---

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
20549

FORM 10-QSBQUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934

For the quarterly period ended September 30,
2005

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

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

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

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

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

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

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

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

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

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

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

---

State the 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
September 30, 2005.

---

Copies of Communications Sent to:

Claudia LosieBoughton Law Corporation 595 Burrard
Street, Suite 1000 Vancouver, BC, Canada, V7X 1S8

Tel: (604) 687-6789 Fax: (604) 683-5317

---

TABLE OF CONTENTS

|PART I.  | FINANCIAL INFORMATION |                                                                
|-------- | --------------------- | ---------------------------------------------------------------
|         |                       |                                                                
|         | ITEM 1.               | FINANCIAL STATEMENTS                                           
|         |                       |                                                                
|         | ITEM 2.               | MANAGEMENTS DISCUSSION
      AND ANALYSIS OR PLAN OF OPERATION
|         |                       |                                                                
|         | 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                                                     

---

PART I        FINANCIAL
  INFORMATION

Item 1.         Financial
  Statements.

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

---

Salamon Group, Inc.(A Development Stage Company)
Financial Statements September 30, 2005 (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  

---

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

|                                                    |  | September 30, |   |  | December 31, |  
|--------------------------------------------------- |  | ------------- | - |  | ------------ | -
|                                                    |  | 2005          |   |  | 2004         |  
|                                                    |  | $             |   |  | $            |  
|                                                    |  | (unaudited)   |   |  | (audited)    |  
|                                                    |  |               |   |  |              |  
|ASSETS                                              |  |               |   |  |              |  
|                                                    |  |               |   |  |              |  
|Current                                             |  |               |   |  |              |  
|                                                    |  |               |   |  |              |  
|Cash                                                |  | 43            |   |  | 5            |  
|                                                    |  |               |   |  |              |  
|Total Current Assets                                |  | 43            |   |  | 5            |  
|                                                    |  |               |   |  |              |  
|Property and equipment (Note 3)                     |  | 604           |   |  | 1,678        |  
|                                                    |  |               |   |  |              |  
|Total Assets                                        |  | 647           |   |  | 1,683        |  
|                                                    |  |               |   |  |              |  
|LIABILITIES AND STOCKHOLDERS' DEFICIT               |  |               |   |  |              |  
|                                                    |  |               |   |  |              |  
|Current                                             |  |               |   |  |              |  
|Accounts payable                                    |  | 20,849        |   |  | 4,458        |  
|Due to related party (Note 6)                       |  | 42,421        |   |  | 12,258       |  
|                                                    |  |               |   |  |              |  
|Total Current Liabilities                           |  | 63,270        |   |  | 16,716       |  
|                                                    |  |               |   |  |              |  
|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   |  | (192,402      | ) |  | (144,812     | )
|                                                    |  |               |   |  |              |  
|Total Stockholders' Equity (Deficit)                |  | (62,623       | ) |  | (15,033      | )
|                                                    |  |               |   |  |              |  
|Total Liabilities and Stockholders' Deficit         |  | 647           |   |  | 1,683        |  

|On behalf of the Board: |         
|----------------------- | --------
|                        |         
|                        | Director

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

---

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

|                                             |  |                   |   |  |                |   |  | Accumulated from |  
|-------------------------------------------- |  | ----------------- | - |  | -------------- | - |  | ---------------- | -
|                                             |  |                   |   |  |                |   |  | April 27, 2001   |  
|                                             |  | Nine Months Ended |   |  | (Inception) to |  
|                                             |  | September 30,     |   |  | September 30,  |  
|                                             |  | 2005              |   |  | 2004           |   |  | 2005             |  
|                                             |  | $                 |   |  | $              |   |  | $                |  
|GENERAL AND ADMINISTRATIVE                   |  |                   |   |  |                |   |  |                  |  
|                                             |  |                   |   |  |                |   |  |                  |  
|Amortization of intangible asset             |  |                  |   |  |               |   |  | 55,000           |  
|Amortization of property
      and equipment |  | -                 |   |  | 372            |   |  | 3,911            |  
|Consulting and technical services            |  |                  |   |  |               |   |  | 12,064           |  
|Foreign exchange                             |  | 310               |   |  | 1,283          |   |  | 2,841            |  
|Interest
      and bank charges              |  | 60                |   |  | 63             |   |  | 432              |  
|Office and miscellaneous                     |  | 1,235             |   |  | 1,293          |   |  | 8,800            |  
|Professional fees                            |  | 12,153            |   |  | 4,735          |   |  | 63,056           |  
|Telephone                                    |  | 2,251             |   |  | 3,085          |   |  | 11,967           |  
|Transfer
      agent and filing fees         |  | 5,050             |   |  | 694            |   |  | 8,344            |  
|Travel and entertainment                     |  | 1,230             |   |  | 6,818          |   |  | 25,987           |  
|                                             |  |                   |   |  |                |   |  |                  |  
|Net
      Loss for the Period                |  | (22,259           | ) |  | (18,343        | ) |  | (192,402         | )
|                                             |  |                   |   |  |                |   |  |                  |  
|                                             |  |                   |   |  |                |   |  |                  |  
|Loss per share  Basic                       |  | (0.00             | ) |  | (0.00          | ) |  |                  |  
|                                             |  |                   |   |  |                |   |  |                  |  
|Weighted Average Shares Outstanding          |  | 8,962,820         |   |  | 8,,962,820     |   |  |                  |  

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)

|                                                                              |  | Nine Months Ended |  
|----------------------------------------------------------------------------- |  | ----------------- | -
|                                                                              |  | September 30,     |  
|                                                                              |  | 2005              |  
|                                                                              |  | $                 |  
|                                                                              |  |                   |  
|Cash flows from operating activities                                          |  |                   |  
|                                                                              |  |                   |  
|Net loss for the period                                                       |  | (22,259           | )
|                                                                              |  |                   |  
|Adjustments to
      reconcile loss to net cash used by operating activities: |  |                   |  
|                                                                              |  |                   |  
|Amortization of property and equipment                                        |  | -                 |  
|                                                                              |  |                   |  
|                                                                              |  | (22,259           | )
|Changes in operating assets and liabilities:                                  |  |                   |  
|                                                                              |  |                   |  
|Increase (decrease) in accounts payable                                       |  | 653               |  
|                                                                              |  |                   |  
|                                                                              |  | (12,242           | )
|                                                                              |  |                   |  
|Cash flows from
      investing activities                                    |  |                  |  
|                                                                              |  |                   |  
|Cash flows from financing activities                                          |  |                   |  
|                                                                              |  |                   |  
|Advances from (to) related parties                                            |  | 12,231            |  
|Issue of share capital for cash                                               |  |                  |  
|                                                                              |  | 12,231            |  
|                                                                              |  |                   |  
|Increase (decrease) in cash and cash equivalents                              |  | (11               | )
|                                                                              |  |                   |  
|Cash, beginning of
      period                                               |  | 28                |  
|                                                                              |  |                   |  
|Cash, end of
      period                                                     |  | 19                |  
|                                                                              |  |                   |  
|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 September 30, 2005, the Company had a working capital deficit of $53,240
        and an accumulated deficit of $192,402. These factors raise substantial
        doubt regarding the Companys ability to continue as a going concern.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   | On July 5, 2001, the Company entered into
        a licensing agreement with Space Globe Technologies Ltd. ("Space Globe"),
        a Canadian corporation. The agreement allows the Company to use certain
        technology with respect to a power cell technology used for internal and
        external electrical applications.                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   | In January, 2005, Space Globe Technologies
        and Salamon Group in mutual agreement replaced the license agreement with
        an Agreement which transferred 100% ownership of and rights to the Technology
        to Salamon Group for no additional compensation. John Salamon also assigned
        all rights to the patent pending to Salamon Group.                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|2. | Summary of Significant Accounting Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

F4

---

|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)                                                           
|   |                                                               
|   |                                                               
|   |                                                               
|   | (g)                                                           
|   |                                                               
|   |                                                               
|   |                                                               
|   | (h)                                                           
|   |                                                               
|   |                                                               
|   |                                                               
|   | (i)                                                           
|   |                                                               
|   |                                                               
|   |                                                               
|   | (j)                                                           
|   |                                                               
|   |                                                               

F5

---

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

|3. | Property and Equipment
|-- | ----------------------

Net book valueAccumulated
    
    
    September 30,
    
    
    December 31,Cost
    
    
    Depreciation
    
    
    2005
    
    
    2004$
    
    
    $
    
    
    $
    
    
    $(unaudited)
    
    
    (audited)Computer equipment
    
    3,161
    
    
    3,107
    
    
    54
    
    
    54Office equipment
    
    1,354
    
    
    804
    
    
    550
    
    
    5504,515
    
    
    3,911
    
    
    604
    
    
    604


|4. | Capital Stock             
|-- | --------------------------
|   |                           
|   | (a)                       
|   |                           
|   | (b)                       
|   |                           
|   | (c)                       
|   |                           
|   | (d)                       
|   |                           
|   | (e)                       
|   |                           
|5. | Related Party Transactions
|   |                           
|   | (a)                       
|   |                           
|   | (b)                       

F6

---

PART I

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

Plan of Operations

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, license and/or acquire certain electrical generator
technologies which the Company believes to be proprietary. The Company's offices
are presently located at 302-1028 Alberni Street, Vancouver, B.C., Canada, V6E
1A3 and its telephone number is (604) 408-3861. The Companys Nevada registered
agent is National Registered Agents, Inc. of NV, 1100 East William Street, Suite
207, Carson City, NV 89701.

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

For the period from inception (April 27, 2001) through
September 30, 2005, the Company had no revenue from operations and accumulated
operating expenses amounted to $192,402.

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 September 30, 2005, the Company had assets totaling $614 and
current liabilities of $48,950 attributable to unpaid Space Globe Technologies
license fees, audit fees and general operating expenses. Since the Company's
inception, it has received $129,779 in cash and services contributed as
consideration for the issuance of shares of Common Stock.

8

---

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, 2005, 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.

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 September 30, 2005, the Company has a net operating loss
carry forward of approximately $183,038.

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

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have the expected consequence to or effects on the Company or
its business or operations. The Company assumes no obligations to update any
such forward-looking statements.

Business Development.

On July 5, 2001, the Company entered into a Technology License
Agreement with Space Globe Technologies whereby the Company licensed from Space
Globe Technologies certain electrical generator technology which the
Company believes to be proprietary (the Technology). A patent application for
the Technology has been filed with the Canadian Intellectual Property Office
(Application Number 2,357,766). The Company received a nonexclusive,
nontransferable, worldwide license to manufacture, use and sell the Technology
as incorporated into the Companys products, as well as the right to appoint
distributors to distribute the Technology, as incorporated into the Companys
products.

In January, 2005, Space Globe Technologies and Salamon Group in
mutual agreement replaced the license agreement with an Agreement which
transferred 100% ownership of and rights to the Technology to Salamon Group.
John Salamon also assigned all rights to the patent pending to Salamon Group.

The Company has completed development of the Technology and
products containing the Technology, and is seeking licensees to manufacture and
market the finished product.

Technology/Product

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

As the voltage level is depleted in the primary battery, a
control system, powered by the secondary 12V battery, starts the motor which in
turn drives a alternator/generator. The alternator/generator produces AC voltage
which is converted to DC voltage and regulated through a regulator system. The
regulator system includes an isolator which directs the power from the regulator
system into the primary and secondary batteries. The control system monitors the
primary battery voltage. When the primary battery voltage drops below a setpoint
voltage, the motor engages, starting the recharging process. Thus the EPG is a
self-replenishing power unit. A connection to an external power supply is
provided so that the secondary battery can be recharged if for some reason, such
as long dormant storage periods, both batteries become completely depleted. The
performance of the EPG is relative to the size of the inverter and the number of
batteries. For example, a 300 watt inverter can be used to power a TV, laptop
computer or a lamp. Among other things. The model EPG is 115 VAC and 300 watts
with a 12 VDC outlet. The charging cycle is relative to the load on the
inverter. The greater the load, the faster the main battery depletes.The typical
midsize EPG requires no venting as it uses sealed batteries and creates a
negligible amount of heat. When charging, it produces a noise level similar to
that of a turntable style microwave. Because there are no emissions of any sort,
the EPG can be used indoors as opposed to fuel powered generators which can only
be used outdoors. All components of the EPG are CSA approved in Canada. All
licensees will be in compliance with Canadian standards and will be required to
comply with standards of the USA and other countries prior to distributing the
EPG in those countries.

The Company intends to engage an independent consulting
engineer to perform an evaluation of the Generator and provide a written report
as soon as the necessary capital is available. However to date there have been
no third-party evaluations done.

Competitive Products

There are many similar products on the market, including
gasoline and diesel powered generators, but few that are self-replenishing and
that can be used indoors. The main advantages of the EPG are that it is
self-replenishing and that unlike fuel-powered generators, the EPG can be used
indoors because of its size, negligible noise level and does not emit any
exhaust.

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Patent Pending:

A Patent application (2,357,766) was filed in Canada by John
Salamon on September 4, 2001. The key element of the Patent application includes
the unique assembly of the component parts which provides for self-recharging of
the device. The application is pending and will be examined when formally
requested by Salamon Group. It is anticipated that such request will be made
within the next 12 months. The Company intends to apply for Patents in the US
and other countries as soon as financially possible at a cost of approximately
$20,000. The Company feels it is necessary to file a Patent application in the
United States as this will be one of its largest markets.

Prototype and Working Model

A prototype was built by Space Globe in 2002 and was provided
to Salamon Group for further development. In 2004, Salamon Group completed
construction of a working model which is now available for demonstration to
potential licensees. The encasement of the model measures 18L x 11W x 10.5H
and weighs approximately 60 pounds with all the components in it. The primary
battery is a sealed deep cycle battery rated at 33AH with output voltage of 12V
DC and weighs 25 pounds. The secondary battery is also a sealed deep cycle unit
with output voltage of 12V DC and weighs 9 pounds. The recharging voltage for
both batteries is in the 14.4V to 14.6V range. The charge level is determined by
the non-charging/non-discharging voltage of the battery with 12.80V being a full
charge, 12.30V a half charge and 11.80V being fully discharged.

Manufacturing

At this time, the Company does not intend to manufacture the
device but is attempting to secure licensees to commercially produce and market
the product worldwide. The Company will provide the technological design to the
Licensee(s) for their use in producing the product.

Sales and Marketing-Licensee Sales

The Company working to identify and engage a local marketing
company to secure licensees to manufacture and market the product worldwide. The
amount of the license fees have not yet been establishes and will be subject to
negotiation. The Company plans to produce a CD and video for product
demonstration purposes. Management and consultants will be manually testing the
generator and compiling the necessary data to include in a brochure and other
literature.

Management

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

Consultants and Technicians

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

Facilities

The Company is operating 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.

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Item 3.         Controls
  and procedures

Management, including our Chief Executive Officer has
established and is currently maintaining disclosure controls and procedures and
internal control over financial reporting for our Company. Our Chief Executive
Officer has evaluated the effectiveness of our disclosure controls and
procedures as required by Exchange Act Rule 13a-15(b) as of the end of the
fiscal year ended December 31, 2003. Based on that evaluation, the Chief
Executive Officer has concluded that these disclosure controls and procedures
are effective for gathering, communicating to management, analyzing, and
disclosing the information we are required to disclose in our reports filed
under the Securities Exchange Act of 1934. There were no changes in our internal
control over financial reporting during the year ended December 31, 2003 that
have materially affected, or are reasonably likely to materially affect, our
internal control over financial reporting.

PART II      OTHER INFORMATION

Item 1.         Legal
  Proceedings

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

Item 2.         Changes
  in Securities

None

Item 3.         Defaults
  Upon Senior Securities

None

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 September 30, 2005.

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 September 30, 2005, the Company had 41 shareholders of
record of its 8,962,820 outstanding shares of Common Stock.

(c) Dividends.

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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 pursuant to 18 U.S.C. Section
      1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
      for CEO.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                           
|32.1 | Certification pursuant to 18 U.S.C. Section
      1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
      for CFO.





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SIGNATURES

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

Date: November 1, 2005

Salamon Group, Inc.

By: /s/ JohnE.
Salamon      John E. Salamon,
President

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