---

UNITED STATESSECURITIES AND EXCHANGE
COMMISSIONWashington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended March 31, 2011

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

|Nevada                          | 93-1324674                     
|------------------------------- | -------------------------------
|(State or other jurisdiction of | (I.R.S. Employer Identification
|incorporation or organization)  | no.)                           

|1401 F Street B200                       | 95354     
|---------------------------------------- | ----------
|Modesto, California                      | (Zip Code)
|(Address of principal executive offices) |           

(209)-576-0140(Registrant's telephone
number, including area code)

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

Title of each classNone

Name of each exchange on which registeredNone

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

Yes [X] No [  ]

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

(Check one):

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


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 issuers revenues for its most recent fiscal year.

$0

As of May 2, 2011, the aggregate market value of the
Registrants voting stock held by non-affiliates was approximately $1,312,000

Number of shares of the issuers common stock, $0.001 par
value, outstanding as of May 2, 2011: 26,960,728 shares

F-1

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TABLE OF CONTENTS

|PART I.  | FINANCIAL
      INFORMATION | 3                                                                
|-------- | --------------------------- | -----------------------------------------------------------------
|         | ITEM 1.                     | FINANCIAL STATEMENTS                                             
|         | ITEM 2.                     | MANAGEMENTS DISCUSSION AND
      ANALYSIS OR PLAN OF OPERATION  
|         | ITEM 4T.                    | CONTROLS AND PROCEDURES                                          
|PART II. | OTHER
      INFORMATION     | 15                                                               
|         | ITEM 1.                     | LEGAL PROCEEDINGS                                                
|         | ITEM 2.                     | UNREGISTERED SALES OF EQUITY
      SECURITIES AND USE OF PROCEEDS
|         | ITEM 3.                     | DEFAULTS UPON SENIOR SECURITIES                                  
|         | ITEM 4.                     | SUBMISSIONS OF MATTERS TO A
      VOTE OF SECURITY HOLDERS       
|         | ITEM 5.                     | OTHER INFORMATION                                                
|         | ITEM 6.                     | EXHIBITS                                                         
|         |                             | SIGNATURES                                                       

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PART I  FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

|                                                                                                                                                    |  |             |   |  |              |  
|--------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------- | - |  | ------------ | -
|Salamon Group Inc.                                                                                                                                  |  |             |   |  |              |  
|(A Development Stage Company)                                                                                                                       |  |             |   |  |              |  
|Balance Sheets                                                                                                                                      |  |             |   |  |              |  
|(Expressed in US dollars)                                                                                                                           |  |             |   |  |              |  
|                                                                                                                                                    |  | (unaudited) |   |  |              |  
|                                                                                                                                                    |  | March 31,   |   |  | December 31, |  
|                                                                                                                                                    |  | 2011        |   |  | 2010         |  
|                                                                                                                                                    |  | $           |   |  | $            |  
|ASSETS                                                                                                                                              |  |             |   |  |              |  
|Current assets:                                                                                                                                     |  |             |   |  |              |  
|Cash                                                                                                                                                |  | -           |   |  | -            |  
|Total assets                                                                                                                                        |  | -           |   |  | -            |  
|                                                                                                                                                    |  |             |   |  |              |  
|LIABILITIES AND STOCKHOLDERS DEFICIT                                                                                                               |  |             |   |  |              |  
|Current liabilities:                                                                                                                                |  |             |   |  |              |  
|Bank overdraft                                                                                                                                      |  | -           |   |  | 4            |  
|Accounts payable                                                                                                                                    |  | 143,827     |   |  | 134,423      |  
|Accrued liabilities                                                                                                                                 |  | 5,000       |   |  | -            |  
|Advances from directors (Note 3)                                                                                                                    |  | 52,472      |   |  | 2,233        |  
|Total liabilities                                                                                                                                   |  | 201,299     |   |  | 136,660      |  
|                                                                                                                                                    |  |             |   |  |              |  
|Contingencies and Commitments (Notes 1 and 5)                                                                                                       |  |             |   |  |              |  
|                                                                                                                                                    |  |             |   |  |              |  
|Stockholders deficit:                                                                                                                              |  |             |   |  |              |  
|Preferred stock, no par
      value; 10,000,000 shares authorized, no shares issued and outstanding                                                 |  | -           |   |  | -            |  
|Common stock, $0.001 par value;
      50,000,000 shares authorized, 26,960,728 shares issued and outstanding
      (December 31, 2010  25,460,728) |  | 26,961      |   |  | 25,461       |  
|Common stock to be issued                                                                                                                           |  | -           |   |  | 15,000       |  
|Additional paid-in capital                                                                                                                          |  | 1,006,000   |   |  | 992,500      |  
|Donated capital (Note 3)                                                                                                                            |  | 1,333       |   |  | -            |  
|Accumulated deficit                                                                                                                                 |  | (1,235,593  | ) |  | (1,169,621   | )
|Total stockholders deficit                                                                                                                         |  | (201,299    | ) |  | (136,660     | )
|Total liabilities
      and stockholders deficit                                                                                                   |  | -           |   |  | -            |  

See accompanying notes to the financial statements

F-3

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Salamon Group Inc. (A Development Stage Company)
Statements of Operations (Expressed in US dollars) (Unaudited)

|                                          |  |               |   |  |               |   |  | For the Period |  
|----------------------------------------- |  | ------------- | - |  | ------------- | - |  | -------------- | -
|                                          |  |               |   |  |               |   |  | from April 27, |  
|                                          |  | For the Three |   |  | For the Three |   |  | 2001           |  
|                                          |  | Months Ended  |   |  | Months Ended  |   |  | (Inception) to |  
|                                          |  | March 31,     |   |  | March 31,     |   |  | March 31,      |  
|                                          |  | 2011          |   |  | 2010          |   |  | 2011           |  
|                                          |  | $             |   |  | $             |   |  | $              |  
|                                          |  |               |   |  |               |   |  |                |  
|Expenses                                  |  |               |   |  |               |   |  |                |  
|Donated rent (Note 3)                     |  | 1,333         |   |  | -             |   |  | 1,333          |  
|General and
      administrative (Note 3) |  | 64,639        |   |  | 4,792         |   |  | 883,427        |  
|Interest expense                          |  | -             |   |  | -             |   |  | 35,833         |  
|Research and development                  |  | -             |   |  | -             |   |  | 315,000        |  
|                                          |  |               |   |  |               |   |  |                |  
|Total expenses                            |  | 65,972        |   |  | 4,792         |   |  | 1,235,593      |  
|                                          |  |               |   |  |               |   |  |                |  
|Net loss                                  |  | (65,972       | ) |  | (4,792        | ) |  | (1,235,593     | )
|                                          |  |               |   |  |               |   |  |                |  
|Loss per share  basic and diluted        |  | (0.00         | ) |  | (0.00         | ) |  |                |  
|                                          |  |               |   |  |               |   |  |                |  
|Weighted average shares outstanding       |  | 26,710,728    |   |  | 21,923,794    |   |  |                |  

See accompanying notes to the financial statements

F-4

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Salamon Group Inc. (A Development Stage Company)
Statements of Cash Flows (Expressed in US dollars) (Unaudited)

|                                                                                  |  |               |   |  |                    |   |  | For the Period |  
|--------------------------------------------------------------------------------- |  | ------------- | - |  | ------------------ | - |  | -------------- | -
|                                                                                  |  |               |   |  |                    |   |  | from April 27, |  
|                                                                                  |  | For the Three |   |  | For the Three      |   |  | 2001           |  
|                                                                                  |  | Months Ended  |   |  | Months
      Ended |   |  | (Inception) to |  
|                                                                                  |  | March 31,     |   |  | March 31,          |   |  | March 31,      |  
|                                                                                  |  | 2011          |   |  | 2010               |   |  | 2011           |  
|                                                                                  |  | $             |   |  | $                  |   |  | $              |  
|                                                                                  |  |               |   |  |                    |   |  |                |  
|Cash flow from operating
      activities:                                        |  |               |   |  |                    |   |  |                |  
|                                                                                  |  |               |   |  |                    |   |  |                |  
|Net loss                                                                          |  | (65,972       | ) |  | (4,792             | ) |  | (1,235,593     | )
|                                                                                  |  |               |   |  |                    |   |  |                |  
|Adjustments
      to reconcile net loss to net cash used in operating activities: |  |               |   |  |                    |   |  |                |  
|Amortization of intangible asset                                                  |  | -             |   |  | -                  |   |  | 55,000         |  
|Estimated fair value of common stock issued for patents                           |  | -             |   |  | -                  |   |  | 315,000        |  
|Beneficial
      conversion of amounts due to related party                       |  | -             |   |  | -                  |   |  | 35,833         |  
|Depreciation of property and equipment                                            |  | -             |   |  | -                  |   |  | 4,515          |  
|Estimated
      fair value of common stock issued for services                    |  | -             |   |  | -                  |   |  | 145,791        |  
|Donated rent                                                                      |  | 1,333         |   |  | -                  |   |  | 1,333          |  
|                                                                                  |  |               |   |  |                    |   |  |                |  
|Changes in
      operating assets and liabilities:                                |  |               |   |  |                    |   |  |                |  
|Accounts
      payable                                                            |  | 9,404         |   |  | (7,198             | ) |  | 210,641        |  
|Accrued liabilities                                                               |  | 5,000         |   |  | -                  |   |  | 5,000          |  
|                                                                                  |  |               |   |  |                    |   |  |                |  
|Net cash
      provided by (used in) operating activities                         |  | (50,235       | ) |  | (11,990            | ) |  | (462,480       | )
|                                                                                  |  |               |   |  |                    |   |  |                |  
|Cash flows from investing
      activities:                                       |  |               |   |  |                    |   |  |                |  
|Purchase of property and
      equipment                                          |  | -             |   |  | -                  |   |  | (4,515         | )
|Purchase of license                                                               |  | -             |   |  | -                  |   |  | (50,000        | )
|                                                                                  |  |               |   |  |                    |   |  |                |  
|Net cash used in investing activities                                             |  | -             |   |  | -                  |   |  | (54,515        | )
|                                                                                  |  |               |   |  |                    |   |  |                |  
|Cash flows from financing
      activities:                                       |  |               |   |  |                    |   |  |                |  
|Bank overdraft                                                                    |  | (4            | ) |  | -                  |   |  | -              |  
|Advances
      from directors                                                     |  | 50,239        |   |  | 11,972             |   |  | 390,295        |  
|Proceeds from related party
      note payable                                    |  | -             |   |  | -                  |   |  | 23,700         |  
|Issuance of common stock for cash                                                 |  | -             |   |  | -                  |   |  | 103,000        |  
|                                                                                  |  |               |   |  |                    |   |  |                |  
|Net cash provided by (used in) financing
      activities                         |  | 50,235        |   |  | 11,972             |   |  | 516,995        |  
|                                                                                  |  |               |   |  |                    |   |  |                |  
|Net change in cash                                                                |  | -             |   |  | (18                | ) |  | -              |  
|                                                                                  |  |               |   |  |                    |   |  |                |  
|Cash, beginning of period                                                         |  | -             |   |  | 43                 |   |  | -              |  
|                                                                                  |  |               |   |  |                    |   |  |                |  
|Cash, end of period                                                               |  | -             |   |  | 25                 |   |  | -              |  
|                                                                                  |  |               |   |  |                    |   |  |                |  
|Non-cash Financing
      Activities:                                              |  |               |   |  |                    |   |  |                |  
|Common stock issued upon
      conversion of amounts due to related parties       |  | -             |   |  | 18,811             |   |  | 376,388        |  
|Common
      stock to be issued or to be issued to settle accounts payable        |  | -             |   |  | -                  |   |  | 18,000         |  
|Common stock issued upon
      conversion of related party note payable           |  | -             |   |  | -                  |   |  | 23,700         |  
|Common stock
      issued for license                                             |  | -             |   |  | -                  |   |  | 5,000          |  
|Common stock issued in conversion of accounts
      payable                       |  | -             |   |  | -                  |   |  | 10,059         |  

See accompanying notes to the financial statements

F-5

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Salamon Group Inc. (A Development Stage Company) Notes
to Financial Statements (Expressed in US dollars) (Unaudited)

|1. | Nature of Operations and Going Concern                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | Salamon Group, Inc. (the "Company") was incorporated in
      the state of Nevada on April 27, 2001 (Inception). The Company is a
      development stage company whose principal business plan is to seek
      earnings by acquiring revenue producing assets in the field of solar
      energy. The Company is a development stage company as defined by Financial
      Accounting Standards Board (FASB) Accounting Standards Codification
      (ASC) 915, Development Stage Entities.                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | These financial statements have been prepared in
      accordance with accounting principles generally accepted in the United
      States of America applicable to a going concern. At March 31, 2011, the
      Company has no revenues to date, has accumulated losses of $1,235,593
      since inception and a working capital deficit of $201,299 and expects to
      incur further losses in the development of its business, all of which cast
      substantial doubt about the Companys ability to continue as a going
      concern.                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | Management plans to continue to provide for the Company's
      capital needs during the year ending December 31, 2011 by issuing debt and
      equity securities and by the continued support of its related parties (see
      Note 3). The financial statements do not include any adjustments relating
      to the recoverability and classification of recorded asset amounts or
      amounts and classification of liabilities that might be necessary should
      the Company be unable to continue in existence. There is no assurance that
      funding will be available to continue the Companys business
      operations.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|2. | Summary of Significant Accounting
  Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

F-6

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Salamon Group Inc. (A Development Stage Company) Notes
to Financial Statements (Expressed in US dollars) (Unaudited)

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

F-7

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Salamon Group Inc. (A Development Stage Company) Notes
to Financial Statements (Expressed in US dollars) (Unaudited)

|2. | Summary of Significant Accounting Policies
      (continued)
|-- | ------------------------------------------------------------
|   |                                                             
|   | (g)                                                         
|   |                                                             
|   |                                                             
|   |                                                             
|   |                                                             
|   |                                                             
|   |                                                             
|   |                                                             
|   |                                                             
|   |                                                             
|   |                                                             
|   |                                                             
|   |                                                             
|   |                                                             
|   |                                                             
|   |                                                             
|   |                                                             
|   |                                                             
|   |                                                             
|   |                                                             
|   |                                                             

Fair Value Measurements UsingQuotedPrices inActive
    
    
    SignificantMarkets For
    
    
    Other
    
    
    Significant
    
    
    BalanceIdentical
    
    
    Observable
    
    
    Unobservable
    
    
    as ofInstruments
    
    
    Inputs
    
    
    Inputs
    
    
    December(Level 1)
    
    
    (Level 2)
    
    
    (Level 3)
    
    
    31, 2010$
    
    
    $
    
    
    $
    
    
    $Liabilities:Bank overdraft
    
    4
    
    
    
    
    
    
    
    
    4


F-8

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Salamon Group Inc. (A Development Stage Company) Notes
to Financial Statements (Expressed in US dollars) (Unaudited)

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

F-9

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Salamon Group Inc. (A Development Stage Company) Notes
to Financial Statements (Expressed in US dollars) (Unaudited)

|3. | Related Party Transactions and Balances                                                                                                                                                                                                                                                                          
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                  
|   | (a)                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                  
|   | (b)                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                  
|   | (c)                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                  
|   | (d)                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                  
|   | (d)                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                  
|4. | Common Stock                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                  
|   | On January 24, 2011, the Company, pursuant to an
      agreement dated November 15, 2010, issued 1,500,000 shares of its common
      stock to a third party to settle accounts payable related to services
      provided. The shares were recorded in common shares to be issued as at
      December 31, 2010.
|   |                                                                                                                                                                                                                                                                                                                  
|5. | Commitments and Contingencies                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                  
|   | (a)                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                  
|   | (b)                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                  

F-10

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

Since our inception, we have been involved in organizational
activities, have completed offerings of shares of common stock, have concluded
the licensing and subsequent acquisition of an EPG from Space Globe and have
completed a working model of the power generator. As of December 31, 2010, the
Company has terminated all activities relating to the EPG and power generator.

On December 30, 2010, we entered into a Stock Purchase
Agreement (SPA) with Sunlogics Power Fund. Sunlogics Power Fund is focused on
the acquisition of solar powered electricity generating facilities which have
long term power purchasing agreements in place with local power utilities and
commercial users. In the event that the Company completes its RTO with Sunlogics
Power Fund, it proposes to compete in the solar powered market moving forward.
All conditions in the SPA have been satisfied and the Closing of the transaction
will complete with the filing of an 8K with the SEC. For the period from
inception (April 27, 2001) through March 31, 2011, we had no revenue from
operations and our deficit accumulated has amounted to $1,235,593.

As reported in the Report of Independent Registered Public
Accounting Firm on our December 31, 2010 financial statements, we have suffered
recurring losses from operations, we have a working capital deficit and a
deficit accumulated during the development stage. These items raise substantial
doubt about our ability to continue as a going concern.

In the event that the Company completes the RTO, it plans to
generate revenues through: i) the sale of solar powered electricity to local
power utilities and end users through long term power purchase agreements; and
ii) by funding solar power generating plants which the Company is currently
identifying with potential customers in the United States and Canada. If the
Company is successful in acquiring revenue producing renewable energy projects,
we intend to finance our operations through a combination of debt and equity
financing.

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

Results of Operations

|Summary of Period End Results |   |                    |   |   |          |  
|----------------------------- | - | ------------------ | - | - | -------- | -
|                              |   | Three Months Ended |  
|                              |   | March 31,          |   |   | March    |  
|                              |   | 2011               |   |   | 31, 2010 |  
|Revenue                       | $ | -                  |   | $ | -        |  
|Expenses                      |   | (65,972            | ) |   | (4,792   | )
|Net Income (Loss)             | $ | (65,972            | ) | $ | (4,792   | )

Revenues

We did not earn any revenues during the three months ended
March 31, 2011.

F-11

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Expenses

The major components of our expenses for the year are outlined
in the table below:

|                           |   |                | 
|-------------------------- | - | -------------- | 
|                           |   | 3 Months Ended | 
|                           |   | March 31,      | 
|                           |   | 2011           | 
|General and Administrative | $ | 64,639         | 
|Donated Rent               |   | 1,333          | 
|                           |   |                | 
|Total Expenses             | $ | 65,972         | 

Liquidity and Capital Resources

Working Capital

|                    |   |          |   |   |             |  
|------------------- | - | -------- | - | - | ----------- | -
|                    |   | At March |   |   | At December |  
|                    |   | 31, 2011 |   |   | 31, 2010    |  
|Current Assets      | $ | 0        |   | $ | 0           |  
|Current Liabilities |   | (201,299 | ) |   | (136,660    | )
|Working Capital     | $ | (201,299 | ) | $ | (136,660    | )

Cash Flows

|                                                          |   |                |  
|--------------------------------------------------------- | - | -------------- | -
|                                                          |   | 3 Months Ended |  
|                                                          |   | March 31,      |  
|                                                          |   | 2011           |  
|Net Cash Provided By (Used
      In) Operating Activities | $ | (50,235        | )
|Net Cash from Investing Activities                        |   | -              |  
|Net Cash (Used In) Provided
      By Financing Activities |   | 50,235         |  
|Net Change in Cash During Period                          | $ | 0              |  

Financing Requirements

From inception to March 31, 2011, we have suffered cumulative
losses in the amount of $1,235,593. Since our inception, we have funded
operations through common stock issuances, related party loans, and the support
of creditors in order to meet our strategic objectives. Our management believes
that sufficient funding will be available to meet our business objectives,
including anticipated cash needs for working capital, and are currently
evaluating several financing options, including a public offering of securities.
However, there can be no assurance that we will be able to obtain sufficient
funds to continue our operations. As a result of the foregoing, our independent
auditors believe there exists substantial doubt about our ability to continue as
a going concern. There is no assurance that we will be able to obtain additional
financing if and when required. We anticipate that additional financing may come
in the form of sales of additional shares of our common stock which may result
in dilution to our current shareholders.

F-12

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Financial Condition, Capital Resources and Liquidity

As of March 31, 2011, we have a deficit accumulated during the
development stage of $1,235,593. At March 31, 2011, we had assets totalling $0
and current liabilities of $201,299 attributable to amounts due to related
parties and accounts payable.

We currently have a working capital deficit and there can be no
assurance that our financial condition will improve.

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

Our ability to continue as a going concern is dependent upon
our ability to complete the RTO with Sunlogics Power Fund Management Inc.

Net Operating Losses

As of March 31, 2011, we have accumulated a net loss of
$1,235,593. Research and Development Not Applicable.

Off-Balance Sheet Arrangements

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

Material Commitments for Capital Expenditures

We had no contingencies or long-term commitments at March 31,
2011.

Critical Accounting Policies

There were no changes to the critical accounting policies as
discussed in our 2010 Form 10-K.

Item 4(T).     Controls and
Procedures.

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are designed to ensure that
information required to be disclosed in the reports filed or submitted under the
Exchange Act is recorded, processed, summarized and reported, within the time
period specified in the Securities and Exchange Commissions rules and forms.
Disclosure controls and procedures include, without limitation, controls and
procedures designed to ensure that information required to be disclosed in the
reports filed under the Exchange Act is accumulated and communicated to
management, including the Chief Executive Officer covered by this report, we
carried out an evaluation, under the supervision and with the participation of
our management, including our Chief Executive Officer, of the effectiveness of
the design and operation of our disclosure controls and procedures as of March
31, 2011 (the Evaluation Date). Based upon the evaluation of our disclosure
controls and procedures as of the Evaluation Date, the Chief Executive Officer
concluded that our disclosure controls and procedures are ineffective.

Managements Report on Internal Control over Financial
Reporting

Our management is responsible for establishing and maintaining
adequate internal control over financial reporting, as such term is defined in
Exchange Rule 13a-15(f). Our internal control over financial reporting is a
process designed to provide reasonable assurance to our management and board of
directors regarding the reliability of financial reporting and the preparation of the
financial statements for external purposes in accordance with accounting
principles generally accepted in the United States of America.

F-13

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Our internal control over financial reporting includes those
policies and procedures that (i) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the transactions and
dispositions of our assets; (ii) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial statements in
accordance with accounting principles generally accepted in the United States of
America, and our receipts and expenditures of are being made only in accordance
with authorizations of our management and directors; and (iii) provide
reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of our assets that could have a material effect
on the financial statements.

Because of its inherent limitations, internal controls over
financial reporting may not prevent or detect misstatements. All internal
control systems, no matter how well designed, have inherent limitations,
including the possibility of human error and the circumvention of overriding
controls. Accordingly, even effective internal control over financial reporting
can provide only reasonable assurance with respect to financial statement
preparation. Also, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become inadequate because of
changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.

Our management assessed the effectiveness of our internal
control over financial reporting as of December 31, 2010. In making this
assessment, it used the criteria set forth by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO) in Internal Control-Integrated
Framework. Based on its evaluation, our management concluded that there are
material weaknesses in our internal control over financial reporting and
Management has concluded that the Companys internal controls over financial
reporting are ineffective as of March 31, 2011. A material weakness is a
deficiency, or a combination of control deficiencies, in internal control over
financial reporting such that there is a reasonable possibility that a material
misstatement of our annual or interim financial statements will not be prevented
or detected on a timely basis.

The material weakness relates to the lack of segregation of
duties in financial reporting, as our financial reporting and all accounting
functions are performed by an external consultant with no oversight by a
professional with accounting expertise. Our Chief Executive Officer does not
possess accounting expertise and we do not have a separately designated audit
committee. These weaknesses are due to our lack of excess working capital to
hire additional staff. To remedy these material weaknesses, we intend to engage
another qualified accountant to assist with financial reporting as soon as our
finances will allow.

This annual report does not include an attestation report of
our registered public accounting firm regarding internal control over financial
reporting. Managements report was not subject to attestation by our registered
public accounting firm pursuant to temporary rules of the Securities and
Exchange Commission that permit us to provide only managements report in this
annual report.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial
reporting during the first quarter of our fiscal year ended December 31, 2011,
that have materially affected, or are reasonably likely to materially affect,
our internal control over financial reporting.

Limitations on the Effectiveness of Controls

Our management does not expect that our Disclosure Controls and
internal controls will prevent all errors and all fraud. A control system, no
matter how well conceived and operated, can provide only reasonable, not
absolute, assurance that the objectives of the control system are met. Further,
the design of a control system must reflect the fact that there are resource
constraints, and the benefits of controls must be considered relative to their
costs. Because of the inherent limitations in all control systems, no evaluation
of controls can provide absolute assurance that all control issues and instances
of fraud, if any, within the Company have been detected. These inherent
limitations include the realities that judgments in decision-making can be
faulty, and that breakdowns can occur because of a simple error or mistake.
Additionally, controls can be circumvented by the individual acts of some persons, by
collusion of two or more people, or by management or board override of the
control.

F-14

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

PART II - Other Information

Item 1.     Legal
Proceedings

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

Item 2.     Unregistered Sales
of Equity securities and Use of Proceeds

None

Item 3. Defaults Upon
Senior securities

None

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

None

Item 5. Other
Information

None

F-15

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Item 6.     Exhibits.

|Exhibit | Description                                                                                                                                                             |    
|------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---
|No.     |                                                                                                                                                                         |    
|2.1     | Articles of Incorporation                                                                                                                                               | (1)
|2.2     | Bylaws                                                                                                                                                                  | (1)
|2.3     | Initial List of Officers,
      Directors and Registered Agent                                                                                                          | (1)
|31.1    | Certification of Chief Executive Officer
      pursuant to Section 302(a) of the Sarbanes-Oxley Act                                                                     | (2)
|32.1    | Certification of Chief
      Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act                                                                        | (2)
|        |                                                                                                                                                                         |    
|(1)     | Incorporated by
      reference to the exhibits of the Registration Statement on Form 10-KSB
      filed with the Securities and Exchange Commission on August 6, 2004.
|(2)     | Filed herewith.                                                                                                                                                        

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.
|------------------- | -------------------
|                    |                    
|Dated: May 12, 2011 | By:                

F-16

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