Fun with Edgar:
Form 10KSB for SANGUINE CORP filed on Apr 15 1998
www4.edgar-online.com
...Battelle Memorial Institute was retained to assist the Company in
completing the emulsion of perfluoro-decalin and the synthetic surfactants
that make up PHER-O2. These activities ceased in May, 1994, when the Company
became unable to pay for new Battelle research services. In the event that
the Company is able to obtain substantial additional funding, as to which no
assurance can be given, it is anticipated that on completion of the
compounding of PHER-O2, Battelle Memorial Institute will perform initial gross
animal tests, which do not require regulatory approval prior to commencement;
however, the data gathered from any such tests will be subject to regulatory
review in the future. The Company anticipates that it will manufacture
experimental doses of PHER-O2 required to conduct gross animal testing...
... PHER-O2 is still in the research and development stage. It has not
been tested on animals or humans; nor has any application been submitted to
any federal, state or foreign agency to seek authority for such testing. This
development process will be time consuming, costly, subject to extreme
governmental regulation and must prove that this product is safe and
efficacious for human use. Until then, the Company will have no potential for
revenues from operations. No assurance can be given that the Company will be
able to raise the capital it will need to develop PHER-O2, or that if
sufficient funds are raised, that the Company will ever receive requisite
federal, state or foreign agency approval to manufacture or market this
product. See the captions "Principal Products or Services and their Markets,"
"Competition," "Patents, Trademarks, Licenses, Franchises, Concessions,
Royalty Agreements or Labor Contracts" and "Governmental Approval of Principal
Products or Services" of this Item. ..
...Research and Development Expenses.
----------------------------------
In calendar years 1995, 1996 and 1997, the Company, through its
wholly-owned subsidiary, Sanguine California, expended a total of $273,171 on
research and development. As neither the Company nor Sanguine California
presently has any customers, none of the cost of these activities was borne
directly by customers.
Number of Employees.
--------------------
The Company presently has two employees, Dr. Drees and Mr.
Hargreaves, both of whom are employed full time. Once the development of
PHER-O2 is completed and the Company commences initial animal testing and
manufacturing of this product for these tests, additional employees will be
required; the Company is unable to presently estimate the exact number of
employees it may need for these services; however, see the caption "Plan of
Operation."...
Liquidity.
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....During the calendar year ended December 31, 1996, the Company had
expenses of $210,016, while receiving $3 in revenues; the Company received
no revenues, and had total expenses of $166,212 during the calendar year ended
December 31, 1997.
The Company is currently unable to pay its debts as they become due.
These debts include three notes payable, totaling approximately $103,700,
which the Company is unable to pay. The continuation of the Company's
proposed business operations are subject to the ability of the Company to
raise substantial additional funding, as to which no assurance can be given..
......Independent Auditors Report.
.In my opinion, the aforementioned financial statements present fairly, in
all material respects, the financial position of Sanguine Corporation, as of
December 31, 1997 and 1996, and the results of its operations and its cash
flows for the accumulated period of January 18, 1989 to December 31, 1997, and
the years ended December 31, 1997, 1996, and 1995, in conformity with
generally accepted accounting principles.
The accompanying financial statements have been prepared assuming the
Company will continue as a going concern. As discussed in Note #10 to the
financial statements, the Company has an accumulated deficit and a negative
net worth at December 31, 1997. These factors raise substantial doubt about
the Company s ability to continue as a going concern. Management s plans in
regard to these matters are also discussed in Note #10. The financial
statements do not include any adjustments that might result from the outcome
of this uncertainty.
/S/Schvaneveldt Company
Salt Lake City, Utah
April 1, 1998.
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