UNITED
STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 For the quarterly
period ended June 30, 2009 [   ]
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 For the transition
period from __________ to __________ Commission File
Number: 000-50530 SALAMON GROUP, INC. (Exact name of registrant as specified
in its charter)  Nevada
93-1324674(State or other
jurisdiction of incorporation or organization)
(I.R.S. Employer
Identification no.)4080
Paradise Road #15-901, Las Vegas, Nevada, USA
89169(Address of
principal executive offices)
(Zip
Code) (702)
241-0145(Registrant's telephone number, including area code) (Former name,
former address and former fiscal year, if changed since last report) Indicate by check
mark whether the registrant (1) filed all reports required to be filed by
Section 13 or 15(d) of theSecurities Exchange Act of 1934 during the past 12
months (or for such shorter period that the registrant wasrequired to file
such reports), and (2) has been subject to such filing requirements for the past
90 days.Yes [X] No [   ] Indicate by check
mark whether the registrant is a large accelerated filer, an accelerated filer,
a non-accelerated filer, or a smaller reporting company.  See the
definitions of large accelerated filer, accelerated filer and smaller
reporting company in Rule 12b-2 of the Exchange Act. Larger accelerated filer [  
]
Accelerated
filer                 
[   ]Non-accelerated
filer    [   ] (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] Indicate the number
of shares outstanding of each of the issuers classes of common stock, as of the
latest practicable date.  As of August 11, 2009, the Issuer had
19,702,630 shares of common stock outstanding with a par value per share of
$0.001.    TABLE OF CONTENTS  PART I.
FINANCIAL INFORMATION
3ITEM 1.  FINANCIAL
STATEMENTS
3ITEM 2.  MANAGEMENTS DISCUSSION
AND ANALYSIS OR PLAN OF OPERATION
11ITEM 4T.  CONTROLS AND
PROCEDURES
15PART II.
OTHER INFORMATION
15ITEM 1.  LEGAL
PROCEEDINGS
15ITEM 2.  UNREGISTERED SALES OF EQUITY
SECURITIES AND USE OF PROCEEDS
15ITEM 3.  DEFAULTS UPON SENIOR
SECURITIES
15ITEM 4.  SUBMISSIONS OF MATTERS
TO A VOTE OF SECURITY HOLDERS
15ITEM 5.  OTHER
INFORMATION
15ITEM 6.
 EXHIBITS
16SIGNATURES
17    SALAMON GROUP, INC. (A Development Stage Company) BALANCE SHEETS  June 30,2009


December(unaudited)


31, 2008ASSETSCurrent assets:Cash
$
79

$
2Prepaid expense

688


688Total
assets
$
767

$
690LIABILITIES AND STOCKHOLDERS DEFICITCurrent liabilities:Accounts
payable
$
49,465

$
50,538Due to related
parties

27,694


6,427Related party
note payable

23,700


-Total
current liabilities

100,859


56,965ContingenciesStockholders deficit:Preferred
stock, no par value; 10,000,000 shares authorized, no shares issued
and outstanding

-


-Common stock,
$0.001 par value; 500,000,000 shares authorized, 18,987,213 and17,603,880
shares issued and outstanding, respectively

18,987


17,604Additional
paid-in capital

854,222


779,272Deficit
accumulated during the development stage

(973,301
)

(853,151
)Total
stockholders deficit

(100,092
)

(56,275
)$
767

$
690   3  SALAMON GROUP, INC.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
(unaudited)  Three Months Ended June 30,


Six Months Ended
June 30,


For The Period
From April 27,
2001 (Inception)
To June 30,2009


2008


2009


2008


2009EXPENSES:General
and administrative
$
103,209

$
38,038

$
120,150

$
72,264

$
622,468Interest
expense

-


-


-


-


35,833Research
and development

-


-


-


-


315,000Net loss
$
(103,209
)
$
(38,038
)
$
(120,150
)
$
(72,264
)
$
(973,301
)Loss per share - basic
and diluted
$
(0.01
)
$
(0.00
)
$
(0.01
)
$
(0.00
)Weighted average
shares outstanding - basic and diluted

18,368,715


16,395,752


18,122,665


16,259,286See accompanying
notes  4   SALAMON GROUP, INC.(A Development Stage Company)STATEMENTS OF CASH FLOWS (unaudited) For The Six
      Months


For The  Six
     Months


For the Period
From April 27,
2001Ended


Ended


(Inception)June 30,


June 30,


to June 30,2009


2008


2009Cash flows from operating activities:Net loss
$
(120,150
)
$
(72,264
)
$
(973,301
)Adjustments to reconcile net loss
to netcash used in
operating activities:Amortization
of intangible asset

-


-


55,000Estimated
fair value of common stock issued for patents

-


-


315,000Beneficial
conversion of amounts due to related party

-


-


35,833Depreciation
of property and equipment

-


-


4,515Estimated
fair value of common stock issuedfor
services

70,333


-


134,124Changes
in operating assets and liabilities:Prepaid
expense

-


304


(688)Accounts
payable

(1,073)


24,347


59,524Net cash used in operating
activities

(50,890
)

(47,613
)

(369,993
)Cash flows from investing activities:Purchase of property and
equipment

-


-


(4,515
)Purchase of license

-


-


(50,000
)Net cash used in investing
activities

-


-


(54,515
)Cash flows from financing activities:Advances from related
parties

27,267


47,577


297,887Proceeds from related party note
payable

23,700


-


23,700Issuance of common stock for cash

-


-


103,000Net cash provided by financing
activities

50,967


47,577


424,587Net change in cash

77


(36)


79Cash, beginning of period

2


74


-Cash, end of period
$
79

$
38

$
79Non cash:Estimated fair value of common stock issued upon
conversion
of amounts due to related
parties
$
6,000

$
31,460

$
270,193Estimated fair value of common stock issued for
license
$
-

$
-

$
5,000Estimated fair value of common stock issued in
conversion of      accounts payable
$
-

$
-

$
10,059 See accompanying notes   5     SALAMON GROUP,
INC.(A Development
Stage Company)NOTES TO FINANCIAL
STATEMENTS Salamon
Group, Inc. (the "Company") was
incorporated in the state of Nevada on April 27, 2001 (Inception). The Company
is a development stage company whose principal business plan is to
seek earnings by exploiting technology in the field of alternative energy
sources, which technology includes four patents pending related to electrical
power generation.   These financial
statements have been prepared in accordance with accounting principles
generally accepted in the United States of America (GAAP) applicable to
a going concern. At June 30, 2009, the Company had no revenues to date,
had accumulated losses of $973,301 and a working capital deficit of
$100,092 and expects to incur further losses in the development of its
business, all of which cast substantial doubt about the Companys ability
to continue as a going concern. Management plans to continue to provide
for the Company's capital needs during the year ending December 31, 2009
by issuing debt and equity securities and by the continued support of its
related parties (see Note 3). The financial statements do not include any
adjustments relating to the recoverability and classification of recorded
asset amounts or amounts and classification of liabilities that might be
necessary should the Company be unable to continue in existence. There is
no assurance that funding will be available to continue the Companys
business operations.On July 5, 2001, the
Company entered into a licensing agreement with Space Globe Technologies
Ltd. ("Space Globe"), a
Canadian corporation. The agreement allows the Company to use certain
technology with respect to a power cell technology used for internal and
external electrical applications. The sole shareholder and sole director
of Space Globe is John Salamon who is the President and a Director of the
Company.In January 2005, Space
Globe and the Company in mutual agreement replaced the license agreement
with an agreement that was amended December 31, 2007, which transferred
100% ownership of, and rights to, Space Globes technology related to
electrical power generation to the Company for no further consideration.
John Salamon, the Companys Chief Executive Officer and majority
shareholder, also assigned to Salamon Group a 99% interest in the rights
to the patent pending.In June 2007, Space
Globe transferred to Salamon Group 100% ownership of rights to Space
Globes technology related to wireless electrical power generation,
including a 99% interest in three patent applications, for a total
4,500,000 shares of the Companys common stock (see Note
4).The Company has
prepared the accompanying financial statements in accordance with GAAP for
interim financial information and with the instructions to Form 10-Q and
Article 8 of Regulation S-X. Accordingly, they do not include all of the
information and disclosures required by GAAP for annual financial
statements. In the opinion of the Company's management, the accompanying
financial statements contain all the adjustments necessary (consisting
only of normal recurring accruals) to make the financial position of the
Company as of June 30, 2009, the results of operations for three and six
months ended June 30, 2009 and 2008 and for the period from Inception
through June 30, 2009 and cash flows for the six months ended June 30,
2009 and 2008 and for the period from Inception through June 30, 2009 not
misleading. The financial statements should be read in conjunction with
the audited financial statements for the year ended December 31, 2008
contained in Form 10-K filed with the Securities and Exchange Commission
("SEC").   2.
Summary of
Significant Accounting Policies(a)
Development stage
enterpriseThe Company is a
development stage company as defined in Statement of Financial Accounting
Standards ("SFAS") No. 7,
"Accounting and Reporting by Development Stage Enterprises." The Company
is devoting substantially all of its present efforts to establishing a new
business, and its planned principal operations have not yet commenced. All
losses accumulated since Inception have been considered as part of the
Company's development stage activities.



6      **** SALAMON GROUP, INC. (A Development Stage Company)  NOTES TO FINANCIAL STATEMENTS   (b) Basic and diluted net loss per share   The Company computes net loss per share in accordance
with SFAS No. 128, Earnings per Share, which requires presentation of both
basic and diluted loss per share (EPS) on the face of the statement of
operations. Basic EPS is computed by dividing net loss available to common
shareholders (numerator) by the weighted average number of common shares
outstanding (denominator) during the period. Diluted EPS gives effect to all
dilutive potential common shares outstanding during the period including stock
options, using the treasury stock method, convertible preferred stock, and
convertible debt, using the if-converted method. In computing diluted EPS, the
average stock price for the period is used in determining the number of shares
assumed to be purchased from the exercise of stock options or warrants. Diluted
EPS excludes all potentially dilutive common shares if their effect is
antidilutive. At June 30, 2009 and 2008, there were no potentially dilutive
instruments outstanding. (c) Revenue recognition Revenues from the sale of products will be recorded when
the product is shipped, title and risk of loss have transferred to the
purchaser, payment terms are fixed or determinable and payment is reasonably
assured. Revenues from service contracts will be recognized when performance of
the service is complete or over the term of the contract.  (d) Foreign currency transactions/balances  Transactions in currencies other than the U.S. dollar are
translated at the rate in effect on the transaction date. Any balance sheet
items denominated in foreign currencies are translated into U.S. dollars using
the rate in effect on the balance sheet date. There have been no significant
transactions in currencies other than the U.S. dollar since Inception.  (e) Income Taxes The Company determines its income taxes under the asset
and liability method in accordance with SFAS No. 109, "Accounting for Income
Taxes," which requires the recognition of deferred tax assets and liabilities
for the expected future tax consequences of events that have been included in
the financial statements or tax returns. Under this method, deferred income
taxes are recognized for the tax consequences in future years of differences
between the tax bases of assets and liabilities and their financial reporting
amounts at each year-end based on enacted tax laws and statutory tax rates
applicable to the periods in which the differences are expected to affect
taxable income. Valuation allowances are established, when necessary, to reduce
deferred tax assets to the amount expected to be realized.  (f) Use of Estimates The preparation of financial statements, in conformity
with accounting principles generally accepted in the United States of America,
requires management to make estimates and assumptions that affect the amounts
reported in these financial statements and the accompanying notes. Actual
results could differ from those estimates.  (g) Financial Instruments  The fair values of cash, accounts payable, and amounts
due to related parties approximate their carrying values due to the immediate or
short-term maturity of these financial instruments.  (h) Issuance of Stock for Non-cash Consideration All issuances of the Companys common stock for non-cash
consideration have been assigned a dollar amount equaling either the market
value of the shares issued or the value of consideration received whichever is
more readily determinable. The majority of the non-cash consideration received
pertains to services rendered by consultants and others and has been valued at
the market value of the shares issued.  7      SALAMON GROUP, INC. (A Development Stage Company)  NOTES TO FINANCIAL STATEMENTS  The Companys accounting policy for equity instruments
issued to consultants and vendors in exchange for goods and services follows the
provisions of Emerging Issues Task Force (EITF) Issue No. 96-18,
Accounting for Equity Instruments That are Issued to Other Than Employees for
Acquiring, or in Conjunction with Selling, Goods or Services and EITF Issue No.
00-18, Accounting Recognition for Certain Transactions Involving Equity
Instruments Granted to Other Than Employees. The measurement date for
the fair value of the equity instruments issued is determined at the earlier of
(i) the date at which a commitment for performance by the consultant or vendor
is reached or (ii) the date at which the consultant or vendors performance is
complete. In the case of equity instruments issued to consultants, the fair
value of the equity instrument is recognized over the term of the consulting
agreement.  (i) New Accounting Pronouncements  In December 2007, the FASB issued SFAS No. 141(R),
"Business Combinations." SFAS No. 141(R) provides companies with principles and
requirements on how an acquirer recognizes and measures in its financial
statements the identifiable assets acquired, liabilities assumed, and any non
controlling interest in the acquiree as well as the recognition and measurement
of goodwill acquired in a business combination. SFAS No. 141(R) also requires
certain disclosures to enable users of the financial statements to evaluate the
nature and financial effects of the business combination. Acquisition costs
associated with the business combination will generally be expensed as incurred.
SFAS No. 141(R) is effective for business combinations occurring in fiscal years
beginning after December 15, 2008. Early adoption of SFAS No. 141(R) is not
permitted. The Company is currently evaluating the impact SFAS No. 141(R) will
have on any future business combinations.  In June 2009, the FASB issued SFAS No. 168, The FASB
Accounting Standards Codification and the Hierarchy of Generally Accepted
Accounting Principles  a Replacement of FASB Statement No. 162.  The
Codification will become the source of authoritative GAAP.  The statement
is effective for financial statements issued for interim and annual periods
ending after September 15, 2009.  The Company expects to adopt this
standard with the filing of its Quarterly Report on Form 10-Q for the period
ended September 30, 2009 and do not expect the standard to have a material
impact its financial statements. Other recent accounting pronouncements issued by the FASB
(including the EITF) and the American Institute of Certified Public Accountants
did not or are not believed by management to have a material impact on the
Companys present or future financial statements.  3. Related Party Transactions  (a) Amounts owing to Space Globe are unsecured, non
interest bearing and are due on demand. The sole shareholder and sole director
of Space Globe is John Salamon who is the President and a Director of the
Company. At June 30, 2009 and December 31, 2008, a total of $27,694 and $6,427,
respectively, was due to Space Globe. (b)During the six months ended June 30, 2009, the Company
received proceeds of $23,700 for issuing a note payable to a former board
director.  The note is non-interest bearing and due on demand. (c) During the six months ended June 30, 2009, the
Company shared office space and travel arrangements with Space Globe. During
each of the six months ended June 30, 2009 and 2008, the Company incurred an
aggregate of approximately $6,000 of allocated rent and travel expense. (d) On January 15, 2009, the Company issued 200,000
shares of common stock to Space Globe at a price of $0.03 per share (the
estimated fair value) to settle indebtedness of $6,000 owed to Space Globe for
loan advances. (e) On December 31, 2008, a former director of the
Company surrendered 1,000,000 shares of his common stock for no consideration.
Accordingly, the Company has not reflected such shares as issued or outstanding
at December 31, 2008 as such shares have been cancelled by the Company. (f) On November 15, 2008, the Company issued 869,050
shares of common stock to Space Globe at a price of $0.02 per share (the
estimated fair value) to settle indebtedness of $17,821 owed to Space Globe for
loan advances.  (g) On August 19, 2008, the Company issued 476,129 shares
of common stock to Space Globe at a price of $0.07 per share (the estimated fair
value) to settle indebtedness of $33,329 owed to Space Globe for loan
advances.  (h) On August 19, 2008, the Company issued 203,543 shares
of common stock to a director at a price of $0.07 per share (the estimated fair
value) to settle indebtedness of $14,249 owed for working capital advances.  8    SALAMON GROUP, INC. (A Development Stage Company)  NOTES TO FINANCIAL STATEMENTS   (i) On April 16, 2008, the Company issued 331,158 shares
of common stock to Space Globe at a price of $0.095 per share (the estimated
fair value) to settle indebtedness of $31,460 owed to Space Globe for loan
advances.  (j) During the year ended December 31, 2007, Mr. Salamon,
through his company, Space Globe, contributed patent applications to the Company
in exchange for 4,500,000 shares of common stock (see Notes 1 and 4).  (k) During the year ended December 31, 2007, Space Globe
converted advances made to the Company into 2,310,000 shares of common stock
(see Note 4). (l) On July 5, 2001, the Company purchased a license
related to certain power cell technology for cash of $50,000 and five million
common shares of the Company valued at $5,000 from Space Globe. In addition, the
Company agreed to pay Space Globe a royalty equal to 3% of the gross sales
derived from the technology.  To date, no sales have been made and
accordingly no royalties have been earned in connection with this agreement.  4. Stockholders Deficit (a)As of June 30, 2009, there are no preferred shares
issued and outstanding. (b)As of June 30, 2009, the Company has not granted any
stock options or warrants. (c) In April 2009, the Company issued 700,000 forfeitable
shares of common stock to a consulting firm. In accordance with the applicable
consulting agreement, the shares are to be earned ratably over the term of the
agreement from April 15, 2009 through July 15, 2009. During the period ended
June 30, 2009, the Company recorded $44,333 of expense and recorded 583,333
common shares as issued and outstanding. As 116,667 of such shares are not
considered issued for accounting purposes they have been excluded from the
Companys issued and outstanding shares. (d) On October 27, 2008, the Company issued 201,180
shares of the Companys common stock as payment for services rendered. The
Company had accrued $10,059 for such services. However, based on the estimated
fair value of the Companys common stock on the date of conversion, the Company
has recorded an additional $2,012 of expense. (e) In September, 2008, the Company issued 1,200,000
forfeitable shares of common stock to a consultant. In accordance with the
applicable consulting agreement, the shares are to be earned ratably over the
one-year term of the agreement through August, 2009. During the six months ended
June 30, 2009, the Company recorded $26,000 of expense and recorded 600,000
common shares as issued and outstanding. During the year ended December 31,
2008, the Company recorded $15,000 of expense and recorded 400,000 common shares
as issued and outstanding. As 200,000 of such shares are not considered issued
for accounting purposes they have been excluded from the Companys issued and
outstanding shares. (f) In November 2007, the Company issued 518,340 shares
of common stock to Space Globe for the conversion of advances in the amount of
$77,751 or $0.15 per share, the estimated fair value (see Note 3).  (g) Mr. Salamon and his company Space Globe, contributed
three patent applications to the Company in June 2007 (see Note 4). In exchange
for the patents, the Company issued 4,500,000 shares of common stock to Space
Globe. The shares were valued at $0.07 per share, the estimated fair value of
the stock on the measurement date. The total value of the shares of $315,000 was
recorded as research and development expense in the accompanying statements of
operations as there was no asset value on the books of Space Globe at the time
of the contribution. (h) In June 2007, the Company issued 1,791,660 shares of
common stock to Space Globe for the conversion of advances in the amount of
$89,583, or $0.05 per share (see Note 3). Since the estimated fair value of the
stock at the time of conversion was $0.07 per share, the Company recorded
interest expense of $35,833 related to the beneficial conversion equal to the
difference between the value of the shares issued and the advances converted in
the accompanying statements of operations.  (i) In June, 2007, the Company, pursuant to an agreement,
issued shares to a third party for services provided. According to the terms of
the agreement, the Company issued 350,000 shares of its common stock, which were
valued at their estimated fair value of $0.07 per share (based on the fair value
of the services provided) for total of $25,000. As of December 31, 2007, all
services related to the agreement have been provided and the value of the shares
was recorded in general and administrative expense in the accompanying
statements of operations.  (j) During the year ended December 31, 2003, 183,640
shares were issued for cash of $22,460 at an average price of $0.12 per share
and 245,360 shares were issued for services and other expenses with a fair value
of $10,676 at an average price of $0.04 per share  (k) During the year ended December 31, 2002, 481,046
shares were issued for cash of $44,008 at an average price of $0.09 per share
and 500,000 shares were issued for services with a fair value of $10,400 at an
average price of $0.02 per share.  (l) During the period ended December 31, 2001, 1,850,324
shares were issued for cash of $36,532 at an average price of $0.02 per share
and 702,450 shares were issued for services with a fair value of $703 at an
average price of $0.001 per share.  (m) On July 5, 2001, 5,000,000 shares with a stated par
value of $0.001 per share were issued as part of the consideration to acquire a
license (see Note 5).  9     SALAMON GROUP, INC. (A Development Stage Company)  NOTES TO FINANCIAL STATEMENTS  5.Contingencies  (a) Litigation  From time to time, the Company may become involved in
various lawsuits and legal proceedings which arise in the ordinary course of
business. However, litigation is subject to inherent uncertainties, and an
adverse result in these or other matters may arise from time to time that may
harm the Company. The Company is currently not aware of any such legal
proceedings or claims that the Company believes will have, individually or in
the aggregate, a material adverse affect on its business, financial condition or
operating results.  (b) Indemnities and Guarantees  During the normal course of business, the Company has
made certain indemnities and guarantees under which it may be required to make
payments in relation to certain transactions. The Company indemnifies its
directors, officers, employees and agents to the maximum extent permitted under
the laws of the State of Nevada. These indemnities include certain agreements
with the Company's officers under which the Company may be required to indemnify
such person for liabilities arising out of their employment relationship. The
duration of these indemnities and guarantees varies and, in certain cases, is
indefinite. The majority of these indemnities and guarantees do not provide for
any limitation of the maximum potential future payments the Company could be
obligated to make. Historically, the Company has not been obligated to make
significant payments for these obligations and no liabilities have been recorded
for these indemnities and guarantees in the accompanying balance sheets.  (c) On June 20, 2008, the Company entered into a license
agreement with 482229 B.C. Ltd. (482229), a private company based in Kelowna,
British Columbia, whereby the Company granted 482229 the exclusive rights to
manufacture, market, distribute and sell in Canada all electrical power
generation products derived from its 2001 patent pending.  The license is
for an initial term of seven years.  482229 has agreed to pay the Company a
one time licensing fee of CDN$15,000 on or before June 20, 2009 and additional
fees equal to 3% of 482229s gross revenues derived from the sale of products,
payable quarterly.  In order to maintain the license, 482229 must meet or
exceed the following minimum sale requirements.  On June 16, 2009, the
Company entered into an addendum to the license agreement with 482229 to extend
the due date of the one time licensing fee of CAD $15,000 to on or before
December 31, 2009.  In addition, the sales requirements were modified and
are now the following:   During Year
Ended                                 
Minimum Total Sales of Products  December 31,
2008                                   
CDN$0.00 December 31,
2009                                   
CDN$0.00 December 31,
2010                                   
CDN$20,000 December 31,
2011                                   
CDN$30,000 December 31,
2012                                 
  CDN$40,000 December 31,
2013                                   
CDN$50,000 December 31,
2014                                   
CDN$60,000 December 31,
2015                                 
  CDN$70,000   6. Subsequent Events  (a) In July 2009, the Company issued 348,750 shares of
common stock to a related party at a price of $0.04 per share (the estimated
fair value) to settle indebtedness of $13,950 due under a note payable (see Note
3).  (b) In July 2009, the Company issued 150,000 shares of
common stock to Space Globe at a price of $0.04 per share (the estimated fair
value) to settle indebtedness of $6,000.  10    ****  ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATION.  The following discussion of the financial condition,
changes in financial condition and results of operations of Salamon Group, Inc.
(hereinafter referred to as the Company, Salamon Group,
we, our or us) for the three and six months ended
June 30, 2009 should be read in conjunction with Salamon Groups unaudited
financial statements and related notes for the three and six months ended June
30, 2009.  Cautionary Statements Regarding Forward-Looking
Statements  This Form 10-Q includes forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934 (the Exchange Act),
as amended.  All statements, other than statements of historical facts,
included in this Form 10-Q which address activities, events or developments
which we expect or anticipate will or may occur in the future, including such
things as future capital expenditures (including the amount and nature thereof),
business strategy, expansion and growth of our business and operations, and
other such matters are forward-looking statements.  These statements are
based on certain assumptions and analyses made by Salamon Group in light of our
experience and our perception of historical trends, current conditions and
expected future developments as well as other factors we believe are appropriate
in the circumstances.  However, whether actual results or developments will
conform with our expectations and predictions are subject to a number of risks
and uncertainties, general economic market and business conditions; the business
opportunities (or lack thereof) that may be presented to and pursued by us;
changes in laws or regulation; and other factors, most of which are beyond our
control.  Consequently, all of the forward-looking statements made in this
Form 10-Q are qualified by these cautionary statements and there can be no
assurance that the actual results or developments anticipated by us will be
realized or, even if substantially realized, that they will have the expected
consequence to or effects on us or our business or operations.  We assume
no obligations to update any such forward-looking statements.  Overview  We were organized under the laws of the State of Nevada
on April 27, 2001.  We are a developmental stage company organized by John
E. Salamon.  Our aim is to develop, license and/or acquire certain
electrical generator technologies, which we believe to be proprietary.  Our
offices are presently located at 4080 Paradise Road #15-901, Las Vegas, Nevada,
USA 89169, and our telephone number is (702) 241-0145.  Since our inception, we have been involved in
organizational and fund raising activities and the licensing, subsequent
acquisition and further development of a certain electrical generator technology
from Space Globe Technologies Ltd., a private British Columbia, Canada
corporation (Space Globe), founded and organized also by John Salamon.
 Space Globe was founded for the purpose of developing technologies and
concepts in the field of Alternative Energy Sources.  Alternative Energy
Sources are those which are not supplied by the burning of fossil fuels or the
splitting of atoms.  Some of the alternative energy sources include solar
energy, wind power, geothermal, tides and hydro power.  Space Globe was
incorporated in the Province of British Columbia, Canada in 1998 by John
Salamon.  It was initially established as a management/consulting company
in which to develop ideas and concepts for power generation.  Space Globes
primary assets consist of office equipment and investments in us.
 Effective June 29, 2007, in connection with our acquisition of ownership
and rights to certain patents and wireless EPG technology from Space Globe, we
no longer considered ourself a shell company and our current operations are
focused on developing and licensing such technologies.  From 1999 to 2001
Space Globe and Mr. Salamon developed the concept and design of an Electrical
Power Generator (EPG) for home and office use and for emergency power
backup situations.  Mr. Salamon filed a patent application in Canada on
September 4, 2001 for protection of the design of the EPG and on March 10, 2008,
as requested by the Canadian Patent Office, we filed additional information
regarding this patent pending.  Mr. Salamon filed a second patent
application in Canada on May 12, 2006 and two more patent applications later in
2006 for the protection of designs related to wireless EPGs.  We were formed by Mr. Salamon for the purpose of pursuing
his business plan of developing technologies and concepts in the field of Alternative Energy Sources in a newly established Nevada
corporation.  All transactions described below between us and Space Globe
were incidental to the transfer of assets to us in connection with the
reorganization of these two entities under Mr. Salamons common control.  On July 5, 2001, we entered into a Technology License
Agreement with Space Globe whereby we agreed to pay $50,000 cash and issued
5,000,000 shares of common stock to Space Globe as license fees for the
technology related to the EPG.  The cost of the license was determined to
be at an estimated cost of research and development time and materials expended
by Space Globe for the development of the EPG.  The 5,000,000 shares issued
in connection with such Technology License Agreement were issued pursuant to
Section 4(2) of the Act at an estimated fair value of $5,000 and the cash was
subsequently paid from proceeds of our private placements.  11     On January 10, 2005, we replaced the license agreement
with Space Globe with an agreement under which Space Globe transferred 100%
ownership of and rights to the EPG technology, protected by the 2001 patent
application, to us for no additional compensation. John Salamon, through Space
Globe, also assigned all rights to the patent pending to us.  On September
30, 2007, we amended the agreement with Space Globe such that John Salamon
retains a 1% interest in the patent application.  In addition to the foregoing issuances, from April 2001
through December 31, 2008, we received services gross proceeds of $507,317
(including $103,000 in cash, conversion of $270,193 of amounts due to a related
party, and services valued at $134,124) from the issuance of a total
of 9,487,213 shares of common stock in offerings conducted pursuant to
Section 4(2) of the Act and Regulation S.  These offerings were made in the
Provinces of British Columbia and Alberta, Canada.  On June 29, 2007, we entered into an assignment agreement
with Space Globe whereby Space Globe transferred to us its ownership of and
rights to the wireless EPG technology, including Space Globes 99% interest in
the three 2006 patent applications, in consideration for the issuance of
4,500,000 shares of common stock to Space Globe (or 1,500,000 shares for each of
the three patents applications) at a value of $0.07 per share, the estimated
fair value of the shares on the date of the transaction. John Salamon, who filed
the three patent applications, retains a 1% interest in the patents pending.
 The value of the technology was determined to be at an estimated cost of
research and development time and materials expended by Space Globe for the
development of the wireless EPG.  The 4,500,000 shares issued in connection
with the assignment agreement were issued pursuant to Section 4(2) of the
Act.  On June 20, 2008, we entered into a license agreement
with 482229 B.C. Ltd. (482229), a private company based in Kelowna,
British Columbia, whereby we granted 482229 the exclusive rights to manufacture,
market, distribute and sell in Canada all electrical power generation products
derived from our 2001 patent pending.  The license is for an initial term
of seven years.  482229 has agreed to pay us a one time licensing fee of
CAD $15,000 on or before June 20, 2009 and additional fees equal to 3% of
482229s gross revenues derived from the sale of products, payable quarterly.
 In order to maintain the license, 482229 must meet or exceed certain sale
requirements.  On June 16, 2009, we entered into an addendum to the license
agreement with 482229 to extend the due date of the one time licensing fee of
CAD $15,000 to on or before December 31, 2009.  In addition, the sales
requirements were modified and are now the following:  During Year Ended
Minimum Total Sales of ProductsDecember 31, 2008
CDN$0.00December 31, 2009
CDN$0.00December 31, 2010
CDN$20,000December 31, 2011
CDN$30,000December 31, 2012
CDN$40,000December 31, 2013
CDN$50,000December 31, 2014
CDN$60,000December 31, 2015
CDN$70,000  In August of 2008, our Board of Directors resolved to
expand our current business plan into other areas which would allow us to
generate revenues.  One particular area that our Board resolved would
provide added value to our company would be real estate, more specifically real
estate in the form of an operating casino in Las Vegas, Nevada.  Currently,
our President is actively identifying potential casinos that are for sale in the
Las Vegas area.  If we are able to locate and purchase a suitable casino,
we intend to move our corporate headquarters into the casino.  The purchase
of the casino will allow us to start generating revenues so that we can further
our business plan to develop, license and/or acquire technologies and concepts
in the field of Alternative Energy Sources.  Once we locate a suitable
casino, we intend to enter into a letter of intent to purchase the casino.
 We intend to finance the purchase of a suitable casino through a
combination of equity and/or debt financing, and by undertaking a non-brokered
private placement under Rule 506 of Regulation D, to raise the funds required to
purchase the casino.  There is no assurance that we will succeed in
identifying and purchasing a casino or that funding will be available to us for
this purpose.  There is also no assurance that any casino we might purchase
will generate revenues sufficient for us to carry out our business plan related
to alternative energy sources.  As of the date hereof, we have no other employees or
customers.   Plan of Operation  Since our inception, we have been involved in
organizational activities, have completed offerings of shares of common stock,
have concluded the licensing and subsequent acquisition of an EPG from Space
Globe, and have completed a working model of the power generator.  For the
period from inception (April 27, 2001) through June 30, 2009, we had no revenue
from operations and our deficit accumulated during the development stage
amounted to $973,301.  We propose to compete in the alternative energy
source technology market.  As reported in the Report of Independent Registered
Public Accounting Firm on our December 31, 2008 financial statements, we have
suffered recurring losses from operations, we have a working capital deficit and
a deficit accumulated during the development stage.  These items raise
substantial doubt about our ability to continue as a going concern.  We plan to generate revenues through the sale of
manufacturing and marketing licenses on a world-wide basis.  We also plan
on generating revenues by possibly purchasing an operating casino in Las Vegas,
Nevada.  Our President is currently identifying potential casinos that are
available for sale in Las Vegas.  If he is successful in locating a casino,
we intend to finance the purchase of the casino through a combination of debt
and equity financing.  We would also move our corporate headquarters into
the casino.  12     Future research and development will be focused on
smaller, portable EPGs adding a solar power component as well as an electric
wireless product.  Mr. Salamon has a conceptual design and prototypes and
will proceed with plans when funding allows.  We are not planning to purchase a plant or equipment at
this time but rather to enter into licensing agreements to manufacture and
market our products.  If we are unable to generate sufficient revenue from
operations to implement our plans, we intend to explore all available
alternatives for debt and/or equity financing, including but not limited to
private and public securities offerings.  Accordingly, we expect that it
will be necessary for us to raise additional funds in the event that we are
unable to generate any revenue from operations and if only a minimal level of
revenue is generated in accordance with our expectations.  Mr. Salamon, at least initially, will be responsible for
developing our business.  However, at such time, if ever, as sufficient
operating capital becomes available, he expects to employ additional staffing.
 In addition, we expect to continuously engage in market research in order
to monitor new market trends and other critical information deemed relevant to
our business.  Results of Operations for the three and six months
ended June 30, 2009, compared to the same periods in 2008  The following discussion should be read in conjunction
with the financial statements included in this report and is qualified in its
entirety by the foregoing.  Liquidity and Capital Resources  As of June 30, 2009 we had cash of $79, total current
assets of $767, total current liabilities of $100,859 and a working capital
deficit of $100,092.  From our inception on April 27, 2001 to June 30,
2009 we accumulated a deficit during the developement stage of
$973,301.  We are dependent on funds raised through equity or debt
financing and investing activities to fund our operations.  We
anticipate that we will incur substantial losses over the next year and our
ability to generate any revenues in the next 12 months continues to be
uncertain.  We used net cash of $50,890 in operating
activities during the quarter ended June 30, 2009, compared to $47,613
during the same period in 2008 and $369,993 from our inception on April 27, 2001
to June 30, 2009.  The increase in operating expenses for the period
ended June 30, 2009 resulted primarily from an increase in professional fees and
equity based compensation.  We used net cash of $0 in investing activities for the
six months ended June 30, 2009, compared to $0 during the same period in 2008,
and $54,515 from our inception on April 27, 2001 to June 30,
2009.  The cash used in investing activities since our inception was
for website development costs.  We received net cash of $50,967 from financing activities
for the quarter ended June 30, 2009, compared to $47,577 during the same period
in 2008 and $424,587 from our inception on April 27, 2001 to June 30,
2009.  The cash received from financing activities during the period
ended June 30, 2009 resulted from the proceeds of advances from related
parties.  During the period ended June 30, 2009 our cash position
increased by $77.  13     Results of Operations  Revenues  From our inception on April 27, 2001 to June 30, 2009 we
have not yet generated any revenues.  We do not expect to earn
significant revenues in the near future.  Expenses  We incurred total operating expenses of $103,209 and
$120,150 for the three and six months ended June 30, 2009, respectively,
compared to $38,038 and $72,264 for the same periods in 2008, respectively, and
$973,301 from our inception on April 27, 2001 to June 30, 2009.  The
increase in operating expenses for the periods ended June 30, 2009 resulted from
an increase in our general and administrative costs, primarily due to an
increase in professional fees and equity based compensation.  Net Loss  From our inception on April 27, 2001 to June 30, 2009 we
have accumulated a deficit of $973,301.  For the three and six months
ended June 30, 2009 we incurred a net loss of $103,209 and $120,150,
respectively, compared to a net loss of $38,038 and $72,264 for the same periods
in 2008, respectively.  Research and Development  482229 is now responsible for all further development,
testing and commercialization of all EPG products derived from our 2001 patent
pending.  Until we can secure other qualified licensees regarding the EPG
products derived from our other patents pending, all further development,
testing and commercialization of those EPG products will be completed by us,
subject to obtaining the necessary financing.  Upon securing such other
qualified licensees, any further research, development and commercialization of
those EPG products and all related costs will be the responsibility of the
licensee.  We, under the direction of Mr. Salamon, are continually
researching and studying Alternative Energy Sources and plan to develop other
power generation devices as capital funding becomes available.  Alternative
Energy Sources are those which are not supplied by the burning of fossil fuels
or the splitting of atoms.  Some of the alternative energy sources include
solar energy, wind power, geothermal, tides and hydro power.  We have developed a smaller, portable EPG utilizing
similar designs and adding a solar power component.  We have also developed
prototypes of EPG products that generate power wirelessly.  For the quarter ended June 30, 2009, we have not incurred
any research and development expenses.  Off-Balance Sheet Arrangements  As of June 30, 2009 we had no off balance sheet
transactions that have or are reasonably likely to have a current or future
effect on our financial condition, changes in 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, 2009.  Critical Accounting Policies  There were no changes to the critical accounting policies
as discussed in our 2008 Form 10-K filed on April 15, 2009.  14     ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK.  Not applicable.  ITEM 4.  CONTROLS AND PROCEDURES.  Not applicable.  ITEM 4T.
 CONTROLS AND PROCEDURES Disclosure
controls and procedures are designed to ensure that information required to be
disclosed in the reports filed or submitted under the Exchange Act is recorded,
processed, summarized and reported, within the time period specified in the
SEC's rules and forms.  Disclosure controls and procedures include, without
limitation, controls and procedures designed to ensure that information required
to be disclosed in the reports filed under the Exchange Act is accumulated and
communicated to management, including the Chief Executive Officer covered by
this report, we carried out an evaluation, under the supervision and with the
participation of our management, including our Chief Executive Officer and Chief
Financial Officer, of the effectiveness of the design and operation of our
disclosure controls and procedures as of June 30, 2009 (the Evaluation Date).
Based upon the evaluation of our disclosure controls and procedures as of the
Evaluation Date, the Chief Executive Officer and Chief Financial Officer
concluded that our disclosure controls and procedures were not effective because
of the identification of material weaknesses in our internal control over
financial reporting which are identified in our Managements Report on Internal
Control Over Financial Reporting included with our Annual Report on Form 10-K
for the fiscal year ended December 31, 2008, which we view as an integral part
of our disclosure controls and procedures. Changes in Internal Control over Financial Reporting There were no
changes in our internal control over financial reporting during the most
recently completed quarter that have materially affected, or are reasonably
likely to materially affect, our internal control over financial reporting. Limitations on
the Effectiveness of Controls Our management,
including our Chief Executive Officer and Chief Financial Officer, does not
expect that our Disclosure Controls and internal controls will prevent all
errors and all fraud.  A control system, no matter how well conceived and
operated, can provide only reasonable, not absolute, assurance that the
objectives of the control system are met.  Further, the design of a control
system must reflect the fact that there are resource constraints, and the
benefits of controls must be considered relative to their costs.  Because
of the inherent limitations in all control systems, no evaluation of controls
can provide absolute assurance that all control issues and instances of fraud,
if any, within the Company have been detected.  These inherent limitations
include the realities that judgments in decision-making can be faulty, and that
breakdowns can occur because of a simple error or mistake.  Additionally,
controls can be circumvented by the individual acts of some persons, by
collusion of two or more people, or by management or board override of the
control. The design of any
system of controls also is based in part upon certain assumptions about the
likelihood of future events, and there can be no assurance that any design will
succeed in achieving its stated goals under all potential future conditions;
over time, controls may become inadequate because of changes in conditions, or
the degree of compliance with the policies or procedures may deteriorate.
 Because of the inherent limitations in a cost-effective control system,
misstatements due to error or fraud may occur and not be detected.  PART II - OTHER INFORMATION  ITEM 1.  LEGAL PROCEEDINGS  We know of no legal proceedings to which we are a party
or to which any of our property is the subject which are pending, threatened or
contemplated or any unsatisfied judgments against us.  ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES
AND USE OF PROCEEDS  None.  ITEM 3.  DEFAULTS UPON SENIOR SECURITIES  None  ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF
SECURITY HOLDERS  No matter was submitted to a vote of our shareholders,
through the solicitation of proxies or otherwise, during the quarter ended June
30, 2009.  ITEM 5.  OTHER INFORMATION  None.  15  ITEM 6.  EXHIBITS  The following exhibits are filed with the Form 10-Q:   3.1
Articles of Incorporation (1)3.2
Bylaws (1)10.1
Technology License Agreement between Space Globe
and the registrant dated July 5, 2001.  (1)10.2
Assignment Agreement between Space Globe and the
registrant dated January 10, 2005.  (2)10.3
Consulting Agreement between Alvin Mirman and the
registrant dated September 8, 2006.  (5)10.4
Assignment Agreement between Space Globe, John
Salamon and the registrant dated June 29, 2007.
 (3)10.5
Debt Settlement Agreement between Space Globe and
the registrant dated June 29, 2007.  (3)10.6
Amendment dated September 30, 2007 to Assignment
Agreement dated January 10, 2005 among Space Globe, John Salamon and the
registrant.  (4)10.7
Debt Settlement Agreement between Space Globe and
the registrant dated November 6, 2007.  (5)10.8
Debt Settlement Agreement between Space Globe and
the registrant dated April 15, 2008.  (6)10.9
License Agreement between 482229 B.C. Ltd. and the
registrant dated June 20, 2008.  (6)10.10
Consulting Agreement between Harold Schneider and
the registrant dated September 1, 200831.1
Certification of Chief Executive Officer and
Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002.(6)32.1
Certification of Chief Executive Officer and
Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.(6) (1) Incorporated by reference to the exhibits of the
Registration Statement on Form 10-SB filed with the Securities and Exchange
Commission on December 12, 2003. (2) Incorporated by reference to the exhibits of the
Quarterly Report on Form 10-QSB filed with the Securities and Exchange
Commission on January 15, 2005. (3) Incorporated by reference to the exhibits of the
Quarterly Report on Form 10-QSB filed with the Securities and Exchange
Commission on August 20, 2007. (4) Incorporated by reference to the exhibits of the
Quarterly Report on Form 10-QSB filed with the Securities and Exchange
Commission on November 6, 2007. (5) Incorporated by reference to the exhibits of the Annual
Report on Form 10-KSB filed with the Securities and Exchange Commission on April
14, 2008. (6) Filed herewith.  16     SIGNATURES  In accordance with Section 13 or 15(d) of the Exchange
Act, the registrant has duly caused this report to be signed on its behalf by
the undersigned duly authorized officer.  Date:  August 14, 2009  SALAMON GROUP, INC.  By:      
  /s/ John E.
SalamonJohn E.
Salamon           
President           
(Principal Executive Officer
and           
 Principal Financial Officer)   17