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, 2005

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

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


                       Commission File No. 000-24480

                           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, #6
                        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
         ---     ---                        ---     ---

Indicate by check mark whether the Registrant is a shell company (as defined
in Rule 12b-2 of the Exchange Act).  Yes     No X
                                        ---    ---
<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 Company's classes
of common stock, as of the latest practicable date:

                           September 30, 2005

                                80,458,658
                                ----------

                      PART I - FINANCIAL INFORMATION


Item 1.   Financial Statements.

          The Financial Statements of the Company 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
Company.
<PAGE>
                SANGUINE CORPORATION & SUBSIDIARY
                  (A Development Stage Company)

                CONSOLIDATED FINANCIAL STATEMENTS

             September 30, 2005 and December 31, 2004
<PAGE>
                SANGUINE CORPORATION & SUBSIDIARY
                  (A Development Stage Company)
                   Consolidated Balance Sheets



                              ASSETS

                                             September 30,       December 31,
                                                 2005                2004
                                              (Unaudited)

CURRENT ASSETS

 Cash                                           $     247,016  $  304,103
                                                -------------  ----------
                                                      247,016     304,103
                                                -------------  ----------
PROPERTY AND EQUIPMENT, NET (Note 1)                    1,416           -
                                                -------------  ----------

  TOTAL ASSETS                                  $     248,432  $  304,103
                                                =============  ==========

The accompanying notes are an integral part of these consolidated financial
statements.
                               F-2

                SANGUINE CORPORATION & SUBSIDIARY
                  (A Development Stage Company)
             Consolidated Balance Sheets (Continued)


              LIABILITIES AND STOCKHOLDERS' DEFICIT

                                             September 30,   December 31,
                                                  2005          2004
                                              (Unaudited)

CURRENT LIABILITIES

 Related party payable                            $     4,000  $     4,000
 Accounts payable                                      42,529       32,073
 Accrued compensation                                  35,000       10,125
                                                  -----------  -----------
  Total Current Liabilities                            81,529       46,198

STOCKHOLDERS' DEFICIT

 Common stock: 100,000,000 shares authorized
  of $.001 par value, 80,458,658 and 78,942,904
  shares outstanding, respectively                     80,459       78,943
 Additional paid-in capital                         5,666,685    5,517,066
 Accumulated deficit during the development stage  (5,580,241)  (5,338,104)
                                                  -----------  -----------
  Total Stockholders' Deficit                         166,903      257,905
                                                  -----------  -----------
  TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT     $   248,432  $   304,103
                                                  ===========  ===========
The accompanying notes are an integral part of these consolidated financial
statements.
                               F-3
<PAGE>
                SANGUINE CORPORATION & SUBSIDIARY
                  (A Development Stage Company)
              Consolidated Statements of Operations
                           (Unaudited)

                                                                From Inception
                                                                    of the
                                                                 Development
                                                                   Stage on
                                For the Three     For the Nine     January 18,
                                Months Ended      Months Ended    1990 Through
                                September 30      September 30,   September 30
                              2005         2004  2005       2004      2005

REVENUE                  $     -  $  10,041  $   1,019   $  14,904  $ 176,199

OPERATING EXPENSES

 Professional fees        59,194          -    150,604           -  2,815,827
 Research and
  Development                  -          -          -      19,500  1,356,970
 Selling, general
  and administrative      36,854    278,739     99,712     370,967  2,438,298
                        --------  ---------  ---------   --------- ----------
  Total Operating
  Expenses                96,048    278,739    250,316     390,467  6,611,095
                        --------  ---------  ---------   --------- ----------
LOSS FROM OPERATIONS     (96,048)  (268,698)  (249,297)   (375,563)(6,434,896)

OTHER INCOME (EXPENSES)

 Interest income           2,523          -      7,160           -     35,234
 Interest expense              -    (34,613)         -    (103,814)  (667,466)
 Loss on cash deposit          -          -          -           -    (10,020)
 Gain on settlement of debt    -  1,389,172          -   1,389,172  1,496,907
                        --------  ---------  ---------   --------- ----------
  Total Other Income
  (Expense)                2,523  1,354,559      7,160   1,285,358    854,655
                        --------  ---------  ---------   --------- ----------
 NET INCOME/(LOSS)      $(93,525)$1,085,861  $(242,137)  $ 909,795$(5,580,241)
                        ========  =========  =========   ========= ==========

BASIC EARNINGS (LOSS)
PER SHARE               $  (0.00) $    0.03  $  ( 0.00)  $    0.02
                        ========  =========  =========   =========
DILUTED EARNINGS (LOSS)
PER SHARE               $  (0.00) $    0.02  $   (0.00)  $    0.02
                        ========  =========  =========   =========

WEIGHTED AVERAGE NUMBER
 OF SHARES OUTSTANDING 80,458,658 39,515,446 80,198,169 38,905,817
                       ========== ========== ========== ==========
DILUTED WEIGHTED
AVERAGE NUMBER OF
SHARES OUTSTANDING     80,458,658 42,359,203 80,198,169 41,749,574
                       ========== ========== ========== ==========

The accompanying notes are an integral part of these consolidated financial
statements.
                               F-4
<PAGE>

                SANGUINE CORPORATION & SUBSIDIARY
                  (A Development Stage Company)
              Consolidated Statements of Cash Flows
                           (Unaudited)

                                                                From Inception
                                                                   of the
                                                                 Development
                                                                  Stage on
                                                                 January 18,
                                     For the Nine Months Ended  1990, Through
                                           September 30,         September 30,
                                       2005             2004         2005
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net income (loss)                    $(242,137)  $  909,795   $(5,580,241)
 Adjustments to reconcile net income
 (loss) to net cash used by operating
 activities:
  Depreciation and amortization              75            -         4,684
  Common stock issued for services       46,125      242,034     2,480,336
  Interest on beneficial conversion
  feature                                     -            -        25,000
  Legal expense related to beneficial
  conversion feature                          -            -         3,750
  Note payable issued for services            -            -       727,950
  Gain on extinguishments of debt             -            -       (98,826)
  Gain on conversions of debt to equity       -   (1,389,172)    (1,398,081)
  Recognition of prepaid expenses and
  expenses prepaid with common stock          -       62,943       456,184
 Changes in assets and liabilities:
  Decrease in prepaid expenses                -            -             -
  Increase in accounts payable and
  related party payables                 20,056        9,902       370,717
  Increase in accrued interest payable        -      103,814       547,279
  Increase in accrued liabilities             -            -        10,125
  Increase in customer deposits`              -            -        45,000
  Increase in accrued salaries           24,875       45,000       868,875
                                      ---------   ----------  ------------
   Net Cash Used by Operating
   Activities                          (151,006)     (15,684)   (1,537,248)

CASH FLOWS FROM INVESTING ACTIVITIES

 Cash paid for fixed assets              (1,491)           -        (6,100)
                                      ---------   ----------  ------------
   Net Cash Used by Investing
   Activities                            (1,491)           -        (6,100)
                                      ---------   ----------  ------------
CASH FLOWS FROM FINANCING ACTIVITIES

 Proceeds from warrant conversion        95,410            -       424,700
 Proceeds from notes payable and
  notes payable-related party                 -       18,762       212,139
 Payments on notes payable and notes
  payable-related party                       -            -        (9,400)
 Proceeds from issuance of convertible
  debentures                                  -            -        40,000
 Contributed capital                          -            -           750
 Common stock issued for cash                 -            -     1,122,175
                                      ---------   ----------  ------------
  Net Cash Provided by Financing
  Activities                             95,410       18,762     1,790,364
                                      ---------   ----------  ------------
NET INCREASE (DECREASE) IN CASH         (57,087)       3,078       247,016

CASH AT BEGINNING OF PERIOD             304,103        1,973             -
                                      ---------   ----------  ------------
CASH AT END OF PERIOD                 $ 247,016   $    5,051  $    247,016
                                      =========   ==========  ============

The accompanying notes are an integral part of these consolidated financial
statements.

                               F-5
<PAGE>
               SANGUINE CORPORATION AND SUBSIDIARY
                  (A Development Stage Company)
        Consolidated Statements of Cash Flows (Continued)
                           (Unaudited)


                                                                From Inception
                                                                   of the
                                                                 Development
                                                                  Stage on
                                                                 January 18,
                                     For the Nine Months Ended  1990, Through
                                           September 30,         September 30,
                                       2005             2004         2005
SUPPLEMENTAL SCHEDULE OF CASH FLOW
ACTIVITIES

CASH PAID FOR:

 Interest                           $        -      $        -     $        -
 Income taxes                       $        -      $        -     $        -

NON-CASH FINANCING ACTIVITIES

  Conversion stock issued for debt
   conversion                       $    9,600      $        -     $    9,600
  Equity instruments issued for
   services rendered                $   46,125      $  242,034     $2,480,336
  Legal related to beneficial
   conversion feature               $        -      $        -     $    3,750
  Notes payable issued for services $        -      $        -     $  727,950
  Common stock issued for prepaid
   services                         $        -      $        -     $  236,284
  Interest on beneficial conversion
   feature                          $        -      $        -     $   25,000

                               F-6
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
                SANGUINE CORPORATION & SUBSIDIARY
                  (A Development Stage Company)
            Notes to Consolidated Financial Statements
             September 30, 2005 and December 31, 2004

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 includes
 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, 2004 Annual Report on Form
 10-KSB.  Operating results for the three and nine months ended September 30,
 2005 are not necessarily indicative of the results that may be expected for
 the year ending December 31, 2005.

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 & SUBSIDIARY
                  (A Development Stage Company)
            Notes to Consolidated Financial Statements
             September 30, 2005 and December 31, 2004


NOTE 3 - STOCK OPTIONS AND WARRANTS

 A summary of the status of the Company's outstanding stock options as of
 September 30, 2005 and December 31, 2004 and changes during the periods then
 ended is presented below:


                                     Outstanding           Exercisable
                                            Weighted
                                 Number     Average           Number
                               Outstanding  Remaining      Exercisable
              Range of           at Sept    Contractual       at Sept
            Exercise Prices      30, 2005   Life             30, 2005
             $      0.1275        470,642       1.0           240,642
                    0.08        2,193,115       1.5         2,193,115
                    0.125         150,000       1.3           150,000
                    0.28           30,000       2.5            30,000
                               ----------                  ----------
                                2,843,757                   2,843,757
                               ==========                  ==========

NOTE 4 - RELATED PARTY TRANSACTION

       During the quarter ended September 30, 2005, there was a balance of
       $4,000 on related party notes payable.

                               F-8
<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 formulation and stability testing of
our product, PHER-02.

     In January, 2001, we were successful in developing improved formulations
of our surfactants for PHER-02.

     Beckloff Associates, Inc., a Cardinal Health company of Overland Park,
Kansas ("Beckloff"), was selected by us during our first quarter of 2005 to
analyze our IND (indication of what approvals are being sought) submissions,
NDA (new drug) applications, ANDA (appended new drug) applications,
IDE(investigational device evaluation) submissions, PMA (pre-market approval)
applications and 510(k) (form for medical devices) applications, among other
requirements, and to comment on the organization and accuracy of our
scientific data that is presented, along with advising us on the attitudes,
approaches and requirements of the FDA.

     We have recently completed our study to determine the most straight
forward path to achieve FDA approval of our product, PHER-02.  Fluosol, the
previous predecessor to our product which achieved FDA approval, received its
approval for angioplasty.  Although its approval came from angioplasty, the
great majority of use for Fluosol was as a blood substitute.  We believe the
same situation will exist for our product, PHER-O2.  PHER-O2 is a second
generation formulation with many process improvements and is, therefore,
anticipated to prove superior to Fluosol with regard to manufacturability and
oxygen carrying capacity.  We have determined that the fastest and least
expensive route to FDA approval contains a strategy to get approval for a
PHER-O2 (as an oxygen carrier), to enhance the viability to pancreatic islet
cells prior to transplant into a subset population of Type I diabetics.  This
strategy will include fast track approval request, and an orphan drug
designation request.  Our plan targets getting PHER-O2 approved as a
prescription pharmaceutical in the US market place for a an indication
requiring simple clinical endpoints which are anticipated to be readily proven
in a comparatively small number of patients.  Post approval, we expect
significant off label use for multiple indications, including that of a blood
substitute. With the primary indication setting precedence with the FDA, the
next step would be to gain approval as a blood substitute through a
supplemental registration pathway.

    Beckloff estimates that the total cost will be 4.5-6.0 million dollars and
four years from the start to the filing of the New Drug Application (NDA).
The fifth year would be consumed by the review/product approval time with a
shorter (perhaps only six months) review period if Beckloff can gain a fast-
track approval status.  Based on the overall integrated time line, the
Investigational New Drug Application (IND) could occur by June 18, 2007, with
clinical trials to follow approximately 30 days later.

    It is estimated that our product will require the following time and money
to achieve FDA approval:

     Non Clinical: Time: 9-12 months, Cost: $750-1.2 million
     Chemistry, Manufacturing and Controls: 12-18 months and 1.2-1.8 million
     Clinical Trials: 3-4 years and 2.5-3 million.
     Total: 4.5-6 million dollars and four years from the start of the
            program

     Our ability to carry out our plan depends entirely upon our ability to
obtain additional substantial equity or debt financing or royalties from
licensing our product. 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 period covered by 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 our disclosure
controls and procedures.  Based on this evaluation, our President and Chief
Financial Officer concluded that our disclosure controls and procedures are
effectively designed to ensure that information required to be disclosed or
filed by us is recorded, processed or summarized, within the time periods
specified in the rules and regulations of 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 over financial reporting, and
there have been no changes in our internal controls or in other factors in the
last fiscal quarter that has materially affected or is reasonably likely to
materially affect our internal control over financial reporting.

                        PART II - OTHER INFORMATION

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

     None; not applicable.

Item 2.   Unregistered sales of Equity 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.
-------------------

     Exhibits.

               Form 10-KSB Annual Report for the
               Year ended December 31, 2004.*

               31.1  302 Certification of Thomas C. Drees

               31.2  302 Certification of David E. Nelson

               32    Section 906 Certification.

               *  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: 11/15/2005                        By:/s/Thomas C. Drees, Ph.D.
     -----------                        -------------------------------------
                                        Thomas C. Drees, CEO, President and
                                        Chairman of the Board of Directors



Date: 11/15/2005                        By:/s/David E. Nelson
     -----------                        -------------------------------------
                                        David E. Nelson
                                        CFO and Director
<PAGE>