Sangui Biotech International (SGBI) 10-Q 6 Nov 13 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	3 Months Ended
	Sep. 30, 2013
Document and Entity Information:	'
Entity Registrant Name	'SANGUI BIOTECH INTERNATIONAL INC.
Document Type	'10-Q
Document Period End Date	30-Sep-13
Amendment Flag	'false
Entity Central Index Key	'0001104280
Current Fiscal Year End Date	'--06-30
Entity Common Stock, Shares Outstanding	136,054,657
Entity Public Float	$136,054,657
Entity Filer Category	'Smaller Reporting Company
Entity Current Reporting Status	'Yes
Entity Voluntary Filers	'Yes
Entity Well-known Seasoned Issuer	'Yes
Document Fiscal Year Focus	'2014
Document Fiscal Period Focus	'Q1

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Jun. 30, 2013
ASSETS	'	'
Cash	$227,829	$47,764
Prepaid expenses and other assets	43,270	43,046
Tax refunds receivable	20,549	18,572
Related party receivables	48,653	38,537
Note receivable, related party	40,562	39,022
Notes receivable	348,837	335,588
Total Current Assets	729,700	522,529
PROPERTY AND EQUIPMENT, Net	350	449
TOTAL ASSETS	730,050	522,978
Accounts payable and accrued expenses	157,166	171,728
Related party payables	37,793	35,397
Note payable - related party	20,280	19,511
Total Current Liabilities	215,239	226,636
Common stock, no par value; 250,000,000 shares authorized, 135,249,457 and 132,116,857 shares issued and 134,064,715 and 130,932,115 shares outstanding, respectively	30,627,507	30,315,527
Additional paid-in capital	4,621,430	4,621,430
Treasury stock	-339,387	-339,387
Stock subscription payable	67,600	'
Accumulated other comprehensive income (loss)	123,439	92,846
Accumulated deficit	-34,199,381	-34,027,179
Non-controlling interest	-386,397	-366,895
Total Stockholders' Equity	514,811	296,342
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$730,050	$522,978

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
REVENUES	'	'
REVENUES	$26,527	$1,794
COST OF SALES	204	'
GROSS MARGIN	26,323	1,794
Research and development	36,308	8,444
Depreciation and amortization	114	179
General and administrative	181,605	188,829
Total Operating Expenses	218,027	197,452
OPERATING LOSS	-191,704	-195,658
Interest expense	'	-238
Total Other Expense	'	-238
Loss before income taxes and non-controlling interest	-191,704	-195,896
NET INCOME (LOSS)	-191,704	-195,896
Less: Net loss attributable to non-controlling interest	-19,502	-15,691
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	-172,202	-180,205
Foreign currency translation adjustments	30,593	2,788
Total Other Comprehensive Income	30,593	2,788
COMPREHENSIVE LOSS	($161,111)	($193,108)

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES	'	'
Net loss	($191,704)	($195,896)
Change in Depreciation	116	106
Change in Common stock issued for services	26,400	'
Change in Trade accounts receivable	1,042	'
Change in Royalties receivable	-9,636	'
Change in Prepaid expenses and other current assets	1,407	-2,307
Change in Tax refunds receivable	-1,244	'
Change in Related party receivables	'	-2,929
Change in Accounts payable and accrued expenses	-18,636	-7,624
Change in Related parties accounts payable	2,395	4,177
Net Cash Used in Operating Activities	-189,860	-204,473
Common stock issued for cash	353,180	'
Net Cash Provided by Financing Activities	353,180	'
EFFECTS OF EXCHANGE RATES	16,745	14,538
NET INCREASE (DECREASE) IN CASH	180,065	-189,935
CASH AT BEGINNING OF PERIOD	47,764	238,639
CASH AT END OF PERIOD	$227,829	$48,704

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	Sep. 30, 2013
Notes	'
Basis of Presentation	'
	NOTE 1 - BASIS OF PRESENTATION
	The accompanying consolidated financial statements have been prepared without audit in accordance with accounting principles generally accepted in the United States of America for interim financial information. 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 pursuant to such rules and regulations. The unaudited consolidated financial statements and notes should, therefore, be read in conjunction with the consolidated financial statements and notes thereto in the Company's Form 10-K for the year ended June 30, 2013. In the opinion of management, all adjustments (consisting of normal and recurring adjustments) considered necessary for a fair presentation, have been included. The results of operations for the three and nine months periods ended September 30, 2013 are not necessarily indicative of the results that may be expected for the full fiscal year ending June 30, 2014.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	3 Months Ended
	Sep. 30, 2013
Notes	'
Summary of Significant Accounting Policies	'
	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Nature of Business
	Sangui Biotech International, Inc., incorporated in Colorado in 1995, and its subsidiary, Sangui BioTech GmbH (Sangui GmbH). Sangui GmbH, which is headquartered in Witten, Germany, is engaged in the development of artificial oxygen carriers (external applications of hemoglobin, blood substitutes and blood additives) as well as in the development, marketing and sales of cosmetics and wound management products.
	Consolidation
	The consolidated financial statements include the accounts of Sangui BioTech International, Inc. and its ninety percent owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation.
	Foreign Currency Translation
	Assets and liabilities of the Company's foreign operations are translated into U.S. dollars at period-end exchange rates. Net exchange gains or losses resulting from such translation are excluded from net loss but are included in comprehensive income (loss) and accumulated in a separate component of stockholders' equity. Income and expenses are translated at weighted average exchange rates for the period.
	Exchanges rates used for the preparation of the consolidated balance sheet as of September 30, 2013 and our unaudited consolidated statements of operations for the three month periods ended September 30, 2013 and 2012, were calculated as follows:
	as of September 30, 2013	USD 1 : EUR 0.7688
	as of June 30, 2013	USD 1 : EUR 0.6949
	July 1 through September 30, 2013	USD 1 : EUR 0.7551
	July 1 through September 30, 2012	USD 1 : EUR 0.7776
	Risk and Uncertainties
	The Company's line of future pharmaceutical products (artificial oxygen carriers or blood substitute and additives) and medical products (wound dressings and other wound management products) being developed by Sangui GmbH, are deemed as medical devices or biologics, and as such are governed by the Federal Food and Drug and Cosmetics Act and by the regulations of state agencies and various foreign government agencies. The pharmaceutical, under development in Germany, will be subject to more stringent regulatory requirements, because they are in vivo products for humans. The Company and its subsidiaries have no experience in obtaining regulatory clearance on these types of products. Therefore, the Company will be subject to the risks of delays in obtaining or failing to obtain regulatory clearance.
	Going Concern
	The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. The Company has accumulated deficit of $34,199,381 as of September 30, 2013. The Company incurred a net loss applicable to common stockholders of $172,202 during the three months ended September 30, 2013 and used cash in operating activities of $189,860 during the three months ended September 30, 2013. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company expects to continue to incur significant capital expenses in pursuing its business plan to market its products and expand its product line, while obtaining additional financing through stock offerings or other feasible financing alternatives. In order for the Company to continue its operations at its existing levels, the Company will require significant additional funds over the next twelve months. Therefore, the Company is dependent on funds raised through equity or debt offerings. Additional financing may not be available on terms favorable to the Company, or at all. If these funds are not available the Company may not be able to execute its business plan or take advantage of business opportunities. The ability of the Company to obtain such additional financing and to achieve its operating goals is uncertain. In the event that the Company does not obtain additional capital, is not able to collect its outstanding receivables or is not able to increase cash flow through the increase of sales, there is a substantial doubt of its being able to continue as a going concern. The accompanying condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
	Cash and Cash Equivalents
	The Company maintains its cash in bank accounts in Germany. Cash and cash equivalents include time deposits for which the Company has no requirements for compensating balances. The Company has not experienced any losses in its uninsured bank accounts. At September 30, 2013 the Company had no cash equivalents.
	Research and Development
	Research and development costs are charged to operations as they are incurred. Legal fees and other direct costs incurred in obtaining and protecting patents are expensed as incurred.
	Revenue Recognition
	Product sales revenue is recognized when the sales amount is determined, shipment of goods to the customer has occurred and collection is reasonably assured. Product is shipped FOB origination.
	Product royalties revenue is recognized when the licensee has reported the product sales to the Company. Product royalties revenue is calculated based upon the contractual percentage of reported sales.
	Basic and Diluted Earnings (Loss) Per Common Share
	Basic earnings (loss) per common share is computed by dividing income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period of computation. Diluted earnings (loss) per share give effect to all potential dilutive common shares outstanding during the period of compensation. The computation of diluted earnings (loss) per share does not assume conversion, exercise or contingent exercise of securities that would have an antidilutive effect on earnings. As of September 30, 2013, the Company had no potentially dilutive securities that would affect the loss per share if they were to be dilutive.
	Comprehensive Income (Loss)
	Total comprehensive income (loss) represents the net change in stockholders' equity during a period from sources other than transactions with stockholders and as such, includes net earnings (loss). For the Company, the components of other comprehensive income (loss) are the changes in the cumulative foreign currency translation adjustments and unrealized gains (losses) on marketable securities and are recorded as components of stockholders' equity.
	Inventory
	Inventory consists of various raw materials, supplies, and both semi-processed and fully-processed cosmetics products. The Company values its inventory at the lower of cost or market. The cost is determined by the specific identification method. Cost includes purchase price, freight, insurance, duties and other incidental expenses incurred in bringing inventories to their present location and condition. The Company records a reserve if the fair value of inventory is determined to be less than the cost.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Sep. 30, 2013
Notes	'
Commitments and Contingencies	'
	NOTE 3 - COMMITMENTS AND CONTINGENCIES
	Litigation
	The Company may, from time to time, be involved in various legal disputes resulting from the ordinary course of operating its business. Management is currently not able to predict the outcome of any such cases. However, management believes that the amount of ultimate liability, if any, with respect to such actions will not have a material effect on the Company's financial position or results of operations.
	Indemnities and Guarantees
	During the normal course of business, the Company has made certain indemnities and guarantees under which it may be required to make payments in relation to certain transactions. These indemnities include certain agreements with the Company's officers, under which the Company may be required to indemnify such person for liabilities arising out of their employment relationship. The duration of these indemnities and guarantees varies and, in certain cases, is indefinite. The majority of these indemnities and guarantees do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. Historically, the Company has not been obligated to make significant payments for these obligations and no liabilities have been recorded for these indemnities and guarantees in the accompanying consolidated balance sheet.

Capital_Stock

Capital Stock	3 Months Ended
	Sep. 30, 2013
Notes	'
Capital Stock	'
	NOTE 5 – CAPITAL STOCK
	Preferred Stock – The Company is authorized to issue 10,000,000 shares of preferred stock. No preferred stock has been issued so far. The authorized preferred shares are non-voting and the Board of Directors has not designated any liquidation value or dividend rates.
	Common Stock – The Company is authorized to issue 250,000,000 shares of no par value common stock. The holders of the Company's common stock are entitled to one vote for each share held of record on all matters to be voted on by those stockholders.
	During the three months ended September 30, 2013, the Company issued 200,000 shares of its common stock for services to an unrelated party at $0.13 per share. Additionally the Company sold 2,932,600 shares of its common stock for cash to several individuals at an average price of $0.10 per share.[KMG1]

Subsequent_Events

Subsequent Events	3 Months Ended
	Sep. 30, 2013
Notes	'
Subsequent Events	'
	NOTE 6 – SUBSEQUENT EVENTS[KMG2]
	Subsequent to September 30, 2103, on October 8, 2013, the company issued 434,800 shares of its common stock for cash to one individual at a price of $0.17 per share.
	Also subsequent to September 30, 2103, on October 1, 2013 the company entered into an obligation to invest another approximately $260,000 into its 25% owned joint venture, SastoMed GmbH. The company satisfied half of this obligation through a payment made on October 7, 2013.
	In accordance with ASC 855-10, the Company’s management has reviewed all material events and there are no additional material subsequent events to report.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies: Nature of Business (Policies)	3 Months Ended
	Sep. 30, 2013
Policies	'
Nature of Business	'
	Nature of Business
	Sangui Biotech International, Inc., incorporated in Colorado in 1995, and its subsidiary, Sangui BioTech GmbH (Sangui GmbH). Sangui GmbH, which is headquartered in Witten, Germany, is engaged in the development of artificial oxygen carriers (external applications of hemoglobin, blood substitutes and blood additives) as well as in the development, marketing and sales of cosmetics and wound management products.

Summary_of_Significant_Account2

Summary of Significant Accounting Policies: Consolidation (Policies)	3 Months Ended
	Sep. 30, 2013
Policies	'
Consolidation	'
	Consolidation
	The consolidated financial statements include the accounts of Sangui BioTech International, Inc. and its ninety percent owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation.

Summary_of_Significant_Account3

Summary of Significant Accounting Policies: Foreign Currency Translation (Policies)	3 Months Ended
	Sep. 30, 2013
Policies	'
Foreign Currency Translation	'
	Foreign Currency Translation
	Assets and liabilities of the Company's foreign operations are translated into U.S. dollars at period-end exchange rates. Net exchange gains or losses resulting from such translation are excluded from net loss but are included in comprehensive income (loss) and accumulated in a separate component of stockholders' equity. Income and expenses are translated at weighted average exchange rates for the period.
	Exchanges rates used for the preparation of the consolidated balance sheet as of September 30, 2013 and our unaudited consolidated statements of operations for the three month periods ended September 30, 2013 and 2012, were calculated as follows:
	as of September 30, 2013	USD 1 : EUR 0.7688
	as of June 30, 2013	USD 1 : EUR 0.6949
	July 1 through September 30, 2013	USD 1 : EUR 0.7551
	July 1 through September 30, 2012	USD 1 : EUR 0.7776

Summary_of_Significant_Account4

Summary of Significant Accounting Policies: Risk and Uncertainties (Policies)	3 Months Ended
	Sep. 30, 2013
Policies	'
Risk and Uncertainties	'
	Risk and Uncertainties
	The Company's line of future pharmaceutical products (artificial oxygen carriers or blood substitute and additives) and medical products (wound dressings and other wound management products) being developed by Sangui GmbH, are deemed as medical devices or biologics, and as such are governed by the Federal Food and Drug and Cosmetics Act and by the regulations of state agencies and various foreign government agencies. The pharmaceutical, under development in Germany, will be subject to more stringent regulatory requirements, because they are in vivo products for humans. The Company and its subsidiaries have no experience in obtaining regulatory clearance on these types of products. Therefore, the Company will be subject to the risks of delays in obtaining or failing to obtain regulatory clearance.

Summary_of_Significant_Account5

Summary of Significant Accounting Policies: Going Concern (Policies)	3 Months Ended
	Sep. 30, 2013
Policies	'
Going Concern	'
	Going Concern
	The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. The Company has accumulated deficit of $34,199,381 as of September 30, 2013. The Company incurred a net loss applicable to common stockholders of $172,202 during the three months ended September 30, 2013 and used cash in operating activities of $189,860 during the three months ended September 30, 2013. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company expects to continue to incur significant capital expenses in pursuing its business plan to market its products and expand its product line, while obtaining additional financing through stock offerings or other feasible financing alternatives. In order for the Company to continue its operations at its existing levels, the Company will require significant additional funds over the next twelve months. Therefore, the Company is dependent on funds raised through equity or debt offerings. Additional financing may not be available on terms favorable to the Company, or at all. If these funds are not available the Company may not be able to execute its business plan or take advantage of business opportunities. The ability of the Company to obtain such additional financing and to achieve its operating goals is uncertain. In the event that the Company does not obtain additional capital, is not able to collect its outstanding receivables or is not able to increase cash flow through the increase of sales, there is a substantial doubt of its being able to continue as a going concern. The accompanying condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Summary_of_Significant_Account6

Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)	3 Months Ended
	Sep. 30, 2013
Policies	'
Cash and Cash Equivalents	'
	Cash and Cash Equivalents
	The Company maintains its cash in bank accounts in Germany. Cash and cash equivalents include time deposits for which the Company has no requirements for compensating balances. The Company has not experienced any losses in its uninsured bank accounts. At September 30, 2013 the Company had no cash equivalents.

Summary_of_Significant_Account7

Summary of Significant Accounting Policies: Research and Development (Policies)	3 Months Ended
	Sep. 30, 2013
Policies	'
Research and Development	'
	Research and Development
	Research and development costs are charged to operations as they are incurred. Legal fees and other direct costs incurred in obtaining and protecting patents are expensed as incurred.

Summary_of_Significant_Account8

Summary of Significant Accounting Policies: Revenue Recognition (Policies)	3 Months Ended
	Sep. 30, 2013
Policies	'
Revenue Recognition	'
	Revenue Recognition
	Product sales revenue is recognized when the sales amount is determined, shipment of goods to the customer has occurred and collection is reasonably assured. Product is shipped FOB origination.
	Product royalties revenue is recognized when the licensee has reported the product sales to the Company. Product royalties revenue is calculated based upon the contractual percentage of reported sales.

Summary_of_Significant_Account9

Summary of Significant Accounting Policies: Basic and Diluted Earnings (loss) Per Common Share (Policies)	3 Months Ended
	Sep. 30, 2013
Policies	'
Basic and Diluted Earnings (loss) Per Common Share	'
	Basic and Diluted Earnings (Loss) Per Common Share
	Basic earnings (loss) per common share is computed by dividing income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period of computation. Diluted earnings (loss) per share give effect to all potential dilutive common shares outstanding during the period of compensation. The computation of diluted earnings (loss) per share does not assume conversion, exercise or contingent exercise of securities that would have an antidilutive effect on earnings. As of September 30, 2013, the Company had no potentially dilutive securities that would affect the loss per share if they were to be dilutive.

Recovered_Sheet1

Summary of Significant Accounting Policies: Comprehensive Income (loss) (Policies)	3 Months Ended
	Sep. 30, 2013
Policies	'
Comprehensive Income (loss)	'
	Comprehensive Income (Loss)
	Total comprehensive income (loss) represents the net change in stockholders' equity during a period from sources other than transactions with stockholders and as such, includes net earnings (loss). For the Company, the components of other comprehensive income (loss) are the changes in the cumulative foreign currency translation adjustments and unrealized gains (losses) on marketable securities and are recorded as components of stockholders' equity.

Recovered_Sheet2

Summary of Significant Accounting Policies: Inventory (Policies)	3 Months Ended
	Sep. 30, 2013
Policies	'
Inventory	'
	Inventory
	Inventory consists of various raw materials, supplies, and both semi-processed and fully-processed cosmetics products. The Company values its inventory at the lower of cost or market. The cost is determined by the specific identification method. Cost includes purchase price, freight, insurance, duties and other incidental expenses incurred in bringing inventories to their present location and condition. The Company records a reserve if the fair value of inventory is determined to be less than the cost.

Commitments_and_Contingencies_

Commitments and Contingencies: Litigation (Policies)	3 Months Ended
	Sep. 30, 2013
Policies	'
Litigation	'
	Litigation
	The Company may, from time to time, be involved in various legal disputes resulting from the ordinary course of operating its business. Management is currently not able to predict the outcome of any such cases. However, management believes that the amount of ultimate liability, if any, with respect to such actions will not have a material effect on the Company's financial position or results of operations.

Commitments_and_Contingencies_1

Commitments and Contingencies: Indemnities and Guarantees (Policies)	3 Months Ended
	Sep. 30, 2013
Policies	'
Indemnities and Guarantees	'
	Indemnities and Guarantees
	During the normal course of business, the Company has made certain indemnities and guarantees under which it may be required to make payments in relation to certain transactions. These indemnities include certain agreements with the Company's officers, under which the Company may be required to indemnify such person for liabilities arising out of their employment relationship. The duration of these indemnities and guarantees varies and, in certain cases, is indefinite. The majority of these indemnities and guarantees do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. Historically, the Company has not been obligated to make significant payments for these obligations and no liabilities have been recorded for these indemnities and guarantees in the accompanying consolidated balance sheet.

Notes_Receivablerelated_Partie

Notes Receivable-related Parties	3 Months Ended
	Sep. 30, 2013
Notes	'
Notes Receivable-related Parties	'
	NOTE 4 – NOTES RECEIVABLE-RELATED PARTIES
	On May 15, 2012, the Company entered into a note receivable with a shareholder for $63,658. The note receivable accrues interest at 6 percent per annum, was due on August 31, 2012 and is secured by 138,899 shares of the Company’s common stock. The note receivable has been extended without a fixed due date. The note receivable is due one month from notice by the Company to the shareholder on intent to collect. Interest and principle have been received in several installments so that at June 30, 2013 the outstanding note receivable amounted to $39,022 of principal and interest.