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, 2002

[ ]  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, 2002

                                30,653,577
                                ----------

                      PART I - FINANCIAL INFORMATION


Item 1.   Financial Statements.

          The Financial Statements of the Registrant required to be filed with
this 10-QSB Quarterly Report were prepared by management, and commence on the
following page, together with Related Notes.  In the opinion of management,
the Financial Statements fairly present the financial condition of the
Registrant.

<PAGE>
                                                          SANGUINE CORPORATION
                                                 (A Development Stage Company)
                                                 Index to Financial Statements

                                                                 Page

          Balance sheet, March 31, 2002 (unaudited)               F-1

          Statement of operations for the three
          months ended March 31, 2002 and 2001 (unaudited)
          and for the period from January 18, 1989 (date of
          inception) to March 31, 2002 (unaudited)                F-2

          Statement of cash flows for the three months
          ended March 31, 2002 and 2001 (unaudited)
          and for the period from January 18, 1989
          (date of inception) to March 31, 2002 (unaudited)       F-3

          Notes to financial statements                           F-5
<PAGE>
<TABLE>
                                                          SANGUINE CORPORATION
                                                 (A Development Stage Company)
                                                                 Balance Sheet

                                                    March 31, 2002 (Unaudited)

<S>                                                       <C>
                      Assets

          Current assets:
                 Cash                                          $  7,575
                                                               --------
                        Total assets                           $  7,575
                                                               ========
                      Liabilities and Stockholders' Deficit

          Current liabilities:
                 Related party accounts payable                $202,101
                 Accrued salaries                               659,000
                 Accrued interest payable                       205,759
                 Other accrued expenses                          61,795
                 Notes payable                                1,118,727
                                                             ----------
                        Total current liabilities             2,247,382
                                                             ----------
          Stockholders' deficit:
                 Common stock - par value $.001 per share.
                    Authorized 100,000,000 shares; issued
                    and outstanding 30,653,577 shares            30,654
                 Additional paid-in capital                   3,320,851
                 Deficit accumulated during the
                    development stage                        (5,591,312)
                                                             ----------
                        Total stockholders' deficit          (2,239,807)
                                                             ----------
                        Total liabilities and stockholders'
                        deficit                              $    7,575
                                                             ==========
</TABLE>
See accompanying notes to financial statements.
                               F-1
<PAGE>
<TABLE>
                                                          SANGUINE CORPORATION
                                                 (A Development Stage Company)
                                           Statement of Operations (Unaudited)
<CAPTION>
                                                                    Cumulative
                                             Three Months Ended       Amounts
                                                  March 31,            From
                                             2002          2001      Inception
<S>                                       <C>           <C>        <C>
Revenue                                     $       -   $       - $   150,000

Research and development                      (50,400)    (64,202) (1,197,980)

Consulting                                 (1,151,202)    (18,750) (2,186,847)

General and administrative expenses          (139,454)    (80,697) (2,061,745)
                                           ----------    --------  ----------
    Loss from operations                   (1,341,056)   (163,649) (5,296,572)

Other income (expense)
    Interest income                                 4       6,963      27,457
    Interest expense                          (58,663)    (28,358)   (322,197)
                                           ----------    --------  ----------
    Loss before benefit for income taxes   (1,399,715)   (185,044) (5,591,312)

Benefit for income taxes                            -           -           -
                                           ----------    --------  ----------
    Net loss                              $(1,399,715)  $(185,044)$(5,591,312)
                                           ==========    ========  ==========
Loss per share                            $      (.05)  $    (.01)
                                           ==========    ========
Weighted average number of
shares outstanding                         30,640,000  28,143,000
                                           ==========  ==========
</TABLE>
See accompanying notes to financial statements.
                               F-2
<PAGE>
<TABLE>
                                                          SANGUINE CORPORATION
                                                 (A Development Stage Company)
                                           Statement of Cash Flows (Unaudited)
<CAPTION>
                                                                    Cumulative
                                               Three Months Ended      Amounts
                                                   March 31,              From
                                                2002       2001      Inception
<S>                                         <C>         <C>       <C>
Cash flows from operating activities:
    Net loss                              $(1,399,715) $(185,044) $(5,591,312)
    Adjustments to reconcile net loss to
    net cash used in operating activities:
      Depreciation                                 -          -         4,609
      Common stock issued for services          5,400     18,751    1,033,203
      Warrants and options issued for
         services                           1,133,927         -     1,133,927
      Interest on beneficial conversion
         feature                               25,000         -        25,000
      Legal expense related to beneficial
         conversion feature                     3,750         -         3,570
      Note payable issued for services         25,000         -       724,200
      Recognition of prepaid services          69,375         -       277,500
   Increase (decrease) in:
      Accounts payable                          9,553     12,726      202,101
      Accrued interest payable                 33,664     22,556      205,759
      Accrued liabilities                      59,426         -        61,795
      Accrued salaries                         15,000     15,000      659,000
                                            ---------  ---------  -----------
            Net cash used in
            operating activities              (19,620)  (116,011)  (1,260,468)
                                            ---------  ---------  -----------
Cash flows from investing activities               -          -        (4,609)
                                            ---------  ---------  -----------
Cash flows from financing activities:
    Net (payments on) proceeds from
    notes payable                               3,750    (18,198)     174,527
    Sales of common stock                          -          -     1,097,375
    Contributed capital                            -          -           750
                                            ---------  ---------  -----------
            Net cash (used in) provided by
            financing activities                3,750    (18,198)   1,272,652
                                            ---------  ---------  -----------
            Net increase (decrease) in cash   (15,870)  (134,209)       7,575

Cash, beginning of period                      23,445    531,952           -
                                            ---------  ---------  -----------
Cash, end of period                         $   7,575  $ 397,743  $     7,575
                                            =========  =========  ===========
</TABLE>
See accompanying notes to financial statements.
                               F-3
<PAGE>
<TABLE>
                                                          SANGUINE CORPORATION
                                                 (A Development Stage Company)
                                           Statement of Cash Flows (Unaudited)
                                                                     Continued
<CAPTION>
                                                                    Cumulative
                                               Three Months Ended      Amounts
                                                    March 31,             From
                                                2002       2001      Inception
<S>                                          <C>        <C>       <C>
   Supplemental disclosure of cash flow
   information:
      Interest paid                           $  25,000  $5,802    $139,883
                                              =========  ======    ========
      Income taxes paid                       $       -  $    -    $    -
                                              =========  ======    ========
</TABLE>
See accompanying notes to financial statements.
                               F-4
<PAGE>
                                                          SANGUINE CORPORATION
                                                 (A Development Stage Company)
                                                 Notes to Financial Statements
                                                                March 31, 2002

1.  Statement Preparation

The Company has prepared the accompanying financial statements with interim
financial reporting requirements promulgated by the Securities and 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.

Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted.  It is suggested that these
condensed financial statements be read in conjunction with the financial
statements and notes thereto included in the Company's December 31, 2001
Annual Report on Form 10-KSB.  The results of operations for the period ended
March 31, 2002 are not necessarily indicative of the operating results for
the full year.

2.  Earnings Per Share

The computation of basic earnings per common share is based on the weighted
average number of shares outstanding during the period.

The computation of diluted earnings per common share is based on the weighted
average number of shares outstanding during the period plus the common stock
equivalents which would arise from the exercise of stock options and warrants
outstanding using the treasury stock method and the average market price per
share during the period.  Common stock equivalents are not included in the
diluted earnings per share calculation when their effect is antidilutive.
                               F-5
<PAGE>

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

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

     We have not commenced planned principal operations, but have made good
progress since the end of fiscal 1998, in formation and stability testing.

     Our proposed plan of operation is composed of three "stages," each of
which coincides with a specific milestone in the process of developing PHER-
O2.  Each of these stages will begin subject to available funding.  Each
stage, and the projected cost of each, is as follows:

          Stage A (approximately one year): In the first six months, we
          have completed the development of perfluoro-decalin and
          the synthetic surfactants that make up PHER-O2, manufactured
          experimental doses and will perform preliminary animal tests in
          accordance with FDA and overseas regulations.  In the second six
          months, we will  produce optimal quantities and conduct animal
          safety and efficacy trials 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 employees.  Estimated cost is $1,500,000, divided as
          follows: Completing the surfactant formulation and the manufacture
          of sufficient product for initial testing, $500,000; animal safety
          and efficacy trials through a sub-contractor, $600,000; and
          administrative, patent and proprietary right protection and
          marketing costs, $400,000.

          Stage B (approximately one year): In the second year, we intend
          to prepare New Drug Applications for FDA, European, Chinese and
          South American approval, conducted in the United States and
          overseas.  During this period, we also plan to submit license
          applications for transfusion with overseas authorities, begin
          production of PHER-O2 itself or with our subcontractors and submit a
          New Drug Application for PHER-O2 in the United States. During the
          course of Stage B, we estimate that we will need to hire a few
          additional employees.  Estimated cost is $5,000,000, divided as
          follows: Prepare and file United States, European, Chinese and South
          American New Drug Applications, $600,000; conduct human safety and
          efficacy trials through a subcontractor in the United States and
          overseas, $3,200,000; set-up pilot facility, or subcontract, to
          manufacture small quantities of PHER-O2 for use in testing and in
          connection with the New Drug Applications, $500,000; submit license
          applications for use of PHER-O2 in transfusions overseas, $200,000;
          and administrative, patent and proprietary right protection and
          marketing costs, $500,000.

          Stage C (approximately one year): In the third year, we plan to
          complete overseas testing of PHER-O2, begin sales in Europe, China,
          and South America and other overseas areas that may have approved
          PHER-O2 by this time and may begin construction of facility for
          manufacturing, storing, inspecting and shipping PHER-O2. During the
          course of Stage C, we estimate that we will need to hire additional
          employees.  During the third year, we plan to complete testing of
          PHER-O2 in the United States and receive all necessary FDA approvals
          and begin American, South American, Chinese and Canadian sales for
          cancer treatment and angioplasty.  During this period, we also plan
          to subcontract this process, and continue trials of other PHER-O2
          applications, including transplant organ preservation and treatment
          of carbon monoxide poisoning, sickle cell anemia, stroke and heart
          attack.  The estimated cost for Stage C is $25,000,000, divided as
          follows:  Complete human safety and efficacy clinical trials and
          obtain United States and overseas agency approval of PHER-O2,
          $13,000,000; subcontract with major emulsifying firm, $5,000,000;
          recruit and train sales force of the United States and foreign
          markets, $5,000,000; and administrative, patent and proprietary
          right protection and marketing costs, $2,000,000.

     These cost estimates are based upon the prior experience of
Thomas C. Drees, Ph.D., our President and CEO.  Dr. Drees has more than 30
years' experience in the blood industry.

     Our plan of operation for the next 12 months is to:

     *     manufacture experimental doses of  PHER-O2;

     *     perform preliminary animal tests in accordance with FDA; and

     *     comparable foreign overseas regulations.

     In January, 2001, we engaged IriSys, Inc. ("IriSys") to provide us with
expertise in preformulation development, analytical chemistry and stability
protocol design and testing, including preparation of regulatory standards
required to achieve regulatory compliance for our principal product, PHER-O2,
to produce bottled PHER-02 for animal trials and to conduct stability
trials.  We were successful in developing improved formulations of our
surfactants.

     In March, 2002, we granted an Exclusive License Agreement for parts of
Asia and South America regarding PHER-02 and related technology and patents to
Ascendiant-Asia LLC and Ascendiant-South America LLC.

     Our ability to carry out our plan depends entirely upon our ability to
obtain additional substantial equity, debt financing or royalties.  We cannot
assure you that we will receive this financing, and except for the possibility
of receiving funds from the exercise of our outstanding warrants, we do not
have any arrangements that would ensure us any funding.  If we do not receive
it, we will not be able to proceed with our business plans.

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

          During the quarterly period ending March 31, 2002, we received total
revenues of $0 and sustained a net loss of ($1,399,715), as compared with the
quarterly period ended March 31, 2001, when we received total revenue of $0
and sustained a net loss of ($185,044).  The significant increase in net loss
was due mainly to warrants to purchase common stock granted to consultants for
services as disclosed in the Company's Form 10-KSB filed on April 10, 2002.

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

         As of March 31, 2002, we had $7,575 in cash with $2,247,382 in
current liabilities.

         The Company currently has an S-3 Registration Statement covering
potential revenues for current and intended operations for the near
foreseeable future.  Funds may come from the exercise of outstanding warrants
that are presently the subject of an effective S-3 Registration Statement or
through other debt or equity financing with members of management or others.

Forward Looking Statements.
---------------------------

     Statements made in this Form 10-QSB which are not purely historical are
forward-looking statements with respect to the goals, plan objectives,
intentions, expectations, financial condition, results of operations, future
performance and of our business, including, without limitation, (i) our
ability to gain a larger share of the synthetic blood industry, our ability to
continue to develop products acceptable to the industry, our ability to retain
relationships with suppliers and distributors, our ability to raise capital,
and the growth of the synthetic blood industry, and (ii) statements preceded
by, followed by or that include the words "may", "would", "could", "should",
"expects", "projects", "anticipates", "believes", "estimates", "plans",
"intends", "targets" or similar expressions.

     Forward-looking statements involve inherent risks and uncertainties, and
important factors (many of which are beyond our control) that could cause
actual results to differ materially from those set forth in the
forward-looking statements, including the following, in addition to those
contained in our reports on file with the SEC: general economic or industry
conditions, nationally and/or in the communities in which we conduct business,
changes in the interest rate environment, legislation or regulatory
requirements, conditions of the securities markets, changes in the synthetic
blood industry, the development of products and that may be superior to the
products and services offered by us, demand for synthetic blood products,
competition, changes in the quality or composition of our products and
services, our ability to develop new products and services, our ability to
raise capital, changes in accounting principles, policies or guidelines,
financial or political instability, acts of war or terrorism, other economic,
competitive, governmental, regulatory and technical factors affecting our
operations, products, services and prices.

     Accordingly, results actually achieved may differ materially from
expected results in these statements.  Forward-looking statements speak only
as of the date they are made.  We do not undertake, and specifically disclaim,
any obligation to update any forward-looking statements to reflect events or
circumstances occurring after the date of such statements.

                        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.

               Form 10-KSB Annual Report for the
               Year ended December 31, 2001.*

          (b)  Reports on Form 8-K.

               8-K Current Report dated March 11, 2002, as amended.*

               *  Incorporated herein by reference.

                               SIGNATURES

          Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned there unto duly authorized.

                                      SANGUINE CORPORATION

Date: 5/14/02                         By:/s/Thomas C. Drees, Ph.D.
     ---------                          -------------------------------------
                                        Thomas C. Drees, CEO, President and
                                        Chairman of the Board of Directors


Date: 5/14/02                         By:/s/Anthony G. Hargreaves
     ---------                          -------------------------------------
                                        Anthony G. Hargreaves
                                        Vice President, Secretary/ Treasurer
                                        Director


Date: 5/14/02                         By:/s/David E. Nelson
     ---------                          -------------------------------------
                                        David E. Nelson
                                        CFO and Director