<PAGE>
                 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, 1999

[ ]  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 Registrant (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
Registrant 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, 1999

                                23,162,994
                                ----------


                      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, 1999
<PAGE>
<TABLE>
                           SANGUINE CORPORATION
                       (A Development Stage Company)
                               Balance Sheet
             September 30, 1999 Unaudited & December 31, 1998
<CAPTION>
                                                  September       December
                                                   30, 1999       31, 1998
                                  ASSETS
<S>                                                <C>           <C>
Current Assets
     Cash                                           $    996       $   499

Property & Equipment
     Furniture                                           -0-            84

                    TOTAL ASSETS                    $    996       $   583

                    LIABILITIES & STOCKHOLDERS  EQUITY
Current Liabilities
     Accounts Payable                               $ 66,379       $ 14,154
     Accrued Salaries                                500,000        428,000
     Accrued Interest Payable                         37,515         33,420
     Notes Payable                                   160,806        135,450

                    Total Current Liabilities        764,700        611,024

Stockholders  Equity
     Common Stock, Authorized:
          100,000,000 Shares at $0.001 Par Value:
          23,162,994 & 23,010,217 Shares
          Issued & Outstanding Respectively           23,162         23,010
     Paid In Capital (Quasi-Reorganized
          March 20, 1994 Deficit Retained
          Earnings of $2,423,964 Eliminated)         877,444        858,096
     Retained Earnings Deficit                    (1,664,310)    (1,491,547)

                    Total Stockholders  Equity     ( 763,704)     ( 610,441)

                    TOTAL LIABILITIES &
                    STOCKHOLDERS  EQUITY           $     996      $     583
</TABLE>
<TABLE>
                           SANGUINE CORPORATION
                       (A Development Stage Company)
                         Statements of Operations
        For the Period July 1, 1999 to September 30, 1999 Unaudited
        and the Period July 1, 1998 to September 30, 1998 Unaudited
      and the Period January 1, 1999 to September 30, 1999 Unaudited
      and the Period January 1, 1998 to September 30, 1998 Unaudited
<CAPTION>
                                 July      July        January      January
                             1, 1999 to  1, 1998 to  1, 1999 to     1, 1998 to
                              September  September    September      September
                              30, 1999    30, 1998    30, 1999       30, 1998
<S>                           <C>         <C>        <C>           <C>
Revenues
     Interest Income          $    -0-     $   -0-    $    -0-    $   -0-
        Total Revenues             -0-         -0-         -0-        -0-

Expenses
     Promotion                  12,965         -0-      17,191        -0-
     Depreciation                  -0-         230          84        690
     Salaries                    4,500       4,500      13,500     13,500
     Research & Development     19,500      19,500      58,500    118,500
     Office Expense              4,193       3,148      12,724      7,752
     Auto Expense                2,905         270       7,836        720
     Legal & Professional Fees   6,616       2,510      17,447     26,001
     Rent                        3,155       3,199       9,344     12,797
     Interest Expense            5,425       4,301      15,382     12,202
     Stock Transfer                -0-          25         300        522
     Consultant Fees               -0-      60,000         -0-     63,710
     Tax & License                  80          70       1,673      1,168
     Insurance                   6,158          47      18,782        327
        Total Expenses          65,497      97,800     172,763    257,889

        Loss for Period      ($ 65,497)  ($ 97,800) ($ 172,763) ($257,889)
        Profit (Loss) Per Share ($0.00)     ($0.00)     ($0.01)    ($0.01)

        Weighted Average Shares
        Outstanding         23,067,994  22,408,217  23,067,994 22,408,217
</TABLE>
<TABLE>
                           SANGUINE CORPORATION
                       (A Development Stage Company)
                    Statements of Cash Flows Unaudited
    For the Periods January 1, 1999 to September 30, 1999 Unaudited and
              January 1, 1998 to September 30, 1998 Unaudited
<CAPTION>
                                                   September September
                                                   30, 1999  30, 1998
<S>                                               <C>            <C>
Cash Flows from Operating Activities
 Net (Loss)                                       ($172,763)($257,889)
 Adjustments to Reconcile Net Loss to Net
  Cash Used by Operations:
   Depreciation                                          84       690
   Non-Cash Expenses                                    -0-    60,000
 Changes in Operating Assets & Liabilities:
  (Decrease) Increase in Accounts Payable            62,225  (  4,830)
  Increase in Interest Payable                        4,095     4,095
  Increase in Accrued Salaries                       72,000    72,000

      Net Cash Flows from Operating Activities     ( 34,359) (125,934)

Cash Flows from Investing Activities                    -0-       -0-

      Net Cash Used by Investing Activities             -0-       -0-

Cash Flows from Financing Activities
 Increase in Notes Payable                           25,356    21,950
 Sale of Common Stock                                 9,500   104,433

      Net Cash Flows Provided by
      Financing Activities                           34,856   126,383

      Increase (Decrease) in Cash                       497       449

      Cash at Beginning of Period                       499       263

      Cash at End of Period                        $    996  $    712

Disclosure for Cash Flows from:
 Interest                                          $ 15,382  $ 12,202
 Taxes                                                  -0-       -0-
Non-Cash Expenses
 Issued 600,000 Shares at $0.10 Per Share For
   Services                                                    60,000
 Issued 100,000 Shares at $0.10 Per Share for
   Satisfaction of Accounts Payable                  10,000
</TABLE>
                           SANGUINE CORPORATION
                       Notes to Financial Statements

NOTE #1 - Statement Preparation

The Company has prepared the accompanying financial statements with interim
financial reporting requirements promulgated by the Securities & Exchange
Commission.  The information furnished reflects all adjustments which are, in
the opinion of management, necessary for a fair presentation of financial
position and results of operations.

The financial statements should be read in conjunction with the consolidated
financial statements and notes thereto included in the Company s 1998 10-K
report.

<PAGE>
Item 2.   Management's Discussion and Analysis or Plan of Operation.
--------------------------------------------------------------------

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

          The Company has conducted all of its business operations through its
majority owned subsidiary, Sanguine Corporation, a California corporation
("Sanguine California").  Sanguine California is engaged in the development of
a synthetic red blood cell product called "PHER-O2."  The development of this
product presently comprises its sole business operations.  PHER-O2 is composed
of perfluoro-decalin molecules (i.e., synthetic red blood cells), purified
water and a proprietary, synthetic, fluorinated surfactant to hold the
emulsion together.  Perfluoro-decalin has great oxygen-carrying capacity, yet
it can be as much as 900 times smaller than a red blood cell.  Management
believes that PHER-O2 may carry three to four times the oxygen of human blood
per unit volume. This increased oxygen-carrying capacity may make PHER-O2
useful in the treatment of heart attacks, strokes, cancer and other diseases
for which increased oxygenation is beneficial.  Furthermore, the Company
believes that perfluoro-decalin may be effective as an imaging agent in X-ray
imaging, nuclear magnetic resonance (NMR) imaging and CAT scans, without side
effects. Management also believes that PHER-O2 has several other advantages
over human blood:  it can be sterilized to be free of disease; is believed to
have the quality of a universal match for all blood types; can be
mass-produced; and may be stored much longer than human blood.

          Battelle Memorial Institute, through its Battelle Columbus
Operations ("Battelle"), was retained to assist the Company in completing the
emulsion of perfluoro-decalin and the synthetic surfactants that make up
PHER-O2; it is anticipated that on completion of the compounding of PHER-O2,
Battelle will perform initial gross animal tests, which do not require
regulatory approval prior to commencement; however, the data gathered from any
such tests will be subject to regulatory review in the future.  The Company
anticipates that it will manufacture experimental doses of PHER-O2 required to
conduct gross animal testing.

          Battelle is not conducting any research and development activities
pending receipt of further funding from the Company. It is anticipated that
continued research and development of PHER-O2 will depend upon the Company's
ability to obtain substantial additional equity or debt funding, as to which
no assurance can be given.  See the captions "Business Development," "Future
Capital Requirements; Uncertainty of Future Funding" and "Patents, Trademarks,
Licenses, Franchises, Concessions, Royalty Agreements or Labor Contracts" of
the Company's Annual Report on Form 10-KSB for the calendar year ended
December 31, 1998, which has previously been filed with the Securities and
Exchange Commission.

          In its second phase of operations, management intends to continue
developing the perfluorocarbon compounds in PHER-O2 in order to optimize its
quality, and expects to begin animal safety and efficacy trials in accordance
with guidelines of the United States Food and Drug Administration ("FDA") and
comparable foreign regulatory requirements.

          In the final phase of the Company's proposed business operations, it
intends to complete its United States testing of PHER-O2, receive all
necessary FDA approvals and begin American and Canadian sales for cancer
treatment and angioplasty; and complete overseas testing, begin overseas sales
and begin the construction of manufacturing facilities.  Sanguine California
has previously licensed BioLogix Development Partners, an unaffiliated
California limited partnership, to manufacture and market PHER-O2 in Canada,
including any future Canadian patent rights, and the exclusive right to market
PHER-O2 in U.S. military pre-hospital markets.  In this final phase, the
Company also intends to continue trials to test PHER-O2  for other
applications, including transplant organ preservation and the treatment of
carbon monoxide poisoning, sickle cell anemia, heart attack and stroke.  The
Company will be required to conduct similar rigorous testing and clinical
trials of PHER-O2 for each desired application for which it is sought to be
used.

          PHER-O2 is still in the research and development stage.  It has not
been tested on animals or humans; nor has any application been submitted to
any federal, state or foreign agency to seek authority for such testing.  This
development process will be time consuming, costly, subject to extreme
governmental regulation and must prove that this product is safe and
efficacious for human use.  Until then, the Company will have no potential for
revenues from operations.  No assurance can be given that the Company will be
able to raise the capital it will need to develop PHER-O2, or that if
sufficient funds are raised, the Company will ever receive requisite federal,
state or foreign agency approval to manufacture or market this product.  See
the captions "Business Development," "Special Risk Factors," "Principal
Products or Services and their Markets," "Competition," "Patents, Trademarks,
Licenses, Franchises, Concessions, Royalty Agreements or Labor Contracts" and
"Governmental Approval of Principal Products or Services" of the Company's
Registration Statement on Form 10-SB-A1, which has previously been filed
with the Securities and Exchange Commission, and which is incorporated herein
by reference.

Results of Operations.
----------------------

          During the quarterly period ending September 30, 1999, the Company's
only business operations were those of Sanguine California.  During this
period, the Company received total revenues of $0 and sustained a net
loss of ($65,497).

Liquidity.
----------

          During the quarterly period ended September 30, 1999, the Company
had total expenses of $65,497, while receiving $0 in revenues.

Year 2000
---------

          The use of computer programs that rely on two-digit date codes to
perform computations or decision-making functions has become widespread.  Many
of these programs may fail as a result of their inability to properly
interpret date codes beginning on January 1, 2000.  For example, such programs
may interpret the year code "00" as the year 1900 rather than 2000.

          The Company has ceased its research and development activities
pending the receipt of the additional funding required by Battelle.  At
present, the Company's computer operations are limited to word processing,
which is not highly susceptible to Year 2000 issues.  However, the Company can
provide no assurance that the systems of other entities such as banks and
utilities will be modified on a timely basis, or that such an entity's failure
to properly modify its systems will not have an adverse effect on the Company.

                        PART II - OTHER INFORMATION

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

          On April 15, 1999, the parties filed a Joint Motion to Dismiss the
litigation with H. J. Nicholas, Utah Third District Court Case No. 980901388,
on the terms described in Part I, Item 3, of the Company's Annual Report on
10-KSB for the year ended December 31, 1998, which was filed with the
Securities and Exchange Commission on April 15, 1999.  See the Exhibit Index,
Item 6 of this Report.  The Court entered its Order of Dismissal on April 15,
1999.

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

          None; not applicable.

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.

               10-SB-A1 Registration Statement.*

               Form 10-KSB Annual Report for the
               Fiscal Year ended December 31, 1998.*

          (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 thereunto duly authorized.

                                      SANGUINE CORPORATION



Date: 11/5/99                        By:/s/Thomas C. Drees
     --------------                     -------------------------------------
                                        Thomas C. Drees, CEO, President and
                                        Chairman of the Board of Directors


Date: 11/5/99                        By:/s/Anthony G. Hargreaves
     --------------                     -------------------------------------
                                        Anthony G. Hargreaves
                                        Vice President, Secretary/Treasurer
                                        and Director


Date: 11/9/99                        By:/s/David E. Nelson
     --------------                     -------------------------------------
                                        David E. Nelson
                                        CFO and Director