

|2. | Summary of Significant Accounting Policies
        (continued)
|-- | --------------------------------------------------------------
|  
|   | (d)                                                           
|  
|   |                                                               
|  
|   | (e)                                                           
|  
|   |                                                               
|  
|   | (f)                                                           
|  
|   |                                                               

|Year of |  | Amount  |  | Year of   
|------- |  | ------- |  | ----------
|Loss    |  | $       |  | Expiration
|        |  |         |  |           
|2001    |  | 27,366  |  | 2016      
|2002    |  | 54,086  |  | 2017      
|2003    |  | 39,968  |  | 2018      
|        |  | 121,420 |  |           

| |  | Pursuant to SFAS 109 the Company is required to compute
        tax asset benefits for net operating losses carried forward. Potential
        benefit of net operating losses have not been recognized in these financial
        statements because the Company cannot be assured it is more likely than
        not it will utilize the net operating losses carried forward in future
        years.
      The components of the net deferred tax asset at December
        31, 2003 (the end of it last fiscal year), and the statutory tax rate,
        the effective tax rate and the elected amount of the valuation allowance
        are scheduled below:
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                       | 2003    |  
|---------------------- | ------- | -
|                       | $       |  
|Net Operating Loss     | 39,968  |  
|Statutory Tax Rate     | 34%     |  
|Effective Tax Rate     |        |  
|Deferred Tax Asset     | 13,589  |  
|Valuation Allowance    | (13,589 | )
|Net Deferred Tax Asset |        |  

F5

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

|2. | Summary of Significant Accounting Policies (continued)
|-- | ------------------------------------------------------
|  
|   | (g)                                                   
|  
|   |                                                       
|  
|   | (h)                                                   
|  
|   |                                                       
|  
|   | (i)                                                   
|  
|   |                                                       
|  
|   | (j)                                                   
|  
|   |                                                       
|  
|   | (k)                                                   
|  
|   |                                                       
|  
|3. | Property and Equipment                                

| |                    |       |              | Net book value
| | ------------------ | ----- | ------------ | --------------
| |                    |       | Accumulated  | March 31,     
| |                    | Cost  | Depreciation | 2004          
| |                    | $     | $            | $             
| |                    |       |              | (unaudited)   
| | Computer equipment | 3,161 | 2,139        | 1,022         
| | Office equipment   | 1,354 | 574          | 780           
| |                    | 4,515 | 2,713        | 1,802         

F6

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

|4. | Intangible Asset
|-- | ----------------

| |         |        |              | Net book value
| | ------- | ------ | ------------ | --------------
| |         |        | Accumulated  | March 31,     
| |         | Cost   | Depreciation | 2004          
| |         | $      | $            | $             
| |         |        |              | (unaudited)   
| | License | 55,000 | 55,000       |              

|   | The Company acquired the worldwide exclusive
        right to use, incorporate and market certain proprietary technology related
        to power cells (the "License") from Space Globe Technologies Ltd. ("Space
        Globe"), a related party (Note 6). The License was purchased on July 5,
        2001 for $50,000 and five million common shares of the Company. These
        shares have been issued and had a par value of $0.00 1 per share for a
        total of $5,000. Under the terms of the License, the Company must pay
        a royalty of 3% of all gross sales to Space Globe. The License term is
        for five years and can be terminated by either party with 90 days written
        notice.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|5. | Capital Stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|  
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|  
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|  
|   | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|  
|   | (e)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|  
|6. | Related Party Transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|  
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

F7

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PART I

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

Plan of Operations


Since its inception, the Company has conducted no business
  operations except for organizational and capital raising activities. For the
  period from inception (April 27, 2001) through March 31, 2004, the Company had
  no revenue from operations and accumulated operating expenses amounted to $140,757.
  The Company proposes to compete in the alternative energy source technology
  market.

If the Company is unable to generate sufficient revenue from
  operations to implement its plans, management intends to explore all available
  alternatives for debt and/or equity financing, including but not limited to
  private and public securities offerings. Depending upon the amount of revenue,
  if any, generated by the Company, management anticipates that it will be able
  to satisfy its cash requirements for the next approximately nine (9) to twelve
  (12) months without raising funds via debt and/or equity financing or from third
  party funding sources. Accordingly, management expects that it will be necessary
  for Salamon Group to raise additional funds in the event that the Company is
  unable to generate any revenue from operations and if only a minimal level of
  revenue is generated in accordance with management's expectations.

Mr. Salamon, at least initially, will be solely responsible
  for developing Salamon Group's business. However, at such time, if ever, as
  sufficient operating capital becomes available, he expects to employ additional
  staffing. If financing is available, of which there can be no assurance, the
  Company expects to engage in market research in order to monitor new market
  trends and other critical information deemed relevant to Salamon Group's business.

Financial Condition, Capital Resources and Liquidity

At March 31, 2004, the Company had assets totaling $1,804
  and current liabilities of $12,782 attributable to unpaid Space Globe Technologies
  license fees, accrued legal expenses, and organization expenses. Since the Company's
  inception, it has received $129,779 in cash and services contributed as consideration
  for the issuance of shares of Common Stock.

Salamon Group's working capital is presently minimal and there
  can be no assurance that the Company's financial condition will improve. The
  Company is expected to continue to have minimal working capital or a working
  capital deficit as a result of current liabilities. The Company, at inception,
  issued 1,500,000 shares of the Company's Common Stock to Mr. Salamon, the sole
  executive officer and director of Salamon Group, and 500,000 shares of the Company's
  Common Stock to White & Lee Investments, LP, an investment vehicle controlled
  by White & Lee LLP, legal counsel to the Company, as founder shares. From
  April 2001 through March 31, 2004, Salamon Group received gross proceeds of
  $124,279 (including $102,500 in cash and services valued at $21,779) from the
  sale of a total of 1,962,820 shares of Common Stock, $0.001 par value per share,
  in an offering conducted pursuant to Section 4(2) of the Act and Rules 504 and
  901 (See Part II, Item 4. "Recent Sales of Unregistered Securities). These offerings
  were made in the Provinces of British Columbia and Alberta, Canada. Even though
  management believes, without assurance, that it will obtain sufficient capital
  with which to implement its business plan on a limited scale, the Company is
  not expected to continue in operation without an infusion of capital. In order
  to obtain additional equity financing, management may be required to dilute
  the interest of existing shareholders or forego a substantial interest of its
  revenues, if any. (See Part I, Item 1. "Description of Business"; See Part I,
  Item 4. "Security Ownership of Certain Beneficial Owners and Management" and
  Part I, Item 7. "Certain Relationships and Related Transactions.")

The Company has no potential capital resources from any outside
  sources at the current time. In its initial phase, the Company will operate
  out of the facility provided by Mr. Salamon. The Company believes that it will
  require two (2) to three (3) months in order to determine the market demand
  potential.

5

---

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

To implement such plan, also during this initial phase, the
  Company intends to initiate a self-directed private placement under Rule 506
  in order to raise an additional $200,000. In the event such placement is successful,
  the Company believes that it will have sufficient operating capital to meet
  the initial expansion goals and operating costs for a period of one (1) year.
  In the event the Company is not successful in raising such funds, the Company
  believes that it will not be able to continue operations past a period of nine
  (9) to twelve (12) months.

Net Operating Losses

As of March 31, 2004, the Company has a net operating loss
  carry forward of approximately $125,000, which is the basis of a deferred tax
  asset of $42,500. The tax asset is fully reserved by a valuation allowance of
  $42,500 recorded in the period ended March 31, 2004. Until the Company's current
  operations begin to produce earnings, it is unclear as to the ability of the
  Company to utilize such carry-forwards.

Forward-Looking Statements


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

Description of Business. (a) Business Development.


Salamon Group, Inc. (hereinafter referred to as the "Company"
  or "Salamon Group") was organized under the laws of the State of Nevada on April
  27, 2001. The Company is a developmental stage company organized by John E.
  Salamon, the President and Director and sole executive of the Company. The Company's
  aim is to develop and license certain electrical generator technology which
  the Company believes to be proprietary. The Company's offices are presently
  located at 302-1028 Alberni Street, Vancouver, B.C., Canada, V6E 1A3 and its
  telephone number is (604) 408-3861. The Company's Nevada registered agent is
  National Registered Agents, Inc. of NV, 1100 East William Street, Suite 207,
  Carson City, NV 89701.

The Company has conducted no business operations since its
  inception except organizational and fund raising activities and the licensing
  of certain electrical generator technology from Space Globe Technologies Ltd.,
  a British Columbia, Canada corporation ("Space Globe Technologies"). The Company

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

On July 5, 2001, the Company entered into a Technology License
  Agreement with Space Globe Technologies whereby the Company agreed to pay $50,000
  to Space Globe Technologies and issued 5,000,000 shares of Common Stock to Space
  Globe Technologies as license fees. The 5,000,000 shares issued in connection
  with such Technology License Agreement were issued pursuant to Section 4(2)
  of the Act. In addition to the foregoing issuances, from April 2001 through
  March 31, 2004, Salamon Group received gross proceeds of $124,279 (including
  $102,500 in cash and services valued at $21,779) from the sale of a total of
  1,962,820 shares of Common Stock in an offering conducted pursuant to Section
  4(2) of the Act and Rules 504 and 901 of Regulation D promulgated thereunder
  ("Rule 504 and Rule 901"). (See Part II, Item 4. "Recent Sales of Unregistered
  Securities). These offerings were made in the Provinces of British Columbia
  and Alberta, Canada.

(b) Business of Registrant. General


Salamon Group, Inc. was organized under the laws of the State
  of Nevada on April 27, 2001. The Company is a developmental stage company organized
  by John E. Salamon, the President and Director and sole executive of the Company.
  At present, the Company's offices are presently located at 302-1028 Alberni
  Street, Vancouver, B.C., Canada, V6E 1A3 and its telephone number is (604) 408-3861.
  The Company's Nevada registered agent is National Registered Agents, Inc. of
  NV, 1100 East William Street, Suite 207, Carson City, NV 89701.

Business Objective


The Company's business strategy is to develop and sell products
  based on electrical generator technology, including such technology licensed
  from Space Globe Technologies Ltd., and to license such technology to others.
  Once the Company commences to actively pursue business operations its revenues
  will remain dependent upon sales and licensing revenues and the ability of the
  Company to attract new customers and licensees.

The Company's primary direct costs will be (i) expenses related
  to the development of the electrical generator technology, (ii) marketing and
  sales expenses related to the licensing of the electrical generator technology,
  (iii) salaries to Mr. Salamon, engineers and sales personnel (payroll cost),
  (iv) employee costs (i.e. payroll taxes) and associated employee benefits.

The Company's gross profit margin will be determined in part
  by its ability to minimize and control operating costs, and specifically labor
  costs and to maintain a firm control on marketing, sales and advertising costs.
  The Company will also attempt to maximize market penetration of its products
  in order to capture a stream of revenue.

Sales and Marketing

The Company plans to market its products primarily by means
  of direct sales. The Company believes that this approach will allow the Company
  to best identify and attract lucrative customers and licensees. The Company
  anticipates that its initial sales and marketing efforts will be focused on
  direct sales and advertising.

Patents and Technologies


On July 5, 2001, the Company entered into a Technology License
  Agreement with Space Globe Technologies whereby the Company agreed to pay $50,000
  to Space Globe Technologies and issued

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5,000,000 shares of Common Stock to Space Globe Technologies
  as license fees. This patent is a part of the integrated technology that the
  company plans to utilize in the development of new electrical generator technology.

Competition


The markets in which the Company is engaged are subject to
  vigorous competition. Energy generation is a constantly evolving industry and
  is dominated by and impacted by large multi-national oil companies. The Company
  currently sees its fiercest competition coming from manufacturers of portable
  gasoline powered generators, including such major market participants as American
  Honda Motor Co., Inc., Coleman Powermate, Inc. and Generac Power Systems, Inc.

Facilities

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

Development Stage Company


Salamon Group was organized on April 27, 2001, and accordingly,
  is in the early form of its development stage and must be considered promotional.
  Management's efforts, since inception, have been allocated primarily to organizational
  and fund raising activities and the ability of the Company to establish itself
  as a going concern is dependent upon the receipt of additional funds from operations
  or other sources to continue those activities. The Company's success depends
  to a large extent on Mr. Salamon's abilities and effectiveness in successfully
  building a large and profitable licensee base.

Current Employees


John E. Salamon is the Company's sole officer and director.
  Within the scope of oilfield engineering, Mr. Salamon participated in many courses
  of study allowing him to experiment with the leading edge technologies and their
  implementation. Mr. Salamon has over 5 years of experience in the development
  and management of oilfield operations in Europe and Asia.

During 1997, Mr. Salamon performed promotional services for
  Globus Cellular in Kelowna, British Columbia, Canada. The work was performed
  on an independent contractor basis through a company wholly owned by Mr. Salamon,
  "J. Salamon and Associates". In late 1997 and 1998, Mr. Salamon performed promotional
  and product marketing services on an independent contractor basis for Beitler
  Consulting, a U.S. based import-export company. Mr. Salamon provided an avenue
  for Beitler Consulting to begin marketing product lines into the Canadian marketplace.
  In February 1998, Mr. Salamon formed Space Globe Technologies Ltd., a Kelowna
  based corporation, for the purpose of researching and developing energy generation
  technologies. During 1999, John performed promotional consulting work with an
  Edmonton based public corporation, Sustainable Developments Inc.

In February 2000, Mr. Salamon moved his operations to 302-1028
  Alberni Street, Vancouver, Canada, V6E 1A3. From that location, Mr. Salamon
  continued his work on Space Globe Technologies Ltd. and has been involved in
  several small consulting contracts relating to fundraising for business and
  entertainment projects. In April 2001, Mr. Salamon formed Salamon Group Inc.
  for the purpose of developing and marketing products based on the Space Globe
  Technologies Ltd. research. To date, Mr. Salamon's efforts have been primarily
  focused on raising investment capital to fund Salamon Group Inc.'s product development
  and working capital needs and developing strategic business relationships. The
  Company believes that such experience coupled with Mr. Salamon's extensive network
  of business contacts in the energy and alternative energy industries will help
  the Company open new markets for alternative energy source products.

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The Company has no other employees. Mr. Salamon is currently
  responsible for all of the Company's business activities.

Government Regulation

As an employer the Company is subject to all federal, state
  and local statutes and regulations governing its relationship with its employees
  and affecting businesses generally.

Description of Property


The Company's executive offices are located at 302-1028 Alberni
  Street, Vancouver, B.C., Canada, V6E 1A3. Its telephone number is (604) 408-3861.
  The Company pays no rent for this space. The Company owns no real or personal
  property. The Company does not currently intend to engage in investment activities,
  including investments in real estate or securities other than transactions necessary
  for cash management activities in the ordinary course of the Company's business.

Results of operations


The Company reported total expenses for the first quarter
  ended March 31, 2004 of $3,580 as compared to $11,969 for the first quarter
  ended March 31, 2003. The decrease in expenses resulted largely from the reduction
  in amortization and travel and entertainment from $7,278 in the first quarter
  ending March 31, 2003 to $124 in the first quarter ending March 31, 2004.

Liquidity and capital resources

For the three months ended March 31, 2004, cash used by operating
  activities was $6,333, compared to cash provided by operating activities $149
  for the three months ended March 31, 2003. The difference was primarily associated
  with settlement of accounts payable paid in the first quarter ended March 31,
  2004.

Cash provided by financing activities was $6,333 for the three
  months ended March 31, 2004, compared to cash used by financing activities of
  $5,611 for the three months ended March 31, 2003.

Cash used for investing activities was nil for the three months
  ended March 31, 2004 and for the three months ended March 31, 2003.

The Company has $2 cash in its bank account as at March 31,
  2004.

Item 3. Controls and procedures


Management, including the Principal Executive Officer and
  Principal Financial Officer, have conducted an evaluation of the effectiveness
  of disclosure controls and procedures pursuant to Exchange Act Rule 13a-14(c)
  and 15d-14(c). This evaluation was conducted within 90 days prior to the filing
  of this report. Based on that evaluation, the Principal Executive Officer and
  Principal Financial Officer concluded that the disclosure controls and procedures
  are effective in ensuring that all material information required to be filed
  in this annual report has been made known to them in a timely fashion. There
  have been no significant changes in internal controls or in other factors that
  could significantly affect internal controls subsequent to the date the Principal
  Executive Officer an Principal Financial Officer completed their evaluation.

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PART II OTHER INFORMATION

Item 1. Legal Proceedings

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

Item 2. Changes in Securities

None

Item 3. Defaults Upon Senior Securities

None

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

No matter was submitted to a vote of the Company's shareholders,
  through the solicitation of proxies or otherwise during the quarterly period
  ended March 31, 2004.

Item 5. Other Information


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

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

(a) Market Information.

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

(b) Holders.

As of March 31, 2004, the Company had 41 shareholders of record
  of its 8,962,820 outstanding shares of Common Stock.

(c) Dividends.

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

Item 6. Exhibits and Reports on Form 8-K

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

|31.1 | Certification of Chief Executive Officer and Chief Financial Officer pursuant
        to Section 302 of the Sarbanes-Oxley Act of 2002                                                       
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                              
|32.1 | Certification of Chief Executive Officer and Chief Financial Officer pursuant
        to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
        Act of 2002

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SIGNATURES

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

|                         | SALAMON GROUP, INC.
|------------------------ | -------------------
|                         |                    
|Date: September 24, 2004 | By:                
|                         |                    
|                         |                    

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