<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 March 31, 2000

[ ]  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:

                               March 31, 2000

                                24,559,323
                                ----------

                      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

                       FINANCIAL STATEMENTS

                   March 31, 2000 (Unaudited) &
                        December 31, 1999
<PAGE>
[Letterhead]

                      Schvaneveldt & Company
                   Certified Public Accountant
                275 East South Temple, Suite #300
                    Salt Lake City, Utah 84111
                          (801) 521-2392

Darrell T. Schvaneveldt, C.P.A.


Board of Directors
Sanguine Corporation
(A Development Stage Company)

I have reviewed the accompanying balance sheets, of Sanguine Corporation, as
of March 31, 2000, and for the three months periods then ended.  These
financial statements are the responsibility of the Company's management.

I conducted my review in accordance with standards established by the American
Institute of Certified Public Accountants.  A review of interim financial
consists principally of applying analytical procedures to financial data and
making inquiries of persons responsible for financial and accounting matters.
It is substantially less in scope than an audit conducted in accordance with
generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, I do not express such an opinion.

Based on my review, I am not aware of any material modifications that should
be made to the accompanying financial statements for them to be in conformity
with generally accepted accounting principles.


/S/ Schvaneveldt & Company
Salt Lake City, Utah 84111
May 18, 2000
<PAGE>
<TABLE>
                       SANGUINE CORPORATION
                  (A Development Stage Company)
                          Balance Sheets
         March 31, 2000 (Unaudited) and December 31, 1999
<CAPTION>
                                                     2000               1999
      Assets
<S>                                             <C>              <C>
Current Assets
  Cash                                        $         6,363 $        1,062

      Total Assets                            $         6,363 $        1,062

      Liabilities & Stockholders' Equity

Current Liabilities
  Accounts Payable                            $        81,676 $       78,680
  Accrued Salaries                                    524,000        524,000
  Accrued Interest Payable                             42,080         38,880
  Notes Payable                                       172,271        168,306

      Total Current Liabilities                       820,027        809,866

Stockholders' Equity
  Common Stock, Authorized:
   100,000,000 Shares at $0.001 Par Value:
   24,559,323 Shares & 23,162,994 Shares
   Issued & Outstanding Respectively                   24,559         23,163
  Paid In Capital (Quasi-Reorganized
   March 20, 1994 Deficit Retained
   Earnings of $2,423,964 Eliminated)               1,227,448        877,444
  Retained Earnings Deficit                   (     2,065,671)  (  1,709,411)

      Total Stockholders' Equity              (       813,664)  (    808,804)

      Total Liabilities & Stockholders' Equity $        6,363   $      1,062
</TABLE>
<TABLE>
                       SANGUINE CORPORATION
                  (A Development Stage Company)
               Statements of Operations (Unaudited)
        For the Period January 1, 2000 to March 31, 2000 &
                January 1, 1999 to March 31, 1999
<CAPTION>
                                                     2000             1999
<S>                                           <C>              <C>
Revenues                                      $          -0-    $        -0-

Expenses

  Consulting Fees                             $      233,500    $        -0-
  Research & Development                              19,500          19,500
  Salaries                                             4,500           4,500
  Office Expense                                       5,279           1,973
  Auto Expenses                                        4,301             270
  Legal & Professional Fees                           64,036           7,867
  Rent                                                 3,204           4,799
  Interest Expense                                    21,940           4,882
  Stock Transfer                                         -0-             300
  Depreciation                                           -0-              84

     Total Expenses                                  356,260          44,175

     Loss for Period                          ($     356,260)   ($    44,175)

     Profit (Loss) Per Share                  (         0.02)   (       0.00)

   Weighted Average Shares Outstanding            23,286,159      23,027,809
</TABLE>
<TABLE>
                       SANGUINE CORPORATION
                  (A Development Stage Company)
               Statements of Cash Flows (Unaudited)
       For the Periods January 1, 2000 to March 31, 2000 &
                January 1, 1999 to March 31, 1999
<CAPTION>
                                                       March          March
                                                        2000        31, 1999
<S>                                              <C>              <C>
Cash Flows from Operating Activities

   Net (Loss)                                 ($         356,260) ($  44,175)
   Depreciation                                              -0-          84
   Non Cash Expenses                                     327,500         -0-
   Rounding                                                  -0-           2
   Changes in Operating Assets & Liabilities:
     Increase (Decrease)Accounts Payable                   2,996       7,788
     Increase in Interest Payable                          3,200       1,365
     Increase in Accrued Salaries                            -0-      24,000

       Net Cash Flows from
       Operating Activities                   (           22,564) (   10,936)

Cash Flows from Investing Activities                         -0-         -0-

Cash Flows from Financing Activities

   Sale of Common Stock                                   23,900       9,500
   Increase in Notes Payable                               3,965       7,204

       Net Cash Flows Provided by
       Financing Activities                               27,865      16,704

       Increase (Decrease) in Cash                         5,301       5,768

       Cash at Beginning of Period                         1,062         497

       Cash at End of Period                  $            6,363  $    6,265

Disclosure for Cash Flows from:

   Interest                                   $           21,940  $    4,882
   Taxes                                                     -0-         -0-
</TABLE>
                       SANGUINE CORPORATION
                  Notes to Financial Statements

NOTE #1 - Corporate History

The Company was incorporated January 27, 1974, in the State of Utah, using the
name Sight and Sound Systems, Inc.  On July 8, 1974, the Company changed its
name to International Health Resorts, Inc., and on June 25, 1993, the Company
filed a Certificate of Amendment changing the name to Sanguine Corporation.
In May of 1992, the Company changed its domicile to the State of Nevada.

The stated purpose of the Company is to engage without qualification, in any
lawful acts, or activity for which a corporation may be organized under the
laws of the state of Nevada.  Currently,  the Company is engaged in developing
artificial blood to be used by the medical profession.  The Company is
conducting research and development leading to F.D.A. clinical trials.

The Company forward split its outstanding shares 1.5 shares for 1 on July 14,
1993.  As a consequence of this action, the Company had 1,431,000 shares
issued and outstanding prior to the Agreement and Plan of Reorganization in
which Sanguine Corporation (a California Corporation) was acquired.

On June 14, 1993, the Company entered into an Agreement and Plan of
Reorganization, wherein it was agreed that Sanguine Corporation (a Nevada
Corporation) would issue 14,589,775 shares of its common stock to acquire 94%
of the issued and outstanding shares of stock of Sanguine Corporation (a
California Corporation).

From 1974 to 1989, the Company engaged in several business ventures.  These
business activities resulted in the loss of all Company assets.  Because of
the search for a new business venture, the Company has entered into the
"development stage company" status again.  Sanguine Corporation (California)
is a development stage company and these financial statements are presented as
those of a development stage company effective January 18, 1989, coinciding
with the incorporation date of Sanguine Corporation (California).

NOTE #2 - Significant Accounting Policies

A.   The Company uses the accrual method of accounting.
B.   Revenues and directly related expenses are recognized in the period when
     the goods are shipped to the customer.
C.   The Company considers all short term, highly liquid investments that are
     readily convertible, within three months, to known amounts as cash
     equivalents.  The Company currently has no cash equivalents.
D.   Primary Earnings Per Share amounts are based on the weighted average
     number of shares outstanding at the dates of the financial statements.
     Fully Diluted Earnings Per Shares shall be shown on stock options and
     other convertible issues that may be exercised within ten years of the
     financial statement dates.

                       SANGUINE CORPORATION
            Notes to Financial Statements -Continued-

NOTE #2 - Significant Accounting Policies -Continued-

E.   Inventories:   Inventories are stated at the lower of cost, determined
     by the FIFO method or  market.
F.   Depreciation:   The cost of property and equipment is depreciated over
     the estimated useful lives of the related assets. The cost of leasehold
     improvements is depreciated (amortized) over the lesser of the length of
     the related assets or the estimated lives of the assets.   Depreciation
     is computed on the straight line method for reporting purposes and for
     tax purposes.
G.   Estimates:  The preparation of the financial statements in conformity
     with generally accepted accounting principles requires management to
     make estimates and assumptions that affect the amounts reported in the
     financial statements and accompanying notes.  Actual results could
     differ from those estimates.

NOTE #3 - 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 1999 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, 1999, 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 March 31, 2000, 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 ($356,260).

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

          During the quarterly period ended March 31, 2000, the Company
had total expenses of $356,260, while receiving $0 in revenues; compared to
the period ended March 31, 1999, the Company had total expenses of $44,175,
while receiving $0 in revenues.

                        PART II - OTHER INFORMATION

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

         None; not applicable.

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.*

              Form 10-KSB Annual Report for the
               Fiscal Year ended December 31, 1999.*

          (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: 5/22/2000                       By:/s/Thomas C. Drees
     ----------                         -------------------------------------
                                        Thomas C. Drees, CEO, President and
                                        Chairman of the Board of Directors


Date: 5/22/2000                       By:/s/Anthony G. Hargreaves
     ----------                         -------------------------------------
                                        Anthony G. Hargreaves
                                        Vice President, Secretary/Treasurer
                                        and Director


Date: 5/22/2000                       By:/s/David E. Nelson
     ----------                         -------------------------------------
                                        David E. Nelson
                                        CFO and Director