U. S. Securities and Exchange Commission
                         Washington, D. C.  20549


                                FORM 10-QSB


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

     For the quarterly period ended September 30, 2003

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

     For the transition period from                to
                                    --------------    ---------------


                       Commission File No. 0-24480

                           SANGUINE CORPORATION
                           --------------------
              (Name of Small Business Issuer in its Charter)

           NEVADA                                        95-4347608
           ------                                        ----------
(State or Other Jurisdiction of                   (I.R.S. Employer I.D. No.)
 incorporation or organization)

                        101 East Green Street, #11
                        Pasadena, California  91105
                        ---------------------------
                 (Address of Principal Executive Offices)

                Issuer's Telephone Number:  (626) 405-0079


Indicate by check mark whether the Company (1) has filed all reports
required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Company was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.

(1)  Yes  X     No                 (2)  Yes  X    No
         ---     ---                        ---     ---

<PAGE>
             APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                PROCEEDINGS DURING THE PRECEDING FIVE YEARS

                              Not applicable.


                   APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the Registrant's classes
of common stock, as of the latest practicable date:

                            September 30, 2003

                                38,561,976
                                ----------

                      PART I - FINANCIAL INFORMATION


Item 1.   Financial Statements.

          The Financial Statements of the Registrant required to be filed with
this 10-QSB Quarterly Report were prepared by management, and commence on the
following page, together with Related Notes.  In the opinion of management,
the Financial Statements fairly present the financial condition of the
Registrant.

<PAGE>
                       SANGUINE CORPORATION
                  (A Development Stage Company)

                       FINANCIAL STATEMENTS

            September 30, 2003 and December 31, 2002
<PAGE>
<TABLE>
<CAPTION>
                       SANGUINE CORPORATION
                  (A Development Stage Company)
                         Balance Sheets



                              ASSETS

                                          September 30,        December 31,
                                               2003                2002
                                           (Unaudited)
<S>                                      <C>                   <C>
CURRENT ASSETS

     Cash                                  $      262               1,393
                                           ----------          ----------
          Total Current Assets                    262               1,393
                                           ----------          ----------
PROPERTY AND EQUIPMENT, NET (Note 1)                -                   -
                                           ----------          ----------
          TOTAL ASSETS                     $      262          $    1,393
                                           ==========          ==========
</TABLE>

The accompanying notes are an integral part of these financial statements.
                               F-2
<PAGE>
<TABLE>
<CAPTION>
                      SANGUINE CORPORATION
                  (A Development Stage Company)
                    Balance Sheets (Continued)


              LIABILITIES AND STOCKHOLDERS' DEFICIT

                                           September 30,        December 31,
                                               2003                2002
                                           (Unaudited)
<S>                                       <C>                 <C>
CURRENT LIABILITIES

     Related party payables              $    187,805        $    187,805
     Accounts payable                          81,184             171,068
     Accrued interest                          15,672              10,085
     Accrued interest   related party         391,646             294,091
     Accrued salaries                         820,000             748,000
     Other accrued expenses                     2,369               2,369
     Notes payable and convertible
     notes payable                             74,750              40,000
     Notes payable   related party          1,097,977           1,079,977
                                         ------------        ------------
          Total Current Liabilities         2,671,403           2,533,395

LONG-TERM LIABILITIES

     Notes Payable                                  -              28,750
                                         ------------        ------------
          Total Long-Term Liabilities               -              28,750
                                         ------------        ------------
          Total Liabilities                 2,671,403           2,562,145
                                         ------------        ------------
STOCKHOLDERS' DEFICIT

     Common stock: 100,000,000
       shares authorized of $.001
       par value, 38,561,976, and
       34,798,607 shares outstanding,
       respectively                            38,600              34,799
     Additional paid-in capital             3,583,859           3,422,257
     Expenses prepaid with common stock       (62,944)            (96,510)
     Accumulated deficit during
       the development stage               (6,230,656)         (5,921,298)
                                         ------------        ------------
     Total Stockholders' Deficit           (2,671,141)         (2,560,752)
                                         ------------        ------------
          TOTAL LIABILITIES AND
          STOCKHOLDERS' DEFICIT          $        262        $      1,393
                                         ============        ============
</TABLE>

The accompanying notes are an integral part of these financial statements.
                               F-3
<PAGE>
<TABLE>
<CAPTION>
                      SANGUINE CORPORATION
                  (A Development Stage Company)
                     Statements of Operations
                           (Unaudited)

                                                                    From
                                                              Inception of the
                                                                Development
                                                                  Stage on


                                    For the          For the       January 18,
                             Three Months Ended  Six Months Ended 1990 Through
                                September 30,      September 30, September 30,
                                2003         2002   2003       2002    2003
<S>                             <C>       <C>      <C>       <C>     <C>
REVENUE                   $   3,648   $     - $   4,166 $        - $  154,166

OPERATING EXPENSES

  Consulting                 35,444     3,975   101,225  1,174,457  2,311,327
  Research and Development   15,600     9,750    47,400     69,900  1,326,547
  Selling, general and
  administrative             17,582    57,482    88,875    273,267  2,239,114
                          ---------   ------- ---------  --------- ----------
   Total Operating Expenses  68,626    71,207   237,500  1,517,624  5,876,988
                          ---------   ------- ---------  --------- ----------
LOSS FROM OPERATIONS        (64,978)  (71,207) (233,334)(1,517,624)(5,722,822)
                          ---------   ------- ---------  --------- ----------
OTHER INCOME (EXPENSES)

  Interest income                 -         -         -          4     27,457
  Interest expense          (34,435)  (35,476) (101,996)  (128,960)  (527,506)
  Loss on cash deposit            -         -         -          -    (10,020)
  Gain (Loss) on settlement
  of debt                         -         -    25,972          -      2,235
                          ---------   ------- ---------  --------- ----------
       Total Other Income
       (Expense)            (34,435)  (35,476)  (76,024)  (128,956)  (507,834)
                          ---------   ------- ---------  --------- ----------
NET LOSS                  $ (99,413)$(106,683)$(309,358)(1,646,580)(6,230,656)
                          =========  ======== =========  ========= ==========
BASIC LOSS PER SHARE      $   (0.00) $  (0.00)$   (0.01) $   (0.05)
                          =========  ======== =========  =========
WEIGHTED AVERAGE NUMBER
 OF SHARES OUTSTANDING   38,561,976 31,283,000 37,090,636 31,049,000
                         ========== ========== ========== ==========
</TABLE>

The accompanying notes are an integral part of these financial statements.
                               F-4
<PAGE>
<TABLE>
<CAPTION>
                      SANGUINE CORPORATION
                  (A Development Stage Company)
                    Statements of Cash Flows
                           (Unaudited)

                                                             From Inception of
                                                                Development
                                                              Stage on January
                                For the Nine Months Ended     18, 1990 through
                                    September 30,               September 30,
                                   2003          2002               2003
<S>                              <C>                <C>        <C>
CASH FLOWS FROM OPERATING ACTIVITIES:

     Net loss                        $ (309,358)  $(1,646,580)  $ (6,230,656)
     Adjustments to reconcile net
       loss to net cash used
       by operating activities:
          Depreciation and amortization       -             -          4,609
          Equity instruments issued
          for services                   32,144     1,208,158      2,183,515
          Interest on beneficial
          conversion feature                  -        25,000         25,000
          Legal expense related to
          beneficial conversion feature       -         3,750          3,750
          Note payable issued for services    -        28,750        727,950
          (Gain) Loss on extinguishments
          of debt                       (25,972)            -         (2,235)
          Recognition of prepaid
          expenses and expenses prepaid
          with common stock              99,231        69,375        171,106
     Changes in assets and liabilities:
          Decrease in prepaid expenses        -             -        205,625
          Increase in accounts payable
          and related party payables      3,681        43,705        338,817
          Increase in accrued interest
          payable                       103,143       103,960        407,319
          Increase in accrued liabilities     -        46,426          2,369
          Increase in accrued salaries   72,000        45,000        820,000
                                       --------      --------     ----------
               Net Cash Used by
               Operating Activities     (25,131)      (72,456)    (1,342,831)
                                       --------      --------     ----------
CASH FLOWS FROM INVESTING ACTIVITIES

     Cash paid for fixed assets               -             -         (4,609)
                                       --------      --------     ----------
               Net Cash Used by
               Investing Activities           -             -         (4,609)
                                       --------      --------     ----------
CASH FLOWS FROM FINANCING ACTIVITIES

     Proceeds from notes payable and
       notes payable-related party       24,000        30,000        193,377
     Payments on notes payable and
       notes payable-related party            -             -         (8,600)
     Proceeds from issuance of
       convertible debentures                 -             -         40,000
     Contributed capital                      -             -            750
     Common stock issued for cash             -        24,800      1,122,175
                                       --------      --------     ----------
          Net Cash Provided by
          Financing Activities           24,000        54,800      1,347,702
                                       --------      --------     ----------
NET INCREASE (DECREASE) IN CASH AND
  CASH EQUIVALENTS                       (1,131)      (17,656)           262

CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR                         1,393        23,445              -
                                       --------      --------     ----------
CASH AND CASH EQUIVALENTS AT END
OF YEAR                                $    262      $  5,789     $      262
                                       ========      ========     ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
                               F-5
<PAGE>
<TABLE>
<CAPTION>
                       SANGUINE CORPORATION
                  (A Development Stage Company)
               Statements of Cash Flows (Continued)


                                                             From Inception of
                                                                Development
                                                              Stage on January
                                For the Nine Months Ended     18, 1990 through
                                     September 30,              September 30,
                                   2003          2002               2003
<S>                              <C>                <C>        <C>
SUPPLEMENTAL SCHEDULE OF CASH FLOW ACTIVITIES

CASH PAID FOR:

 Interest                         $       -       $    15,736   $   114,883
 Income taxes                     $       -       $         -   $         -

NON-CASH FINANCING ACTIVITIES

Equity instruments issued for
services rendered                 $  32,144       $         -   $ 2,183,515
Notes payable issued for services $       -       $    28,750   $   727,950
Common stock issued for prepaid
services                          $  82,175       $         -   $   236,185
</TABLE>

The accompanying notes are an integral part of these financial statements.
                               F-6
<PAGE>
                      SANGUINE CORPORATION
                  (A Development Stage Company)
                  Notes to Financial Statements
             September 30, 2003 and December 31, 2002

NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION

     The accompanying unaudited condensed financial statements
     have been prepared by the Company pursuant to the rules and regulations
     of the Securities and Exchange Commission.  Certain information and
     footnote disclosures normally included in financial statements prepared
     in accordance with accounting principles generally accepted in the
     United States of America have been condensed or omitted in accordance
     with such rules and regulations.  The information furnished in the
     interim condensed financial statements include normal
     recurring adjustments and reflects all adjustments, which, in the
     opinion of management, are necessary for a fair presentation of such
     financial statements.  Although management believes the
     disclosures and information presented are adequate to make the
     information not misleading, it is suggested that these interim condensed
     financial statements be read in conjunction with the
     Company's most recent audited financial statements and
     notes thereto included in its December 31, 2002 Annual Report on Form
     10-KSB.  Operating results for the three and nine months ended September
     30, 2003 are not necessarily indicative of the results that may be
     expected for the year ending December 31, 2003.

NOTE 2 - GOING CONCERN

     The Company's financial statements are prepared using accounting
     principles generally accepted in the United States of America applicable
     to a going concern which contemplates the realization of assets and
     liquidation of liabilities in the normal course of business.  The
     Company has not yet established an ongoing source of revenues sufficient
     to cover its operating costs and allow it to continue as a going
     concern.  The ability of the Company to continue as a going concern is
     dependent on the Company obtaining adequate capital to fund operating
     losses until it becomes profitable.  If the Company is unable to obtain
     adequate capital, it could be forced to cease operations.

     The Company's management has taken certain steps to maintain its
     operating and financial requirements in an effort to continue as a going
     concern until such time as revenues are sufficient to cover expenses.
     Future plans include a debt or equity offering for between $300,000 -
     $500,000 that should enable the Company to complete the animal testing
     stage for FDA approval of its product.  However, management cannot
     provide any assurance that the Company will be successful in
     accomplishing any of its plans.

     The ability of the Company to continue as a going concern is dependent
     upon its ability to successfully accomplish the plans described in the
     preceding paragraph and eventually secure other sources of financing and
     attain profitable operations.  The accompanying financial statements do
     not include any adjustments that might be necessary if the Company is
     unable to continue as a going concern.
                               F-7
<PAGE>
                      SANGUINE CORPORATION
                  (A Development Stage Company)
                  Notes to Financial Statements
             September 30, 2003 and December 31, 2002


NOTE 3 -  MATERIAL EVENTS

     During the quarter ended September 30, 2003, the Company issued 37,500
     shares of common stock for services valued at $1,125.

NOTE 4 - STOCK OPTIONS AND WARRANTS

     A summary of the status of the Company's outstanding stock options as of
     September 30, 2003 and 2002 and changes during the periods then ended is
     presented below:

                                   September 30, 2003       December 31, 2002
                                            Weighted                 Weighted
                                             Average                  Average
                                            Exercise                 Exercise
                                  Shares     Price       Shares       Price

 Outstanding, beginning of
  year                         10,997,709    $ 0.30     2,270,209     $ 0.30
 Granted                        1,625,000      0.04     9,537,500       0.10
 Expired/Cancelled                      -         -             -          -
 Exercised                     (1,625,000)     0.04      (810,000)      0.07
                               ----------    ------    ----------     ------
 Outstanding end of year       10,997,709    $ 0.15    10,997,709     $ 0.15
                               ==========    ======    ==========     ======
 Exercisable                   10,997,709    $ 0.15    10,997,709     $ 0.15
                               ==========    ======    ==========     ======

                               Outstanding              Exercisable

                                  Weighted
                         Number   Average   Weighted   Number     Weighted
                      Outstanding Remaining  Average  Exercisable  Average
  Range of             at Sept.  Contractual Exercise  at Sept.   Exercise
  Exercise Prices      30, 2003     Life      Price    30, 2003     Price
 $        0.13         470,642       3.57    $ 0.13    470,642     $  0.13
          0.35       1,799,567       1.17      0.35  1,799,567        0.35
     0.08-0.15       8,727,500       1.70      0.10  8,727,500        0.10
                    ----------    -------    ------ ----------     -------
   $ 0.07-0.35      10,997,709       1.69    $ 0.15 10,997,709     $  0.15
                    ==========    =======    ====== ==========     =======
                               F-8
<PAGE>
                      SANGUINE CORPORATION
                  (A Development Stage Company)
                   Notes to Financial Statements
             September 30, 2003 and December 31, 2002

NOTE 5 -  SUBSEQUENT EVENTS

     Subsequent to September 30, 2003, there were payments made of $800 to the
     related party notes payables.  Also, interest and the accrued interest on
     related party notes increased $33,504 during the last quarter of the
     fiscal year.

     Subsequent to September 30, 2003, the Company issued 37,500 shares of
     common stock for services valued at $2,813.
                               F-9
<PAGE>
Item 2.   Management's Discussion and Analysis or Plan of Operation.
--------------------------------------------------------------------

Plan of Operation.
------------------

     We have not commenced planned principal operations, but have made good
progress since the end of fiscal 2001,in formation and stability testing.

     Our proposed plan of operation is composed of three "stages," each of
which coincides with a specific milestone in the process of developing PHER-
O2.  Each of these stages will begin subject to available funding.  Each
stage, and the projected cost of each, is as follows:

          Stage A (approximately one year): In the first six months, we
          have completed the development of perfluoro-decalin and
          the synthetic surfactants that make up PHER-O2, manufactured
          experimental doses and have performed preliminary animal tests in
          accordance with FDA and overseas regulations.  In the second six
          months, we will  produce optimal quantities and conduct animal
          safety and efficacy trials in accordance with FDA and overseas
          requirements.  During the course of Stage A, we estimate that our
          increased technical, administrative, sales/marketing and
          manufacturing requirements will require us to the hire a few
          additional employees.  Estimated cost is $1,500,000, divided as
          follows: Completed surfactant formulation (done) and the manufacture
          of sufficient product for initial testing, $500,000; animal safety
          and efficacy trials through a sub-contractor, $600,000; and
          administrative, patent and proprietary right protection and
          marketing costs, $400,000.

          Stage B (approximately one year): In the second year, we intend
          to prepare New Drug Applications for FDA, European, Chinese and
          South American approval, conducted in the United States and
          overseas.  During this period, we also plan to submit license
          applications for transfusion with overseas authorities, begin
          production of PHER-O2 itself or with our subcontractors and submit a
          New Drug Application for PHER-O2 in the United States. During the
          course of Stage B, we estimate that we will need to hire a few
          additional employees.  Estimated cost is $5,000,000, divided as
          follows: Prepare and file United States, European, Chinese and South
          American New Drug Applications, $600,000; conduct human safety and
          efficacy trials through a subcontractor in the United States and
          overseas, $3,200,000; set-up pilot facility, or subcontract, to
          manufacture small quantities of PHER-O2 for use in testing and in
          connection with the New Drug Applications, $500,000; submit license
          applications for use of PHER-O2 in transfusions overseas, $200,000;
          and administrative, patent and proprietary right protection and
          marketing costs, $500,000.

          Stage C (approximately one year): In the third year, we plan to
          complete overseas testing of PHER-O2, begin sales in Europe, China,
          and South America and other overseas areas that may have approved
          PHER-O2 by this time and may begin construction of facility for
          manufacturing, storing, inspecting and shipping PHER-O2. During the
          course of Stage C, we estimate that we will need to hire additional
          employees.  During the third year, we plan to complete testing of
          PHER-O2 in the United States and receive all necessary FDA approvals
          and begin American, South American, Chinese and Canadian sales for
          cancer treatment and angioplasty.  During this period, we also plan
          to subcontract this process, and continue trials of other PHER-O2
          applications, including transplant organ preservation and treatment
          of carbon monoxide poisoning, sickle cell anemia, stroke and heart
          attack.  The estimated cost for Stage C is $25,000,000, divided as
          follows:  Complete human safety and efficacy clinical trials and
          obtain United States and overseas agency approval of PHER-O2,
          $13,000,000; subcontract with major emulsifying firm, $5,000,000;
          recruit and train sales force of the United States and foreign
          markets, $5,000,000; and administrative, patent and proprietary
          right protection and marketing costs, $2,000,000.

     These cost estimates are based upon the prior experience of Thomas C.
Drees, Ph.D., our President and CEO.  Dr. Drees has more than 30 years'
experience in the blood industry.

     Our plan of operation for the next 12 months is having:

     *     manufactured experimental doses of  PHER-O2; and

     *     performed preliminary animal tests in accordance with FDA; and

     *     comparable foreign overseas regulations.

     In January, 2001, we engaged IriSys, Inc. ("IriSys") to provide us with
expertise in preformulation development, analytical chemistry and stability
protocol design and testing, including preparation of regulatory standards
required to achieve regulatory compliance for our principal product, PHER-O2,
to produce bottled PHER-02 for animal trials, and to conduct stability
trials.  We were successful in developing improved formulations of our
surfactants under this engagement.

     In March, 2002, we granted an Exclusive License Agreement for parts of
Asia regarding PHER-02 and related technology and patents to Ascendiant-Asia
and Ascendiant-South America.  We plan to terminate these Exclusive License
Agreements as we have received no revenues or sublicenses from them.

     Our ability to carry out our plan depends entirely upon our ability to
obtain additional substantial equity, debt financing or royalties.  We can not
assure you that we will receive this financing, and except for the possibility
of receiving funds from the exercise of our outstanding warrants, we do not
have any arrangements that would ensure us any funding.  If we do not receive
it, we will not be able to proceed with our business plans.

Forward Looking Statements.
---------------------------

     Statements made in this Form 10-QSB which are not purely historical are
forward-looking statements with respect to the goals, plan objectives,
intentions, expectations, financial condition, results of operations, and
future performance of our business, including, without limitation, (i) our
ability to gain a larger share of the synthetic blood industry, our ability to
continue to develop products acceptable to the industry, our ability to retain
relationships with suppliers and distributors, our ability to raise capital,
and the growth of the synthetic blood industry, and (ii) statements preceded
by, followed by or that include the words "may", "would", "could", "should",
"expects", "projects", "anticipates", "believes", "estimates", "plans",
"intends", "targets" or similar expressions.

     Forward-looking statements involve inherent risks and uncertainties, and
important factors (many of which are beyond our control) that could cause
actual results to differ materially from those set forth in the
forward-looking statements, including the following, in addition to those
contained in our reports on file with the Securities and Exchange Commission;
general economic or industry conditions, nationally and/or in the communities
in which we conduct business, changes in the interest rate environment,
legislation or regulatory requirements, conditions of the securities markets,
changes in the synthetic blood industry, the development of products and that
may be superior to the products and services offered by us, demand for
synthetic blood products, competition, changes in the quality or composition
of our products and services, our ability to develop new products and
services, our ability to raise capital, changes in accounting principles,
policies or guidelines, financial or political instability, acts of war or
terrorism, other economic, competitive, governmental, regulatory and technical
factors affecting our operations, products, services and prices.

     Accordingly, results actually achieved may differ materially from
expected results in these statements.  Forward-looking statements speak only
as of the date they are made.  We do not undertake, and specifically disclaim,
any obligation to update any forward-looking statements to reflect events or
circumstances occurring after the date of such statements.

Item 3.   Controls and Procedures.

     As of the end of the 90 day period at the end of this Quarterly Report,
we carried out an evaluation, under the supervision and with the participation
of our President and Chief Financial Officer, of the effectiveness of the
design and operation of our disclosure controls and procedures.  Based on this
evaluation,  our President and Chief Financial Officer concluded that our
disclosure controls and procedures are effective in timely alerting them to
material information required to be included in our periodic reports that are
filed with the Securities and Exchange Commission.  It should be noted that
the design of any system of controls 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, regardless of how remote.  In addition, we reviewed our internal
controls, and there have been no significant changes in our internal controls
or in other factors that could significantly affect those controls subsequent
to the date of their last evaluation.

                        PART II - OTHER INFORMATION

Item 1.   Legal Proceedings.
----------------------------

          None; not applicable.

Item 2.   Changes in Securities and Use of Proceeds.
---------------------------------------------------

          Recent Sales of Unregistered Securities During the Quarter.
          -----------------------------------------------------------

Date      Name                                   Shares         Consideration
----      ----                                   ------         -------------
9/30/03   Herbert J. Meiselman                   12,500         Medical Board
9/30/03   L. Cass Terry                          12,500         Medical Board
9/30/03   Craig Morrison                         12,500         Medical Board

Item 3.   Defaults Upon Senior Securities.
------------------------------------------

          None; not applicable.

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

          None; not applicable.

Item 5.   Other Information.
----------------------------

          None; not applicable.

Item 6.   Exhibits and Reports on Form 8-K.
-------------------------------------------

          (a)  Exhibits.

               Form 10-KSB Annual Report for the
               Year ended December 31, 2002.*

               31.1  302 Certification of Thomas C. Drees

               31.2  302 Certification of David E. Nelson

               32    Section 906 Certification.

          (b)  Reports on Form 8-K.

               None.

               *  Incorporated herein by reference.

                               SIGNATURES

          Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned there unto duly authorized.

                                      SANGUINE CORPORATION

Date: 6/2/04                          By:/s/Thomas C. Drees, Ph.D.
     ---------                          -------------------------------------
                                        Thomas C. Drees, CEO, President and
                                        Chairman of the Board of Directors



Date: 6/1/04                          By:/s/David E. Nelson
     ---------                          -------------------------------------
                                        David E. Nelson
                                        CFO and Director
<PAGE>