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 September 30, 2008   [   ] 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 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. 5,164,572
shares of $0.001 par value common stock on November 11, 2008    Part I - FINANCIAL INFORMATION  Item 1.
Financial Statements Sanguine
Corporation FINANCIAL
STATEMENTS (UNAUDITED) September 30,
2008  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    September 30,
2008

December
31,
2007(Unaudited)CURRENT ASSETSCash
$
4,478
$
15,436Prepaid
expense

171,113

770,384Total
Current Assets

175,591

785,820PROPERTY AND
EQUIPMENT, NET

1,312

670OTHER ASSETSLong term prepaid
expenses

20,250

111,375TOTAL
ASSETS
$
197,153
$
897,865       SANGUINE CORPORATION & SUBSIDIARY (A Development
Stage Company) Consolidated
Balance Sheets (Continued)   LIABILITIES
AND SHAREHOLDERS EQUITY (DEFICIT)   September 30,
2008

December
31,
2007(Unaudited)CURRENT
LIABILITIESAccounts
payable
$
318,519
$
332,719Related party
payable

20,000

-Accrued
compensation

15,531

39,938Total
Current Liabilities

354,050

372,657Total
Liabilities

354,050

372,657COMMITMENTS AND
CONTINGENCIESSHAREHOLDERS EQUITY
(DEFICIT)Common stock,
10,000,000 shares authorized   of $0.001 par value, 5,164,572
 and 4,888,739 shares issued and outstanding, respectively

5,165

4,889Additional paid in
capital

8,160,410

7,811,998Deficit accumulated
during the development stage

(8,322,472)

(7,291,679)Total
Shareholders Equity (Deficit)

(156,897)

525,208TOTAL LIABILITIES AND
SHAREHOLDERS
EQUITY
(DEFICIT)
$
197,153
$
897,865       SANGUINE CORPORATION & SUBSIDIARY (A Development
Stage Company) Consolidated Statements of Operations and Other Comprehensive
Income (Loss) (Unaudited)  For the
Three Months
Ended
September 30,


For the
Nine Months Ended
September 30,


From Inception of the Development Stage on January 18, 1990
through September 30,2008

2007

2008

2007

2008REVENUES
$
-
$
-
$
-
$
-
$
191,762OPERATING
EXPENSESProfessional
fees

144,322

6,610

958,762

162,276

4,604,861Research
and
development

-

-

-

72,182

1,973,158Selling,
general and
administrative

23,485

111,347

74,603

238,697

2,776,872Total Operating
Expenses

167,807

117,957

1,033,365

473,155

9,354,891LOSS FROM
OPERATIONS

(167,807)

(117,957)

(1,033,365)

(473,155)

(9,163,129)OTHER INCOME
(EXPENSE)Interest
income

8

13

685

91

40,190Interest
expense

-

-

-

-

(667,986)Loss on
foreign
currency
exchange

10,489



1,887



(18,434)Loss on
cash deposit

-

-

-

-

(10,020)Warrant
expense

-

(76,122)

-

(152,244)

-Gain on
settlement of
debt

-

-

-

-

1,496,907Total Other Income
(Expense)

10,497

(76,109)

2,572

(152,153)

840,657NET INCOME
(LOSS)

(157,310)

(194,066)

(1,030,793)

(625,308)

(8,322,472)       SANGUINE CORPORATION & SUBSIDIARY (A
Development Stage Company) Consolidated Statements of Operations - continued (Unaudited)  For the
Three Months Ended
September 30,


For the
Nine Months Ended
September 30,


From
Inception of the Development Stage on January 18, 1990 through September
30,2008

2007

2008

2007

2008OTHER COMPREHENSIVE
INCOME (LOSS)Loss on
foreign currency exchange

-

(7,309)

-

(10,184)

-TOTAL COMPREHENSIVE
INCOME (LOSS)
$
(157,310)
$
(201,375)
$
(1,030,793)
$
(635,492)
$
(8,322,472)BASIC INCOME (LOSS)
PER SHARE
$
(0.03)
$
(0.05)
$
(0.20)
$
(0.15)DILUTED INCOME PER
SHARE
$
(0.03)
$
(0.05)
$
(0.20)
$
(0.15)WEIGHTED AVERAGE
NUMBER OF SHARES OUTSTANDING BASIC AND DILUTED

5,164,572

4,424,422

5,062,896

4,268,995       SANGUINE CORPORATION & SUBSIDIARY (A Development
Stage Company) Consolidated Statements of Cash Flows (Unaudited) For the
Nine Months Ended
September 30,

From Inception of the Development Stage on January 18, 1990
through September 30,2008

2007

2008  Net
loss
$
(1,030,793)
$
(625,308)
$
(8,322,472)Adjustments to
reconcile net loss to net cash used
by
operating activities:Depreciation
and amortization

253

224

5,683Common
stock issued for services

35,000

373,188

3,365,446Contributed
capital

-

-

520Stock
warrants granted

-

-

8,650Stock
options granted

-

152,244

-Interest
on beneficial conversion feature

-

-

25,000Legal
expense related to beneficial conversion feature

-

-

3,750Note
payable issued for services

-

-

727,950Gain on
extinguishments of debt

-

-

(98,826)Gain on
conversions of debt to equity

-

-

(1,398,081)Recognition
of prepaid expenses and

expenses
prepaid with common stock

-

-

456,184Warrant
extension

-

-

34,493(Gains)
Loss on foreign currency exchange

(1,887)

-

18,434Changes
in assets and liabilities:(Increase)
decrease in prepaid expense

690,396

2,711

658,620Increase
(decrease) in accounts payable

(12,313)

-

628,273Increase
in accrued interest payable

-

-

547,279Increase
in accrued liabilities

-

-

10,125Increase
in customer deposits`

-

-

45,000Increase
(decrease) in warrant liability

-

(1,400)

-Increase
(decrease) in accrued salaries and consulting

21,281

(44,249)

956,281Net
Cash Used by Operating Activities

(292,063)

(142,590)

(2,327,691)CASH FLOWS FROM
INVESTING ACTIVITIESCash
paid for fixed assets

(895)

-

(6,995)Net
Cash Used by Investing Activities

(895)

-

(6,995)CASH FLOWS FROM
FINANCING ACTIVITIESProceeds
from warrant conversion

-

100,000

524,700Proceeds
from notes payable and notes payable-

related
party

8,000

-

222,139Payments
on notes payable and notes payable 

related
party

-

-

(15,400)Proceeds
from issuance of convertible debentures

-

-

40,000Contributed
capital

-

-

750Common
stock issued for cash

280,000

16,999

1,566,975Net
Cash Provided by Financing Activities

288,000

116,999

2,339,164NET INCREASE
(DECREASE) IN CASH

(10,958)

(25,591)

4,478CASH AT BEGINNING OF
PERIOD

15,436

30,288

-CASH AT END OF
PERIOD
$
4,478
$
4,697
$
4,478       SANGUINE CORPORATION AND SUBSIDIARY (A Development
Stage Company) Consolidated
Statements of Cash Flows (Continued) (Unaudited)  For the
Nine Months Ended
September 30,

From
Inception of the Development Stage on January 18, 1990 through September
30,2008

2007

2008  SUPPLEMENTAL SCHEDULE
OF CASH FLOW ACTIVITIESCASH PAID FOR:Interest
$
-
$
-
$
-Income
taxes
$
-
$
-
$
-NON-CASH
ACTIVITIESCommon
stock issued for debt conversion
$
-
$
-
$
9,600Equity
instruments issued for services rendered
$
-
$
373,188
$
3,186,634Contributed
capital for interest contributed
$
-
$
-
$
520Interest
on beneficial conversion feature
$
-
$
-
$
25,000Legal
related to beneficial conversion feature
$
-
$
-
$
3,750Notes
payable issued for services
$
-
$
-
$
727,950Common
stock issued for prepaid services
$
-
$
-
$
236,284Common
stock issued for debt
$
-
$
-
$
2,822,067       SANGUINE CORPORATION & SUBSIDIARY (A Development
Stage Company) Notes to
Consolidated Financial Statements September 30,
2008 and December 31, 2007   NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION  The accompanying unaudited consolidated 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 consolidated 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 consolidated financial statements be read in
conjunction with the Companys most recent audited financial statements and
notes thereto included in its December 31, 2007 Annual Report on Form 10-KSB.
 Operating results for the three and nine months ended September 30, 2008
are not necessarily indicative of the results that may be expected for the year
ending December 31, 2008.  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 September 30,
2008 and December 31, 2007   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 September 30, 2008 and December 31, 2007 and changes during the
periods then ended is presented below:  2008

2007Shares

Weighted
Average Exercise Price

Shares

Weighted Average Exercise PriceOutstanding, beginning of year
36,157

$
1.60

106,157

$
1.60Granted
-


-

-


-Expired/Cancelled
(36,157)


1.60

(7,500)


2.50Exercised
-


-

(62,500)


1.60Outstanding end of year
-

$
-

36,157

$
1.60Exercisable
-

$
-

36,157

$
1.60         SANGUINE CORPORATION & SUBSIDIARY (A Development
Stage Company) Notes to
Consolidated Financial Statements September 30, 2008 and December 31, 2007  NOTE 4 - STOCK WARRANTS AND OPTIONS (continued)  A summary of the status of the Companys outstanding stock options
as of September 30, 2008 and December 31, 2007 and changes during the periods
then ended is presented below:  2008

2007Shares

Weighted
Average Exercise Price

Shares

Weighted Average Exercise PriceOutstanding, beginning of year
250,000

$
1.20

-

$
-Granted
-


-

250,000


1.20Expired/Cancelled
-


-

-


-Exercised
-


-

-


-Outstanding end of year
250,000

$
1.20

250,000

$
1.20Exercisable
250,000

$
1.20

250,000

$
1.20   Outstanding

ExercisableRange of
Exercise Prices

Number
outstanding at September 30, 2008

Weighted
Average Remaining Contractual Life

Number
Exercisable at September 30, 2008$
1.20

250,000

.50

250,000250,000



250,000   NOTE 5 - EQUITY TRANSACTIONS  During the quarter the Company completed a one for twenty reverse
split of its issued and outstanding shares of common stock.  The Company
also approved the addition of 10,000,000 shares of preferred stock.  No
shares of preferred stock have been issued.   The financial statements
as of December 31, 2007, have been restated to give retroactive recognition of
this reverse split.  NOTE 6 - RELATED PARTY TRANSACTION  Related party payables at September 30, 2008 represent amounts
owed to officers of the Company for consulting fees and reimbursement of
expenses paid of $20,000.             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 September 30,
2008 and 2007, to the items disclosed as significant accounting policies
since the Companys last audited financial statements for the year ended
December 31, 2007.  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.  During the quarter ended
September 30, 2008, the Company completed a 20 to 1 reverse stock split.
 Management believed the reverse was necessary to help facilitate future
financings.  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
September 30, 2008 or 2007.  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 $157,310 for the quarter ended September 30, 2008, and a net loss of
$194,066 for the quarter ended September 30, 2007.  Most of our expense
related to professional fees for the quarter ended September 30, 2008.  For
the quarter ended September 30, 2007, most of our expenses related to Selling,
general and administrative. Professional fees increased as a result of the
amortization of prepaid expenses related to consulting agreements entered into
during the prior year.  For the nine months ended September 30, 2008, we
had a net loss of $1,018,793 compared to a net loss of $625,308 for the same
period in 2007.  With the
focus the last three months on raising capital and evaluating our business
model, our research and development expenses were $0 for the quarter ended
September 30, 2008.  Liquidity
and Capital Resources  As of
September 30, 2008, we had $4,478 in cash and $171,113 in prepaid expenses, with
$354,050 in current liabilities. Our cash position is not sufficient to cover
our accounts payable or other current liabilities with working capital at
September 30, 2008, of negative $178,459.  If prepaid expenses are removed
from current assets, our working capital position is even worse with $349,572.
  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 September 30, 2008.  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 September 30, 2008.  Based on this evaluation,
our management, with the participation of the President and CFO, concluded that,
as of September 30, 2008, 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 12,500 shares per
quarter for 50,000 shares per year.   Our three directors received an
aggregate of 150,000 shares and our four medical advisory board members received
an aggregate of 200,000 shares.  The cost of such shares are accrued each
quarter during the year.  Additionally, we sold 4,666,667 shares of our
common stock to accredited investors in a private placement.  We also
issued 500,000 shares of common stock to a consultant for ongoing consulting
services.  Use
of Proceeds of Registered Securities  None; not applicable.  Purchases
of Equity Securities by Us and Affiliated Purchasers  During the three months
ended September 30, 2008, 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 September 30, 2008.  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 12,500 shares per      quarter for 50,000 shares per year.   Our three
directors received an aggregate of 150,000 shares and our four medical advisory
board members received an aggregate of 200,000 shares.  The cost of such
shares are accrued each quarter during the year.  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 Cervelle
Group  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:
November 12, 2008 By:
/s/ Thomas C. Drees Thomas
C. Drees, Ph.D., MBA CEO
and Chairman of the Board
of Directors  Date:
November 12, 2008 By:
/s/ David E. Nelson David
E. Nelson, CPA CFO
and Director