Sangui Biotech International (SGBI) 10-Q 15 May 15 2015 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	9 Months Ended
	Mar. 31, 2015	14-May-15	Dec. 31, 2014
Document and Entity Information:
Entity Registrant Name	SANGUI BIOTECH INTERNATIONAL INC
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Entity Central Index Key	1104280
Current Fiscal Year End Date	-24
Entity Common Stock, Shares Outstanding		147,603,056
Entity Public Float			$147,603,056
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	No
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2015	Jun. 30, 2014
ASSETS
Cash	$107,798	$98,148
Prepaid expenses and other assets	24,398	64,320
Tax refunds receivable	28,957	60,219
Accounts receivable	17,918	3,772
Note receivable, related party		34,130
Total Current Assets	179,071	260,589
TOTAL ASSETS	179,071	260,589
Accounts payable and accrued expenses	190,988	189,342
Related party payables	82,941	63,971
Note payable - related party	108,500
Total Current Liabilities	382,429	253,313
Common stock, no par value; 250,000,000 shares authorized, 147,403,056 and 142,300,256 shares issued and 146,218,314 and 141,115,514 shares outstanding, respectively	31,889,105	31,560,801
Additional paid-in capital	4,621,430	4,621,430
Treasury stock	-339,387	-339,387
Accumulated other comprehensive income	170,366	130,216
Accumulated deficit	-35,993,225	-35,455,943
Stockholders' deficit	348,289	517,117
Non-controlling interest	-551,647	-509,841
Total Stockholders' Equity (Deficit)	($203,358)	$7,276

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
REVENUES
REVENUES	$11,654	$29,438	$116,560	$89,741
COST OF SALES	91	124	489	536
GROSS MARGIN	11,563	29,314	116,071	89,205
Research and development	36,450	32,744	171,427	139,978
Depreciation and amortization		118		350
General and administrative	169,552	736,748	520,830	1,075,392
Total Operating Expenses	206,002	769,610	692,257	1,215,720
LOSS FROM OPERATIONS	-194,439	-740,296	-576,186	-1,126,515
Interest expense	-1,127	-1,718	-2,938	-7,377
Interest income	36	1	36	49
Loss on equity investment				244,983
Total Other Income (Expense)	-1,091	-1,717	-2,902	-252,311
Loss before income taxes and non-controlling interest	-195,530	-742,013	-579,088	-1,378,826
NET INCOME (LOSS)	-195,530	-742,013	-579,088	-1,378,826
Less: Net loss attributable to non-controlling interest	-14,176	-54,318	-41,806	-121,099
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	-181,354	-687,695	-537,282	-1,257,727
Foreign currency translation adjustments	13,354	-10,344	40,150	28,707
Total Other Comprehensive Income (Loss)	13,354	-10,344	40,150	28,707
COMPREHENSIVE LOSS	($182,176)	($752,357)	($538,938)	($1,350,119)
BASIC AND DILUTED LOSS PER SHARE-SANGUI SHAREHOLDERS	0	-0.01	0	-0.01
BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING	147,219,540	137,076,124	145,030,271	136,017,409

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	($579,088)	($1,378,826)
Depreciation		350
Common stock issued for services	36,422	273,075
Loss on equity investment		244,983
Note receivable transferred for consulting services		348,743
Trade accounts receivable	-16,987	1,042
Royalties receivable		-27,356
Prepaid expenses and other current assets	32,044	-855
Tax refunds receivable	21,522	5,383
Accounts payable and accrued expenses	41,559	41,569
Related parties accounts payable	18,971	39,700
Net Cash Used in Operating Activities	-445,557	-452,192
Collection of notes receivable, related parties	30,883
Investment in equity subsidiary		-240,546
Net Cash Provided by (Used in) Investing Activities	30,883	-240,546
Proceeds from notes payable- related party	108,500
Proceeds from Common stock issued	291,883	672,200
Net Cash Provided by Financing Activities	400,383	672,200
EFFECTS OF EXCHANGE RATES	23,941	11,822
NET INCREASE (DECREASE) IN CASH	9,650	-8,716
CASH AT BEGINNING OF PERIOD	98,148	47,764
CASH AT END OF PERIOD	107,798	39,048
Interest	$2,568

Note_1_Basis_of_Presentation

Note 1 - Basis of Presentation	9 Months Ended
	Mar. 31, 2015
Notes
Note 1 - 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, 2014. 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 nine  months  ended March 31, 2015 are not necessarily indicative of the results that may be expected for the full fiscal year ending June 30, 2015.

Note_2_Summary_of_Significant_

Note 2 - Summary of Significant Accounting Policies	9 Months Ended
	Mar. 31, 2015
Notes
Note 2 - 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 March 31, 2015 and June 30, 2014 and our unaudited consolidated statements of operations for the nine month periods ended March 31, 2015 and 2014, were calculated as follows:
	as of March 31, 2015	USD 1 : EUR 0.9217
	as of June 30, 2014	USD 1 : EUR 0.7325
	July 1 through March 31, 2015	USD 1 : EUR 0.8095
	July 1 through March 31, 2014	USD 1 : EUR 0.7398
	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 $35,993,225 as of March 31, 2015. The Company incurred a net loss applicable to common stockholders of $537,282 during the nine months ended March 31, 2015 and used cash in operating activities of $445,557 during the nine months ended March 31, 2015. 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 December 31, 2014 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 royalty revenue is recognized when the licensee has reported the product sales to the Company. Product royalty 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 March 31, 2015, 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.

Note_3_Commitments_and_Conting

Note 3 - Commitments and Contingencies	9 Months Ended
	Mar. 31, 2015
Notes
Note 3 - 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.

Note_4_Note_Payable_Related_Pa

Note 4 - Note Payable, Related Parties	9 Months Ended
	Mar. 31, 2015
Notes
Note 4 - Note Payable, Related Parties	NOTE 4 – NOTE PAYABLE, RELATED PARTIES
	On March 6, 2015, the Company entered into a note payable with a shareholder for $108,500. The note payable accrues interest at 5 percent per annum, is due on March 31, 2015 and is unsecured.

Note_5_Capital_Stock

Note 5 - Capital Stock	9 Months Ended
	Mar. 31, 2015
Notes
Note 5 - 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 nine months ended March 31, 2015, the Company issued 552,800 shares of its common stock for services to unrelated parties at an average price of $0.07 per share. Additionally the Company sold 4,550,000 shares of its common stock for cash to two individuals at an average price of $0.06 per share.

Note_6_Subsequent_Events

Note 6 - Subsequent Events	9 Months Ended
	Mar. 31, 2015
Notes
Note 6 - Subsequent Events	NOTE 6 – SUBSEQUENT EVENTS
	On April 7, 2015, the Company issued 200,000 shares of its common stock for cash of  $10,774.
	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.

Note_2_Summary_of_Significant_1

Note 2 - Summary of Significant Accounting Policies: Nature of Business (Policies)	9 Months Ended
	Mar. 31, 2015
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.

Note_2_Summary_of_Significant_2

Note 2 - Summary of Significant Accounting Policies: Consolidation (Policies)	9 Months Ended
	Mar. 31, 2015
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.

Note_2_Summary_of_Significant_3

Note 2 - Summary of Significant Accounting Policies: Foreign Currency Translation (Policies)	9 Months Ended
	Mar. 31, 2015
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 March 31, 2015 and June 30, 2014 and our unaudited consolidated statements of operations for the nine month periods ended March 31, 2015 and 2014, were calculated as follows:
	as of March 31, 2015	USD 1 : EUR 0.9217
	as of June 30, 2014	USD 1 : EUR 0.7325
	July 1 through March 31, 2015	USD 1 : EUR 0.8095
	July 1 through March 31, 2014	USD 1 : EUR 0.7398

Note_2_Summary_of_Significant_4

Note 2 - Summary of Significant Accounting Policies: Risk and Uncertainties (Policies)	9 Months Ended
	Mar. 31, 2015
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.

Note_2_Summary_of_Significant_5

Note 2 - Summary of Significant Accounting Policies: Going Concern (Policies)	9 Months Ended
	Mar. 31, 2015
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 $35,993,225 as of March 31, 2015. The Company incurred a net loss applicable to common stockholders of $537,282 during the nine months ended March 31, 2015 and used cash in operating activities of $445,557 during the nine months ended March 31, 2015. 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.

Note_2_Summary_of_Significant_6

Note 2 - Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)	9 Months Ended
	Mar. 31, 2015
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 December 31, 2014 the Company had no cash equivalents.

Note_2_Summary_of_Significant_7

Note 2 - Summary of Significant Accounting Policies: Research and Development (Policies)	9 Months Ended
	Mar. 31, 2015
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.

Note_2_Summary_of_Significant_8

Note 2 - Summary of Significant Accounting Policies: Revenue Recognition (Policies)	9 Months Ended
	Mar. 31, 2015
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 royalty revenue is recognized when the licensee has reported the product sales to the Company. Product royalty revenue is calculated based upon the contractual percentage of reported sales.

Note_2_Summary_of_Significant_9

Note 2 - Summary of Significant Accounting Policies: Basic and Diluted Earnings (loss) Per Common Share (Policies)	9 Months Ended
	Mar. 31, 2015
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 March 31, 2015, the Company had no potentially dilutive securities that would affect the loss per share if they were to be dilutive.

Recovered_Sheet1

Note 2 - Summary of Significant Accounting Policies: Comprehensive Income (loss) (Policies)	9 Months Ended
	Mar. 31, 2015
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.

Note_3_Commitments_and_Conting1

Note 3 - Commitments and Contingencies: Legal Matters and Contingencies (Policies)	9 Months Ended
	Mar. 31, 2015
Policies
Legal Matters 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.

Note_3_Commitments_and_Conting2

Note 3 - Commitments and Contingencies: Indemnities and Guarantees (Policies)	9 Months Ended
	Mar. 31, 2015
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.