Quarterly Report (Form 10-Q)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: March 31, 2022

Commission file number: 0-21271

SANGUI BIOTECH INTERNATIONAL, INC.

(Exact name of registrant as specified in its charter)

COLORADO	84-1330732
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Bleichenbrücke 9, 20354 Hamburg, Germany

(Address of principal executive offices)

011-49-40-46093120

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of exchange on which registered
None	N/A	N/A

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 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.

Yes [X] No [ ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer [ ]	Accelerated Filer [ ]
Non-Accelerated Filer [X]	Smaller Reporting Company ☒
Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.[ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No [X]

As of May 16, 2022, there were 209,955,598 shares of the issuer's Common Stock, no par value, issued and 209,901,842 shares outstanding.

SANGUI BIOTECH INTERNATIONAL, INC.

Quarterly Report on Form 10-Q

For the Quarterly Period Ended March 31, 2022

INDEX

PART I - FINANCIAL INFORMATION
Item 1	Financial Statements	1
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3.	Quantitative and Qualitative Disclosure About Market Risk	16
Item 4.	Controls and Procedures	17
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	18
Item 1A.	Risk Factors	18
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	18
Item 3.	Defaults Upon Senior Securities	18
Item 5.	Other Information	18
Item 6.	Exhibits	18

ii

PART I - FINANCIAL INFORMATION

Item 1 - Financial Statements

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission and, therefore, do not include all information and footnotes necessary for a complete presentation of our financial position, results of operations, cash flows, and stockholders' deficit in conformity with generally accepted accounting principles in the United States of America. In the opinion of management, all adjustments considered necessary for a fair presentation of the consolidated results of operations and financial position have been included and all such adjustments are of a normal recurring nature.

Our unaudited condensed consolidated balance sheet as of March 31, 2022 and the audited consolidated balance sheet as of June 30, 2021, our unaudited condensed consolidated statements of operations and comprehensive loss for the three and nine-month periods ended March 31, 2022, and 2021, our unaudited condensed consolidated statements of stockholders' deficit for the three and nine-month periods ended March 31, 2022, and 2021 and our unaudited condensed consolidated statements of cash flows for the nine-month period ended March 31, 2022, and 2021 are attached hereto.

1

SANGUI BIOTECH INTERNATIONAL, INC.
Consolidated Balance Sheets
ASSETS
				March 31,		June 30,
		2022		2021
					(unaudited)
CURRENT ASSETS
	Cash		$	67,617		$	29,768
	Prepaid expenses and other assets		17,649			12,020
	Tax refunds receivable			312			2,286
	Accounts receivable, net		21,616			16,631
	Note receivable, related party		7,599			5,961
		Total Current Assets		114,793			66,666
	Property and equipment, net		567			1,215
	Operating lease right-of-use asset		71,213			66,241
		TOTAL ASSETS	$	186,573		$	134,122
LIABILITIES AND STOCKHOLDERS' DEFICIT
LIABILITIES
	Accounts payable and accrued expenses	$	128,562		$	127,311
	Accrued interest - related party		71,928			62,485
	Current portion of Note payable		11,755			-
	Notes payable - related party		747,114			752,508
	Other Current Liabilities		-			-
	Current portion of operating lease liability		16,646			12,403
		Total Current Liabilities		976,005			954,707
	Operating lease liability, net of current portion		47,743			54,740
	Note payable, net of current portion		54,734			-
		Total longterm Liabilities		102,477			54,740
		Total Liabilities		1,078,482			1,009,447
STOCKHOLDERS' DEFICIT
	Preferred stock, no par value; 10,000,000 shares authorized, -0- shares issued and outstanding	$	-		$	-
	Common stock, no par value; 250,000,000 shares authorized 209,955,598 and 206,955,598 shares issued and 209,901,842 and 206,901,842 shares outstanding respectively		33,124,956			33,088,176
	Additional paid-in capital		4,513,328			4,513,328
	Treasury stock, at cost			(19,387)			(19,387)
	Accumulated other comprehensive income		89,860			89,670
	Accumulated deficit			(37,947,171)			(37,895,315)
	Total stockholders' deficit			(238,414)			(223,528)
	Non-controlling interest		(653,495)			(651,797)
		Total Stockholders' Deficit		(891,909)			(875,325)
		TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$	186,573		$	134,122
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

1

SANGUI BIOTECH INTERNATIONAL, INC.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(unaudited)
		For the Three Months Ended		For the Nine Months Ended
		March 31,		March 31,
		2022		2021		2022		2021
REVENUES
	License revenues	$	17,954		$	21,182		$	58,686		$	51,754
GROSS MARGIN		17,954			21,182			58,686			51,754
OPERATING EXPENSES
	Research and development		1,979			2,060			6,478			6,482
	Professional fees		32,312			32,911			104,921			117,750
	General and administrative		11,921			14,330			38,393			37,951
	Depreciation and amortization		192			206			589			610
Total Operating Expenses		46,404			49,507			150,381			162,793
OPERATING LOSS		(28,450)			(28,325)			(91,695)			(111,039)
OTHER INCOME (EXPENSE)
	Gain (Loss) on foreign exchange		21,790			32,167			56,376			(27,611)
	Interest expense		(4,562)			(4,580)			(13,981)			(13,273)
	Loss on Settlement on accounts payable		(4,254)			-			(4,254)			-
Total other income (expense)		12,974			27,587			38,141			(40,884)
LOSS BEFORE INCOME TAXES AND NON-CONTROLLING INTEREST		(15,476)			(738)			(53,554)			(151,923)
	Provision for income taxes		-			-			-			-
NET LOSS BEFORE NON-CONTROLLING INTEREST		(15,476)			(738)			(53,554)			(151,923)
	Less: Net loss attributable to non-controlling interest		614			648			1,698			3,057
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	(14,862)		$	(90)		$	(51,856)		$	(148,866)
OTHER COMPREHENSIVE LOSS
	Foreign currency translation adjustments		1,123			(287)			190			(1,453)
COMPREHENSIVE LOSS	$	(14,353)		$	(1,025)		$	(53,364)		$	(153,376)
	BASIC AND DILUTED LOSS PER SHARE	$	(0.00)		$	(0.00)		$	(0.00)		$	(0.00)
	BASIC AND DILUTED WEIGHTED AVERAGE
	NUMBER OF SHARES OUTSTANDING		209,323,453			203,355,598			208,284,597			203,355,598
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2

SANGUI BIOTECH INTERNATIONAL, INC.
Condensed Consolidated Statements of Stockholders' Deficit
(unaudited)
Three-Month Period Ended March 31, 2022
												Accumulated
						Additional					Other		Non-
	Common Stock		Paid-In		Treasury		Comprehensive		controlling		Accumulated
	Shares		Amount		Capital		Stock		Income (Loss)		Interest		Deficit		Total
Balance, January 1, 2022	207,955,598		$	33,100,043		$	4,513,328		$	(19,387)		$	88,737		$	(652,881)		$	(37,932,309)		$	(902,469)
Common stock issued for cash	1,616,556			16,478			-			-			-			-			-			16,478
Common stock issued to settle accounts payable	383,444			8,435			-			-			-			-			-			8,435
Currency translation adjustment	-			-			-			-			1,123			-			-			1,123
Net loss	-			-			-			-			-			(614)			(14,862)			(15,476)
Balance, March 31, 2022	209,955,598		$	33,124,956		$	4,513,328		$	(19,387)		$	89,860		$	(653,495)		$	(37,947,171)		$	(891,909)
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

SANGUI BIOTECH INTERNATIONAL, INC.
Condensed Consolidated Statements of Stockholders' Deficit
(unaudited)
Nine-Month Period Ended March 31, 2022
												Accumulated
						Additional					Other		Non-
	Common Stock		Paid-In		Treasury		Comprehensive		controlling		Accumulated
	Shares		Amount		Capital		Stock		Income		Interest		Deficit		Total
Balance, July 1, 2021	206,955,598		$	33,088,176		$	4,513,328		$	(19,387)		$	89,670		$	(651,797)		$	(37,895,315)		$	(875,325)
Common stock issued for cash	2,616,556			28,345			-			-			-			-			-			28,345
Common stock issued to settle accounts payable	383,444			8,435			-			-			-			-			-			8,435
	.
Common stock issued for services	-			-			-			-			-			-			-			-
Currency translation adjustment	-			-			-			-			190			-			-			190
Net loss	-			-			-			-			-			(1,698)			(51,856)			(53,554)
Balance, March 31, 2022	209,955,598		$	33,124,956		$	4,513,328		$	(19,387)		$	89,860		$	(653,495)		$	(37,947,171)		$	(891,909)
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3

SANGUI BIOTECH INTERNATIONAL, INC.
Condensed Consolidated Statements of Stockholders' Deficit
(unaudited)
Three-Month Period Ended March 31, 2021
												Accumulated
						Additional					Other		Non-
	Common Stock		Paid-In		Treasury		Comprehensive		controlling		Accumulated
	Shares		Amount		Capital		Stock		Income (Loss)		Interest		Deficit		Total
Balance, January 1, 2021	203,355,598		$	33,027,676		$	4,513,328		$	(19,387)		$	90,741		$	(649,386)		$	(37,845,201)		$	(882,229)
Currency translation adjustment	-			-			-			-			(287)			-			-			(287)
Net loss	-			-			-			-			-			(648)			(90)			(738)
Balance, March 31, 2021	203,355,598		$	33,027,676		$	4,513,328		$	(19,387)		$	90,454		$	(650,034)		$	(37,845,291)		$	(883,254)
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

SANGUI BIOTECH INTERNATIONAL, INC.
Condensed Consolidated Statements of Stockholders' Deficit
(unaudited)
Nine-Month Period Ended March 31, 2021
												Accumulated
						Additional					Other		Non-
	Common Stock		Paid-In		Treasury		Comprehensive		controlling		Accumulated
	Shares		Amount		Capital		Stock		Income		Interest		Deficit		Total
Balance, July 1, 2020	203,355,598		$	33,027,676		$	4,513,328		$	(19,387)		$	91,907		$	(646,977)		$	(37,696,425)		$	(729,878)
Currency translation adjustment	-			-			-			-			(1,453)			-			-			(1,453)
Net loss	-			-			-			-			-			(3,057)			(148,866)			(151,923)
Balance, March 31, 2021	203,355,598		$	33,027,676		$	4,513,328		$	(19,387)		$	90,454		$	(650,034)		$	(37,845,291)		$	(883,254)
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

SANGUI BIOTECH INTERNATIONAL, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited)
				For the Nine Months Ended
				March 31,
	2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES
	Net loss	$	(53,554)		$	(151,923)
	Adjustments to reconcile net loss to net cash used by operating activities:
		Depreciation and amortization		589			610
		Foreign currency exchange transactions		(55,573)			27,611
		Loss on settlement of debt		4,182			-
		Amortization of Right-of-use asset		(13,436)			(16,009)
	Changes in operating assets and liabilities
		Trade accounts receivable		(6,282)			(15,518)
		Prepaid expenses and other current assets		(16,767)			(5,193)
		Tax refunds receivable		1,890			6,660
		Accounts payable and accrued expenses		10,016			15,604
		Related party advances		(2,097)			5,665
		Related party accounts payable		11,872			11,852
		Operating lease liability		16,041			16,463
			Net Cash Used in Operating Activities		(103,119)			(104,178)
CASH FLOWS FROM FINANCING ACTIVITIES
		Proceeds from related party note payable		46,445			101,515
		Proceeds from common stock issued for cash		28,345			-
		Proceeds from note payable		68,865			-
			Net Cash Provided by Financing Activities		143,655			101,515
EFFECTS OF EXCHANGE RATES ON CASH		(2,687)			(999)
	NET CHANGES IN CASH		37,849			(3,662)
	CASH AT BEGINNING OF PERIOD		29,768			15,282
	CASH AT END OF PERIOD	$	67,617		$	11,620
	SUPPLEMENTAL CASH FLOW INFORMATION
	NON - CASH INVESTING AND FINANCING ACTIVITIES
		Initial Right of use operating lease assets	$	24,110		$	-
		Initial Right of operating liabilities	$	13,563		$	-
		Common Stock issued for settle accounts payables	$	8,436		$	-
	The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5

SANGUI BIOTECH INTERNATIONAL, INC.

Notes to the Condensed Consolidated Financial Statements

March 31, 2022 and June 30, 2021

(Unaudited)

NOTE 1 - BASIS OF PRESENTATION

The accompanying condensed consolidated financial statements have been prepared without audit in accordance with accounting principles generally accepted in the United States of America and rules of the Securities Exchange Commission 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 condensed 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, 2021. 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-month period ended March 31, 2022 are not necessarily indicative of the results that may be expected for the full fiscal year ending June 30, 2022.

In December 2019, COVID-19 emerged and has subsequently spread worldwide. The World Health Organization has declared COVID-19 a pandemic resulting in federal, state and local governments and private entities mandating various restrictions, including travel restrictions, restrictions on public gatherings, stay at home orders and advisories and quarantining of people who may have been exposed to the virus. At the present time, it is not clear how long this crisis will last and what extent it will take. The highest priority for the Company is the health of employees and business partners. The Company's main product is affected by the restrictions currently in place around the world. The global restrictions drastically limit our sales activities. Therefore, the license revenue the Company anticipated is not, and for the foreseeable future, will not be received at the levels as planned. The Company is in close contact with its licensee who is responsible for all distribution. Both the Company and its licensee assume that the desired growth of sales will be resumed after the pandemic has been overcome and restrictions are lessened. Prior to the pandemic, the Company had essentially been financed through the sale of shares or by loans from related parties. These financing options are still available to the Company during the COVID-19 crisis.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization and Nature of Business

Sangui Biotech International, Inc., (Sangui or the Company) was incorporated in Colorado in 1995 and conducts business through its 90% owned subsidiary, Sangui BioTech GmbH (Sangui GmbH) and its 99.8% owned subsidiary Sangui Know-how und Patentverwertungsgesellschaft mbH & Co. KG (Sangui KG). Sangui GmbH, which is headquartered in Hamburg, 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. Sangui KG is a limited partnership that holds the license rights under the various agreements that the Company enters into from time to time.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company, Sangui BioTech GmbH and Sangui KG. All intercompany accounts and transactions have been eliminated in consolidation

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the respective reporting period. As future events and their effects cannot be determined with precision, actual results could differ from those estimates. Significant estimates made by management are, among others, the realization of receivables, inventories, long-lived assets, and valuation allowance on deferred tax assets. Due to the current dependence of Sangui on the revenue from the license agreement with Mölnlycke Health Care GmbH, management places the highest priority on the sales development in

6

SANGUI BIOTECH INTERNATIONAL, INC.

Notes to the Condensed Consolidated Financial Statements

March 31, 2022 and June 30, 2021

(Unaudited)

this area in order to be able to recognize potential risks in good time and to take appropriate measures if necessary. These measures include regular and ad hoc discussions with the licensee about its planned business development.

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 loss and accumulated in a separate component of stockholders' equity (deficit). Income and expenses are translated at average exchange rates for the period.

Exchanges rates used for the preparation of the consolidated balance sheet as of March 31, 2022 and June 30, 2021 and our unaudited consolidated statements of operations for the nine-month periods ended March 31, 2022 and 2021, were calculated as follows:

as of March 31, 2022	0.902405
as of March 31, 2021	0.851250
July 1, 2021 through March 31, 2022	0.871273
July 1, 2020 through March 31, 2021	0.841351

The Company accounts for the transactions denominated in foreign currencies in the Parent Company's books as transaction gains (losses) recognized in Other Income.

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 $37,947,171 as of March 31, 2022. The Company incurred a net loss before non-controlling interest of $53,554 for the nine-months ended March 31, 2022 and used cash in operating activities of $103,119 during the same nine-months ended March 31, 2022. These conditions raise substantial doubt about the Company's ability to continue as a going concern for a period of one year from issuance of the financial statements. 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.

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.

7

SANGUI BIOTECH INTERNATIONAL, INC.

Notes to the Condensed Consolidated Financial Statements

March 31, 2022 and June 30, 2021

(Unaudited)

Revenue Recognition

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

The Company recognizes revenue based on the five criteria for revenue recognition established under Topic 606: 1) identify the contract, 2) identify separate performance obligations, 3) determine the transaction price, 4) allocate the transaction price among the performance obligations, and 5) recognize revenue as the performance obligations are satisfied.

Type of Revenue

The Company derives revenue primarily from licensing fees on sales of its wound spray product.

The Company recognizes revenue based on the five criteria for revenue recognition established under Topic ASC 606 set forth below.

The Company's licenses provide a right to use and create performance obligations satisfied at a point in time. The Company recognizes revenue from the license when the performance obligation is satisfied through the transfer of the license. The Company will recognize royalty revenue a) when the licensee makes the subsequent sales or use that trigger the royalty, or (b) the performance obligation to which some or all of the sales-based or usage-based royalties has been allocated has been satisfied.

Trade Accounts Receivable

Accounts receivable are reflected at estimated net realizable value. The Company maintains an allowance for doubtful accounts based upon a variety of factors. The Company reviews all open accounts and provides specific reserves for customer collection issues when it believes a loss is probable. The reserve estimate includes consideration of such factors as the length of time receivables are past due, the financial condition of the customer, and historical experience. The Company also records a reserve for all customers, excluding those that have been specifically reserved for, based upon evaluation of historical losses which exceeded the specific reserves the Company had established. For the year ended June 30, 2021 and for the nine-month period ended March 31, 2022, the Company recognized bad debt expense in the amounts of $0 and $0, respectively.

Basic and Diluted Earnings (Loss) Per Common Share

Basic earnings (loss) per common share are 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, 2022, the Company had no potentially dilutive securities that would affect the loss per share if they were to be dilutive.

Comprehensive Loss

Total comprehensive loss represents the net change in stockholders' equity (deficit) 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 loss are limited to the changes in the cumulative foreign currency translation adjustments, which is recorded as components of stockholders' equity (deficit).

8

SANGUI BIOTECH INTERNATIONAL, INC.

Notes to the Condensed Consolidated Financial Statements

March 31, 2022 and June 30, 2021

(Unaudited)

Recent Accounting Pronouncements

Management does not believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying consolidated financial statements.

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.

At the time of reporting, no litigation is pending.

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.

Leases

The Company leases office facilities from an unrelated third party at 1,172 Euros per month, which amount includes 187 Euros for sales tax. The office lease contract began in January 2020 and expires June 2026.

The Company also leases an automobile under an operating lease. The lease provides for a lease payment of 538 Euros per month that began June 2018 expired May of 2020. The company extended the expired contract until May 2021 and then continued on a month-to-month basis, until a new lease vehicle was available. The monthly leasing rate was 670 Euros for the period from June 2020 to May 2021.

The company has signed a leasing contract for a new automobile with a term of 36 months with monthly leasing installments of 338 Euros ($375) and an initial deposit of 9,189 Euros ($10,183) in May 2021. The automobile was delivered in August 2021. The leasing contract that expired in May 2021 was continued until the new automobile has been delivered.

9

SANGUI BIOTECH INTERNATIONAL, INC.

Notes to the Condensed Consolidated Financial Statements

March 31, 2022 and June 30, 2021

(Unaudited)

The following table reconciles future minimum operating lease payments to the discounted lease liability as of March 31, 2022:

Minimum Lease Payments Under Operating Leases
		Office		Automotive		Total
Year ending June 30,
2022		3,216		1,125		4,341
2023		12,978		4,501		17,479
2024		13,211		4,501		17,712
Thereafter		27,141		375		27,516
Total Operating Lease Obligations	$	56,546		10,502	$	67,048
Less: Amount representing imputed interest	$	(2,409)		(250)	$	(2,659)
Present Value of minimum lease payments	$	54,137		10,252	$	64,389
Weighted average discount rate		2%
Weighted average remaining term		3.94	years

License Agreement

Pursuant to the contracts dated May 2, 2018 and November 11, 2018 between Sangui GmbH and Sangui KG, respectively, and a former contractor, Sangui KG grants that contractor a license fee on the license income received by Sangui for his previous services as a co-inventor. The license fee is 10% analogously to the remuneration regulation of the German Law on Employee Inventions (ArbnErfG).

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SANGUI BIOTECH INTERNATIONAL, INC.

Notes to the Condensed Consolidated Financial Statements

March 31, 2022 and June 30, 2021

(Unaudited)

NOTE 4 - DEBT

Notes Payable Related Parties

As of March 31, 2022, the Company had outstanding the following loans payable due to a Company Director:

Date	Loan amount in EURO	Loan amount converted into USD	Interest rate	Interest in USD	Due
March 06, 2015	100,000	110,815	5%	38,202	June 30, 2022
December 12, 2017	25,000	27,704	2%	2,383	on demand
January 19, 2018	25,000	27,704	2%	2,326	on demand
March 13, 2018	25,000	27,704	2%	2,245	on demand
July 16, 2018	25,000	27,704	2%	2,055	on demand
September 10, 2018	25,000	27,704	2%	1,970	on demand
October 04, 2018	25,000	27,704	2%	1,934	on demand
December 27, 2018	25,000	27,704	2%	1,806	on demand
January 21, 2019	15,000	16,622	2%	1,061	on demand
February 26, 2019	25,000	27,704	2%	1,714	on demand
March 20, 2019	25,000	27,704	2%	1,680	on demand
April 08, 2019	20,000	22,163	2%	1,321	on demand
May 09, 2019	30,000	33,245	2%	1,925	on demand
June 21, 2019	30,000	33,245	2%	1,847	on demand
September 17, 2019	20,000	22,163	2%	1,125	on demand
October 04, 2019	20,000	22,163	2%	1,104	on demand
October 30, 2019	20,000	22,163	2%	1,072	on demand
January 08, 2020	10,000	11,082	2%	494	on demand
February 20, 2020	10,000	11,082	2%	468	on demand
March 06, 2020	15,000	16,622	2%	688	on demand
April 01, 2020	10,000	11,082	2%	443	on demand
May 05, 2020	15,000	16,622	2%	633	on demand
June 10, 2020	10,000	11,082	2%	400	on demand
July 27, 2020	10,000	11,082	2%	372	on demand
September 07, 2020	10,000	11,114	2%	346	on demand
September 21, 2020	10,000	11,193	2%	338	on demand
October 09, 2020	15,000	16,659	2%	490	on demand
December 03, 2020	10,000	10,784	2%	293	on demand
January 05, 2021	10,000	10,638	2%	273	on demand
February 11, 2021	10,000	10,806	2%	251	on demand
March 17, 2021	10,000	11,029	2%	230	on demand
July 29, 2021	10,000	11,082	2%	149	on demand
October 04, 2021	20,000	22,163	2%	216	on demand
December 01, 2021	10,000	11,082	2%	73	on demand
Total	675,000	747,114		71,928

On July 29, 2021, October 04, 2021, and December 01, 2021 a Company Director advanced amounts totaling 40,000 Euros ($44,326 as of March 31, 2022) to the Company. The loans are due on demand, accrue interest annually at 2% and are unsecured.

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SANGUI BIOTECH INTERNATIONAL, INC.

Notes to the Condensed Consolidated Financial Statements

March 31, 2022 and June 30, 2021

(Unaudited)

As of March 31, 2022, all notes issued have total interest accrued of $71,928.

Interest expense for the nine-month period ended March 31, 2022 and 2021 was $13,981 and $13,273, respectively.

Notes payable

On March 25, 2022, the Company entered into a note for 60,000 Euros ($66,489) and accrues interest annually at 6.0%. Interest and principal will be repaid in 60 equal monthly installments of 1,160 Euros starting at the end of April 2022. The last installment is due on March 31, 2027. The loan is secured by the assignment of future receivables from the license agreement relating to the wound spray.

NOTE 5 - STOCKHOLDERS' DEFICT

Preferred Stock- The Company is authorized to issue 10,000,000 shares of preferred stock. No preferred stock has been issued to date. 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. As of March 31, 2022, and June 30, 2021, the Company had 209,955,598 and 206,955,598 shares of common stock issued and 209,901,842 and 206,901,842 shares outstanding, respectively.

During the nine-months ended March 31, 2022, the Company sold 1,000,000 shares of its common stock for approximately $11,867 in cash proceeds to one individual at price of approximately $0.0119 per share. The Company sold 1,616,556 shares of its common stock for approximately $16,478 in cash proceeds to one individual at price of approximately $ 0.0102 per share. It was also agreed with the same individual to settle a liability of the company of $8,435 by issuing 383,444 shares of its common stock. This resulted in a loss on settlement of accounts payable of $4,254, which was charged to shareholders' equity.

Treasury Stock- The Company holds 53,756 of its common stock as treasury stock, which is recorded at $19,387 as of March 31, 2022.

NOTE 6 - SUBSEQUENT EVENTS

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.

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Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations

Forward-looking Statements

The following discussion of our financial condition and results of operations should be read in conjunction with the consolidated financial statements and the related notes thereto included elsewhere in this quarterly report. Some of the information in this quarterly report contains forward-looking statements, including statements related to anticipated operating results, margins, growth, financial resources, capital requirements, adequacy of the Company's financial resources, trends in spending on research and development, the development of new markets, the development, regulatory approval, manufacture, distribution, and commercial acceptance of new products, and future product development efforts. Investors are cautioned that forward-looking statements involve risks and uncertainties, which may affect our business and prospects, including but not limited to, the Company's expected need for additional funding and the uncertainty of receiving the additional funding, changes in economic and market conditions, acceptance of our products by the health care and reimbursement communities, new development of competitive products and treatments, administrative and regulatory approval and related considerations, health care legislation and regulation, and other factors discussed in our filings with the Securities and Exchange Commission.

GENERAL

Our mission is the development of novel and proprietary pharmaceutical, medical and cosmetic products. We develop our products through our German subsidiary, Sangui GmbH. Currently, we are seeking to market and sell our products through partnerships with industry partners worldwide.

Our focus has been the development of oxygen carriers capable of providing oxygen transport in humans in the event of acute and/or chronic lack of oxygen due to arterial occlusion, anemia or blood loss whether due to surgery, trauma, or other causes, as well as in the case of chronic wounds. We have thus far focused our development and commercialization efforts on such artificial oxygen carriers by reproducing and synthesizing polymers out of native hemoglobin of defined molecular sizes. In addition, we have developed external applications of oxygen transporters in the medical and cosmetic fields in the form of sprays for the healing of chronic wounds and of gels and emulsions for the regeneration of the skin. A wound dressing that shows outstanding properties in the support of wound healing, is being distributed by SastoMed GmbH (Sastomed), a former joint venture company in which we had held a share of 25%, as global licensee under the Granulox brand name. Effective as of the end of the second quarter of our fiscal year 2016 we sold this stake to SanderStrohmann GmbH.

Sangui GmbH holds distribution rights for our Chitoskin wound pads for the European Union and various other countries. Additionally, a European patent has been granted for the production and use of improved Chitoskin wound pads.

Our current key business focuses are: (a) selling our existing cosmetics and wound management products by way of licensing through distribution partners, or by way of direct sale, to end users; (b) identifying additional industrial and distribution partners for our patents, production techniques, and products; and (c) obtaining the additional certifications on our products in development.

Artificial Oxygen Carriers

Sangui GmbH develops several products based on polymers of purified natural porcine hemoglobin with oxygen carrying abilities that are similar to native hemoglobin. These are (1) oxygen carrying blood additives and (2) oxygen carrying blood volume substitutes.

According to regulatory requirements, all drugs must complete preclinical and clinical trials before approval (e.g. Federal Drug Administration approval) and market launch. The Company's management believes that the European and FDA approval process will take at a minimum several years to complete.

Our most promising potential product in the area of artificial oxygen carriers, the blood additive, is still in an early development stage. In the pursuit of these projects, we will need to obtain substantial additional capital to continue their development. As the Company has limited financial resources, we have suspended this project

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temporarily in order to focus our attention on our chronic wound research and the products developed in conjunction with their treatment.

Nano Formulations for the Regeneration of the Skin

Healthy skin is supplied with oxygen both from the inside as well as through diffusion from the outside. A lack of oxygen will cause degenerative alterations, ranging from premature aging, to surface damage, and even as extensive as causing open wounds. The cause for the lack of oxygen may be a part of the normal aging process, but it may also be caused by burns, radiation, trauma, or a medical condition. Impairment of the blood flow, for example caused by diabetes mellitus or by chronic venous insufficiency, can also lead to insufficient oxygen supply and the resulting skin damage.

In response, we developed nano-emulsion based cosmetic preparations that in their design are able to help support regeneration of the skin by improving its oxygen supply. Our line of cosmetic products was thoroughly tested by an independent research institute and received top marks for skin moisturizing, and enhanced skin elasticity, respectively. However, sales of this series remained at low levels and during the first quarter of the 2016 financial year we decided to decrease our operations in this particular segment and to abandon the patent protection for this range of products.

Chitoskin Wound Pads

Usually, normal ("primary") wounds tend to heal over a couple of days without leaving scars following a certain sequence of phases. Burns and certain diseases impede the normal wound healing process, resulting in large, hardly healing ("secondary") wounds which only close by growing new tissue from the bottom. Wound dressings serve to safeguard the wound with its highly sensitive new granulation tissue from mechanical damage as well as from infection. Using the natural polymer chitosan, Sangui's Chitoskin wound dressings show outstanding properties in supporting wound healing. Sangui GmbH holds various distribution rights for our Chitoskin wound pads, and it is the strategy of the company to find industry partners ready to acquire or license this product range as a whole.

Hemospray Wound Spray

Sangui GmbH has developed a novel medical technology supporting the healing of chronic wounds. Lack of oxygen supply to the cells in the wound ground is the main reason why those wounds lose their genuine healing power. Based on its concept of artificial oxygen carriers, the wound spray product we developed bridges the watery wound surface and permits an enhanced afflux of oxygen to the wound ground.

Sangui GmbH has granted SastoMed global distribution rights to this product. Distribution of the wound spray began in the European Union in April 2012 under the brand name "Granulox."

In December 2012, product distribution was initiated in Mexico by Sastomed and their local distribution partner Bio-Mac Pharma. International distribution has been expanded since then through cooperation agreements with local distribution partners in the Benelux countries and South Eastern Europe.

Since December 2013, international distribution outside Germany in collaboration with local partners has occurred in more than 40 countries in Europe and Latin American.

On November 13, 2017, the Company announced that Infirst Healthcare Ltd reported that the United States Food and Drug Administration had granted Fast Track designation to Granulox for the treatment of diabetic foot ulcers. It is the first and only hemoglobin spray to receive the Fast-Track designation - a process designed to facilitate the development, and expedite the review of, new therapies to treat serious conditions and fill an unmet medical need.

Despite the positive reviews of our product, Granulox sales have become more volatile. We remain confident, however, that SastoMed will be able to considerably increase its sales in conjunction with increased distribution of the product into more international markets.

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In December 2010, Sangui GmbH established a joint venture company with SanderStrothmann GmbH of Georgsmarienhuette, Germany, under the name of SastoMed GmbH. This enterprise was in charge of obtaining the CE mark certification authorizing the distribution of one of the Company's products in the member states of the European Union. Effective December 31, 2015, Sangui GmbH sold its stake in Sastomed GmbH to SanderStrohmann GmbH.

On or about June 18, 2018, Sangui GmbH together with Sastomed GmbH founded Sangui Know-How- und Patentverwertungsgesellschaft mbH & Co. KG ("Sangui KG"). Sangui KG is a limited partnership. On June 22, 2018, Sangui KG acquired all the rights in the license agreement made on December 17, 2010, between Sastomed GmbH and Sangui GmbH.

Pursuant to the contracts dated May 2, 2018 and November 11, 2018 between Sangui GmbH and Sangui KG, respectively, and a former contractor Sangui KG grants that contractor a license fee on the license income received by Sangui for his previous services as a co-inventor. The license fee is 10% similar to the remuneration regulation of the German Law on Employee Inventions (ArbnErfG).

Given the Company's business strength is primarily in research and product development, we have decided to partner with established distribution entities who license our marketable products, or those products that are close to market entry, for sale to end users. In pursuit of this strategy, we have licensed the most promising product, a hemoglobin based wound spray technology to Sastomed GmbH, a former joint venture of SGBI, for distribution in several European, Latin American and Asian countries. In addition, we are entering the preclinical testing of hemoglobin based artificial oxygen carriers aiming at the remediation of ischemic conditions in human patients.

Effective July 27, 2020, Sastomed GmbH was merged with its parent company Mölnlycke Health Care GmbH, Düsseldorf. As a result of the merger, the license agreement between Sastomed GmbH and Sangui Know-How und Patentverwertungsgesellschaft mbH & Co. KG is transferred with all rights and obligations to the Mölnlycke Health Care GmbH.

FINANCIAL POSITION

During the nine-months ended March 31, 2022, our total assets increased $52,451 from $134,122 on June 30, 2021 to $186,573 on March 31, 2022. An increase in accounts receivable of $4,985 and an increase in operating lease right-of-use assets of $ 4,972 and an increase of cash of $ 37,849 from June 30, 2021 to March 31, 2022 were primarily responsible for the increase in the total assets.

We funded our operations primarily through our existing cash reserves and cash received from the issuance notes payables from related parties and third parties. Our stockholders' deficit increased by $16,584 from ($875,325) on June 30, 2021 to ($891,909) on March 31, 2022. The primary factor behind this was net loss attributable to common stockholders of $51,856.

RESULTS OF OPERATIONS

For the three-month and nine-month periods March 31, 2022 and 2021:

REVENUES - Revenues reported were $17,954 and $21,182 for the three-months ended March 31, 2022 and 2021 respectively. For the nine-months ended March 31, 2022 and 2021 revenues were $58,686 and $51,754. The decrease of $3,228 and the increase of $6,932 can be traced back to the development in royalties from the licensing agreement with Mölnlycke Heath Care GmbH.

RESEARCH AND DEVELOPMENT- Research and development expenses decreased by $81 to $1,979 from $2,060 for the three-month periods ending March 31, 2022 and 2021. Research and development expenses decreased $4 to $6,478 in the first nine-months of our 2022 financial year from $6,482 in the comparable period of the previous year. The development is mainly attributed to fees for patents.

15

GENERAL AND ADMINISTRATIVE AND PROFESSIONAL FEES - The combined accumulated general and administrative expenses and professional fees decreased $3,008 to $44,233 during the three-months ended March 31, 2022, from $47,241 in the respective period of the previous year mainly due to lower of costs for cars and tax advice. Accumulated general and administrative expenses and professional fees decreased $12,387 to $143,314 in the nine-month period ended March 31, 2022, from $155,701 in the respective period of the previous year mainly due to lower of costs for tax advice and cars.

DEPRECIATION AND AMORTIZATION - Depreciation and amortization were $192 and $206 for the three-months and $589 and $610 for the nine-months ended March 31, 2022 and 2021 respectively.

GAIN/LOSS ON FOREIGN EXCHANGE - The three-month period ended March 31, 2022 shows gains on foreign exchange of $21,790 compared to gains of $32,167 during the respective period of the previous year, hence a change of $10,377. The nine-month period ended March 31, 2022 shows gains on foreign exchange of $56,376 compared to losses of $27,611 during the respective period of the previous year, hence a change of $83,987. The change is mainly due to the revaluation of notes payables denominated in Euros at the end of each period.

INTEREST EXPENSE - Interest expenses for the three-month period ended March 31, 2022 and 2021 decreased by $18 to $4,562 from $4,580. For the nine-months ended March 31, 2022 and 2021, interest expense increased by $708 to $13,981 from $13,273. The increase relates to the increase of interest-bearing debt financing.

LOSS ON SETTLEMENT ON ACCOUNTS PAYABLE - For a liability of $8,435 the company issued 383,444 shares of its common stock. This resulted in a loss on settlement of accounts payable of $4,254.

NET LOSS - As a result of the above factors, the net loss attributed to common shareholders increased to $14,862 compared to a loss of $90 for the three-months ended March 31, 2022 and 2021 and decreased to $51,856 compared to a loss of $148,866 for the nine-months ended March 31, 2022 and 2021 respectively. The loss per share for both periods was $(0.00).

Our consolidated net loss before non-controlling interest was $15,476 or $(0.00) per common share, for the three-months ended March 31, 2022, compared to $738 or $(0.00) per common share, during the comparable period in our 2021 financial year. Our consolidated net loss before non-controlling interest was $53,554 or $(0.00) per common share, for the nine-months ended March 31, 2022, compared to $151,923 or $(0.00) per common share, during the comparable period in our 2021 financial year.

LIQUIDITY AND CAPITAL RESOURCES

For the nine-months ended March 31, 2022, net cash used in operating activities decreased $1,059 to ($103,119), compared to ($104,178) in the corresponding period of the previous year. This is mainly due to a decreased net loss for the period partially compensated by effects of foreign currency exchange transactions.

The Company funded its business in the first nine-months ended March 31, 2022 by issuing note payables totaling Euros 100,000 ($112,934) and selling 2,616,556 shares of its common stock for $28,345 cash proceeds .

We had a working capital deficit of approximately $861,212 on March 31, 2022, a decrease of approximately $26,829 from June 30, 2021.

On March 31, 2022 compared to June 30, 2021, we had cash of $67,617 compared to $29,768, prepaid expenses of $17,649 compared to $12,020 and accounts receivable of $21,616 compared $16,631. We will need substantial additional funding to fulfill our business plan and we intend to explore financing sources for our future development activities. No assurance can be given that these efforts will be successful.

Item 3 - Quantitative and Qualitative Disclosures about Market Risk

We are a smaller reporting company as defined by §229.10(f)(1) and are not required to provide the information under this item.

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Item 4 - Controls and Procedures

Disclosure Controls and Procedures

As of the date of the end of the period covered by this report, our Chief Executive Officer and Chief Financial Officer conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as required by Exchange Act Rule 13a-15. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this report to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC's rules and forms.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and our Chief Financial Officer, to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There has been no change in our internal control over financial reporting that occurred during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

The term "internal control over financial reporting" is defined as a process designed by, or under the supervision of, the registrant's principal executive and principal financial officers, or persons performing similar functions, and effected by the registrant's board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

(a)Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the registrant;

(b)Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the registrant are being made only in accordance with authorizations of management and directors of the registrant; and

(c)Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the registrant's assets that could have a material effect on the financial statements.

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PART II - OTHER INFORMATION

Item 1 - Legal Proceedings

The Company is not aware of pending claims or assessments, which may have a material adverse impact on the Company's financial position or results of operations.

Item 1a - Risk Factors

We are a smaller reporting company as defined by §229,10(f)(1) and are not required to provide the information under this item.

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds

On January 14, 2022, the Company sold 1,616,556 shares of its common stock for approximately $16,478 in cash proceeds to one individual at price of approximately $0.0102 per share. On January 14, 2022 the company also agreed with one individual the settlement of accounts payable of $8,435 by issuing a further 383,444 shares of its common stock. No underwriters were used. The securities were sold pursuant to an exemption from registration provided by Regulation S and Section 4(2) of the Securities Act of 1933. The certificate representing the shares contained a restricted legend.

Item 3 - Defaults Upon Senior Securities

None.

Item 5 - Other Information

None.

Item 6 - Exhibits

1.Financial Statements. The unaudited condensed consolidated Balance Sheet of Sangui Biotech International, Inc. as of March 31, 2022 and the audited balance sheet as of June 30, 2021, the unaudited condensed consolidated Statements of Operations for the three-month and nine-month periods ended March 31, 2022 and 2021, the unaudited condensed consolidated Statements of Stockholder's Deficit three-month and nine-month periods ended March 31, 2022 and 2021, and the unaudited condensed consolidated Statements of Cash Flows for the nine-month period ended March 31, 2022 and 2021, together with the notes thereto, are included in this Quarterly Report on Form 10-Q.

2.Exhibits. The following exhibits are either filed as a part hereof or are incorporated by reference. Exhibit numbers correspond to the numbering system in Item 601 of Regulation S-K.

Exhibit

Number Description of Exhibit

31.01	Certification of CEO Pursuant to Rule 13a-14(a) and 15d-14(a), filed herewith
31.02	Certification of principal financial officer Pursuant to Rule 13a-14(a) and 15d-14(a), filed herewith
32.01	Certification Pursuant to Section 1350 of Title 18 of the United States Code, filed herewith

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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.

SANGUI BIOTECH INTERNATIONAL, INC.

Dated: May 16, 2022

/s/ Thomas Striepe

By: Thomas Striepe

Chief Executive Officer and Principal Financial Officer

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