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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 June 30, 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 July 31, 2011, the aggregate market value of the
Registrants voting stock held by non-affiliates was approximately $3,222,000

Number of shares of the issuers common stock, $0.001 par
value, outstanding as of July 31, 2011: 46,960,728 shares

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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            | 16                                                               

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PART I  FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

|                             
|-----------------------------
|Salamon Group Inc.           
|(A Development Stage Company)
|Consolidated Balance Sheets  
|(Expressed in US dollars)    

|                                                                                                                                                    |  | June 30,    |   |  | December 31, |  
|--------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------- | - |  | ------------ | -
|                                                                                                                                                    |  | 2011        |   |  | 2010         |  
|                                                                                                                                                    |  | (unaudited) |   |  |              |  
|                                                                                                                                                    |  | $           |   |  | $            |  
|ASSETS                                                                                                                                              |  |             |   |  |              |  
|Current assets:                                                                                                                                     |  |             |   |  |              |  
|Cash                                                                                                                                                |  | 1           |   |  | -            |  
|Property and Equipment (Note 3)                                                                                                                     |  | 124,354     |   |  | -            |  
|Total assets                                                                                                                                        |  | 124,355     |   |  | -            |  
|                                                                                                                                                    |  |             |   |  |              |  
|LIABILITIES AND STOCKHOLDERS
      DEFICIT                                                                                                         |  |             |   |  |              |  
|Current liabilities:                                                                                                                                |  |             |   |  |              |  
|Bank overdraft                                                                                                                                      |  | -           |   |  | 4            |  
|Accounts payable and accrued
      liabilities (Note 4)                                                                                             |  | 433,767     |   |  | 134,423      |  
|Advances from
      directors (Note 4)                                                                                                              |  | 109,184     |   |  | 2,233        |  
|Deferred Revenues                                                                                                                                   |  | 48,958      |   |  | -            |  
|Total liabilities                                                                                                                                   |  | 591,909     |   |  | 136,660      |  
|Contingencies and Commitments (Notes 1 and 7)                                                                                                       |  |             |   |  |              |  
|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, 46,960,728 shares issued
      and outstanding (December 31, 2010  25,460,728) |  | 46,961      |   |  | 25,461       |  
|Common stock to be issued                                                                                                                           |  | 43,290      |   |  | 15,000       |  
|Additional
      paid-in capital                                                                                                                    |  | 2,571,976   |   |  | 992,500      |  
|Donated capital (Note 4)                                                                                                                            |  | 2,666       |   |  | -            |  
|Accumulated deficit                                                                                                                                 |  | (3,132,447  | ) |  | (1,169,621   | )
|Total stockholders deficit                                                                                                                         |  | (467,554    | ) |  | (136,660     | )
|Total liabilities and stockholders deficit                                                                                                         |  | 124,355     |   |  | -            |  

See accompanying notes to the financial statements

3

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

For the PeriodFor the Three
    
    
    For the Three
    
    
    For the Six
    
    
    For the Six
    
    
    from April 27,Months Ended
    
    
    Months
      Ended
    
    
    Months
      Ended
    
    
    Months
      Ended
    
    
    2001June 30,
    
    
    June 30,
    
    
    June 30,
    
    
    June 30,
    
    
    (Inception) to2011
    
    
    2010
    
    
    2011
    
    
    2010
    
    
    June 30, 2011$
    
    
    $
    
    
    $
    
    
    $
    
    
    $Revenues
    
    1,042
    
    
    -
    
    
    1,042
    
    
    -
    
    
    1,042ExpensesGeneral and administrative (Note
      4)
    
    147,763
    
    
    34,189
    
    
    212,402
    
    
    39,341
    
    
    1,030,148Donated rent
      (Note 4)
    
    1,333
    
    
    -
    
    
    2,666
    
    
    -
    
    
    2,666Interest expense
    
    -
    
    
    -
    
    
    -
    
    
    -
    
    
    35,833Research and development
    
    -
    
    
    -
    
    
    -
    
    
    -
    
    
    315,000Total expenses
    
    149,096
    
    
    34,189
    
    
    215,068
    
    
    39,341
    
    
    1,384,689Loss Before Other Expenses
    
    (148,054
    )
    
    (34,189
    )
    
    (214,026
    )
    
    (39,341
    )
    
    (1,383,647
    )Other ExpensesImpairment of intangible asset (Note 8)
    
    (1,748,800
    )
    
    -
    
    
    (1,748,800
    )
    
    -
    
    
    (1,748,800
    )Net
      loss
    
    (1,896,854
    )
    
    (34,189
    )
    
    (1,962,826
    )
    
    (39,341
    )
    
    (3,132,447
    )Loss per share  basic and diluted
    
    (0.05
    )
    
    (0.00
    )
    
    (0.06
    )
    
    (0.00
    )Weighted average share outstanding
    
    37,730,000
    
    
    23,017,127
    
    
    32,176,000
    
    
    22,477,127


See accompanying notes to the consolidated financial statements

4

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

|                                                                                  |  | For the Six  |   |  | For the Six  |   |  | For the Period   |  
|--------------------------------------------------------------------------------- |  | ------------ | - |  | ------------ | - |  | ---------------- | -
|                                                                                  |  | Months Ended |   |  | Months Ended |   |  | from April 27,   |  
|                                                                                  |  | June 30,     |   |  | June 30,     |   |  | 2001(Inception)  |  
|                                                                                  |  | 2011         |   |  | 2010         |   |  | to June 30, 2011 |  
|                                                                                  |  | $            |   |  | $            |   |  | $                |  
|                                                                                  |  |              |   |  |              |   |  |                  |  
|Cash flow from operating
      activities:                                        |  |              |   |  |              |   |  |                  |  
|                                                                                  |  |              |   |  |              |   |  |                  |  
|Net loss                                                                          |  | (1,962,826   | ) |  | (39,341      | ) |  | (3,132,447       | )
|                                                                                  |  |              |   |  |              |   |  |                  |  
|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                                            |  | 2,646        |   |  | -            |   |  | 7,161            |  
|Estimated
      fair value of common stock issued for services                    |  | 43,290       |   |  | 2,850        |   |  | 189,081          |  
|Donated rent                                                                      |  | 2,666        |   |  | -            |   |  | 2,666            |  
|Impairment on write-down of intangible asset                                      |  | 1,748,800    |   |  | -            |   |  | 1,748,800        |  
|Changes in
      operating assets and liabilities:                                |  |              |   |  |              |   |  |                  |  
|Accounts
      payable                                                            |  | 9,519        |   |  | 15,034       |   |  | 210,756          |  
|Deferred revenues                                                                 |  | 48,958       |   |  | -            |   |  | 48,958           |  
|                                                                                  |  |              |   |  |              |   |  |                  |  
|Net cash provided by
      (used in) operating activities                         |  | (106,947     | ) |  | (21,457      | ) |  | (519,192         | )
|                                                                                  |  |              |   |  |              |   |  |                  |  
|Cash flows from investing
      activities:                                       |  |              |   |  |              |   |  |                  |  
|Cash received on acquisition of
      Sunlogics Power .                           |  | 1            |   |  | -            |   |  | 1                |  
|Purchase of property
      and equipment                                          |  | -            |   |  | -            |   |  | (4,515           | )
|Purchase of license                                                               |  | -            |   |  | -            |   |  | (50,000          | )
|                                                                                  |  |              |   |  |              |   |  |                  |  
|Net cash used in investing activities                                             |  | 1            |   |  | -            |   |  | (54,514          | )
|                                                                                  |  |              |   |  |              |   |  |                  |  
|Cash flows from financing activities:                                             |  |              |   |  |              |   |  |                  |  
|Bank overdraft                                                                    |  | (4           | ) |  | -            |   |  | -                |  
|Advances from directors                                                           |  | 106,951      |   |  | 21,521       |   |  | 447,007          |  
|Proceeds from related
      party note payable                                    |  | -            |   |  | -            |   |  | 23,700           |  
|Issuance of common stock for cash                                                 |  | -            |   |  | -            |   |  | 103,000          |  
|                                                                                  |  |              |   |  |              |   |  |                  |  
|Net cash provided by (used in) financing activities                               |  | 106,947      |   |  | 21,521       |   |  | 573,707          |  
|                                                                                  |  |              |   |  |              |   |  |                  |  
|Net increase in cash                                                              |  | 1            |   |  | 64           |   |  | 1                |  
|                                                                                  |  |              |   |  |              |   |  |                  |  
|Cash, beginning of period                                                         |  | 0            |   |  | 43           |   |  | -                |  
|                                                                                  |  |              |   |  |              |   |  |                  |  
|Cash, end of period                                                               |  | 1            |   |  | 107          |   |  | 1                |  
|                                                                                  |  |              |   |  |              |   |  |                  |  
|                                                                                  |  |              |   |  |              |   |  |                  |  
|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           |  
|Common stock and warrants issued for
      acquisition of Sunlogics Power         |  | 1,585,976    |   |  |              |   |  | 1,585,976        |  

See accompanying notes to the consolidated financial statements

5

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Salamon Group Inc. (A Development Stage Company) Notes
to the Consolidated 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 consolidated financial statements have been
      prepared in accordance with accounting principles generally accepted in
      the United States of America applicable to a going concern. At June 30,
      2011, the Company has accumulated losses of $3,132,447 since inception and
      a working capital deficit of $591,908 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
      operational 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 4). The consolidated 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)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

6

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

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

7

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

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

| |     | The Company recognizes revenue of sales of
      goods and services only when a firm sales agreement is in place, delivery
      has occurred or services have been rendered and collectability of the
      fixed or determinable sales price is reasonably assured.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | (l) | New accounting policies adopted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |     | In January 2010, the FASB issued Accounting
      Standards Update (ASU) No. 2010-06, Improving Disclosures about Fair Value
      Measurements, which amends the ASC Topic 820, Fair Value Measurements and
      Disclosures. ASU No. 2010-06 amends the ASC to require disclosure of
      transfers into and out of Level 1 and Level 2 fair value measurements, and
      also requires more detailed disclosure about the activity within Level 3
      fair value measurements. The new disclosures and clarifications of
      existing disclosures are effective for interim and annual reporting
      periods beginning after December 15, 2009, except for the disclosures
      concerning purchases, sales, issuances, and settlements in the roll
      forward of activity in Level 3 fair value measurements. Those disclosures
      are effective for fiscal years beginning after December 15, 2010, and for
      interim periods within those fiscal years. The adoption of this amendment
      did not have a material effect of the Companys financial statements.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | (m) | Recent accounting pronouncements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |     | The Company has implemented all new accounting
      pronouncements that are in effect and that may impact its financial
      statements and does not believe that there are any other new accounting
      pronouncements that have been issued that might have a material impact on
      its financial position or result of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

8

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

|3. | Property and Equipment                                                                                                                                                                                    
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                           
|   | During the six months ended June 30, 2011, the Company
      acquired a solar powered charging station (See Note 4f). Depreciation for
      the six months ended June 30, 2011 was $2,646 (2010 -
  $nil)

| |                                      |  |         |  |  |              |  |  | June 30,     |  |  | December 31, | 
| | ------------------------------------ |  | ------- |  |  | ------------ |  |  | ------------ |  |  | ------------ | 
| |                                      |  |         |  |  |              |  |  | 2011         |  |  | 2010         | 
| |                                      |  |         |  |  | Accumulated  |  |  | Net Carrying |  |  | Net Carrying | 
| |                                      |  | Cost    |  |  | Depreciation |  |  | Value        |  |  | Value        | 
| |                                      |  | $       |  |  | $            |  |  | $            |  |  | $            | 
| | Solar powered charging
      station |  | 127,000 |  |  | 2,646        |  |  | 124,354      |  |  | -            | 

|4. | Related Party Transactions and Balances                                                                                                                                                                                                                                                                          
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                  
|   | (a)                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                  
|   | (b)                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                  
|   | (c)                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                  
|   | (d)                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                  
|   | (e)                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                  
|   | (f)                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                  
|5. | 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.
|   |                                                                                                                                                                                                                                                                                                                  
|   | On May 12, 2011, the Company issued 20,000,000 shares of
      its common stock to an officer and director of the Company in a share
      exchange for 100% of the issued and outstanding shares of Sunlogics Power
      Fund Management Inc. (See Note 8)                                                     
|   |                                                                                                                                                                                                                                                                                                                  
|6. | Share Purchase Warrants                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                  
|   | On May 12, 2011, the Company granted 20,000,000 share
      purchase warrants (Note 8). The share purchase warrants shall be
      exercisable at a price of $0.001 per share and expire on May 12, 2016. As
      at June 30, 2011, the share purchase warrants have not been
  issued.                         

9

---

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

|7. | Commitments and Contingencies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
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|8. | Acquisition of Sunlogics Power                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   | On May 12, 2011, the Company entered into a stock
      purchase agreement with Sunlogics Power to acquire all of the issued and
      outstanding shares of Sunlogics Power in exchange for 20,000,000 shares of
      the Companys common stock and 20,000,000 stock purchase warrants. The
      warrants shall be exercisable at a price of $0.001 per share and expiring
      May 12, 2016. The acquisition of Sunlogics Power has been accounted for as
      an asset acquisition. The operations of Sunlogics have been included in
      these consolidated financial statements from the date of
    acquisition.

The following is a summary of the
purchase price allocation at the date of acquisition based upon the estimated
fair value of the assets acquired and liabilities assumed:

| | Consideration Given:                                                   |   |           |  
| | ---------------------------------------------------------------------- | - | --------- | -
| | 20,000,000 common shares purchase warrants.
      and 20,000,000 share | $ | 1,596,728 |  
| |                                                                        |   |           |  
| | Net assets acquired at fair value                                      |   |           |  
| | Cash                                                                   | $ | 1         |  
| | Intangible assets                                                      |   | 1,754,227 |  
| | Accounts payable                                                       |   | (157,500  | )
| | Net assets at fair value                                               |   | 1,596,728 |  

Subsequent to recording the
asset acquisition, the intangible asset pertaining to the first right of refusal
to acquire solar assets from Sunlogics Inc. was written down to $0, its
estimated fair value.

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

On May 12, 2011, we completed the acquisition of Sunlogics
Power Fund Management Inc. 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.

For the period from inception (April 27, 2001) through June 30,
2011, our deficit accumulated has amounted to $3,132,447.

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.

The Company 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 acquiring solar power generating
plants which the Company is currently identifying with potential sellers 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/or 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

|                               |   | Six Months Ended |  
|------------------------------ | - | ---------------- | -
|                               |   | June 30,         |  
|                               |   | 2011             |  
|Revenue                        | $ | 1,042            |  
|Expenses                       |   | (215,068         | )
|Impairment of intangible asset |   | (1,748,800       | )
|Net Income (Loss)              | $ | (1,962,826       | )

Revenues

During the six months ended June 30, 2011, the Company earned
$1,042 in revenues for usage of the Companys solar powered charging station.

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Expenses

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

|                           |   | 6 Months Ended | 
|-------------------------- | - | -------------- | 
|                           |   | June 30,       | 
|                           |   | 2011           | 
|General and Administrative | $ | 212,402        | 
|Donated Rent               |   | 2,666          | 
|                           |   |                | 
|Total Expenses             | $ | 215,068        | 

Liquidity and Capital Resources

Working Capital

|                    |   | At June  |   |   | At
      December |  
|------------------- | - | -------- | - | - | ----------------- | -
|                    |   | 30, 2011 |   |   | 31, 2010          |  
|Current Assets      | $ | 1        |   | $ | 0                 |  
|Current Liabilities |   | (591,909 | ) |   | (136,660          | )
|Working Capital     | $ | (591,908 | ) | $ | (136,660          | )

Cash Flows

|                                                          |   | 6 Months Ended |  
|--------------------------------------------------------- | - | -------------- | -
|                                                          |   | June 30,       |  
|                                                          |   | 2011           |  
|Net Cash Provided By (Used In) Operating
      Activities | $ | (101,947       | )
|Net Cash from Investing Activities                        |   | 1              |  
|Net Cash (Used In) Provided By Financing
      Activities |   | 101,947        |  
|Net Change in Cash During Period                          | $ | 1              |  

Financing Requirements

From inception to June 30, 2011, we have suffered cumulative
losses in the amount of $3,132,447. 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.

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Financial Condition, Capital Resources and Liquidity

As of June 30, 2011, we have a deficit accumulated during the
development stage of $3,132,447. At June 30, 2011, we had assets totalling $1
and current liabilities of $591,909 attributable to amounts due to related
parties, accounts payable and deferred revenue.

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 acquire revenue producing assets. Net Operating Losses As of June
30, 2011, we have accumulated a net loss of $3,132,477.

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 June 30,
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 June
30, 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.

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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 June 30, 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 second 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.

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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

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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: August 22 , 2011 | By: /s/ Michael Matvieshen | 

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