UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

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

For the fiscal year ended December 31, ~~2010~~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
5-215 Neave Road	V1V 2L9
Modesto, California	(Zip Code)
Kelowna, BC Canada	(Zip Code)
(Address of principal executive offices)

(~~209~~778)-~~576~~753-~~0140~~5675 (Registrant's telephone number, including area code)

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

Title of each class
None

Name of each exchange on which registered
None

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

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

Check whether the 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 if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ ]

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 3,126

As of December 31, ~~2010~~2011, the aggregate market value of the Registrant’s voting stock held by non-affiliates was approximately $2772,~~194,881~~186

Number of shares of the issuer’s common stock, $0.001 par value, outstanding as of December 31, ~~2010~~2011: 2540,~~460~~000,~~728~~000 shares

SALAMON GROUP, INC.
FORM 10-K

TABLE OF CONTENTS

		Page
PART I
Item 1.	Description of Business	4
Item 1A.	Risk Factors	5
Item 2.	Description of Property	5
Item 3.	Legal Proceedings	5
Item 4.	Submission of Matters to a Vote of Security Holders	5
PART II
Item 5.	Market for Common Equity and Related Stockholder Matters and Small Business Issuer Purchases of Equity Securities	6
Item 7.	Management’s Discussion and Analysis or Plan of Operation	67
Item 8.	Financial Statements	9
Item 9.	Changes In and Disagreements With Accountants on Accounting and Financial Disclosure	9
Item 9A(T).	Controls and Procedures	9
Item 9A(T)	Controls and Procedures	9
Item 9B.	Other Information	11
PART III
Item 10.	Directors, Executive Officers, Promoters and Control Persons; Compliance with Section16(a) of the Exchange Act	12
Item 11.	Executive Compensation	12
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	12
Item 13.	Certain Relationships and Related Transactions and Director Independence	13
Item 14.	Principal Accountant Fees and Services	13
Item 15.	Exhibits and Financial Statement Schedules	13
Signatures		14

Item 1. Description of Business.

(a) Business Development.

Salamon Group Inc. (the “Company”), “SGI”, or the “Registrant”), incorporated in the state of Nevada on April 27, 2001, is a publicly traded independent "green" energy company with headquarters ~~and operations~~ in ~~Modesto, California and an office in~~ Kelowna, BC, Canada. The Company’s ~~has recently enhanced its~~ business model ~~to include~~includes the development, acquisition and funding of roof top and ground mount solar power electricity generating ~~plants~~systems, with initial emphasis on the General Motors solar energy projects to be constructed by Sunlogics Inc., in addition to Sunlogics Inc. future solar rooftop and ground mount installations in Ontario, Canada and throughout the United States.

~~Since~~On ~~our~~May ~~inception~~13, we2011 ~~have~~(“the ~~been~~Closing ~~involved~~Date”) inSalamon ~~organizational activities,~~Group ~~have~~ Inc, completed ~~offerings~~the ofacquisition ~~shares~~ of ~~common~~Sunlogics ~~stock~~Power Fund, ~~have~~a ~~concluded~~corporation formed pursuant to the ~~licensing~~laws ~~and~~of ~~subsequent~~the ~~acquisition~~Province of anOntario, ~~Electric~~whereby ~~Power~~it ~~Generator~~acquired ~~(“EPG”) from~~all ~~Space~~of ~~Globe~~the issued and ~~have~~outstanding ~~completed~~shares aof ~~working~~capital ~~model~~stock of ~~the~~Sunlogics ~~power~~Power ~~generator.~~Fund As(the “Sunlogics ofPower ~~December~~Fund ~~31,~~Shares”) ~~2010,~~all ~~the~~of ~~Company~~which ~~has~~were ~~terminated~~held ~~all~~by ~~activities~~Michael ~~relating~~Matvieshen to (the “Seller”) ~~EPG~~(the ~~and power generator~~“Acquisition”).

OnThe ~~September~~purchase ~~20,~~price ~~2010~~for the Acquisition consisted of 40,000,000 shares ~~Salamon~~of ~~Group~~common ~~Inc~~stock, $0.001 ~~issued~~par avalue ~~Letter~~per share of the Registrant, issued to ~~Intent~~the Seller. On May 12, 2011 the parties amended the Stock Purchase Agreement (the “~~LOI~~SPA”), tomore specifically the purchase ~~100%~~price ofas ~~the~~follows: ~~issued~~SGI purchased and the ~~outstanding~~Seller ~~shares~~desired ofto ~~Sheppard~~sell the Sunlogics Power Fund Shares to SGI in exchange ~~Holdings~~for 20,000,000 ~~LLC.~~shares ~~The~~of ~~terms~~common stock of SGI (the ~~agreement~~“SGI ~~were~~Shares”) ~~accepted~~and by20,000,000 stock ~~Sheppard~~purchase ~~Holdings,~~warrants to be issued to the Seller and/or Seller’s assignee(s) ~~LLC~~(the on“SGU ~~September~~Warrants”). ~~21,~~The ~~2010~~SGI Warrants shall be exercisable at a price of $0.001 per Inshare ~~early~~and ~~October~~expiring ~~2010~~five weyears ~~terminated~~from the ~~LOI~~date of issuance (the ‘Amended SPA”).

OnImmediately ~~October~~upon 6,closing ~~2010~~of the Acquisition, ~~Salamon~~the ~~Group~~Registrant increased ~~Inc.~~its ~~terminated~~authorized ~~their Investor~~share ~~Relations~~capital ~~Agreement~~so ~~with~~as ~~LiveCall~~to ~~Investor~~allow ~~Relations~~for the exercise of the SGI Warrants.

OnThe ~~December~~terms ~~30,~~and ~~2010,~~conditions weof ~~entered~~the ~~into~~Acquisition awere ~~stock~~set ~~purchase agreement~~forth ~~with Sunlogics Power Fund Management Inc. (“Sunlogics Power Fund”).~~in ~~Sunlogics~~the ~~Power~~Amended ~~Fund~~SPA, isdated ~~focused~~as ~~on the acquisition~~ of ~~solar~~May ~~powered~~12, ~~electricity generating~~2011, ~~facilities~~by ~~which have long term power purchasing agreements in place with local power utilities~~ and ~~commercial~~among ~~users. In~~ the ~~event~~Registrant, ~~that the Company~~Michael ~~completes~~Matvieshen ~~its~~and ~~reverse take-over with~~ Sunlogics Power Fund (the “~~RTO"), it proposes to compete in the solar powered electricity generation market moving forward. The consummation and closing of the RTO (“Closing~~Parties”) isdisclosed ~~subject to the satisfaction or waiver of certain conditions, including: (i) the delivery of the Sunlogics Shares, (ii) the approval of the Sunlogics Power Fund financial statements~~ by the Registrant’s in ~~auditors~~a ~~(iii)~~Current ~~the~~Report ~~completion~~on ofForm ~~audited~~8-K ~~pro forma~~A ~~financial~~filed ~~statements~~with of the ~~Registrant,~~Securities and ~~(iii) other customary~~Exchange ~~conditions.~~Commission ~~For the period from inception~~ (~~April 27, 2001~~“SEC”) ~~through~~on ~~December~~May 3113, ~~2010,~~ ~~we had no revenue from operations and our deficit accumulated has amounted to $1,169,621~~2011.

AsThe ~~reported~~foregoing insummary of the ~~Report~~terms of ~~Independent~~the ~~Registered~~Acquisition ~~Public~~in its ~~Accounting~~entirety ~~Firm~~to onthe ~~our~~disclosure ~~December~~of ~~31,~~the ~~2010~~Current ~~financial~~Report ~~statements,~~on weForm ~~have~~8-K ~~suffered~~A filed by the ~~recurring~~Registrant ~~losses~~with ~~from~~the ~~operations,~~SEC weon ~~have~~May a13, ~~working~~2011, ~~capital~~which ~~deficit~~disclosure ~~and~~is aincorporated herein ~~deficit~~by ~~accumulated~~reference, ~~during~~as ~~the~~well ~~development~~as ~~stage.~~by ~~These~~the ~~items~~full ~~raise~~text ~~substantial doubt~~of ~~about~~the ~~our~~Amended ~~ability~~SPA toattached ~~continue~~ as aan exhibit ~~going concern~~thereto.

InSunlogics ~~the~~Power ~~event~~Fund ~~that~~is ~~the~~a ~~Company~~wholly-owned ~~completes~~subsidiary ~~the~~of ~~RTO,~~SGI. itAs ~~plans to~~a ~~generate~~result ~~revenues~~of ~~through:~~such i)acquisition, ~~the~~our ~~sale~~operations ofwill ~~solar~~now ~~powered~~be ~~electricity~~focused toon ~~local~~the solar power ~~utilities~~market ~~and~~by ~~end~~way ~~users~~of ~~through~~development ~~long term power purchase agreements;~~ and ~~ii)~~ byacquisitions ~~funding~~of solar ~~power~~powered electricity generating ~~plants~~facilities which ~~the~~have ~~Company~~long isterm ~~currently identifying~~power ~~with~~purchasing ~~potential~~agreements ~~customers~~ in ~~the~~place with ~~United~~local ~~States~~power ~~and Canada~~utilities. IfWe ~~the Company is successful in acquiring revenue producing renewable energy projects, we~~ intend to finance our operations through a combination of debt and equity ~~financing~~ funding.

For the year ended December 31, 2011 we had revenues of $3,126.

As reported in the Report of Independent Registered Public Accounting Firm on our December 31, 2011 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.

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.

We intend to offer additional securities under Rule 506 and Regulation D to fund our short-term and medium-term expansion plans.

(b) Business of Registrant. General

~~Since~~ ~~our~~Salamon ~~inception,~~Group weInc. ~~have~~(the ~~been~~“Company”, ~~involved in organizational activities~~“SGI”, ~~have~~or ~~completed~~the ~~offerings of shares of common stock~~“Registrant”), ~~have~~incorporated ~~concluded~~in the ~~licensing~~state ~~and subsequent acquisition~~ of anNevada ~~EPG~~on ~~from~~April ~~Space~~27, ~~Globe~~2001, ~~and~~is ~~have completed~~ a ~~working~~publicly ~~model~~traded ofindependent ~~the power~~"green" ~~generator.~~energy Ascompany ofwith ~~December~~headquarters 31in Kelowna, ~~2010~~BC, Canada. ~~the~~The Company’s ~~has~~business ~~terminated~~model ~~all~~includes ~~activities relating to~~ the ~~EPG~~development, acquisition and ~~power~~funding ~~generator.~~of Onroof ~~December~~top ~~30,~~and ~~2010,~~ground wemount ~~entered~~solar ~~into~~power aelectricity ~~stock~~generating ~~purchase~~systems, ~~agreement~~ with ~~Sunlogics~~initial ~~Power~~emphasis ~~Fund. Sunlogics Power Fund is focused~~ on the ~~acquisition~~General ofMotors solar ~~powered~~energy ~~electricity~~projects ~~generating~~to ~~facilities~~be ~~which~~constructed by ~~have~~Sunlogics ~~long~~Inc., ~~term~~in ~~power~~addition ~~purchasing~~to ~~agreements~~Sunlogics inInc. ~~place~~future ~~with~~solar ~~local~~rooftop ~~power utilities~~ and ~~commercial~~ground ~~users.~~mount Weinstallations ~~have~~in ~~had~~Ontario, noCanada ~~employees~~and ~~since~~throughout ~~our~~the ~~inception~~United States.

Management

~~Effective December 7, 2010, Mr. John Salamon resigned his position as President and CEO of our Company. Mr. Salamon was replaced by~~ Michael Matvieshen ~~who~~is ~~also remains in~~ the ~~positions of~~ President, and Chief Executive Officer ~~and Director~~ of the Corporation.

As ofat March 27, 2012, the ~~date~~Board of ~~this~~Directors ~~annual~~consisted ~~report,~~of weMichael ~~have~~Matvieshen, noLarry ~~other~~F ~~employees~~aulk orand ~~customers~~Stephane Bertrand.

As of the date of this annual report, we have no other employees. The Company engages consultants for certain administrative and management services.

Funding

We plan to raise funds by way of private placements or public offerings of share or debt instruments. The funds will be used to acquire solar powered electricity generating facilities which have long term power purchasing agreements in place with local power utilities and for general working capital in the event that the RTO is completed.

There are no arrangements, agreements or understandings between non-management shareholders and management under which non-management shareholders may directly or indirectly participate in or influence the management of our affairs. There are no arrangements, agreements or understandings under which non-management shareholders will exercise their voting rights to continue to elect the current directors to our Board of Directors.

Item 1A. Risk Factors.

Not applicable.

Item 2. Description of Property.

The Company’s head office is located at ~~1401 F Street, Suite 200, Modesto, California, US with a branch office located at~~ 215 Neave Road, Suite 5, Kelowna, BC, Canada.

Item 3. 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 4. Submission of Matters to a Vote of Security Holders.

No matters were submitted to a vote of our stockholders during the fiscal year ended December 31, ~~2010~~2011.

PART II

Item 5. Market for Equity Securities and Other Shareholder Matters.

Market Information

On October 5, 2007, our shares began trading on FINRA’s Over-The-Counter Bulletin Board (the “OTC Bulletin Board”) under the symbol “SLMU.”. As of August 12, 2010, our shares ceased trading on the OTC Bulletin Board and have since traded on the OTCQB. The following table sets forth the high and low bid prices for our common stock as reported by the OTC Bulletin Board and OTCQB for ~~2009~~2010 and ~~2010~~2011 in which our shares traded.

Quarter		High (1)		Low (1)
2009 First Quarter	$	0.04	$	0.002
2010 First Quarter	$	0.07	$	0.01
2009 Second Quarter	$	0.15	$	0.02
2009 Third Quarter	$	0.08	$	0.02
2009 Fourth Quarter	$	0.0444	$	0.015
2010 First Quarter	$	0.07	$	0.011
2010 Second Quarter	$	0.0275	$	0.0075
2010 Third Quarter	$	0.048	$	0.0075
2010 Fourth Quarter	$	0.248	$	0.01
2011 First Quarter	$	0.07	$	0.03
2011 Second Quarter	$	0.16	$	0.03
2011 Third Quarter	$	0.10	$	0.03
2011 Fourth Quarter	$	0.06	$	0.02

(1) These quotations reflect inter-dealer prices, without retail mark-up, mark-down or commissions, and may not represent actual transactions.

Our common stock is classified as a penny stock and as such, broker dealers dealing in our common stock will be subject to the disclosure rules for transactions involving penny stocks, which require the broker dealer to determine if purchasing our common stock is suitable for a particular investor. The broker dealer must also obtain the written consent of purchasers to purchase our common stock. The broker dealer must also disclose the best bid and offer prices available for our stock and the price at which the broker dealer last purchased or sold our common stock. These additional burdens imposed on broker dealers may discourage them from effecting transactions in our common stock, which could make it difficult for an investor to sell their shares.

Holders

As of December 31, ~~2010~~2011, we had 3640 shareholders of record and 2540,~~460~~000,~~728~~000 outstanding shares of common stock.

Dividends

We have never paid or declared any dividends on our common stock and do not anticipate paying cash dividends in the foreseeable future.

Transfer Agent

The transfer agent for the Common Stock is Signature Stock Transfer, Inc., PMB 317, 2220 Coit Road, Suite #480, Plano, Texas 75075. Tel: 972-612-4120, Fax: 972-612-4122.

Recent Sales of Unregistered Securities

None.

Item 7. Management's Discussion and Analysis or Plan of Operation.

~~Since~~As ~~our~~reported ~~inception,~~in wethe ~~have~~Report ~~been~~of ~~involved~~Independent inRegistered ~~organizational~~Public ~~activities,~~Accounting ~~have~~Firm ~~completed~~on ~~offerings~~our ofDecember ~~shares~~31, of2011 ~~common~~financial ~~stock~~statements, we have ~~concluded~~suffered ~~the~~recurring ~~licensing~~losses ~~and~~from ~~subsequent~~operations, ~~acquisition~~we ofhave ana ~~EPG~~working ~~from~~capital ~~Space~~deficit ~~Globe~~ and ~~have~~a ~~completed~~deficit aaccumulated ~~working~~during ~~model of~~ the ~~power~~development ~~generator~~stage. AsThese ofitems ~~December~~raise ~~31, 2010, the~~substantial ~~Company~~doubt ~~has~~about ~~terminated~~our ~~all~~ability ~~activities relating~~ to ~~the~~continue ~~EPG~~as ~~and~~a ~~power~~going ~~generator~~concern.

6The 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 funding solar power generating plants which the Company is currently identifying with potential customers in the United States and Canada. If the Company is successful in acquiring revenue producing renewable energy projects, we intend to finance our operations through a combination of debt and equity financing.

On December 30, 2010, we entered into a stock purchase agreement with Sunlogics Power Fund. Sunlogics Power Fund is focused on the acquisition of solar powered electricity generating facilities which have long term power purchasing agreements in place with local power utilities and commercial users. In the event that the Company completes its RTO with Sunlogics Power Fund, it proposes to compete in the solar powered market moving forward. The Closing is subject to the satisfaction or waiver of certain conditions, including: (i) the delivery of the Sunlogics Shares, (ii) the approval of the Sunlogics financial statements by the Registrant’s auditors (iii) the completion of audited pro forma financial statements of the Registrant, and (iii) other customary conditions. For the period from inception (April 27, 2001) through December 31, 2010, we had no revenue from operations and our deficit accumulated has amounted to $1,169,621.

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

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

As at December 31, 2011, the Company had advanced loan proceeds of $785,000 to Arise Technologies Corporation. The Company also issued $425,000 in convertible notes.

Results of Operations

Summary of Year End Results
		Year Ended					Percentage
		December 31,			December 31,		Increase /
		2010			2009		(Decrease)
Revenue	$	-		$	-		n/a
Expenses		(121,363	)		(195,107	)	(37.7	)%
Net Income (Loss)	$	(121,363	)	$	(195,107	)	(37.7	)%

The operating results and cash flows are presented for the years ended December 31, 2011 and 2010.

Summary of Year End Results

		Year Ended
		December 31,			December 31,
		2011			2010
Revenue	$	3,126		$	-

Expenses		(461,307	)		(121,363	)
Impairment of intangible asset		(1,299,595	)
Impairment of equipment		(74,305	)
Impairment of intangible asset		10,997
Deferred income tax recovery		324,899
Net Income (Loss)	$	(1,496,185	)	$	(121,363	)

Revenues

WeFor ~~did~~the ~~not~~year ~~earn~~ended ~~any~~December ~~revenues~~31, ~~during~~2011, ~~the~~we ~~fiscal~~had total revenue of $3,126, compared to Nil for the year ended December 31, 2010., an increase of $3,126 from revenues for usage of the Company’s solar powered charging station.

~~Expenses~~As of December 31, 2011 and December 31, 2010, deferred revenue totaled $44,374 and $Nil, respectively.

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

		Year Ended			Percentage
		December 31,		December 31,	Increase /
		2010		2009	(Decrease)
General and Administrative	$	121,363	$	195,107	(37.7	)%
Total Expenses	$	121,363	$	195,107	(37.7	)%

~~The~~Expenses decrease in general and administrative expenses during the year end December 31, 2010 is primarily a result of a decrease in audit fees and consulting fees. We did not incur any interest or research and development fees during the year ended December 31, 2010 or December 31, 2009.

~~Liquidity~~The ~~And~~major ~~Capital~~components ~~Resources~~of our expenses for the year are outlined below:

	Working Capital
		Year Ended
								Percentage
		December 31,			December 31,
			At December 31,			At December 31,		Increase /
		2011			2010
			2010			2009		(Decrease)
General and Administrative	$	415,780		$	121,363
	Current Assets	$	0		$	43		(100%	)
Depreciation		5,821			-
	Current Liabilities		(136,660	)		(85,723	)	59.4%
Donated Rent		5,332			-
	Working Capital	$	(136,660	)	$	(85,680	)	(59.5	)%
Interest		34,374			-
Total Expenses	$	461,307		$	121,363

Cash Flows
		Year Ended
		December 31,			December 31,
		2010			2009
Net Cash Provided By (Used In) Operating Activities	$	16,531		$	(109,673	)
Net Cash from Investing Activities		-			-
Net Cash (Used In) Provided By Financing Activities		(16,574	)		109,714
Net Change in Cash During Period	$	(43	)	$	41

For the year ended December 31, 2011, we had total operating expenses of $461,307, compared to $121,363 for the year ended December 31, 2010, an increase of $339,944.

~~Our~~For ~~working capital deficit increased during~~ the year ended December 31, ~~2010~~2011, ~~because~~we ~~our~~had ~~current~~management ~~liabilities~~fees of $224,675, ~~particularly~~compared ~~our~~to ~~accounts payable~~$10,000 ~~increased~~for ~~during~~ the year ended December 31, 2010, ~~compared~~an ~~to the year~~increase ~~ended~~of ~~December 31~~$214, ~~2009~~675. InThe ~~addition,~~increase ain ~~total~~management offees ~~$2,233~~is ~~was~~attributed ~~due~~ to athe ~~director of~~services ~~the~~rendered ~~Company~~by atthe ~~December~~President ~~31,~~of ~~2010,~~the ~~as an unsecured, non interest bearing note due on demand~~Company.

~~Financing~~For ~~Requirements~~the year ended December 31, 2011, we had professional and consulting fees of $157,350 compared to $79,428 for the year ended December 31, 2010, an increase of $77,922. The increase in professional and consulting fees is attributed to higher volume of activities during the year.

~~From~~For ~~inception~~the toyear ended December 31, ~~2010~~2011, we ~~have~~had ~~suffered cumulative~~impairment ~~losses~~of inan intangible ~~the~~asset ~~amount~~ of $1,~~169~~299,~~621.~~595 ~~Since~~compared ~~our inception, we have funded operations through common stock issuances, related party loans, and the support of creditors in order~~ to ~~meet~~Nil ~~our strategic objectives. Our management believes that sufficient funding will be available to meet our business objectives, including anticipated cash needs~~ for ~~working~~the ~~capital,~~year ~~and~~ended ~~are currently~~December ~~evaluating several financing options~~31, ~~including a public offering of~~ ~~securities. However~~2010, ~~there~~an ~~can~~increase ~~be no assurance that we will be able to obtain sufficient funds to continue our operations. As a result~~ of ~~the foregoing~~$1, ~~our independent auditors believe there exists substantial doubt about our ability to continue as a going concern~~299,595. 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.

For the year ended December 31, 2011, we had impairment of an equipment of $74,305 compared to Nil for the year ended December 31, 2010, an increase of $74,305.

The net loss for the year ended December 31, 2011 was $1,496,185 compared to $121,363 for the year ended December 31, 2010, an increase of $1,374,822.

Liquidity and Capital Resources

Working Capital

		At Dec 31,			At Dec 31,
		2011			2010
Current Assets	$	783,489		$	0
Current Liabilities		(1,404,338	)		(136,660	)
Working Capital	$	(620,849	)	$	(136,660	)

Cash Flows

		Year Ended
		December 31,			December 31,
		2011			2010
Net Cash Provided By (Used In) Operating Activities	$	(1,856	)	$	16,531
Net Cash from Investing Activities		1			-
Net Cash (Used In) Provided By Financing Activities		2,638			16,574
Net Change in Cash During Year	$	783		$	(43	)

Financing Requirements

From inception to December 31, 2011, we have suffered cumulative losses in the amount of $2,665,806. 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.

Financial Condition, Capital Resources and Liquidity

As of December 31, ~~2010~~2011, we have a deficit accumulated during the development stage of $12,~~169~~665,~~621~~806. At December 31, ~~2010~~2011, we had assets ~~totalling~~ totaling $0830,363 and ~~current~~ liabilities of $~~136~~1,~~660~~448,712 attributable to ~~amounts~~accounts ~~due~~payable, toconvertible debt, ~~related~~loans ~~parties~~payable, advances from directors and ~~accounts~~deferred ~~payable~~revenues.

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

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

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

Net Operating Losses

As of December 31, ~~2010~~2011, we have accumulated a net loss of $12,~~169~~665,~~621~~806.

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 December 31, ~~2010~~2011.

Critical Accounting Policies

There were no changes to the critical accounting policies as discussed in our ~~2009~~2010 Form 10-K.

Item 8. Financial Statements.

Exhibit 99.1, “Salamon Group Inc. Financial Statements” are incorporated herein by reference.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

~~On November 12, 2010, Salamon Group, Inc. dismissed its~~ ~~independent~~There ~~registered~~were ~~public accounting firm, KMJ Corbin & Company LLP. At~~ no ~~time~~changes ~~during~~in ~~our fiscal years ended 2008 and 2009,~~ or ~~during the subsequent interim period, preceding the dismissal of KMJ Corbin & Company LLP, were there any~~ disagreements with ~~KMJ~~our ~~Corbin~~accountants ~~& Company LLP~~ on ~~any matter of~~ accounting ~~principles~~and ~~or practices,~~ financial ~~statement~~ disclosure ~~or auditing scope or procedure~~matters. Any such disagreements, if not resolved to the satisfaction of KMJ Corbin & Company LLP, would have caused KMJ Corbin & Company LLP to reference the subject matter of the disagreements in its reports on our financial statements. Effective November 12, 2010 the Company engaged Manning Elliott LLP to serve as the Company's new independent registered public accounting firm.

Item 9A(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 December 31, ~~2010~~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.

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~~2011. 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 December 31, ~~2010~~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~~ 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 ~~fourth quarter of our fiscal~~ year ended December 31, ~~2010~~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.

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.

Item 9B. Other Information.

None.

PART III

Item 10. Directors, Executive Officers, Promoters and Control Persons of the Company.

Directors and Executive Officers

Set forth below are the names, ages, terms of office and positions of our executive officers and directors.

Name	~~Name~~Age	~~Age~~Term of Office	~~Term of Office~~Position	~~Position~~
	John A. Salamon	64	Directorship subject to annual election by shareholders (1)	Director
Michael Matvieshen	48	Directorship subject to annual election by shareholders	Director and CEO
	Michael Matvieshen	48	Directorship subject to annual election by shareholders	Director and CEO
Stephane Bertrand		Directorship subject to annual election by shareholders	Director
Larry Faulk		Directorship subject to annual election by shareholders	Director

(1)On December 7 2010, John Salamon resigned as director of the Company subject to the filing and mailing of a Schedule 14f information statement.

All directors hold office until the next annual meeting of our shareholders and until their successors have been elected and qualify. Officers serve at the pleasure of the Board of Directors. The directors will devote such time and effort to our business and affairs as may be necessary to perform their responsibilities.

Aside from the directors stated above, there are no other persons whose activities will be material to our operations at this time. However as finances allow, we will engage management and other personnel as required in such areas as finance, administration, sales and marketing, research and development, and overall management.

Significant Employees

We have no employees.

Family Relationships

There are no family relationships between or among our executive officer and directors.

Item 11. Executive Compensation.

WeAll domanagement ~~not~~fees ~~anticipate~~are ~~that~~being ~~any~~accrued ~~of our executive officers will receive any cash or non-cash compensation for his or her services to us~~ until we ~~commence~~ commence business operations. At such time as we commence operations, we expect that the Board of Directors will approve the payment of salaries in a reasonable ~~amount~~ amount to each of our officers for their services in the positions. At such time, the Board of Directors may, in its discretion, approve the payment of ~~additional~~ additional cash or non-cash compensation to our officers for their services to us.

We do not provide officers with pension, stock appreciation rights, long-term incentive or other plans but we may implement such plans in the future.

Compensation of Directors

We have no standard arrangements for compensating our directors for their attendance at meetings of the Board of Directors.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The following table sets forth information as of December 31, ~~2010~~2011, regarding the ownership of our common stock by each shareholder known by us to be the beneficial owner of more than five per cent of our outstanding shares of common stock, each director and all executive officers and directors as a group. Except as otherwise indicated, each of the shareholders has sole voting and investment power with respect to the shares of common stock beneficially owned.

Title of Class	~~Title~~Name ofand ~~Class~~Address of	~~Name~~Amount and ~~Address~~Nature ~~ofBeneficial Owner~~of	~~Amount~~Percent ~~and~~of ~~Nature ofBeneficial Owner~~Class	~~Percent of Class~~
	Common	Sunlogics Inc. IN TRUST, 215 Neave Road, Suite 5, Kelowna, BC, Canada	1,325,627(1)	5.20%
	Beneficial Owner	Beneficial Owner
Common	~~Common~~Michael Matvieshen	~~Space Globe Technologies Ltd.~~9, ~~1028 Alberni Street~~705, ~~Suite 413, Vancouver, BC, Canada V6E 1A3~~119(1)	~~11,224,033(2)~~24.26%	~~44.08%~~
	215 Neave Road, Suite 5,
	Kelowna, BC, Canada
Common	Space Globe Technologies Ltd.,	2,080,432(2)	5.20%
	1028 Alberni Street, Suite 413,
	Vancouver, BC, Canada
Common	Charles Bryant	2,084,153	5.21%
	1401 F Street,
	Modesto, CA
Common	Derek Bannister	5,500,000	13.75%
	Vernon, BC, Canada
Common	Sunlogics Inc. In Trust	1,325,627(3)	3.31%
	Kelowna, BC, Canada

(1) Sunlogics Inc. is a Canadian corporation (2) Space Globe Technologies Ltd. is a Canadian corporation wholly owned by Mr. John Salamon.

⁽¹⁾	Director and CEO
⁽²⁾	Space Globe Technologies Ltd. is a Canadian corporation wholly owned by Mr. John Salamon.
⁽³⁾	Sunlogics Inc. shares are held in trust by Michael Matvieshen

Item 13. Certain Relationships and Related Transactions.

At December 31, ~~2010~~2011, a total of $2393,~~233~~592 was due to a director of the Company. The amount owing is unsecured, non -interest bearing and is due on demand.

Item 14. Principal Accountant Fees and Services.

(1) Audit Fees.

The aggregate fees billed for professional services rendered by our principal accountants for the audit of the Registrant's annual financial statements and review of the financial statements included in the Registrant's Forms 10-K and 10-Q or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for fiscal years ~~2010~~2011 and ~~2009~~2010 were approximately $4327,~~520~~500 and $3443,~~800~~520 respectively each year.

(2) Audit Related Fees.

There were no audit related fees for professional services rendered for fiscal years ~~2010~~2011 and ~~2009~~2010.

(3) Tax Fees.

Tax fees for fiscal years ~~2010~~2011 and ~~2009~~2010 were $1,200 each year.

(4) All Other Fees.

Not applicable.

(5) Audit Committee Policies and Procedures.

The Registrant does not have an audit committee. The Board of Directors of the Registrant approved all of the services rendered to the Registrant by our principal accountants for fiscal years ~~2010~~2011 and ~~2009~~2010.

Item 15. Exhibits.

Exhibit	~~Exhibit~~Description	~~Description~~
No.	~~No.~~
2.1	~~2.1~~Articles of Incorporation	~~Articles of Incorporation~~(1)	~~(1)~~
2.2	~~2.2~~Bylaws	~~Bylaws~~(1)	~~(1)~~
2.3	~~2.3~~Initial List of Officers, Directors and Registered Agent	~~Initial List of Officers, Directors and Registered Agent~~(1)	~~(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)
99.1	Salamon Group Financial Statements for the fiscal years ended December 31, 2011 and 2010 together with Report of Independent Registered Public Accounting Firm.	(2)

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)
99.1	Salamon Group Financial Statements for the fiscal years ended December 31, 2010 and 2009 together with Report of Independent Registered Public Accounting Firm.	(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: By: ________________________________

	SALAMON GROUP, INC.
Dated: April 13, 2012	/s/ Michael Matvieshen
	Michael Matvieshen

Salamon Group, Inc. (A Development Stage Company) ~~December~~ December 31, ~~2010~~2011

	Index
Report of Independent Registered Public Accounting Firm	F-1
Report of Independent Registered Public Accounting Firm	F-2
Balance Sheets	F-3
Statements of Operations	F-4
Statements of Cash Flows	F-5
Statements of Stockholders’ Deficit	F-6
Notes to the Financial Statements	F-8

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders ~~ofSalamon~~of Salamon Group, Inc. (A Development Stage Company)

We have audited the accompanying consolidated balance ~~sheet~~sheets of Salamon Group, Inc. (A Development Stage Company) as of December 31, 2011 and 2010 and the related consolidated statements of operations, cash flows and stockholders’ deficit for ~~the~~ ~~year~~the years then ended. In addition, we have audited the consolidated statements of operations, cash flows and stockholders'’ deficit for the period from April 27, 2001 (Inception) to December 31, 2005 and from January 1, 2010 to December 31, 2011, which have been included in the Company'’s cumulative balances. These consolidated financial statements are the responsibility of the Company'’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. ~~The~~Our ~~financial~~opinion ~~statements~~on ~~as of December 31, 2009, and for~~ the ~~year~~consolidated ~~then~~statements ~~ended, were audited by another firm~~ of ~~independent accountants~~operations, ~~which~~stockholders’ ~~expressed~~deficit anand ~~audit~~cash ~~opinion~~flows ~~without~~for ~~reservation~~the onperiod ~~those financial~~from ~~statements~~April in27, ~~its~~2001 ~~report~~(inception) ~~dated~~to ~~May~~December 1731, ~~2010. Our opinion~~2011, insofar as it relates to the amounts included for the cumulative period from January 1, 2006 to December 31, 2009, is based on the reports of the other auditors.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control over financial reporting. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our ~~audit~~audits ~~provides~~provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Salamon Group, Inc. (A Development Stage Company) as of December 31, 2011 and 2010, and the results of its operations, cash flows and stockholders’ deficit for the ~~year~~ years then ended and accumulated from April 27, 2001 (inception) to December 31, 2011 in conformity with accounting principles generally accepted in the United States.

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, the Company has a working capital deficit and has accumulated losses since inception. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to these matters are also discussed in Note 1. The ~~financial~~consolidated ~~statements~~financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ “Manning ~~Elliot~~Elliott LLP ~~CHARTERED~~” ~~ACCOUNTANTS Vancouver, Canada April 5, 2011~~

CHARTERED ACCOUNTANTS

Vancouver, Canada

April 12, 2012

F-1

~~REPORT~~Salamon OFGroup, ~~INDEPENDENT~~Inc. ~~REGISTERED~~(A ~~PUBLIC~~Development ~~ACCOUNTING~~Stage ~~FIRM~~Company) Consolidated Balance Sheets (Expressed in US dollars)

To the Board of Directors and Stockholders of Salamon Group, Inc.

	December 31,		December 31,
	2011		2010
	$		$

ASSETS
Current assets:
Cash	783		-
Loans receivable (Note 3)	782,706		-
Total Current Assets	783,489		-
Property and Equipment (Note 4)	46,874		-
Total Assets	830,363		-

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities:
Bank overdraft	-		4
Accounts payable and accrued liabilities	287,550		134,423
Convertible debt, net of unamortized discount of $58,292 (Notes 5 and 6)	366,708		-
Loans payable (Note 7)	353,988		-
Advances from directors (Note 5)	393,592		2,233
Current portion of deferred revenues (Note 2(j))	2,500		-
Total Current Liabilities	1,404,338		136,660
Deferred revenues, long-term portion (Note 2(i))	44,374		-
Total Liabilities	1,448,712		136,660
Contingencies and Commitments (Notes 1 and 10)
Subsequent Events (Note 13)

Stockholders’ Deficit:
Preferred stock, no par value; 10,000,000 shares authorized, no shares issued and outstanding	-		-
Common stock, $0.001 par value; 40,000,000 shares authorized, 40,000,000 (December 31, 2010 – 25,460,728) shares issued and outstanding	40,000		25,461
Common stock to be issued	-		15,000
Additional paid-in capital	2,002,125		992,500
Donated capital (Note 5)	5,332		-
Accumulated deficit	(2,665,806	)	(1,169,621	)
Total Stockholders’ Deficit	(618,349	)	(136,660	)
Total Liabilities and Stockholders’ Deficit	830,363		-

WeSee ~~have audited the~~ accompanying ~~balance~~notes ~~sheet~~to ~~of Salamon Group, Inc. (a development stage company) (~~the ~~“Company”)~~consolidated as of December 31, 2009, and the related statements of operations, stockholders’ deficit and cash flows for the year then ended and the years ended December 31, 2008, 2007 and 2006, which have been included in the Company’s cumulative balances. These financial statements ~~are the responsibility of the Company’s management. Our~~ ~~responsibility is to express an opinion on these financial statements based on our audits.~~

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Salamon Group, Inc. as of December 31, 2009, and the results of its operations and its cash flows for each of the years ended December 31, 2009, 2008, 2007 and 2006 in conformity with accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As more fully described in Note 1, the Company has no revenues and has suffered recurring losses from operations since inception, has a working capital deficit and has a deficit accumulated during the development stage at December 31, 2009. These items, among other matters, raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 1. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amount and classification of liabilities that may result from the outcome of this uncertainty.

/s/ KMJ Corbin & Company LLP Costa Mesa, California May 17, 2010

F-2

Salamon Group, Inc. (A Development Stage Company) ~~Balance~~Consolidated ~~Sheets~~Statements of Operations (Expressed in US dollars)

	December 31,		December 31,
					For the Period
	2010		2009
					from April 27,
	$		$
	For the Year		For the Year		2001
ASSETS
	Ended		Ended		(Inception) to
Current assets:
	December 31,		December 31,		December 31,
Cash	-		43
	2011		2010		2011
Total assets	-		43
	$		$		$
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Revenues	3,126		-		3,126
Current liabilities:
Expenses
Bank overdraft	4		-
Depreciation	5,821		-		10,336
Accounts payable	134,423		66,912
Donated rent (Note 5)	5,332		-		5,332
Due to related parties (Note 3)	2,233		18,811
General and administrative (Note 5)	415,780		121,363		1,230,053
Total liabilities	136,660		85,723
Interest expense	34,374		-		70,207
Contingencies and Commitments (Notes 1 and 5)
Research and development	-		-		315,000
Subsequent Event (Note 7)
Total Expenses	461,307		121,363		1,630,928
Stockholders’ deficit:
Loss Before Other Expenses	(458,181	)	(121,363	)	(1,627,802	)
Preferred stock, no par value; 10,000,000 shares authorized, no shares issued and outstanding	-		-
Other Expenses
Common stock, $0.001 par value; 50,000,000 shares authorized, 26,960,728 and 21,817,127 shares issued and outstanding, respectively	25,461		21,817
Impairment of intangible asset (Note 11)	(1,299,595	)	-		(1,299,595	)
Common stock to be issued	15,000		-
Impairment of property and equipment (Note 4)	(74,305	)	-		(74,305	)
Additional paid-in capital	992,500		940,761
Interest income (Note 3)	10,997		-		10,997
Accumulated deficit	(1,169,621	)	(1,048,258	)
Loss before Income Taxes	(1,821,084	)	(121,363	)	(2,990,705	)
Total stockholders’ deficit	(136,660	)	(85,680	)
Deferred income tax recovery (Note 12)	324,899		-		324,899
Total liabilities and stockholders’ deficit	-		43
Net Loss	(1,496,185	)	(121,363	)	(2,665,806	)
Loss Per Share – Basic and Diluted	(0.04	)	(0.01	)
Weighted Average Shares Outstanding	40,737,000		23,042,000

See accompanying notes to the consolidated financial statements

F-3

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

					For the Period
					For the Period from
					from April 27,
	For the Year		For the Year		April 27, 2001
	For the Year		For the Year		2001
	Ended		Ended		(Inception) to
	December 31,		December 31,		December 31,
	2010		2009		2010
	2011		2010		2011
	$		$		$
Expenses
Cash flow from operating activities:
General and administrative	121,363		195,107		818,788
Net loss	(1,496,185	)	(121,363	)	(2,665,806	)
Interest expense	-		-		35,833
Adjustments to reconcile net loss to net cash used in operating activities:
Research and development	-		-		315,000
Amortization of intangible asset	-		-		55,000
Total expenses	121,363		195,107		1,169,621
Estimated fair value of common stock issued for patents	-		-		315,000
Net loss	(121,363	)	(195,107	)	(1,169,621	)
Accretion on convertible debt	34,375		-		34,375
Loss per share – basic and diluted	(0.01	)	(0.01	)
Beneficial conversion of amounts due to related party	-		-		35,833
Weighted average shares outstanding	23,042,000		19,253,879
Depreciation of property and equipment	5,821		-		10,336
Estimated fair value of common stock issued for services	22,425		-		168,216
Donated rent	5,332		-		5,332
Deferred income tax recovery	(324,899	)	-		(324,899	)
Impairment of write-down of intangible asset	1,299,595		-		1,299,595
Impairment of write-down of property and equipment	74,305		-		74,305
Changes in operating assets and liabilities:
Accounts payable	(54,499	)	137,894		146,739
Deferred revenues	46,874		-		46,874
Due to related party	385,000		-		385,000
Net cash provided by (used in) operating activities	(1,856	)	16,531		(414,100	)
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	)	4		-
Advances from directors	6,360		(16,578	)	346,415
Proceeds from issuance of convertible debt	425,000		-		425,000
Loans receivable	(428,718	)	-		(428,718	)
Proceeds from related party note payable	-		-		23,700
Issuance of common stock for cash	-		-		103,000
Net cash provided by (used in) financing activities	2,638		(16,574	)	469,397
Net increase (decrease) in cash	783		(43	)	783
Cash, beginning of period	-		43		-
Cash, end of period	783		-		783
Non-cash Financing Activities:
Common stock issued upon conversion of amounts due to related parties	82,200		52,382		458,588
Common stock to be issued or to be issued to settle accounts payable	-		18,000		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	811,872		-		811,872

See accompanying notes to the consolidated financial statements

F-4

Salamon Group, Inc. (A Development Stage Company) ~~Statements~~Statement of ~~Cash~~Stockholders’ ~~Flows~~Deficit (Expressed in US dollars)

					For the Period
	Common Stock
					from April 27,
									Deficit
	For the Year		For the Year		2001
									Accumulated
	Ended		Ended		(Inception) to
					Common		Additional		During the		Total
	December 31,		December 31,		December 31,
					Stock to be		Paid-In	Donated	Development		Stockholders’
	2010		2009		2010
	Shares		Amount		Issued		Capital	Capital	Stage		Deficit
	$		$		$
	#		$		$		$	$	$		$
Cash flow from operating activities:
Balance at April 27, 2001 (inception)	-		-		-		-	-	-		-
Net loss	(121,363	)	(195,107	)	(1,169,621	)
Shares issued for cash	1,850,324		1,850		-		34,682	-	-		36,532
Adjustments to reconcile net loss to net cash used in operating activities:
Estimated fair value of shares issued for purchase of license	5,000,000		5,000		-		-	-	-		5,000
Amortization of intangible asset	-		-		55,000
Estimated fair value of shares issued for services	702,450		703		-		-	-	-		703
Estimated fair value of common stock issued for patents	-		-		315,000
Net loss	-		-		-		-	-	(34,337	)	(34,337	)
Beneficial conversion of amounts due to related party	-		-		35,833
Balance at December 31, 2001	7,552,774		7,553		-		34,682	-	(34,337	)	7,898
Depreciation of property and equipment	-		-		4,515
Shares issued for cash	481,046		481		-		43,527	-	-		44,008
Estimated fair value of common stock issued for services	-		82,000		145,791
Estimated fair value of shares issued for services	500,000		500		-		9,900	-	-		10,400
Changes in operating assets and liabilities:
Net loss	-		-		-		-	-	(54,959	)	(54,959	)
Prepaid expense	-		688		-
Balance at December 31, 2002	8,533,820		8,534		-		88,109	-	(89,296	)	7,347
Accounts payable	137,894		2,746		198,237
Shares issued for cash	183,640		184		-		22,276	-	-		22,460
Net cash provided by (used in) operating activities	16,531		(109,673	)	(415,245	)
Estimated fair value of shares issued for services	143,960		144		-		392	-	-		536
Cash flows from investing activities:
Estimated fair value of shares issued for expenses	101,400		101		-		10,039	-	-		10,140
Purchase of property and equipment	-		-		(4,515	)
Net loss	-		-		-		-	-	(47,881	)	(47,881	)
Purchase of license	-		-		(50,000	)
Balance at December 31, 2003	8,962,820		8,963		-		120,816	-	(137,177	)	(7,398	)
Net cash used in investing activities	-		-		(54,515	)
Net loss	-		-		-		-	-	(32,966	)	(32,966	)
Cash flows from financing activities:
Balance at December 31, 2004	8,962,820		8,963		-		120,816	-	(170,143	)	(40,364	)
Bank overdraft	4		-		4
Net loss	-		-		-		-	-	(31,102	)	(31,102	)
Advances from related parties	(16,578	)	86,014		340,056
Balance at December 31, 2005	8,962,820		8,963		-		120,816	-	(201,245	)	(71,466	)
Proceeds from related party note payable	-		23,700		23,700
Net loss	-		-		-		-	-	(27,814	)	(27,814	)
Issuance of common stock for cash	-		-		103,000
Balance at December 31, 2006	8,962,820		8,963		-		120,816	-	(229,059	)	(99,280	)
Net cash provided by (used in) financing activities	(16,574	)	109,714		466,760
Estimated fair value of common stock issued upon conversion of amounts due to related party	2,310,000		2,310		-		200,857	-	-		203,167
Net change in cash	(43	)	41		0
Estimated fair value of common stock issued for patents	4,500,000		4,500		-		310,500	-	-		315,000
Cash, beginning of period	43		2		-
Estimated fair value of common stock issued for consulting services	350,000		350		-		24,650	-	-		25,000
Cash, end of period	0		43		0
Net loss	-		-		-		-	-	(483,468	)	(483,468	)
Non-cash Financing Activities:
Balance at December 31, 2007	16,122,820		16,123		-		656,823	-	(712,527	)	(39,581	)
Common stock issued upon conversion of amounts due to related parties	52,383		59,812		376,388
Estimated fair value of common stock issued upon conversion of amounts due to related parties	1,879,880		1,880		-		94,979	-	-		96,859
Common stock to be issued or to be issued to settle accounts payable	18,000		-		18,000
Estimated fair value of common stock issued for services rendered	400,000		400		-		14,600	-	-		15,000
Common stock issued upon conversion of related party note payable	-		23,700		23,700
Estimated fair value of common stock issued for accrued services	201,180		201		-		11,870	-	-		12,071
Common stock issued for license	-		-		5,000
Shares surrendered by former director	(1,000,000	)	(1,000	)	-		1,000	-	-		-
Common stock issued in conversion of accounts payable	-		-		10,059
Net loss	-		-		-		-	-	(140,624	)	(140,624	)
Balance at December 31, 2008	17,603,880		17,604		-		779,272	-	(853,151	)	(56,275	)

See accompanying notes to the consolidated financial statements

F-5

Salamon Group, Inc. (A Development Stage Company) Statement of Stockholders’ Deficit (Expressed in US dollars)

								Deficit
	Common Stock
								Accumulated
										Deficit
					Common		Additional	During the		Total
										Accumulated
	Common Stock				Stock to be		Paid-In	Development		Stockholders’
					Common		Additional			During the		Total
			Amount		Issued		Capital	Stage		Deficit
					Stock to be		Paid-In	Donated		Development		Stockholders’
	Shares		$Amount		$Issued		$Capital	$Capital		$Stage		Deficit
Balance at April 27, 2001 (inception)	-		-		-		-	-		-
	#		$		$		$	$		$		$
Shares issued for cash	1,850,324		1,850				34,682	-		36,532
Balance at December 31, 2008	17,603,880		17,604		-		779,272	-		(853,151	)	(56,275	)
Estimated fair value of shares issued for purchase of license	5,000,000		5,000		-		-	-		5,000
Estimated fair value of common stock issued upon conversion of amounts due to related parties	2,713,247		2,713		-		80,989	-		-		83,702
Estimated fair value of shares issued for services	702,450		703		-		-	-		703
Estimated fair value of common stock issued for services	1,500,000		1,500		-		80,500	-		-		82,000
Net loss	-		-		-		-	~~(34,337~~-	)	(34195,~~337~~107	)	(195,107	)
Balance at December 31, 2001	7,552,774		7,553		-		34,682	(34,337	)	7,898
Balance at December 31, 2009	21,817,127		21,817		-		940,761	-		(1,048,258	)	(85,680	)
Shares issued for cash	481,046		481		-		43,527	-		44,008
Estimated fair value of common stock issued upon conversion of amounts due to related parties	3,343,601		3,344		-		49,039	-		-		52,383
Estimated fair value of shares issued for services	500,000		500		-		9,900	-		10,400
Estimated fair value of common stock issued to settle accounts payable	300,000		300		-		2,700	-		-		3,000
Net loss	-		-		-		-	(54,959	)	(54,959	)
Estimated fair value of common stock to be issued to settle accounts payable	-		-		15,000		-	-		-		15,000
Balance at December 31, 2002	8,533,820		8,534		-		88,109	(89,296	)	7,347
Net loss	-		-		-		-	-		(121,363	)	(121,363	)
Shares issued for cash	183,640		184		-		22,276	-		22,460
Balance at December 31, 2010	25,460,728		25,461		15,000		992,500	-		(1,169,621	)	(136,660	)
Estimated fair value of shares issued for services	143,960		144		-		392	-		536
Estimated fair value of common stock issued upon conversion of amounts due to related parties	2,084,153		2,084		-		80,116	-		-		82,200
Estimated fair value of shares issued for expenses	101,400		101		-		10,039	-		10,140
Estimated fair value of common stock issued to settle accounts payable	2,750,000		2,750		(15,000	)	34,675	-		-		22,425
Net loss	-		-		-		-	(47,881	)	(47,881	)
Estimated fair value of common stock to acquire Sunlogics Power Fund	20,000,000		20,000		-		791,872	-		-		811,872
Balance at December 31, 2003	8,962,820		8,963		-		120,816	(137,177	)	(7,398	)
Beneficial conversion feature on convertible debentures	-		-		-		92,667	-		-		92,667
Net loss	-		-		-		-	(32,966	)	(32,966	)
Shares cancelled	(10,294,881	)	(10,295	)	-		10,295	-		-		-
Balance at December 31, 2004	8,962,820		8,963		-		120,816	(170,143	)	(40,364	)
Donated rent	-		-		-		-	5,332		-		5,332
Net loss	-		-		-		-	~~(31,102~~-	)	(311,~~102~~496,185	)	(1,496,185	)
Balance at December 31, 2005	8,962,820		8,963		-		120,816	(201,245	)	(71,466	)
Balance at December 31, 2011	40,000,000		40,000		-		2,002,125	5,332		(2,665,806	)	(618,349	)
Net loss	-		-		-		-	(27,814	)	(27,814	)
Balance at December 31, 2006	8,962,820		8,963		-		120,816	(229,059	)	(99,280	)
Estimated fair value of common stock issued upon conversion of amounts due to related party	2,310,000		2,310		-		200,857	-		203,167
Estimated fair value of common stock issued for patents	4,500,000		4,500		-		310,500	-		315,000
Estimated fair value of common stock issued for consulting services	350,000		350		-		24,650	-		25,000
Net loss	-		-		-		-	(483,468	)	(483,468	)
Balance at December 31, 2007	16,122,820		16,123		-		656,823	(712,527	)	(39,581	)
Estimated fair value of common stock issued upon conversion of amounts due to related parties	1,879,880		1,880		-		94,979	-		96,859
Estimated fair value of common stock issued for services rendered	400,000		400		-		14,600	-		15,000
Estimated fair value of common stock issued for accrued services	201,180		201		-		11,870	-		12,071
Shares surrendered by former director
	(1,000,000	)	(1,000	)	-		1,000	-		-
Net loss	-		-		-		-	(140,624	)	(140,624	)
Balance at December 31, 2008	17,603,880		17,604		-		779,272	(853,151	)	(56,275	)

See accompanying notes to the consolidated financial statements

F-6

Salamon Group, Inc. (A Development Stage Company) ~~Statement~~Notes ofto ~~Stockholders’~~the ~~Deficit~~Consolidated Financial Statements for the years ended December 31, 2011 and 2010 (Expressed in US dollars)

						Deficit
1.	Nature of Operations and Going Concern
						Accumulated
	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 acquire revenue producing assets in the industry 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.
				Common	Additional	During the		Total
	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 December 31, 2011, the Company has accumulated losses of $2,665,806 since inception and a working capital deficit of $620,849 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.
		Common Stock		Stock to be	Paid-In	Development		Stockholders’
	Management plans to continue to provide for the Company’s capital needs by issuing debt and equity securities and by the continued support of its related parties (see Note 5). 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.
			Amount	Issued	Capital	Stage		Deficit
2.	Summary of Significant Accounting Policies
		Shares	$	$	$	$		$
	(a)	Basis of presentation and consolidation
Balance at December 31, 2008		17,603,880	17,604	-	779,272	(853,151	)	(56,275	)
		The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States and are expressed in United States dollars. The Company’s fiscal year end is December 31. These consolidated financial statements include the accounts of its wholly-owned subsidiary Sunlogics Power Fund Management Inc. (“Sunlogics Power”) from the date control was acquired on May 12, 2011. All inter-company transactions and balances have been eliminated.
Estimated fair value of common stock issued upon conversion of amounts due to related parties		2,713,247	2,713	-	80,989	-		83,702
	(b)	Use of estimates
Estimated fair value of common stock issued for services		1,500,000	1,500	-	80,500	-		82,000
		The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to deferred income tax asset valuation allowances, stock-based payments, useful life and valuation of property and equipment, valuation of intangible assets and financial instrument valuations. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses. The actual results experience by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.
Net loss		-	-	-	-	(195,107	)	(195,107	)
Balance at December 31, 2009		21,817,127	21,817	-	940,761	(1,048,258	)	(85,680	)
Estimated fair value of common stock issued upon conversion of amounts due to related parties		3,343,601	3,344	-	49,039	-		52,383
Estimated fair value of common stock issued to settle accounts payable		300,000	300	-	2,700	-		3,000
Estimated fair value of common stock to be issued to settle accounts payable		-	-	15,000	-	-		15,000
Net loss		-	-	-	-	(121,363	)	(121,363	)
Balance at December 31, 2010		25,460,728	25,461	15,000	992,500	(1,169,621	)	(136,660	)

See accompanying notes to the financial statements

F-7

Salamon Group, Inc. (A Development Stage Company) ~~Notes~~ Notes to the Consolidated Financial Statements for the years ended December 31, 2011 and 2010 (Expressed in US dollars)

1. Nature of Operations and Going Concern

2.	Summary of Significant Accounting Policies (continued)

	(c)	Foreign currency translation

		The Company’s functional and reporting currency is the United States dollar. Monetary assets and liabilities denominated in foreign currencies are translated in accordance with ASC 830, Foreign Currency Translation Matters, using the exchange rate prevailing at the balance sheet date. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income.

	(d)	Basic and diluted net loss per share

		The Company computes net loss per share in accordance with ASC 260, 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 December 31, 2011 there were 35,666,667 potentially dilutive instruments outstanding.

	(e)	Property and Equipment

		The Company’s solar powered charging station is recorded at cost and is depreciated on a straight-line basis over its estimated useful life of 20 years.

	(f)	Income taxes

		The Company accounts for income tax using the asset and liability method in accordance with ASC 740, Income Taxes. The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.

	(g)	Financial instruments

		Pursuant to ASC 820, Fair Value Measurements and Disclosures and ASC 825, Financial Instruments, an entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value using a hierarchy based on the level of independent, objective evidence when measuring fair value using a hierarch based on the level of independent, objective evidence surrounding the inputs used to measure fair value. The hierarchy prioritized the inputs into three levels that may be used to measure fair value:

		Level 1

		Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Salamon Group, Inc. (the "Company") was incorporated in the state of Nevada on April 27, 2001 (“Inception”). The Company is a development stage company whose principal business plan is to seek earnings by acquiring revenue producing assets in the field of solar energy. The Company is a development stage company as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 915, Development Stage Entities.

These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America applicable to a going concern. At December 31, 2010, the Company has no revenues to date, has accumulated losses of $1,169,621 since inception and a working capital deficit of $136,660 and expects to incur further losses in the development of its business, all of which cast substantial doubt about the Company’s ability to continue as a going concern.

Management plans to continue to provide for the Company's capital needs during the year ending December 31, 2011 by issuing debt and equity securities and by the continued support of its related parties (see Note 3). The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence. There is no assurance that funding will be available to continue the Company’s business operations.

2. Summary of Significant Accounting Policies

(a) Basis of presentation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States and are expressed in United States dollars. The Company’s fiscal year end is December 31.

(b) Use of estimates

The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to deferred income tax asset valuation allowances, stock-based payments and financial instrument valuations. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experience by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

The Company’s functional and reporting currency is the United States dollar. Monetary assets and liabilities denominated in foreign currencies are translated in accordance with ASC 830, Foreign Currency Translation Matters, using the exchange rate prevailing at the balance sheet date. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income.

F-8

Salamon Group, Inc. (A Development Stage Company) ~~Notes~~ Notes to the Consolidated Financial Statements for the years ended December 31, 2011 and 2010 (Expressed in US dollars)

Summary of Significant Accounting Policies (continued)

2.	Summary of Significant Accounting Policies (continued)

	(g)	Financial instruments (continued)

		Level 2

		Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable data.

		Level 3

		Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

		The Company’s financial instruments consist principally of cash, loans receivable, accounts payable, loans payable, convertible debt, and advances from directors. The fair value of the Company’s cash, when applicable, is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. At December 31, 2011, the Company estimates that the carrying values of all of its financial instruments approximate their fair values due to the nature or duration of these instruments.

		As of December 31, 2011, there were no assets or liabilities measured at fair value on a recurring basis presented on the Company’s balance sheet other than cash with a fair value measurement of $783 using Level 1.

	(h)	Stock-based compensation

		In accordance with ASC 718, Compensation – Stock Based Compensation and ASC 505-50, Equity Based Payments to Non-Employees, the Company accounts for share-based payments using the fair value method. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.

	(i)	Comprehensive loss

		ASC 220, Comprehensive Income establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at December 31, 2011, the Company has no items that represent other comprehensive loss and, therefore, has not included a schedule of other comprehensive loss in the financial statements.

	(j)	Revenue and Deferred Revenue Recognition

		The Company recognizes revenues from 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. The fees from the usage of its solar powered charging station are deferred and recognized as revenues over the term of the service agreement.

(d) Basic and diluted net loss per share

The Company computes net loss per share in accordance with ASC 260, 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 December 31, 2010 and 2009, there were no potentially dilutive instruments outstanding.

(e) Income taxes

The Company accounts for income tax using the asset and liability method in accordance with ASC 740, Income Taxes. The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.

(f) Financial instruments

Pursuant to ASC 820, Fair Value Measurements and Disclosures and ASC 825, Financial Instruments, an entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value using a hierarchy based on the level of independent, objective evidence when measuring fair value using a hierarch based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization with the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy prioritized the inputs into three levels that may be used to measure fair value:

Level 1

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable data.

Level 3

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

F-9

Salamon Group, Inc. (A Development Stage Company) ~~Notes~~ Notes to the Consolidated Financial Statements for the years ended December 31, 2011 and 2010 (Expressed in US dollars)

(g) Financial instruments (continued)

2.	Summary of Significant Accounting Policies (continued)

	(k)	Recent accounting pronouncements

		Comprehensive income

		In June 2011, ASC guidance was issued related to comprehensive income. Under the updated guidance, an entity will have the option to present the total of comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In addition, the update requires certain disclosure requirements when reporting other comprehensive income. The update does not change the items reported in other comprehensive income or when an item of other comprehensive income must be reclassified to income. The update is effective for the Company’s fiscal year beginning January 1, 2012. The Company does not expect the updated guidance to have an impact on the consolidated balance sheets, results of operations or cash flows.

		Fair Value Accounting

		In May 2011, ASC guidance was issued related to disclosures around fair value accounting. The updated guidance clarifies different components of fair value accounting including the application of the highest and best use and valuation premise concepts, measuring the fair value of an instrument classified in a reporting entity’s shareholders’ equity and disclosing quantitative information about the unobservable inputs used in fair value measurements that are categorized in Level 3 of the fair value hierarchy. The update is effective for the Company’s fiscal year beginning January 1, 2012. The Company does not expect the updated guidance to have a significant impact on the consolidated balance sheets, results of operations or cash flows.

3.	Loans Receivable

	On October 28, 2011, the Company entered into agreement with Radiant Offshore Fund Ltd. (“Radiant Offshore”) whereby Radiant Offshore assigned secured obligations of $344,155 (CAN$350,000), a loan agreement (the “Original Loan Agreement”) and debentures due from ARISE Technologies Corporation (“ARISE”) and the security instruments and guarantees for the secured obligations for consideration of $344,155 (CAN$350,000). Under the terms of the Original Loan Agreement assigned from Radiant Offshore, the Company will advance a maximum amount of $1,474,950 (CAN$1,500,000) to ARISE, and any loans advanced have a maturity date of April 14, 2012 and bear interest at 12% per annum. During the year ended December 31, 2011, the Company advanced $782,706 (CAN$785,000) to ARISE.

	Subsequent to year end, the Company entered into an agreement to purchase certain assets of ARISE (See Note 13(n)). The loans receivable were applied against the purchase price of the assets.

The Company’s financial instruments consist principally of cash, accounts payable, and amounts due to related parties. The fair value of the Company’s cash equivalents, when applicable, is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. During the year

ended December 31, 2010, the Company estimates that the carrying values of all of its financial instruments approximate their fair values due to the nature or duration of these instruments.

Liabilities measured at fair value on a recurring basis were presented on the Company’s balance sheet as of December 31, 2010 as follows:

Fair Value Measurements Using

Quoted Prices in

Significant

Active Markets

Other

Significant

For Identical

Observable

Unobservable

Balance as of

Instruments

Inputs

December

(Level 1)

(Level 2)

(Level 3)

31, 2010

Liabilities:

Bank overdraft

–

As of December 31, 2010, there were no assets measured at fair value on a recurring basis presented on the Company’s balance sheet.

(h) Stock-based compensation

In accordance with ASC 718, Compensation – Stock Based Compensation and ASC 505-50, Equity Based Payments to Non-Employees, the Company accounts for share-based payments using the fair value method. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.

(i) Comprehensive loss

ASC 220, Comprehensive Income establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at December 31, 2010, the Company has no items that represent other comprehensive loss and, therefore, has not included a schedule of other comprehensive loss in the financial statements.

(j) New accounting pronouncements

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 is not expected to have a material effect of the Company’s financial statements.

F-10

Salamon Group, Inc. (A Development Stage Company) ~~Notes~~ Notes to the Consolidated Financial Statements for the years ended December 31, 2011 and 2010 (Expressed in US dollars)

34. ~~Related~~Property ~~Party~~and ~~Transactions~~Equipment ~~and~~During ~~Balances~~the year ended December 31, 2011, the Company acquired a solar powered charging station (see also Note 5(e)). Depreciation for the year ended December 31, 2011 was $5,821 (2010 - $nil). An impairment loss of $74,305 (2010 - $nil) was recorded for the year ended December 31, 2011 to write down the solar powered charging station to its expected recoverable amount.

(a) Amounts owing to Space Globe Technology Ltd., a company controlled by a former director (resigned on December 7, 2010) (“Space Globe”), are unsecured, non-interest bearing and due on demand. At December 31, 2010, a total of $12,434 was due to the former related party (2009 - $18,811). The amount outstanding at December 31, 2010 has been included in accounts payable. (b) During the eleven months ended November 30, 2010, the Company shared office space with and incurred travel costs to Space Globe. During the eleven months ended November 30, 2010, the Company incurred an aggregate of approximately $21,000 of allocated office, rent and travel expenses to this company (year ended December 31, 2009 - $12,000). (c) On September 29, 2010, the Company issued 708,868 shares of common stock to Space Globe, at a price of $0.017 per share (the estimated fair value) for the conversion of $12,051 of advances. (d) On August 20, 2010, the Company issued 1,434,733 shares of common stock to Space Globe at a price of $0.015 per share (the estimated fair value) for the conversion of $21,521 of advances. (e) On March 15, 2010, the Company issued 1,200,000 shares of common stock to Space Globe at a price of $0.02 per share (the estimated fair value) for the conversion of $18,811 of advances. (f) At December 31, 2010, a total of $2,233 was due to a director of the Company. The amount is unsecured, non- interest bearing and due on demand. (g) During the year ended December 31, 2009, the Company received proceeds of $23,700 for issuing a note payable to a former director. On July 30, 2009, the Company issued 348,750 shares of common stock at a per share price of $0.04 to convert $13,950 of the note payable. On December 1, 2009 the Company issued 500,000 shares of common stock at a per share price of $0.02 to convert $9,750 and additionally recorded $250 of interest expense. (h) During the year ended December 31, 2009, the Company issued shares of common stock to Space Globe for the conversion of related party advances. On January 15, 2009 the Company issued 200,000 shares of common stock at $0.03 per share for the conversion of $6,000 of advances. On July 30, 2009, the Company issued 150,000 shares of common stock at $0.04 per share for the conversion of $6,000 of advances. On August 31, 2009, the Company issued 537,675 shares of common stock at $0.04 per share for the conversion of $21,267 of advances. On October 23, 2009, the Company issued 682,822 shares of common stock at $0.03 per share for the conversion of $20,485 of advances. On December 22, 2009, the Company issued 300,000 shares of common stock at $0.02 per share for the conversion of $6,000 of advances.

			December 31,	December 31,
			2011	2010
		Accumulated	Net Carrying	Net Carrying
	Cost	Depreciation	Value	Value
	$	$	$	$

Solar powered charging station	127,000	80,126	46,874	-

4. Common Stock

5.	Related Party Transactions and Balances

	(a)	At December 31, 2011, a total of $8,592 (2010 - $2,233) was due to directors of the Company. The amount is unsecured, non-interest bearing and due on demand.

	(b)	During the year ended December 31, 2011, the Company recognized $5,332 (2010 - $Nil) for donated rent at $444 per month provided by the President of the Company.

	(c)	During the year ended December 31, 2011, the Company recognized $224,675 (2010 - $Nil) for management services provided by the President of the Company. As at December 31, 2011, $385,000 is owed to the President of the Company. Included in the $385,000 is accounts payable of $140,325 assumed on the acquisition of Sunlogics Power (See Note 11).The amount is unsecured, non-interest bearing and due on demand.

	(d)	On May 2, 2011, the Company’s subsidiary entered in a right of first offer agreement with Sunlogics Inc., a related company, whereby the Company’s subsidiary was granted the right of first offer to purchase any solar assets developed by Sunlogics Inc. at fair market value for a 3 year period. The Company’s subsidiary has the discretion to renew the term for an additional 3 year period.

	(e)	In January 2011, the Company entered into a purchase agreement with Rooftop Energy LLC, a company formerly with common directors and officer, to acquire a solar powered charging station for $175,000 less a state renewal energy credit of $48,000. As at December 31, 2011, $120,226 was included in accounts payable and is owed to Rooftop Energy LLC. The amount is secured against the solar power charging station, non-interest bearing and due on demand.

	(f)	On August 31, 2011, the Company settled amounts owing to a former director and officer for cash advances and expenses paid on behalf of the Company for 2,084,153 shares (See Note 8).

	(g)	On May 12, 2011, the Company purchased 100% of the outstanding shares of Sunlogics Power Fund Management Inc. from the President of the Company (See Note 11).

	(h)	On October 31, 2011, the Company issued a $200,000 convertible note to a company that is significantly influenced by the President of the Company through an equity interest (See Note 6(a)).

(a) On March 15, 2010, the Company issued 1,200,000 shares of common stock to Space Globe at a price of $0.02 per share (the estimated fair value) for the conversion of $18,811 of advances. (b) In June 2010, the Company, pursuant to an agreement, agreed to issue shares to a third party to settle accounts payable related to services provided. The Company issued 300,000 shares of its common stock, which were valued at their estimated fair value of $0.01 per share. (c) On August 20, 2010, the Company issued 1,434,733 shares of common stock to Space Globe at a price of $0.015 per share (the estimated fair value) for the conversion of $21,521 of advances. (d) On September 29, 2010, the Company issued 708,868 shares of common stock to Space Globe at a price of $0.017 per share (the estimated fair value) for the conversion of $12,051 of advances.

F-11

Salamon Group, Inc. (A Development Stage Company) ~~Notes~~ Notes to the Consolidated Financial Statements for the years ended December 31, 2011 and 2010 (Expressed in US dollars)

(e) On November 30, 2010, the Company, pursuant to an agreement, agreed to issue shares to a third party to settle accounts payable related to services provided. According to the terms of the agreement, the Company will issue 1,500,000 shares of its common stock. The shares issuable were valued at $15,000 based their market price on the date of the agreement. These shares were issued on January 24, 2011 (see Note 7). (f) During the year ended December 31, 2009, the Company received proceeds of $23,700 for issuing a note payable to a former director. On July 30, 2009, the Company issued 348,750 shares of common stock at a per share price of $0.04 to convert $13,950 of the note payable. On December 1, 2009 the Company issued 500,000 shares of common stock at a per share price of $0.02 to convert $9,750 and additionally recorded $250 of interest expense. (g) During the year ended December 31, 2009, the Company issued shares of common stock to Space Globe for the conversion of related party advances. On January 15, 2009, the Company issued 200,000 shares of common stock at $0.03 per share for the conversion of $6,000 of advances. On July 30, 2009, the Company issued 150,000 shares of common stock at $0.04 per share for the conversion of $6,000 of advances. On August 31, 2009, the Company issued 537,675 shares of common stock at $0.04 per share for the conversion of $21,267 of advances. On October 23, 2009, the Company issued 682,822 shares of common stock at $0.03 per share for the conversion of $20,485 of advances. On December 22, 2009, the Company issued 300,000 shares of common stock at $0.02 per share for the conversion of $6,000 of advances. (h) 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 year ended December 31, 2009, the Company recorded $49,000 of expense and recorded 700,000 common shares as issued and outstanding. (i) 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. (j) 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. (k) 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. (l) 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 were to be earned ratably over the one-year term of the agreement through August, 2009. During the year ended December 31, 2008, the Company recorded $15,000 of expense and recorded 400,000 common shares as issued and outstanding. During the year ended December 31, 2009, the Company recorded $33,000 of expense and recorded 800,000 common shares as issued and outstanding. (m) 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. (n) 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. (o) 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.

5.	Related Party Transactions and Balances (continued)

	(i)	On December 15, 2011, the Company issued a $75,000 convertible note to a shareholder of the Company (See Note 6(c)).

6.	Convertible Debt

	(a)	On October 31, 2011, the Company issued a convertible note in the sum of $200,000 with a maturity date of April 30, 2012 to a company that is significantly influenced by the President of the Company through an equity interest. The note bears interest at 16% per annum and is to be paid in full on the maturity date, unless previously paid or converted into the Company’s common stock. The Note holder has the right from November 10, 2011 to convert any unpaid principal portion, into common shares of the Company at a conversion price of $0.03 per share.

		Pursuant to ASC 470-20, the Company recognized the intrinsic value of the embedded beneficial conversion feature of $32,667 as additional paid-in capital and an equivalent discount that reduced the carrying value of the convertible debenture to $167,333. The discount is being expensed over the term of the loan to increase the carrying value to the face value of the loan.

		During the year ended December 31, 2011, the Company recorded accretion of discount of $15,198 increasing the carrying value of the loan to $182,532.

	(b)	On November 10, 2011, the Company issued a convertible note in the sum of $150,000 with a maturity date of April 30, 2012. The note bears interest at 6% per annum and is to be paid in full on the maturity date, unless previously paid or converted into the Company’s common stock. The note holder has the right from November 20, 2011 to convert any unpaid principal portion, into common shares of the Company at a conversion price of $0.025 per share.

		Pursuant to ASC 470-20, the Company recognized the intrinsic value of the embedded beneficial conversion feature of $24,000 as additional paid-in capital and an equivalent discount that reduced the carrying value of the convertible debenture to $126,000. The discount is being expensed over the term of the loan to increase the carrying value to the face value of the loan.

		During the year ended December 31, 2011, the Company recorded accretion of discount of $8,979 increasing the carrying value of the loan to $134,979.

	(c)	On December 15, 2011, the Company issued a convertible note in the sum of $75,000 with a maturity date of April 30, 2012 to a shareholder of the Company. The note bears interest at 6% per annum and is to be paid in full on the maturity date, unless previously paid or converted into the Company’s common stock. The note holder has the right from December 25, 2011 to convert any unpaid principal portion, into common shares of the Company at a conversion price of $0.025 per share.

		Pursuant to ASC 470-20, the Company recognized the intrinsic value of the embedded beneficial conversion feature of $36,000 as additional paid-in capital and an equivalent discount that reduced the carrying value of the convertible debenture to $39,000. The discount is being expensed over the term of the loan to increase the carrying value to the face value of the loan.

		During the year ended December 31, 2011, the Company recorded accretion of discount of $10,197 increasing the carrying value of the loan to $49,197.

F-12

Salamon Group, Inc. (A Development Stage Company) ~~Notes~~ Notes to the Consolidated Financial Statements for the years ended December 31, 2011 and 2010 (Expressed in US dollars)

(p) 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. (q) A former director and his company Space Globe, contributed three patent applications to the Company in June 2007. 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. (r) 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. 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. (s) 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. (t) 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. (u) 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. (v) 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. (w) 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

7.	Loans Payable

	During the year ended December 31, 2011, Radiant Offshore Fund Ltd. (“Radiant Offshore”) and Radiant Performance Fund LP. (“Radiant Performance”) funded $353,988 (CAN$360,000) (2010 - $nil) of the loans advanced to ARISE (See Note 3). The portion funded by Radiant Offshore and Radiant Performance have been recorded as loans payable. The loans payable to Radiant Offshore and Radiant Performance are non-interest bearing and due on demand. Any funds received by the Company from ARISE must first be used to repay Radiant Offshore and Radiant Performance. No repayments were received from ARISE and made to Radiant Offshore or Radiant Performance for the year ended December 31, 2011.

	Subsequent to year end, the loans were settled by the Company with a convertible redeemable note (See Note 13(i)).

8.	Common Stock

	(a)	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 stock to be issued as at December 31, 2010.

	(b)	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 (See Note 11).

	(c)	On August 31, 2011 the Company issued 1,250,000 shares of its common stock with an estimated fair value of $22,425 in exchange for consulting services rendered.

	(d)	On August 31, 2011, the Company issued 2,084,153 shares of its common stock with an estimated fair value of $104,208 to an officer and director of the Company in exchange for settlement of debt with a carrying value of $82,200. The difference of $22,008 was recognized in APIC as it was considered a capital transaction.

	(e)	On December 27, 2011, 10,294,881 common shares issued to the President of the Company were cancelled.

	(f)	On March 15, 2010, the Company issued 1,200,000 shares of common stock to Space Globe at a price of $0.02 per share (the estimated fair value) for the conversion of $18,811 of advances.

	(g)	In June 2010, the Company, pursuant to an agreement, agreed to issue shares to a third party to settle accounts payable related to services provided. The Company issued 300,000 shares of its common stock, which were valued at their estimated fair value of $0.01 per share.

	(h)	On August 20, 2010, the Company issued 1,434,733 shares of common stock to Space Globe at a price of $0.015 per share (the estimated fair value) for the conversion of $21,521 of advances.

	(i)	On September 29, 2010, the Company issued 708,868 shares of common stock to Space Globe at a price of $0.017 per share (the estimated fair value) for the conversion of $12,051 of advances.

5. Commitments and Contingencies

(a) Stock Purchase Agreement

On December 30, 2010, the Company entered into a Stock Purchase Agreement between the president and a director of the Company and Sunlogics Power Fund Management Inc. (“Sunlogics Power Fund”), whereby the Company agreed to acquire all of the issued and outstanding shares of capital stock of Sunlogics Power Fund from the Company’s president and director in exchange for 40,000,000 shares of the Company’s common stock. The consummation of the transaction is subject to the satisfaction or waiver of certain conditions and there is no assurance that the transaction will ultimately be completed.

(b) Indemnities

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

F-13

Salamon Group, Inc. (A Development Stage Company)~~Notes~~ Notes to the Consolidated Financial Statements for the years ended December 31, 2011 and 2010 (Expressed in US dollars)

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

8.	Common Stock (continued)

	(j)	On November 30, 2010, the Company, pursuant to an agreement, agreed to issue shares to a third party to settle accounts payable related to services provided. According to the terms of the agreement, the Company will issue 1,500,000 shares of its common stock. The shares issuable were valued at $15,000 based their market price on the date of the agreement. These shares were issued on January 24, 2011.

9.	Share Purchase Warrants

	On May 12, 2011, the Company issued 20,000,000 share purchase warrants upon the purchase of Sunlogics Power (Note 11). The share purchase warrants are exercisable at a price of $0.001 per share and expire on May 12, 2016.

10.	Commitments and Contingencies

	(a)	Indemnities

		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.

	(b)	Purchase commitments

		On December 30, 2011 the Company entered into an agreement to purchase solar modules in the amount of $20,291,000.

11.	Acquisition of Sunlogics Power

	On May 12, 2011, the Company entered into a stock purchase agreement with a director and officer of the Company 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 are exercisable at a price of $0.001 per share and expire on May 12, 2016. The acquisition of Sunlogics Power has been accounted for as an asset acquisition. The operations of Sunlogics Power 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:

payments for these obligations and no liabilities have been recorded for these indemnities and guarantees in the accompanying balance sheets.

(c) During the year ended December 31, 2010, the Company terminated the license agreement entered into with 482229 B.C. Ltd. on June 20, 2008. No amounts were earned by the Company under the agreement.

6. Income Taxes

The Company is subject to United States federal income taxes at an approximate rate of 35% (2009 – 34%). The reconciliation of the provision for income taxes at the United States federal statutory rate compared to the Company’s income tax recovery as reported is as follows:

	Year Ended		Year Ended
	December 31,		December 31,
	2010		2009
	$		$
Income tax recovery computed at the statutory rate	42,477		66,300
Change in tax rates	(27,924	)	-
Change in estimates	262		9,700
Change in valuation allowance	(14,815	)	(76,000	)
Income tax recovery	–		–

Significant components of the Company’s deferred income tax assets as at December 31, 2010 and 2009, after applying enacted corporate income tax rates, are as follows:

	December 31,		December 31,
	2010		2009
	$		$
Deferred income tax assets
Cumulative net operating losses	286,815		272,000
Valuation allowance	(286,815	)	(272,000	)
Net deferred income tax assets	–		–

The Company has net operating loss carry-forwards of $819,470 which expire commencing in 2017.

7. Subsequent Event

On January 24, 2011, the Company issued 1,500,000 shares of common stock (see Note 4(e)).

F-14

Salamon Group, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements for the years ended December 31, 2011 and 2010
(Expressed in US dollars)

11.	Acquisition of Sunlogic Power (continued)

	Consideration Given:

20,000,000 common shares and 20,000,000 share purchase warrants.	$	811,872

Net assets acquired at fair value

Cash	$	1
Intangible assets		1,299,595
Deferred income tax liability		(324,899	)
Accounts payable		(162,825	)
Net assets at estimated fair value	$	811,872

	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 its estimated fair value of $0 by an impairment charge of $1,299,595. As a result, a deferred income tax recovery of $324,899 was recorded.

12.	Income Taxes

	The Company is subject to United States federal income taxes at an approximate rate of 35% (2010 – 35%). The reconciliation of the provision for income taxes at the United States federal statutory rate compared to the Company’s income tax recovery as reported is as follows:

	Year Ended		Year Ended
	December 31,		December 31,
	2011		2010
	$		$
Income tax recovery computed at the statutory rate	637,379		42,477
Difference in foreign tax rates	(129,960	)	(27,924	)
Change in estimates	-		262
Permanent difference	(34,299	)	–
Change in valuation allowance	(148,221	)	(14,815	)
Income tax recovery	324,899		–

Significant components of the Company’s deferred income tax assets as at December 31, 2011 and 2010, after applying enacted corporate income tax rates, are as follows:

	December 31,		December 31,
	2011		2010
	$		$
Deferred income tax assets
Cumulative net operating losses	427,394		286,815
Property and equipment	28,044		–
Valuation allowance	(435,036	)	(286,815	)
Deferred income tax liability
Convertible debentures	(20,402	)	–
Net deferred income tax assets	–		–

The Company has net operating loss carryforwards of $1,221,126 which expire commencing in 2017.

F-15

Salamon Group, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements for the years ended December 31, 2011 and 2010
(Expressed in US dollars)

13.	Subsequent Events

	(a)	On January 6, 2012, the Company entered into an agreement with ARISE to provide CAN$520,000 in loans (“Fifth Bridge Loan”), under the Third Tranche, as defined in the Original Loan Agreement. CAN$470,000 of the Fifth Bridge Loan was funded by Radiant Offshore and CAN$50,000 was funded by Radiant Performance on the Company’s behalf.

	(b)	On January 9, 2012, the Company entered into a share purchase agreement the CEO of the Company to purchase 13,248,342 common shares of Sunlogics PLC for a purchase price of $22,522,181. The purchase price is payable in the form of a convertible debenture.

	(c)	On January 9, 2012, the Company issued a convertible note in the sum of $22,522,181 with a maturity date of January 9, 2013 to the president of the Company in regards to the purchase of the shares of Sunlogics PLC (See Note 13(b)). The note bears no interest and is to be paid in full on the maturity date, unless previously paid or converted into the Company’s common stock. The Note holder has the right from the issue date to convert any unpaid principal portion, at a conversion price per share equal to 100% of the average of the five lowest closing bid prices of the Company’s common stock for the 20 trading days preceding a conversion date. The maximum conversion price is set at $0.20 per share.

	(d)	On January 13, 2012, the Company provided a debtor-in-possession term loan facility (“DIP Loan Facility”) to ARISE. Under the terms of the DIP Loan Facility, the Company will provide a maximum of CAN$1,500,000 to ARISE, of which CAN$195,000 will form part of the Original Loan Agreement (See Note 3); and up to a further CAN$1,305,000 (“Fourth Tranche”). The DIP loans are due earlier of i) three months from the date of the initial advance ii) effective date of Court- approved proposal under BIA iii) closing date of a sale of all or substantially all of the assets of the Borrower and bear and interest rate of 12% per annum. The DIP Loan Facility is secured by certain assets of ARISE.

	(e)	On January 20, 2012, the Company entered into an agreement with ARISE to advance CAN$500,000 in loans (“First DIP Loan”) to ARISE, under the Fourth Tranche, as defined in the DIP Loan Facility. CAN$485,000 of the First DIP Loan was funded by Radiant Offshore and CAN$15,000 was funded by Radiant Performance on the Company’s behalf. See Maturity date on DIP Loan Facility (Note 13(d)).

	(f)	On February 6, 2012, the Company entered into an assignment of indebtedness agreement with Haverstock Masterfund Ltd. (“Haverstock”). Pursuant to the terms of the agreement, Haverstock assigned its secured obligations of CAN$444,747, a promissory note of CAN$750,000 (includes the secured obligations) and security in ARISE to the Company for a purchase price of CAN$444,747 in the form of a convertible debenture.

F-16

Salamon Group, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements for the years ended December 31, 2011 and 2010
(Expressed in US dollars)

13.	Subsequent Events (continued)

	(g)	On February 12, 2012, the Company issued a convertible redeemable note in the amount of CAN$444,747 with a maturity date of December 31, 2014 to Haverstock in consideration for the assignment of indebtedness agreement (See Note 13(f)). The Note bears interest at 5% per annum and shall increase to 10% upon default. So long as there is no event of default, the Company has sufficient number of authorized shares of Common Stock reserved for issuance upon full conversion and the Company’s stock is trading at or below $0.50 per share, the Company has the option to redeem this Note and pay the holder 100% of the unpaid principal and accrued interest at any time. In the event that the trading price of the Company’s common stock is below the $0.50 post reverse stock split, the Company has the option to prepay a portion of the outstanding principal equal to 100% of the unpaid principal divided by thirty-six plus one month’s interest. The Note is to be paid in full on the maturity date, unless previously paid or converted into the Company’s common stock. The Note holder has the right to convert any unpaid principal and accrued interest, at a conversion price per share equal to 70% of the average of the five lowest closing bid prices of the Company’s common stock for the 20 trading days preceding a conversion date. The Note is secured by assets purchased from ARISE in the form of a convertible debenture.

	(h)	On February 14, 2012, the Company entered into an assignment of indebtedness agreement with Radiant Offshore and Radiant Performance. Pursuant to the terms of the agreement, Radiant Offshore and Radiant Performance assigned its secured obligations of CAN$5,066,746, credit agreements and security in ARISE to the Company for a purchase price of CAN$5,066,746.

	(i)	On February 13, 2012, the Company issued a convertible redeemable note in the amount of $5,066,746 with a maturity date of February 13, 2015 to Radiant Offshore in consideration for the assignment of indebtedness agreement (See Note 13(h)). The Note bears interest at 5% per annum and shall increase to 10% upon default. So long as there is no event of default, the Company has sufficient number of authorized shares of Common Stock reserved for issuance upon full conversion and the Company’s stock is trading at or below $0.50 per share, the Company has the option to redeem this Note and pay the holder 100% of the unpaid principal and accrued interest at any time. In the event that the trading price of the Company’s common stock is below the $0.50 post reverse stock split, the Company has the option to prepay a portion of the outstanding principal equal to 100% of the unpaid principal divided by thirty-six plus one month’s interest. The Note is to be paid in full on the maturity date, unless previously paid or converted into the Company’s common stock. The Note holder has the right to convert any unpaid principal and accrued interest, at a conversion price per share equal to 70% of the average of the five lowest closing bid prices of the Company’s common stock for the 20 trading days preceding a conversion date. The Note is secured by assets purchased from ARISE.

	(j)	On February 24, 2012, the Company entered into an agreement with ARISE to advance CAN$250,000 in loans (“Second DIP Loan”) to ARISE, under the Fourth Tranche, as defined in the DIP Loan Facility. CAN$242,500 of the Second DIP Loan was funded by Radiant Offshore and CAN$7,500 was funded by Radiant Performance on the Company’s behalf. See Maturity date on DIP Loan Facility (Note 13(d)).

F-17

Salamon Group, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements for the years ended December 31, 2011 and 2010
(Expressed in US dollars)

13.	Subsequent Events (continued)

	(k)	On March 16, 2012, subsequently amended on March 19, 2012, the Company entered into an agreement to purchase 100% of the outstanding shares of Eco Energy Solutions (Australia) PTY Ltd., a private company located in Australia involved in the design, supply and installation of renewable energy projects, for a purchase price consisting of 8,000,000 warrants exercisable for $0.001 per share until March 14, 2013.

	(l)	On February 29, 2012, the Company entered into an agreement with ARISE to advance CAN$75,000 in loans (“Third DIP Loan”) to ARISE, under the Fourth Tranche, as defined in the DIP Loan Facility. CAN$72,750 of the Third DIP Loan was funded by Radiant Offshore and CAN$2,250 was funded by Radiant Performance on the Company’s behalf. See Maturity date on DIP Loan Facility (Note 13(d)).

	(m)	On March 2, 2012, the Company entered into a agreement (the “Purchase Agreement”) to purchase certain assets of the PV Silicon Business, the PV Cell Business, and PV Systems Business assets (the “Assets”) from ARISE for a purchase price of CAN$5,839,512 which is equal to the assumed indebtedness due to the Company under the Original Loan Agreement and DIP Loan Facility at the purchase date. The Purchase Agreement is subject to approval by the Courts.

	(n)	On March 2, 2012, the Company entered in an agreement with Daystar Technologies, Inc. (“Daystar) whereby the President of the Company advanced $500,000 to DayStar on behalf of the Company in exchange for a convertible promissory note due to the Company bearing interest at 6% per annum and a maturity date of 12 months from the closing date. The first tranche of $400,000 closed on March 14, 2012, and the Company has the right from the issuance date to convert all or any part of the outstanding principal plus any amount of accrued but unpaid interest into common stock of DayStar at $0.24 per share. The second tranche of $100,000 closed on March 16, 2012, and the Company has the right from the issuance date to convert all or any part of the outstanding principal plus any amount of accrued but unpaid interest into common stock of DayStar at $0.23 per share. The $500,000 amount was advanced by the President on behalf of the Company, and the advance is non-interest bearing, secured by the convertible promissory note with Daystar, and due on demand.

F-18

Filing Compare · SALAMON GROUP INC