UNITED STATES SECURITIES AND EXCHANGE
COMMISSION Washington, D.C. 20549  FORM 10-Q   [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934  For the quarterly
period ended March 31, 2009   [   ] TRANSITION REPORT UNDER SECTION 13 OR
15(d) OF THE EXCHANGE ACT  For the transition
period from __________ to __________  Commission File
Number 000-24480  Sanguine Corporation (Exact name of registrant as specified in
its charter)  Nevada 95-4347608 (State or
other jurisdiction of (IRS Employer Identification No.) incorporation or organization)  101
East Green Street, #6, Pasadena, California 91105 (Address of principal executive
offices)  (Zip Code)  (626) 405-0079 (Registrants telephone number,
including area code)  Indicate by check mark whether the
registrant (1) has filed all reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes [X]   No [   ]  Indicate by check mark
whether the registrant has submitted electronically and posted on its corporate
Web site, if any, every Interactive Data File required to be submitted and
posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during
the preceding 12 months (or for such shorter period that the registrant was
required to submit and post such files).  The registrant has not been
phased into the Interactive Data reporting system. Yes [  ]  No
 [  ]  Indicate by check mark whether the
registrant is a large accelerated filer, an accelerated filer, a non-accelerated
filer, or a smaller reporting company.  See definitions of large
accelerated filer, accelerated filer, and smaller reporting company in Rule
12b-2 of the Exchange Act.  Large
Accelerated filer  ̈ Accelerated filer  ̈ Non-accelerated
filer   ̈ (Do not check if a
smaller reporting company) Smaller reporting company x  Indicate by check mark whether the registrant is a shell
company (as defined in Rule 12b-2 of the Exchange Act). Yes [  ]
  No [X]  Indicate the number of shares outstanding of each of the
issuers classes of common equity, as of the latest practicable date. 6,682,072 shares of $0.001 par value
common stock on May 19, 2009    Part I -
FINANCIAL INFORMATION  Item 1. Financial Statements Sanguine Corporation FINANCIAL STATEMENTS (UNAUDITED) March 31, 2009  The financial statements
included herein have been prepared by the Company, without audit, 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 generally accepted accounting
principles have been condensed or omitted.  However, in the opinion of
management, all adjustments (which include only normal recurring accruals)
necessary to present fairly the financial position and results of operations for
the periods presented have been made.  These financial statements should be
read in conjunction with the accompanying notes, and with the historical
financial information of the Company.      SANGUINE
CORPORATION & SUBSIDIARY (A Development Stage Company) Consolidated Balance Sheets   ASSETS


|                            |   |                |   |                  
|--------------------------- | - | -------------- | - | -----------------
|                            |   | March 31,
2009 |   | December 31,
2008
|                            |   | (Unaudited)    |   |                  
|CURRENT ASSETS              |   |                |   |                  
|                            |   |                |   |                  
|Cash                        | $ | 336            | $ | 1,159            
|Prepaid expenses            |   | 81,000         |   | 111,375          
|                            |   |                |   |                  
|Total Current Assets        |   | 81,336         |   | 112,534          
|                            |   |                |   |                  
|PROPERTY AND EQUIPMENT, NET |   | 1,074          |   | 1,194            
|                            |   |                |   |                  
|TOTAL ASSETS                | $ | 82,410         | $ | 113,728          

The accompanying notes are an integral part
of these consolidated financial statements.      SANGUINE CORPORATION & SUBSIDIARY (A Development Stage Company) Consolidated Balance Sheets (Continued)   LIABILITIES AND SHAREHOLDERS
DEFICIT


|                                                                                                        |   |                |   |                  
|------------------------------------------------------------------------------------------------------- | - | -------------- | - | -----------------
|                                                                                                        |   | March 31,
2009 |   | December 31,
2008
|                                                                                                        |   | (Unaudited)    |   |                  
|CURRENT LIABILITIES                                                                                     |   |                |   |                  
|                                                                                                        |   |                |   |                  
|Accounts payable                                                                                        | $ | 322,047        | $ | 319,851          
|Related party payable                                                                                   |   | 65,577         |   | 38,461           
|Accrued compensation                                                                                    |   | 17,194         |   | 16,319           
|                                                                                                        |   |                |   |                  
|Total Current Liabilities                                                                               |   | 404,818        |   | 374,631          
|                                                                                                        |   |                |   |                  
|COMMITMENTS AND CONTINGENCIES                                                                           |   |                |   |                  
|                                                                                                        |   |                |   |                  
|SHAREHOLDERS DEFICIT                                                                                   |   |                |   |                  
|                                                                                                        |   |                |   |                  
|Common stock, 10,000,000 shares authorized of
$0.001 par value, 5,164,572 shares
issued and outstanding |   | 5,165          |   | 5,165            
|Additional paid in capital                                                                              |   | 8,162,044      |   | 8,161,055        
|Deficit accumulated during the development
stage                                                        |   | (8,489,617)    |   | (8,427,123)      
|                                                                                                        |   |                |   |                  
|Total Shareholders
Deficit                                                                             |   | (322,408)      |   | (260,903)        
|                                                                                                        |   |                |   |                  
|TOTAL LIABILITIES AND SHAREHOLDERS
DEFICIT                                                             | $ | 82,410         | $ | 113,728          

The accompanying notes are an integral part
of these consolidated financial statements.      SANGUINE
CORPORATION & SUBSIDIARY (A Development Stage Company) Consolidated Statements of Operations (Unaudited)


| |                                      |  |                                                                              |  |     
| | ------------------------------------ |  | ---------------------------------------------------------------------------- |  | ----
| | For the Three Months Ended
March 31, |  | From Inception of the Development
Stage on January 18, 1990 through March 31
| | 2009                                 |  | 2008                                                                         |  | 2009




|                                                                 |   |           |   |           |   |            
|---------------------------------------------------------------- | - | --------- | - | --------- | - | -----------
|REVENUES                                                         | $ | -         | $ | -         | $ | 191,762    
|                                                                 |   |           |   |           |   |            
|OPERATING EXPENSES                                               |   |           |   |           |   |            
|                                                                 |   |           |   |           |   |            
|Professional fees                                                |   | 59,789    |   | 380,942   |   | 4,769,305  
|Research and development                                         |   | -         |   | -         |   | 1,973,158  
|Selling, general and
administrative                              |   | 8,264     |   | 24,090    |   | 2,792,941  
|                                                                 |   |           |   |           |   |            
|Total Operating
Expenses                                         |   | 68,053    |   | 405,032   |   | 9,535,404  
|                                                                 |   |           |   |           |   |            
|LOSS FROM OPERATIONS                                             |   | (68,053)  |   | (405,032) |   | (9,343,642)
|                                                                 |   |           |   |           |   |            
|OTHER INCOME (EXPENSE)                                           |   |           |   |           |   |            
|                                                                 |   |           |   |           |   |            
|Interest income                                                  |   | 2         |   | 429       |   | 40,195     
|Interest expense                                                 |   | (989)     |   | -         |   | (669,619)  
|(Gain) loss on foreign currency
exchange                         |   | 6,546     |   | (8,610)   |   | (9,164)    
|Loss on cash deposit                                             |   | -         |   | -         |   | (10,020)   
|Gain on settlement of debt                                       |   | -         |   | -         |   | 1,502,633  
|                                                                 |   |           |   |           |   |            
|Total Other Income
(Expense)                                     |   | 5,559     |   | (8,181)   |   | 854,025    
|                                                                 |   |           |   |           |   |            
|NET INCOME (LOSS)                                                |   | (62,494)  |   | (413,213) |   | (8,489,617)
|                                                                 |   |           |   |           |   |            
|BASIC INCOME (LOSS) PER SHARE                                    | $ | (0.01)    | $ | (0.08)    |   |            
|                                                                 |   |           |   |           |   |            
|DILUTED INCOME PER SHARE                                         | $ | (0.01)    | $ | (0.08)    |   |            
|                                                                 |   |           |   |           |   |            
|WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
BASIC AND DILUTED |   | 5,164,572 |   | 4,888,391 |   |            
|                                                                 |   |           |   |           |   |            

The accompanying notes are an integral part
of these consolidated financial statements.        SANGUINE
CORPORATION & SUBSIDIARY (A Development Stage Company) Consolidated Statements of Cash
Flows (Unaudited)


| |                                      |  |                                                                              |  |      |  |  |  |  |  |  | 
| | ------------------------------------ |  | ---------------------------------------------------------------------------- |  | ---- |  |  |  |  |  |  | 
| | For the Three Months Ended
March 31, |  | From Inception of the Development Stage on January 18, 1990
through March 31
| | 2009                                 |  | 2008                                                                         |  | 2009

|                                                                            |   |          |   |           |   |             |  |  |  |  |  | 
|--------------------------------------------------------------------------- | - | -------- | - | --------- | - | ----------- |  |  |  |  |  | 
|Net
loss                                                                    | $ | (62,494) | $ | (413,213) | $ | (8,489,617)
|Adjustments to
reconcile net loss to net cash used
by
operating activities: |   |          |   |           |   |            
|Depreciation
and amortization                                               |   | 120      |   | 74        |   | 5,923      
|Common
stock issued for services                                            |   | -        |   | -         |   | 3,365,446  
|Contributed
capital                                                         |   | 989      |   | -         |   | 2,154      
|Stock
warrants granted                                                      |   | -        |   | -         |   | 8,650      
|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                                             |   | -        |   | -         |   | (104,552)  
|Gain
on conversions of debt to equity                                       |   | -        |   | -         |   | (1,398,081)
|Recognition
of prepaid expenses and

expenses
prepaid with common stock     |   | -        |   | -         |   | 456,184    
|Warrant
extension                                                           |   | -        |   | -         |   | 34,493     
|Gain
(Loss) on Foreign currency exchange                                    |   | (6,546)  |   | 8,610     |   | 9,164      
|Changes
in assets and liabilities:                                          |   |          |   |           |   |            
|(Increase)
decrease in prepaid expense                                      |   | 30,375   |   | 298,592   |   | 768,983    
|Increase
in accounts payable and related party payables                     |   | 20,742   |   | 4,100     |   | 658,797    
|Increase
in accrued interest payable                                        |   | -        |   | -         |   | 547,279    
|Increase
in accrued liabilities                                             |   | -        |   | -         |   | 10,125     
|Increase
in customer deposits`                                              |   | -        |   | -         |   | 45,000     
|Increase
in accrued salaries                                                |   | 875      |   | 6,125     |   | 975,942    
|Net
Cash Used by Operating Activities                                       |   | (15,939) |   | (95,712)  |   | (2,347,410)
|                                                                            |   |          |   |           |   |            
|CASH FLOWS FROM
INVESTING ACTIVITIES                                        |   |          |   |           |   |            
|Cash
paid for fixed assets                                                  |   | -        |   | -         |   | (6,995)    
|Net
Cash Used by Investing Activities                                       |   | -        |   | -         |   | (6,995)    
|                                                                            |   |          |   |           |   |            
|CASH FLOWS FROM
FINANCING ACTIVITIES                                        |   |          |   |           |   |            
|Proceeds
from warrant conversion                                            |   | -        |   | -         |   | 524,700    
|Proceeds
from notes payable and notes payable-

related
party               |   | 15,116   |   | -         |   | 237,716    
|Payments
on notes payable and notes payable 

related
party                |   | -        |   | -         |   | (15,400)   
|Proceeds
from issuance of convertible debentures                            |   | -        |   | -         |   | 40,000     
|Contributed
capital                                                         |   | -        |   | -         |   | 750        
|Common
stock subscription                                                   |   | -        |   | 280,000   |   | 280,000    
|Common
stock issued for cash                                                |   | -        |   | -         |   | 1,286,975  
|Net
Cash Provided by Financing Activities                                   |   | 15,116   |   | 280,000   |   | 2,354,741  
|                                                                            |   |          |   |           |   |            
|NET INCREASE
(DECREASE) IN CASH                                             |   | (823)    |   | 184,288   |   | 336        
|CASH AT
BEGINNING OF PERIOD                                                 |   | 1,159    |   | 15,436    |   | -          
|CASH AT END OF
PERIOD                                                       | $ | 336      | $ | 199,724   | $ | 336        

The
accompanying notes are an integral part of these consolidated financial
statements.      SANGUINE
CORPORATION & SUBSIDIARY (A Development Stage Company) Consolidated Statements of Cash Flows
(Continued) (Unaudited)


| |                                      |  |                                                                              |  |     
| | ------------------------------------ |  | ---------------------------------------------------------------------------- |  | ----
| | For the Three Months Ended
March 31, |  | From Inception of the Development
Stage on January 18, 1990 through March 31
| | 2009                                 |  | 2008                                                                         |  | 2009




|                                                |   |     |   |   |   |          
|----------------------------------------------- | - | --- | - | - | - | ---------
|SUPPLEMENTAL SCHEDULE OF CASH FLOW
ACTIVITIES   |   |     |   |   |   |          
|CASH PAID FOR:                                  |   |     |   |   |   |          
|Interest                                        | $ | -   | $ | - | $ | -        
|Income taxes                                    | $ | -   | $ | - | $ | -        
|                                                |   |     |   |   |   |          
|NON-CASH FINANCING ACTIVITIES                   |   |     |   |   |   |          
|Common stock issued for debt
conversion         | $ | -   | $ | - | $ | 9,600    
|Equity instruments issued for services
rendered | $ | -   | $ | - | $ | 3,220,322
|Contributed capital for interest
contributed    | $ | 989 | $ | - | $ | 2,154    
|Interest on beneficial conversion
feature       | $ | -   | $ | - | $ | 25,000   
|Legal related to beneficial conversion
feature  | $ | -   | $ | - | $ | 3,750    
|Notes payable issued for
services               | $ | -   | $ | - | $ | 727,950  
|Common stock issued for prepaid
services        | $ | -   | $ | - | $ | 236,284  
|Common stock issued for debt                    | $ | -   | $ | - | $ | 2,822,067

The accompanying notes are
an integral part of these consolidated financial statements.       SANGUINE CORPORATION & SUBSIDIARY (A Development Stage Company) Notes to Consolidated Financial
Statements March 31, 2009 and December 31, 2008  NOTE 1 - BASIS OF FINANCIAL
STATEMENT PRESENTATION  The accompanying
unaudited 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 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 financial statements be read in conjunction
with the Companys most recent audited financial statements and notes thereto
included in its December 31, 2008 Annual Report on Form 10-K.  Operating
results for the three months ended March 31, 2009 are not necessarily indicative
of the results that may be expected for the year ending December 31, 2009.  NOTE 2 - ORGANIZATION AND
DESCRIPTION OF BUSINESS  Sanguine Corporation,
(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 Company is engaged
in developing oxygen carriers to be used by the medical profession.  The
Company is conducting research and development leading to F.D.A. clinical
trials.  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).  During the
year ended December 31, 2001, the Company acquired the remaining 6% of the
California Corporation in exchange for the issuance of 840,195 shares of common
stock.  From 1974 to 1980, 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.  The Company is a development stage company and
these financial statements are presented as those of a development stage company
effective January 18, 1990, coinciding with the incorporation date of Sanguine
Corporation.  On March 7, 2008, the
Company formed a wholly owned subsidiary called Sanguine Lifescience
Corporation.  As part of the formation of Sanguine Lifescience Corporation,
the Company transferred $15,000 to a bank account for Sanguine Lifescience use.
 At this time, Sanguine Lifescience Corporation is not engaged in any
business other than normal corporate matters.       SANGUINE
CORPORATION & SUBSIDIARY (A Development Stage Company) Notes to Consolidated Financial
Statements March 31, 2009 and December 31, 2008   NOTE
3 - 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 $1,000,000 - $1,500,000 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.   NOTE 4 - STOCK WARRANTS AND
OPTIONS  A summary of the status
of the Companys outstanding stock warrants as of March 31, 2009 and December
31, 2008 and changes during the periods then ended is presented below:


|                               |        |  |                                 |   |        |          |                                 |   |     
|------------------------------ | ------ |  | ------------------------------- | - | ------ | -------- | ------------------------------- | - | ----
|                               | 2009   |  | 2008                           
|                               | Shares |  | Weighted Average Exercise Price |   | Shares |          | Weighted Average Exercise
Price
|Outstanding, beginning of year | -      |  | $                               | - |        | 36,157   |                                 | $ | 1.60
|Granted                        | -      |  |                                 | - |        | -        |                                 |   | -   
|Expired/Cancelled              | -      |  |                                 | - |        | (36,157) |                                 |   | 1.60
|Exercised                      | -      |  |                                 | - |        | -        |                                 |   | -   
|                               |        |  |                                 |   |        |          |                                 |   |     
|Outstanding end of year        | -      |  | $                               | - |        | -        |                                 | $ | -   
|                               |        |  |                                 |   |        |          |                                 |   |     
|Exercisable                    | -      |  | $                               | - |        | -        |                                 | $ | -   

SANGUINE CORPORATION &
SUBSIDIARY (A Development Stage Company) Notes to Consolidated Financial
Statements March 31, 2009 and December 31, 2008  NOTE 4 - STOCK WARRANTS AND
OPTIONS (continued)   A summary of the status
of the Companys outstanding stock options as of March 31, 2009 and December 31,
2008 and changes during the periods then ended is presented below:


|                               |         |  |                                 |      |        |         |                                 |   |     
|------------------------------ | ------- |  | ------------------------------- | ---- | ------ | ------- | ------------------------------- | - | ----
|                               | 2009    |  | 2008                           
|                               | Shares  |  | Weighted Average Exercise Price |      | Shares |         | Weighted Average Exercise
Price
|Outstanding, beginning of year | 250,000 |  | $                               | 1.20 |        | 250,000 |                                 | $ | 1.20
|Granted                        | -       |  |                                 | -    |        | -       |                                 |   | -   
|Expired/Cancelled              | -       |  |                                 | -    |        | -       |                                 |   | -   
|Exercised                      | -       |  |                                 | -    |        | -       |                                 |   | -   
|                               |         |  |                                 |      |        |         |                                 |   |     
|Outstanding end of year        | 250,000 |  | $                               | 1.20 |        | 250,000 |                                 | $ | 1.20
|                               |         |  |                                 |      |        |         |                                 |   |     
|Exercisable                    | 250,000 |  | $                               | 1.20 |        | 250,000 |                                 | $ | 1.20

Outstanding

ExercisableRange of Exercise Prices

Number outstanding at March 31,
2009

Weighted Average Remaining Contractual
Life

Number Exercisable at March
31,2009$
1.20

250,000

.08

250,000250,000



250,000  NOTE 5 - RELATED PARTY
TRANSACTION  Related party payables
at March 31, 2009 and December 31, 2008  represent amounts owed to officers
of the Company for consulting fees and reimbursement of expenses paid of $65,577
and $38,461, respectively.      SANGUINE
CORPORATION & SUBSIDIARY (A Development Stage Company) Notes to Consolidated Financial
Statements March 31, 2009 and December 31, 2008  NOTE 6 - SUBSEQUENT EVENT  On April 14, 2009 the
Company issued 17,500 shares of common stock in payment of previously accrued
compensation valued at $16,319.  In May 2009, we issued 1,000,000
shares to LKB Partners, LLC for consulting services.  Additionally, the
Company agreed to issue up to 9.5 percent of the Companys outstanding shares of
common stock at a price of $0.10 per share under the terms of a stock option.
 The option would expire on December 31, 2013.  We also issued
additional shares to another consultant. LKB would also receive a monthly fee of
$8,000 when, and if, the Company had such funds available to pay to LKB.
 The term of the consulting agreement is twenty-four months.  In May 2009, the Company entered into
a consulting agreement with Gary Corderman.  Under the terms of the
agreement, Mr. Corderman will receive 500,000 shares of the Companys common
stock along with a monthly consulting fee of $4,000 if the Company has the funds
to pay.  If the Company does not have the funds to pay Mr. Corderman, he
will receive the $4,000 in shares of the Company.  The term of the
agreement is for twelve months.        Item 2. Managements Discussion and Analysis of
Financial Condition and Results of Operations  Special Note Regarding Forward-Looking
Statements  This periodic report contains certain
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 with respect to the Plan of Operations provided
below, including information regarding the Companys financial condition,
results of operations, business strategies, operating efficiencies or synergies,
competitive positions, growth opportunities, and the plans and objectives of
management. The statements made as part of the Plan of Operations that are not
historical facts are hereby identified as "forward-looking statements."  Critical Accounting Policies and Estimates  The preparation of financial statements and
related disclosures in conformity with accounting principles generally accepted
in the United States of America requires management to make estimates and
assumptions that affect the amounts reported in the unaudited Financial
Statements and accompanying notes.  Management bases its estimates on
historical experience and on various other assumptions that are believed to be
reasonable under the circumstances. Actual results could differ from these
estimates under different assumptions or conditions.  The Company
believes there have been no significant changes during the three month
periods ended March 31, 2009 and 2008, to the items disclosed as
significant accounting policies since the Companys last audited financial
statements for the year ended December 31, 2008.  The Companys accounting policies are more
fully described in Note 1 of the consolidated financial statements.  As
discussed in Note 1, the preparation of financial statements and related
disclosures in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions
about the future events that affect the amounts reported in the consolidated
financial statements and the accompanying notes. Management bases its estimates
on historical experience and on various other assumptions that are believed to
be reasonable under the circumstances.  Actual differences could differ
from these estimates under different assumptions or conditions.  The
Company believes that the following addresses the Companys most critical
accounting policies.  We recognize revenue in accordance with
Securities and Exchange Commission Staff Accounting Bulletin No. 104, Revenue
Recognition (SAB 104).  Under SAB 104, revenue is recognized at the
point of passage to the customer of title and risk of loss, when there is
persuasive evidence of an arrangement, the sales price is determinable, and
collection of the resulting receivable is reasonably assured.  We recognize
revenue as services are provided. Revenues are reflected net of coupon
discounts.  We account for income taxes in accordance
with Statement of Financial Accounting Standards No. 109, Accounting for Income
Taxes (SFAS No. 109).  Under SFAS No. 109, deferred tax assets and
liabilities are measured using enacted tax rates in effect for the year in which
the differences are expected to reverse.  Deferred tax assets will be
reflected on the balance sheet when it is determined that it is more likely than
not that the asset will be realized.  A valuation allowance has currently
been recorded to reduce our deferred tax asset to $0.  Plan of Operation.  We have not commenced planned principal
operations, but have made progress, in formulation and stability testing.  In January, 2005, we were successful in
developing improved formulations of our surfactants for PHER-02.  In December, 2006, we completed a pre-IND
meeting with the FDA, where Company management presented data to determine an
appropriate regulatory path related to PHER-O2.  Pending additional funding our plan of
operation for the next 12 months is to complete the preparation and submission
of the U.S. FDA New Device Application to support PHER-02 as a synthetic oxygen
carrying product.  Our proposed plan of operation is composed
of "stages," each of which coincides with a specific milestone in the process of
developing PHER-O2. Each stage, and the projected cost of each, is as
follows:       Stage A (approximately three-six months):
Complete the development of perfluoro-decalin and the synthetic surfactants that
make up PHER-O2, manufactured experimental doses in accordance with FDA and
overseas regulations and submit data to support a Master Drug Filing.
 Estimated cost is not to exceed $500,000, divided as follows: Completed
surfactant formulation (done) and the manufacture of sufficient product for
testing, (on going); animal safety and efficacy trials through a sub-contractor,
(done); and administrative, patent and proprietary right protection and
marketing costs,(in process) Optimize stabilized product to support the Master
Drug Filing (in process).  Stage B (approximately three-six months):
In the second period, we will produce optimal quantities and conduct testing 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
contractors and/or employees.  Stage C (approximately three-six months):
In the third period, we intend to prepare new 510(k) device application with the
FDA.  Estimated cost is $1,000,000, to be used as follows: set-up pilot
facility, or subcontractor, to manufacture small quantities of PHER-O2 for use
in testing and in connection with the New Drug Applications [done], prepare and
submit data for use of PHER-O2 as a whole organ transportation medium in support
of FDA labeling, and administrative, patent and proprietary right protection and
marketing costs, (in process).  These cost estimates are based upon the
prior experience of Thomas C. Drees, Ph.D., our President and CEO.  Dr.
Drees has more than 33 years' experience in the blood industry with Abbott
Scientific, Alpha Therapeutics and Sanguine Corporation.   At this
time we have not been able to obtain the necessary funding to complete the above
stages.  Until we have the necessary funding, we will not be able to
complete the stages.  Additionally, the Company will be focusing on other
potential ventures that could produce revenue including licensing of its PHER-02
product.  Results of Operations  The Company continues to not have revenues
as it focuses on the development of its products.  As such, the Company has
not had revenue in either the quarter ended March 31, 2009 or 2008.  We had
no material operations, except the research and development activities related
to our subcontracted research and development of our product, PHER-O2.  We realized a net loss of $62,494  for
the quarter ended March 31, 2009, and a net loss of $413,213 for the quarter
ended March 31, 2008.  Most of our expense related to professional fees for
the quarter ended March 31, 2009.  For the quarter ended March 31, 2008,
most of our expenses also related to professional fees. Professional fees
decreased as a result of the expiration of certain consulting agreements.  With the focus the last three months on
evaluating our business model, our research and development expenses were $0 for
the quarter ended March 31, 2009.  Liquidity and Capital Resources  As of March 31, 2009, we had $336 in cash
and $81,000 in prepaid expenses, with $404,818 in current liabilities. Our cash
position is not sufficient to cover our accounts payable or other current
liabilities with working capital at March 31, 2009, of negative $323,482.
 If prepaid expenses are removed from current assets, our working capital
position is even worse with $404,482 in negative working capital.
  Since the end of the quarter, our cash position has worsened as we
paid ongoing expenses. As such we will be dependent on our ability to raise
additional debt or equity capital to be able to cover current liabilities.  Off-balance sheet arrangements  We had no off-balance sheet arrangements during the
quarter ended March 31, 2009.       Forward-looking
Statements  The Private Securities Litigation Reform
Act of 1995 (the Act) provides a safe harbor for forward-looking statements
made by or on behalf of our Company. Our Company and our representatives may
from time to time make written or oral statements that are forward-looking,
including statements contained in this Annual Report and other filings with the
Securities and Exchange Commission and in reports to our Companys stockholders.
Management believes that all statements that express expectations and
projections with respect to future matters, as well as from developments beyond
our Companys control including changes in global economic conditions are
forward-looking statements within the meaning of the Act. These statements are
made on the basis of managements views and assumptions, as of the time the
statements are made, regarding future events and business performance. There can
be no assurance, however, that managements expectations will necessarily come
to pass. Factors that may affect forward- looking statements include a wide
range of factors that could materially affect future developments and
performance, including the following:  Changes in Company-wide strategies, which
may result in changes in the types or mix of businesses in which our Company is
involved or chooses to invest; changes in U.S., global or regional economic
conditions, changes in U.S. and global financial and equity markets, including
significant interest rate fluctuations, which may impede our Companys access
to, or increase the cost of, external financing for our operations and
investments; increased competitive pressures, both domestically and
internationally, legal and regulatory developments, such as regulatory actions
affecting environmental activities, the imposition by foreign countries of trade
restrictions and changes in international tax laws or currency controls; adverse
weather conditions or natural disasters, such as hurricanes and earthquakes,
labor disputes, which may lead to increased costs or disruption of
operations.  This list of factors that may affect future
performance and the accuracy of forward-looking statements is illustrative, but
by no means exhaustive. Accordingly, all forward-looking statements should be
evaluated with the understanding of their inherent uncertainty.  Item 3.  Quantitative and Qualitative Disclosures
About Market Risk.  NA-Small Reporting Company  Item 4T.  Controls and Procedures.  Evaluation of Disclosure Controls and
Procedures  Our
management, with the participation of our President and CFO, evaluated the
effectiveness of our disclosure controls and procedures as of the end of the
period covered by this report. Based on that evaluation, our President and CFO
concluded that our disclosure controls and procedures as of the end of the
period covered by this report were effective such that the information required
to be disclosed by us in reports filed under the Exchange Act is
(i) recorded, processed, summarized and reported within the time periods
specified in the SECs rules and forms and (ii) accumulated and
communicated to our management, including our President and CFO, as appropriate
to allow timely decisions regarding disclosure. A controls system cannot provide
absolute assurance, however, that the objectives of the controls system are met,
and no evaluation of controls can provide absolute assurance that all control
issues and instances of fraud, if any, within a company have been detected.   Managements Report on Internal Control
over Financial Reporting  Our
management is responsible for establishing and maintaining adequate internal
control over financial reporting (as defined in Rule 13a-15(f) under the
Exchange Act). Our internal control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes of
accounting principles generally accepted in the United States.   Because of its inherent limitations, internal
control over financial reporting may not prevent or detect misstatements.
Therefore, even those systems determined to be effective can provide only
reasonable assurance of achieving their control objectives.        Our
management, with the participation of the President and CFO, evaluated the
effectiveness of our internal control over financial reporting as of March 31,
2009.  Based on this evaluation, our management, with the participation of
the President and CFO, concluded that, as of March 31, 2009, our internal
control over financial reporting was effective.  Changes in internal control over
financial reporting  There have been no changes in internal control over
financial reporting.  PART II - OTHER INFORMATION  ITEM 1.  Legal Proceedings   None  ITEM 2.  Unregistered Sales of Equity Securities
and Use of Proceeds  Recent Sales of Unregistered
Securities  During 2008, we issued shares to our
medical advisory board members and to our directors.  These shares reflect
our annual accrual of shares we issue to our medical advisory board and
directors with each member receiving 625 shares per quarter for 2,500 shares per
year.   Our three directors received an aggregate of 7,500 shares and
our four medical advisory board members received an aggregate of 10,000 shares.
 The cost of such shares are accrued each quarter during the year.
 Additionally, we sold approximately 233,334 shares of our common stock to
accredited investors in a private placement.  We also issued 25,000 shares
of common stock to a consultant for ongoing consulting services. Additionally,
in 2009, we issued  shares to our medical advisory board members and to our
directors.  These shares reflect our annual accrual of shares we issue to
our medical advisory board and directors with each member receiving 625 shares
per quarter for 7,500 shares per year.   Our three directors received
an aggregate of 7,500 shares and our four medical advisory board members
received an aggregate of 10,000 shares.  The cost of such shares are
accrued each quarter during the year.  In May 2009, we issued 1,000,000 shares to LKB Partners,
LLC for consulting services.  Additionally, the Company agreed to issue up
to 9.5 percent of the Companys outstanding shares of common stock at a price of
$0.10 per share under the terms of a stock option.  The option would expire
on December 31, 2013.  We also issued additional shares to another
consultant. LKB would also receive a monthly fee of $8,000 when, and if, the
Company had such funds available to pay to LKB.  The term of the consulting
agreement is twenty-four months.  In May 2009, the Company entered into a consulting
agreement with Gary Corderman.  Under the terms of the agreement, Mr.
Corderman will receive 500,000 shares of the Companys common stock along with a
monthly consulting fee of $4,000 if the Company has the funds to pay.  If
the Company does not have the funds to pay Mr. Corderman, he will receive the
$4,000 in shares of the Company.  The term of the agreement is for twelve
months.  Use of Proceeds of Registered
Securities  None; not applicable.  Purchases of Equity Securities by
Us and Affiliated Purchasers  During the three months ended March 31, 2009, we have not
purchased any equity securities nor have any officers or directors of the
Company.  ITEM 3.  Defaults Upon Senior Securities  We are not aware of any defaults upon senior
securities.       ITEM 4.  Submission of Matters to a Vote of
Security Holders  No matters were submitted to a vote of security holders
during the quarter ended March 31, 2009.  ITEM 5.  Other Information.  We issued shares to our medical advisory
board members and to our directors.  These shares reflect our annual
accrual of shares we issue to our medical advisory board and directors with each
member receiving 625 shares per quarter for 2,500 shares per year.
  Our three directors received an aggregate of 7,500 shares and our
four medical advisory board members received an aggregate of 10,000 shares.
 The cost of such shares are accrued each quarter during the year.  In May 2009, we issued 1,000,000 shares to LKB Partners,
LLC for consulting services.  Additionally, the Company agreed to issue up
to 9.5 percent of the Companys outstanding shares of common stock at a price of
$0.10 per share under the terms of a stock option.  The option would expire
on December 31, 2013.  We also issued additional shares to another
consultant. LKB would also receive a monthly fee of $8,000 when, and if, the
Company had such funds available to pay to LKB.  The term of the consulting
agreement is twenty-four months.  In May 2009, the Company entered into a consulting
agreement with Gary Corderman.  Under the terms of the agreement, Mr.
Corderman will receive 500,000 shares of the Companys common stock along with a
monthly consulting fee of $4,000 if the Company has the funds to pay.  If
the Company does not have the funds to pay Mr. Corderman, he will receive the
$4,000 in shares of the Company.  The term of the agreement is for twelve
months.  ITEM 6.  Exhibits  (a) Exhibits.  The following exhibits are filed herewith or are
incorporated by reference to exhibits previously filed.   Exhibit Number
              Description 3.2 Articles of Amendment increasing the
authorized shares-Definitive Information Statement filed 12/23/2005**  3.3 Bylaws-8-K Current Report dated
11/28/2005**  10.1 Consulting Agreement  LKB
Partners  10.2 Consulting Agreement  Corderman  14 Code of Ethics-Form 10KSB for the year
ended December 31, 2002**  31.1 302 Certification of Thomas C. Drees,
Ph.D.  31.2 302 Certification of David E.
Nelson  32 906 Certification  *
   Summaries of all exhibits contained within this Report are
modified in their entirety by reference to these Exhibits.  **
  These documents and related exhibits have been previously filed with
the Securities and Exchange Commission and are 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 (Registrant)     Date: May 19, 2009 By: /s/ Thomas C. Drees Thomas
C. Drees, Ph.D., MBA CEO
and Chairman of the Board
of Directors  Date: May 19, 2009 By: /s/ David E. Nelson David
E. Nelson, CPA CFO
and Director