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, 2023

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 12, 2023, 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, 2023

INDEX

PART I – FINANCIAL INFORMATION
Item 1	Financial Statements	1
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosure About Market Risk	19
Item 4.	Controls and Procedures	20
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	21
Item 1A.	Risk Factors	21
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	21
Item 3.	Defaults Upon Senior Securities	21
Item 5.	Other Information	21
Item 6.	Exhibits	21

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, 2023, and the audited consolidated balance sheet as of June 30, 2022, our unaudited condensed consolidated statements of operations and comprehensive loss for the three and nine-month period ended March 31, 2023, and 2022, our unaudited condensed consolidated statements of stockholders’ deficit for the three and nine-month periods  ended March 31, 2023, and 2022 and our unaudited condensed consolidated statements of cash flows for the nine-month period ended March 31, 2023, and 2022 are attached hereto.

1

SANGUI BIOTECH INTERNATIONAL, INC.
Consolidated Balance Sheets
ASSETS
			March 31,		June 30,
			2023		2022
				(unaudited)
CURRENT ASSETS
	Cash		$	6,984	$	30,469
	Accounts receivable, net			22,619		13,312
	Prepaid expenses and other assets			3,674		11,822
	Tax refunds receivable			-		1,979
	Note receivable, related party			5,431		10,127
		Total Current Assets		38,708		67,709
	Property and equipment, net			-		358
	Operating lease right-of-use asset			50,396		62,721
		TOTAL ASSETS	$	89,104	$	130,788
LIABILITIES AND STOCKHOLDERS' DEFICIT
LIABILITIES
	Accounts payable and accrued expenses		$	176,347	$	128,385
	Tax payable			57		-
	Accrued interest  - related party			88,432		72,365
	Current portion of note payable			12,234		11,290
	Notes payable - related party			733,241		707,696
	Current portion of operating lease liability			16,512		15,883
		Total Current Liabilities		1,026,823		935,619
	Operating lease liability, net of current portion			30,647		41,228
	Note payable, net of current portion			41,419		48,898
		Total long-term Liabilities		72,066		90,126
		Total  Liabilities		1,098,889		1,025,745
COMMITMENTS AND CONTINGENCIES			$	-	$	-
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 209,955,598 shares issued and 209,901,842 and 209,901,842 shares outstanding respectively			33,124,956		33,124,956
	Additional paid-in capital			4,513,328		4,513,328
	Treasury stock, at cost			(19,387)		(19,387)
	Accumulated other comprehensive income			98,645		96,600
	Accumulated deficit			(38,071,873)		(37,954,625)
	Total stockholders' deficit			(354,331)		(239,128)
	Non-controlling interest			(655,454)		(655,829)
		Total Stockholders' Deficit		(1,009,785)		(894,957)
		TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$	89,104	$	130,788
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2

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,
		2023		2022		2023		2022
REVENUES
	License revenues	$	18,697	$	17,954	$	70,353	$	58,686
TOTAL REVENUES			18,697		17,954		70,353		58,686
OPERATING EXPENSES
	Research and development		808		1,979		4,807		6,478
	Professional fees		30,567		32,312		101,124		104,921
	General and administrative		10,178		11,921		30,623		38,393
	Depreciation and amortization		7		192		351		589
Total Operating Expenses			41,560		46,404		136,905		150,381
OPERATING LOSS			(22,863)		(28,450)		(66,552)		(91,695)
OTHER INCOME (EXPENSE)
	Gain (Loss) on foreign exchange		(10,413)		21,790		(34,983)		56,376
	Interest expense		(5,192)		(4,562)		(15,338)		(13,981)
	Loss on Settlement on accounts payable		-		(4,254)		-		(4,254)
Total other income (loss)			(15,605)		12,974		(50,321)		38,141
NET LOSS BEFORE INCOME TAXES AND NON-CONTROLLING INTEREST			(38,468)		(15,476)		(116,873)		(53,554)
	Provision for income taxes		-		-		-		-
NET LOSS BEFORE NON-CONTROLLING INTEREST			(38,468)		(15,476)		(116,873)		(53,554)
	Less: Net loss attributable to non-controlling interest		277		614		(375)		1,698
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS		$	(38,191)	$	(14,862)	$	(117,248)	$	(51,856)
OTHER COMPREHENSIVE LOSS
	Foreign currency translation adjustments		(1,207)		1,123		2,045		190
COMPREHENSIVE LOSS		$	(39,675)	$	(14,353)	$	(114,828)	$	(53,364)
	BASIC AND DILUTED LOSS PER SHARE	$	(0.00)	$	(0.00)	$	(0.00)	$	(0.00)
	BASIC AND DILUTED WEIGHTED AVERAGE
	NUMBER OF SHARES OUTSTANDING		209,955,598		203,355,598		209,955,598		208,604,727
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, 2023
								Accumulated
				Additional				Other		Non-
	Common Stock			Paid-In		Treasury		Comprehensive		controlling		Accumulated
	Shares	Amount		Capital		Stock		Income (Loss)		Interest		Deficit		Total
Balance January 1, 2023	209,955,598		33,124,956		4,513,328		(19,387)		99,852		(655,177)		(38,033,682)		(970,110)
Currency translation adjustment	-		-		-		-		(1,207)		-		-		(1,207)
Net income (loss)	-		-		-		-		-		(277)		(38,191)		(38,468)
Balance March 31, 2023	209,955,598		33,124,956		4,513,328		(19,387)		98,645		(655,454)		(38,071,873)		(1,009,785)
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

SANGUI BIOTECH INTERNATIONAL, INC.
Condensed Consolidated Statements of Stockholders' Deficit
(unaudited)
Nine-Month Period Ended March 31, 2023
								Accumulated
				Additional				Other		Non-
	Common Stock			Paid-In		Treasury		Comprehensive		controlling		Accumulated
	Shares	Amount		Capital		Stock		Income		Interest		Deficit		Total
Balance, July 1, 2022	209,955,598		33,124,956		4,513,328		(19,387)		96,600		(655,829)		(37,954,625)		(894,957)
Currency translation adjustment	-		-		-		-		2,045		-		-		2,045
Net income (loss)	-		-		-		-		-		375		(117,248)		(116,873)
Balance March 31, 2023	209,955,598		33,124,956		4,513,328		(19,387)		98,645		(655,454)		(38,071,873)		(1,009,785)
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5

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 shares 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 income (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.

6

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
Currency translation adjustment	-		-		-		-		190		-		-		190
Net income (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.

7

SANGUI BIOTECH INTERNATIONAL, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited)
				For the Nine Months Ended
				March 31,
				2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
	Net loss			$	(116,873)	$	(53,554)
	Adjustments to reconcile net loss to net cash
	used by operating activities:
		Depreciation and amortization			351		589
		Loss on  settlement of debt			-		4,182
		Foreign currency exchange transactions			28,817		(55,573)
		Amortization of right-of-use asset			13,867		(13,436)
	Changes in operating assets and liabilities
		Trade accounts receivable			(8,390)		(6,282)
		Prepaid expenses and other current assets			8,224		(16,767)
		Tax refunds receivable			1,949		1,890
		Accounts payable and accrued expenses			40,759		10,016
		Related party advances			4,812		(2,097)
		Related party accounts payable			17,365		11,872
		Operating lease liability			(11,419)		16,041
			Net Cash Used in Operating Activities		(20,538)		(103,119)
CASH FLOWS FROM FINANCING ACTIVITIES
		Proceeds from related party note payable			-		46,445
		Proceeds from common stock issued for cash			-		28,345
		Repayment of note payable			(8,276)		68,865
			Net Cash Provided by Financing Activities		(8,276)		143,655
EFFECTS OF EXCHANGE RATES ON CASH					5,329		(2,687)
	NET CHANGES IN CASH				(23,485)		37,849
	CASH AT BEGINNING OF PERIOD				30,469		29,768
	CASH AT END OF PERIOD			$	6,984	$	67,617
	SUPPLEMENTAL CASH FLOW INFORMATION
	CASH PAID FOR:
		Interest		$	2,503	$	-
	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.

8

SANGUI BIOTECH INTERNATIONAL, INC.

Notes to the Condensed Consolidated Financial Statements 

March 31, 2023 and June 30, 2022

(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, 2022. 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, 2023, are not necessarily indicative of the results that may be expected for the full fiscal year ending June 30, 2023.

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. Based on current COVID-19 trends, the United States Department of Health and Human Services is planning for the federal Public Health Emergency for COVID-19, declared under Section 319 of the Public Health Service Act, to expire at the end of the day on May 11, 2023. 

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

9

SANGUI BIOTECH INTERNATIONAL, INC.

Notes to the Condensed Consolidated Financial Statements 

March 31, 2023 and June 30, 2022

(Unaudited)

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 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, 2023, and June 30, 2022, and our unaudited consolidated statements of operations for the nine-month periods ended March 31, 2023 and 2022, were calculated as follows:

as of March 31, 2023	0.920570
as of March 31, 2022	0.902405
July 1, 2022 through March 31, 2023	0.968496
July 1, 2021 through March 31, 2022	0.871273

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 $38,071,873 as of March 31, 2023. The Company incurred a net loss before non-controlling interest of $116,873 for the nine-months ended March 31, 2023 and used cash in operating activities of $20,538 during the same nine-months ended March 31, 2023. 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.

10

SANGUI BIOTECH INTERNATIONAL, INC.

Notes to the Condensed Consolidated Financial Statements 

March 31, 2023 and June 30, 2022

(Unaudited)

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

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 nine-month period ended March 31, 2023, and 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, 2023, the Company had no potentially dilutive securities that would affect the loss per share if they were to be dilutive.

11

SANGUI BIOTECH INTERNATIONAL, INC.

Notes to the Condensed Consolidated Financial Statements 

March 31, 2023 and June 30, 2022

(Unaudited)

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).

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 an automobile with a term of 36 months with monthly leasing installments of 338 Euros ($367) and an initial deposit of 9,189 Euros ($9,982) in May 2021. The automobile was delivered in August 2021.

12

SANGUI BIOTECH INTERNATIONAL, INC.

Notes to the Condensed Consolidated Financial Statements 

March 31, 2023 and June 30, 2022

(Unaudited)

The following table reconciles future minimum operating lease payments to the discounted lease liability as of March 31, 2023:

Minimum Lease Payments Under Operating Leases
		Office	Automotive		Total
Year ending June 30,
2022		-	-		-
2023		3,209	1,103		4,312
2024		12,951	4,412		17,363
2025		13,184	368		13,552
Thereafter		13,422	-		13,422
Total Operating Lease Obligations	$	42,766	5,883	$	48,649
Less: Amount representing imputed interest	$	(1,407)	(83)	$	(1,490)
Present Value of minimum lease payments	$	41,359	5,800	$	47,159

Weighted average discount rate	2%
Weighted average remaining term	3.01	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, 2023 and June 30, 2022

(Unaudited)

NOTE 4 – DEBT

Notes Payable Related Parties

As of March 31, 2023, 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	108,628	5%	42,880	June 30, 2022
December 12, 2017	25,000	27,157	2%	2,879	on demand
January 19, 2018	25,000	27,157	2%	2,823	on demand
March 13, 2018	25,000	27,157	2%	2,744	on demand
July 16, 2018	25,000	27,157	2%	2,558	on demand
September 10, 2018	25,000	27,157	2%	2,475	on demand
October 04, 2018	25,000	27,157	2%	2,439	on demand
December 27, 2018	25,000	27,157	2%	2,314	on demand
January 21, 2019	15,000	16,294	2%	1,366	on demand
February 26, 2019	25,000	27,157	2%	2,223	on demand
March 20, 2019	25,000	27,157	2%	2,190	on demand
April 08, 2019	20,000	21,726	2%	1,730	on demand
May 09, 2019	30,000	32,589	2%	2,539	on demand
June 21, 2019	30,000	32,589	2%	2,462	on demand
September 17, 2019	20,000	21,726	2%	1,537	on demand
October 04, 2019	20,000	21,726	2%	1,517	on demand
October 30, 2019	20,000	21,726	2%	1,486	on demand
January 08, 2020	10,000	10,863	2%	701	on demand
February 20, 2020	10,000	10,863	2%	676	on demand
March 06, 2020	15,000	16,294	2%	1,000	on demand
April 01, 2020	10,000	10,863	2%	651	on demand
May 05, 2020	15,000	16,294	2%	946	on demand
June 10, 2020	10,000	10,863	2%	610	on demand
July 27, 2020	10,000	10,863	2%	582	on demand
September 07, 2020	10,000	10,863	2%	557	on demand
September 21, 2020	10,000	10,863	2%	548	on demand
October 09, 2020	15,000	16,294	2%	806	on demand
December 03, 2020	10,000	10,863	2%	505	on demand
January 05, 2021	10,000	10,863	2%	485	on demand
February 11, 2021	10,000	10,863	2%	463	on demand
March 17, 2021	10,000	10,863	2%	443	on demand
July 29, 2021	10,000	10,863	2%	363	on demand
October 04, 2021	20,000	21,726	2%	646	on demand
December 01, 2021	10,000	10,863	2%	288	on demand
Total	675,000	733,241		88,432

On July 29, 2021, October 04, 2021, and December 01, 2021, a Company Director advanced amounts totaling 40,000 Euros ($43,451 as of March 31, 2023) to the Company. The loans are due on demand, accrue interest annually at 2% and are unsecured.    

As of March 31, 2023, all notes issued have total interest accrued of $88,432.

Interest expense for the nine-month period ended March 31, 2023, and 2022 was $12,789 and $13,980, respectively.

On October 04, 2022, Company Director advanced 13,000 Euros ($12,720) to the Company. The loan was due on demand, accrue interest annually at 2% and was unsecured and repaid in December 2022. As of March 31, 2023,

14

SANGUI BIOTECH INTERNATIONAL, INC.

Notes to the Condensed Consolidated Financial Statements 

March 31, 2023 and June 30, 2022

(Unaudited)

interest of 31Euros ($31) has been accrued.    

Notes payable

On March 25, 2022, the Company entered into a note for 60,000 Euros ($65,177) 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. The remaining debt as of March 31, 2023, is 49,392 Euros ($53,654). Interest expense for the nine-month period ended March 31, 2023 was $2,503.

On July 01, 2021, the Company received a loan of 1,733 Euros ($1,883) from a third party. The interest rate is 1.0% p.a. The capital and accrued interest are to be repaid on June 30, 2023. The loan is unsecured.

As of March 31, 2023, interest of 26 Euros ($28) has been accrued. Interest expense for the nine-month period ended March 31, 2023, and 2022 was $9 and $0, respectively.

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, 2023, and June 30, 2022, the Company had 209,955,598 and 209,955,598 shares of common stock issued and 209,901,842 and 209,901,842 shares outstanding, respectively.

Treasury Stock - The Company holds 53,756 of its common stock as treasury stock, which is recorded at $19,387 as of March 31, 2023.

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

16

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 Southeastern 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 was transferred with all rights and obligations to the Mölnlycke Health Care GmbH.

FINANCIAL POSITION

During the nine-months ended March 31, 2023, our total assets decreased $41,684 from $130,788 on June 30, 2022 to $89,104 on March 31, 2023. A decrease of cash of $4,696, a decrease in operating lease right-of-use assets of $ 12,325 and decrease of prepaid expenses and other assets of $8,148 partly compensated by an increase of accounts receivable of $9,307 from June 30, 2022 to March 31, 2023 were primarily responsible for the decrease 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 $114,828 from ($894,957) on June 30, 2022 to ($1,009,785) on March 31, 2023. The primary factor behind this was net loss attributable to common stockholders of $117,248.

RESULTS OF OPERATIONS

For the three-month and nine-month periods March 31, 2023, and 2022:

REVENUES – Revenues reported were $18,697 and $17,954 for the three-months ended March 31, 2023 and 2022 respectively. For the nine-months ended March 31, 2023, and 2022 revenues reported were $70,353 and $58,686. The increase of $743 and the increase of $11,667 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 $1,171 to $808 from $1,979 for the three-month periods ending March 31, 2023, and 2022. Research and development expenses decreased $1,671 to $4,807 in the first nine-months of our 2022 financial year from $6,478 in the comparable period of the previous year. The development is mainly attributed to fees for patents.

GENERAL AND ADMINISTRATIVE AND PROFESSIONAL FEES – The combined accumulated general and administrative expenses and professional fees decreased $3,488 to $40,745 during the three-months

18

ended March 31, 2023, from $44,233 in the respective period of the previous year mainly due to lower of costs for listing shares. Accumulated general and administrative expenses and professional fees decreased $11,567 to $131,747 in the nine-month period ended March 31, 2023, from $143,314 in the respective period of the previous year mainly due to lower of costs for cars and stock listing.

DEPRECIATION AND AMORTIZATION - Depreciation and amortization were $7 and $192 for the three-months ended March 31, 2023 and 2022 respectively. For the nine-months ended March 31, 2023 and 2022 depreciation and amortization were $351 and $589.

GAIN/LOSS ON FOREIGN EXCHANGE - The three-month period ended March 31, 2023 shows losses on foreign exchange of $10,413 compared to gains of $21,790 during the respective period of the previous year, hence a change of $32,203. The nine-month period ended March 31, 2023, shows losses on foreign exchange of $34,983 compared to gains of $56,376 during the respective period of the previous year, hence a change of $91,359. 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, 2023 and 2022 increased by $630 to $5,192 from $4,562. For the nine-months ended March 31, 2023 and 2022, interest expense increased by $1,357 to $15,338 from $13,981. The increases mainly relate to the increases of interest-bearing debt financing.   

NET LOSS - As a result of the above factors, the net loss attributed to common shareholders increased to $38,191 compared to a loss of $14,862 for the three-months ended March 31, 2023 and 2022 and  increased to loss of  $117,248 compared to a loss of $51,856 for the nine-months ended March 31, 2023 and 2022 respectively. The loss per share for both periods was $(0.00).

Our consolidated net loss before non-controlling interest was $38,468 or $(0.00) per common share, for the three-months ended March 31, 2023, compared to $15,476 or $(0.00) per common share, during the comparable period in our 2022 financial year. Our consolidated net loss before non-controlling interest was $116,873 or $(0.00) per common share, for the nine-months ended March 31, 2023, compared to a net loss of  $53,554 or $(0.00) per common share, during the comparable period in our 2022 financial year.

LIQUIDITY AND CAPITAL RESOURCES

For the nine-months ended March 31, 2023, net cash used in operating activities decreased $82,581 to ($20,538), compared to ($103,119) in the corresponding period of the previous year. This is mainly due effects of foreign currency exchange transactions and trade accounts receivable partially compensated by

to an increase net loss in the reporting period.

We had a working capital deficit of approximately $988,115 on March 31, 2023, an increase of approximately $120,205 from June 30, 2022.  

On March 31, 2023, compared to June 30, 2022, we had cash of $6,984 compared to $30,469, prepaid expenses and other assets of $3,674 compared to $11,822 and accounts receivable of $22,619 compared to $13,312. 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.

19

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

None

Item 3 - Defaults Upon Senior Securities

    None.

Item 5 - Other Information

None.  

Item 6 – Exhibits

 1.           Financial Statements.  The unaudited condensed consolidated balance sheet as of March 31, 2023, and the audited consolidated balance sheet as of June 30, 2022, the unaudited condensed consolidated statements of operations and comprehensive loss for the three and nine-month period ended March 31, 2023, and 2022, the unaudited condensed consolidated statements of stockholders’ deficit for the three and nine-month periods  ended March 31, 2023, and 2022 and the unaudited condensed consolidated statements of cash flows for the nine-month period ended March 31, 2023, and 2022 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 12, 2023

/s/ Thomas Striepe                                               

By: Thomas Striepe 

Chief Executive Officer and Principal Financial Officer 

22

EX-31.1

Exhibit 31.01

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO RULE 13a-14

I, Thomas Striepe, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Sangui Biotech International, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have, for the small business issuer and have:

(a)         Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiary, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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; 

(c)         Evaluated the effectiveness of the small business issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)         Disclosed in this report any change in the small business issuer’s internal control over financial reporting that occurred during the small business issuer’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the small business issuer’s internal control over financial reporting; and

5.I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the small business issuer’s auditors and the audit committee of the small business issuer’s board of directors (or persons performing the equivalent functions):  

(a)         All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer’s ability to record, process, summarize and report financial information; and

(b)         Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer’s internal control over financial reporting.

Dated: May 12, 2023/s/ Thomas Striepe                                               

By: Thomas Striepe 

Chief Executive Officer  

EX-31.2

Exhibit 31.02

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO RULE 13a-14

I, Thomas Striepe, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Sangui Biotech International, Inc.; 

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;  

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;  

4.I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have, for the small business issuer and have:  

(a)         Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiary, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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; 

(c)         Evaluated the effectiveness of the small business issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and,

(d)         Disclosed in this report any change in the small business issuer’s internal control over financial reporting that occurred during the small business issuer’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the small business issuer’s internal control over financial reporting; and,

5.I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the small business issuer’s auditors and the audit committee of the small business issuer’s board of directors (or persons performing the equivalent functions):  

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer’s ability to record, process, summarize and report financial information; and,  

(b)         Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer’s internal control over financial reporting.

Date: April

Dated: May 12, 2023/s/ Thomas Striepe                                               

By: Thomas Striepe 

Chief Financial Officer 

EX-32.1

Exhibit 32.01

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Sangui Biotech International, Inc. (the “Company”) on Form 10-Q for the period ending March 31, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas Striepe, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief: 

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. 

Dated: May 12, 2023/s/ Thomas Striepe                                               

By: Thomas Striepe 

Chief Executive Officer and 

Chief Financial Officer 

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. 

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Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2023	May 12, 2023
Details
Registrant CIK	0001104280
Fiscal Year End	--06-30
Registrant Name	SANGUI BIOTECH INTERNATIONAL INC
SEC Form	10-Q
Period End date	Mar. 31, 2023
Tax Identification Number (TIN)	84-1330732
Number of common stock shares outstanding		209,901,842
Filer Category	Non-accelerated Filer
Current with reporting	Yes
Interactive Data Current	Yes
Shell Company	false
Small Business	true
Emerging Growth Company	false
Document Quarterly Report	true
Entity File Number	0-21271
Entity Incorporation, State or Country Code	CO
Entity Address, Address Line One	Bleichenbrücke 9
Entity Address, Postal Zip Code	20354
Entity Address, City or Town	Hamburg
Entity Address, Country	DE
Country Region	49
City Area Code	40
Local Phone Number	46093120
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Document Transition Report	false

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Consolidated Balance Sheets - USD ($)	Mar. 31, 2023	Jun. 30, 2022
CURRENT ASSETS
Cash	$ 6,984	$ 30,469
Accounts receivable, net	22,619	13,312
Prepaid expenses and other assets	3,674	11,822
Tax refunds receivable	0	1,979
Note receivable, related party	5,431	10,127
Total Current Assets	38,708	67,709
Property and equipment, net	0	358
Operating lease right-of-use asset	50,396	62,721
TOTAL ASSETS	89,104	130,788
LIABILITIES
Accounts payable and accrued expenses	176,347	128,385
Tax payable	57	0
Accrued interest - related party	88,432	72,365
Current portion of note payable	12,234	11,290
Notes payable - related party	733,241	707,696
Current portion of operating lease liability	16,512	15,883
Total Current Liabilities	1,026,823	935,619
Operating lease liability, net of current portion	30,647	41,228
Note payable, net of current portion	41,419	48,898
Total long-term Liabilities	72,066	90,126
Total Liabilities	1,098,889	1,025,745
COMMITMENTS AND CONTINGENCIES	0	0
STOCKHOLDERS' DEFICIT
Preferred stock, no par value; 10,000,000 shares authorized, -0- shares issued and outstanding	0	0
Common stock, no par value; 250,000,000 shares authorized 209,955,598 and 209,955,598 shares issued and 209,901,842 and 209,901,842 shares outstanding respectively	33,124,956	33,124,956
Additional paid-in capital	4,513,328	4,513,328
Treasury stock, at cost	(19,387)	(19,387)
Accumulated other comprehensive income	98,645	96,600
Accumulated deficit	(38,071,873)	(37,954,625)
Total stockholders' deficit	(354,331)	(239,128)
Non-controlling interest	(655,454)	(655,829)
Total Stockholders' Deficit	(1,009,785)	(894,957)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 89,104	$ 130,788

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Consolidated Balance Sheets - Parenthetical - shares	Mar. 31, 2023	Jun. 30, 2022
Consolidated Balance Sheets
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Shares Authorized	250,000,000	250,000,000
Common Stock, Shares, Issued	209,955,598	209,955,598
Common Stock, Shares, Outstanding	209,901,842	209,901,842

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Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
REVENUES
License revenues	$ 18,697	$ 17,954	$ 70,353	$ 58,686
TOTAL REVENUES	18,697	17,954	70,353	58,686
OPERATING EXPENSES
Research and development	808	1,979	4,807	6,478
Professional fees	30,567	32,312	101,124	104,921
General and administrative	10,178	11,921	30,623	38,393
Depreciation and amortization	7	192	351	589
Total Operating Expenses	41,560	46,404	136,905	150,381
OPERATING LOSS	(22,863)	(28,450)	(66,552)	(91,695)
OTHER INCOME (EXPENSE)
Gain (Loss) on foreign exchange	(10,413)	21,790	(34,983)	56,376
Interest expense	(5,192)	(4,562)	(15,338)	(13,981)
Loss on Settlement on accounts payable	0	(4,254)	0	(4,254)
Total other income (loss)	(15,605)	12,974	(50,321)	38,141
NET LOSS BEFORE INCOME TAXES AND NON-CONTROLLING INTEREST	(38,468)	(15,476)	(116,873)	(53,554)
Provision for income taxes	0	0	0	0
NET LOSS BEFORE NON-CONTROLLING INTEREST	(38,468)	(15,476)	(116,873)	(53,554)
Less: Net loss attributable to non-controlling interest	277	614	(375)	1,698
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	(38,191)	(14,862)	(117,248)	(51,856)
OTHER COMPREHENSIVE LOSS
Foreign currency translation adjustments	(1,207)	1,123	2,045	190
COMPREHENSIVE LOSS	$ (39,675)	$ (14,353)	$ (114,828)	$ (53,364)
BASIC AND DILUTED LOSS PER SHARE	$ (0.00)	$ (0.00)	$ (0.00)	$ (0.00)
BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING	209,955,598	203,355,598	209,955,598	208,604,727

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Consolidated Statements of Stockholders' Deficit - USD ($)	Common Stock	Additional Paid-in Capital	Treasury Stock	AOCI Including Portion Attributable to Noncontrolling Interest	Noncontrolling Interest	Retained Earnings	Total
Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Jun. 30, 2021	$ 33,088,176	$ 4,513,328	$ (19,387)	$ 89,670	$ (651,797)	$ (37,895,315)	$ (875,325)
Shares, Outstanding, Beginning Balance at Jun. 30, 2021	206,955,598
Currency translation adjustment	$ 0	0	0	190	0	0	190
Net income (loss)	0	0	0	0	(1,698)	(51,856)	(53,554)
Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Mar. 31, 2022	$ 33,124,956	4,513,328	(19,387)	89,860	(653,495)	(37,947,171)	(891,909)
Shares, Outstanding, Ending Balance at Mar. 31, 2022	209,955,598
Proceeds from common stock issued for cash							28,345
Common stock issued for cash	2,616,556
Common stock issued to settle accounts payable	$ 8,435	0	0	0	0	0	8,435
Common stock issued to settle accounts payable	383,444
Common stock issued for cash	$ 28,345	0	0	0	0	0	28,345
Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Dec. 31, 2021	$ 33,100,043	4,513,328	(19,387)	88,737	(652,881)	(37,932,309)	(902,469)
Shares, Outstanding, Beginning Balance at Dec. 31, 2021	207,955,598
Currency translation adjustment	$ 0	0	0	1,123	0	0	1,123
Net income (loss)	0	0	0	0	(614)	(14,862)	(15,476)
Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Mar. 31, 2022	$ 33,124,956	4,513,328	(19,387)	89,860	(653,495)	(37,947,171)	(891,909)
Shares, Outstanding, Ending Balance at Mar. 31, 2022	209,955,598
Proceeds from common stock issued for cash	$ 16,478	0	0	0	0	0	16,478
Common stock issued for cash	1,616,556
Common stock issued to settle accounts payable	$ 8,435	0	0	0	0	0	8,435
Common stock issued to settle accounts payable	383,444
Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Jun. 30, 2022	$ 33,124,956	4,513,328	(19,387)	96,600	(655,829)	(37,954,625)	(894,957)
Shares, Outstanding, Beginning Balance at Jun. 30, 2022	209,955,598
Currency translation adjustment	$ 0	0	0	2,045	0	0	2,045
Net income (loss)	0	0	0	0	375	(117,248)	(116,873)
Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Mar. 31, 2023	$ 33,124,956	4,513,328	(19,387)	98,645	(655,454)	(38,071,873)	(1,009,785)
Shares, Outstanding, Ending Balance at Mar. 31, 2023	209,955,598
Proceeds from common stock issued for cash							0
Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Dec. 31, 2022	$ 33,124,956	4,513,328	(19,387)	99,852	(655,177)	(38,033,682)	(970,110)
Shares, Outstanding, Beginning Balance at Dec. 31, 2022	209,955,598
Currency translation adjustment	$ 0	0	0	(1,207)	0	0	(1,207)
Net income (loss)	0	0	0	0	(277)	(38,191)	(38,468)
Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Mar. 31, 2023	$ 33,124,956	$ 4,513,328	$ (19,387)	$ 98,645	$ (655,454)	$ (38,071,873)	$ (1,009,785)
Shares, Outstanding, Ending Balance at Mar. 31, 2023	209,955,598

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Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (116,873)	$ (53,554)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and amortization	351	589
Loss on settlement of debt	0	4,182
Foreign currency exchange transactions	28,817	(55,573)
Amortization of right to use asset	13,867	(13,436)
Changes in operating assets and liabilities
Trade accounts receivable	(8,390)	(6,282)
Prepaid expenses and other current assets	8,224	(16,767)
Tax refunds receivable	1,949	1,890
Accounts payable and accrued expenses	40,759	10,016
Related party advances	4,812	(2,097)
Related party accounts payable	17,365	11,872
Operating lease liability	(11,419)	16,041
Net Cash Used in Operating Activities	(20,538)	(103,119)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from related party note payable	0	46,445
Proceeds from common stock issued for cash	0	28,345
Repayment of note payable	(8,276)	68,865
Net Cash Provided by Financing Activities	(8,276)	143,655
EFFECTS OF EXCHANGE RATES ON CASH	5,329	(2,687)
NET CHANGES IN CASH	(23,485)	37,849
CASH AT BEGINNING OF PERIOD	30,469	29,768
CASH AT END OF PERIOD	6,984	67,617
SUPPLEMENTAL CASH FLOW INFORMATION
Interest	2,503	0
NON - CASH INVESTING AND FINANCING ACTIVITIES
Initial Right of use operating lease assets	0	24,110
Initial Right of operating liabilities	0	13,563
Common Stock issued for settle accounts payables	$ 0	$ 8,436

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NOTE 1 - BASIS OF PRESENTATION

9 Months Ended

Mar. 31, 2023

Notes

NOTE 1 - BASIS OF PRESENTATION

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, 2022. 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, 2023, are not necessarily indicative of the results that may be expected for the full fiscal year ending June 30, 2023.

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. Based on current COVID-19 trends, the United States Department of Health and Human Services is planning for the federal Public Health Emergency for COVID-19, declared under Section 319 of the Public Health Service Act, to expire at the end of the day on May 11, 2023. 

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Mar. 31, 2023

Notes

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 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, 2023, and June 30, 2022, and our unaudited consolidated statements of operations for the nine-month periods ended March 31, 2023 and 2022, were calculated as follows:

as of March 31, 2023	0.920570
as of March 31, 2022	0.902405
July 1, 2022 through March 31, 2023	0.968496
July 1, 2021 through March 31, 2022	0.871273

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 $38,071,873 as of March 31, 2023. The Company incurred a net loss before non-controlling interest of $116,873 for the nine-months ended March 31, 2023 and used cash in operating activities of $20,538 during the same nine-months ended March 31, 2023. 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.

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 nine-month period ended March 31, 2023, and 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, 2023, 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).

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.

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NOTE 3 - COMMITMENTS AND CONTINGENCIES

9 Months Ended

Mar. 31, 2023

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.

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 an automobile with a term of 36 months with monthly leasing installments of 338 Euros ($367) and an initial deposit of 9,189 Euros ($9,982) in May 2021. The automobile was delivered in August 2021.

The following table reconciles future minimum operating lease payments to the discounted lease liability as of March 31, 2023:

Minimum Lease Payments Under Operating Leases
		Office	Automotive		Total
Year ending June 30,
2022		-	-		-
2023		3,209	1,103		4,312
2024		12,951	4,412		17,363
2025		13,184	368		13,552
Thereafter		13,422	-		13,422
Total Operating Lease Obligations	$	42,766	5,883	$	48,649
Less: Amount representing imputed interest	$	(1,407)	(83)	$	(1,490)
Present Value of minimum lease payments	$	41,359	5,800	$	47,159

Weighted average discount rate	2%
Weighted average remaining term	3.01	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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NOTE 4 - RELATED PARTY TRANSACTIONS

9 Months Ended

Mar. 31, 2023

Notes

NOTE 4 - RELATED PARTY TRANSACTIONS

NOTE 4 – DEBT

Notes Payable Related Parties

As of March 31, 2023, 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	108,628	5%	42,880	June 30, 2022
December 12, 2017	25,000	27,157	2%	2,879	on demand
January 19, 2018	25,000	27,157	2%	2,823	on demand
March 13, 2018	25,000	27,157	2%	2,744	on demand
July 16, 2018	25,000	27,157	2%	2,558	on demand
September 10, 2018	25,000	27,157	2%	2,475	on demand
October 04, 2018	25,000	27,157	2%	2,439	on demand
December 27, 2018	25,000	27,157	2%	2,314	on demand
January 21, 2019	15,000	16,294	2%	1,366	on demand
February 26, 2019	25,000	27,157	2%	2,223	on demand
March 20, 2019	25,000	27,157	2%	2,190	on demand
April 08, 2019	20,000	21,726	2%	1,730	on demand
May 09, 2019	30,000	32,589	2%	2,539	on demand
June 21, 2019	30,000	32,589	2%	2,462	on demand
September 17, 2019	20,000	21,726	2%	1,537	on demand
October 04, 2019	20,000	21,726	2%	1,517	on demand
October 30, 2019	20,000	21,726	2%	1,486	on demand
January 08, 2020	10,000	10,863	2%	701	on demand
February 20, 2020	10,000	10,863	2%	676	on demand
March 06, 2020	15,000	16,294	2%	1,000	on demand
April 01, 2020	10,000	10,863	2%	651	on demand
May 05, 2020	15,000	16,294	2%	946	on demand
June 10, 2020	10,000	10,863	2%	610	on demand
July 27, 2020	10,000	10,863	2%	582	on demand
September 07, 2020	10,000	10,863	2%	557	on demand
September 21, 2020	10,000	10,863	2%	548	on demand
October 09, 2020	15,000	16,294	2%	806	on demand
December 03, 2020	10,000	10,863	2%	505	on demand
January 05, 2021	10,000	10,863	2%	485	on demand
February 11, 2021	10,000	10,863	2%	463	on demand
March 17, 2021	10,000	10,863	2%	443	on demand
July 29, 2021	10,000	10,863	2%	363	on demand
October 04, 2021	20,000	21,726	2%	646	on demand
December 01, 2021	10,000	10,863	2%	288	on demand
Total	675,000	733,241		88,432

On July 29, 2021, October 04, 2021, and December 01, 2021, a Company Director advanced amounts totaling 40,000 Euros ($43,451 as of March 31, 2023) to the Company. The loans are due on demand, accrue interest annually at 2% and are unsecured.    

As of March 31, 2023, all notes issued have total interest accrued of $88,432.

Interest expense for the nine-month period ended March 31, 2023, and 2022 was $12,789 and $13,980, respectively.

On October 04, 2022, Company Director advanced 13,000 Euros ($12,720) to the Company. The loan was due on demand, accrue interest annually at 2% and was unsecured and repaid in December 2022. As of March 31, 2023,

interest of 31Euros ($31) has been accrued.    

Notes payable

On March 25, 2022, the Company entered into a note for 60,000 Euros ($65,177) 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. The remaining debt as of March 31, 2023, is 49,392 Euros ($53,654). Interest expense for the nine-month period ended March 31, 2023 was $2,503.

On July 01, 2021, the Company received a loan of 1,733 Euros ($1,883) from a third party. The interest rate is 1.0% p.a. The capital and accrued interest are to be repaid on June 30, 2023. The loan is unsecured.

As of March 31, 2023, interest of 26 Euros ($28) has been accrued. Interest expense for the nine-month period ended March 31, 2023, and 2022 was $9 and $0, respectively.

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NOTE 5 - STOCKHOLDERS' DEFICIT

9 Months Ended

Mar. 31, 2023

Notes

NOTE 5 - STOCKHOLDERS' DEFICIT

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, 2023, and June 30, 2022, the Company had 209,955,598 and 209,955,598 shares of common stock issued and 209,901,842 and 209,901,842 shares outstanding, respectively.

Treasury Stock - The Company holds 53,756 of its common stock as treasury stock, which is recorded at $19,387 as of March 31, 2023.

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NOTE 6 - SUBSEQUENT EVENTS

9 Months Ended

Mar. 31, 2023

Notes

NOTE 6 - SUBSEQUENT EVENTS

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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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Principles of Consolidation (Policies)

9 Months Ended

Mar. 31, 2023

Policies

Principles of Consolidation

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.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Use of Estimates (Policies)

9 Months Ended

Mar. 31, 2023

Policies

Use of Estimates

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 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.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Foreign Currency Translation (Policies)

9 Months Ended

Mar. 31, 2023

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 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, 2023, and June 30, 2022, and our unaudited consolidated statements of operations for the nine-month periods ended March 31, 2023 and 2022, were calculated as follows:

as of March 31, 2023	0.920570
as of March 31, 2022	0.902405
July 1, 2022 through March 31, 2023	0.968496
July 1, 2021 through March 31, 2022	0.871273

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

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Going Concern (Policies)

9 Months Ended

Mar. 31, 2023

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 $38,071,873 as of March 31, 2023. The Company incurred a net loss before non-controlling interest of $116,873 for the nine-months ended March 31, 2023 and used cash in operating activities of $20,538 during the same nine-months ended March 31, 2023. 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.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Cash and Cash Equivalents (Policies)

9 Months Ended

Mar. 31, 2023

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.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Research and Development (Policies)

9 Months Ended

Mar. 31, 2023

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.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Policies)

9 Months Ended

Mar. 31, 2023

Policies

Revenue Recognition

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.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Trade Accounts Receivable (Policies)

9 Months Ended

Mar. 31, 2023

Policies

Trade Accounts Receivable

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 nine-month period ended March 31, 2023, and 2022, the Company recognized bad debt expense in the amounts of $0 and $0, respectively.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basic and Diluted Loss per Common Share (Policies)

9 Months Ended

Mar. 31, 2023

Policies

Basic and Diluted Loss per Common Share

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, 2023, the Company had no potentially dilutive securities that would affect the loss per share if they were to be dilutive.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Comprehensive Loss (Policies)

9 Months Ended

Mar. 31, 2023

Policies

Comprehensive Loss

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).

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Segments of an Enterprise and Related Information (Policies)

9 Months Ended

Mar. 31, 2023

Policies

Segments of an Enterprise and Related Information

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.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Foreign Currency Translation: Schedule of Foreign currency rates (Tables)

9 Months Ended

Mar. 31, 2023

Tables/Schedules

Schedule of Foreign currency rates

as of March 31, 2023	0.920570
as of March 31, 2022	0.902405
July 1, 2022 through March 31, 2023	0.968496
July 1, 2021 through March 31, 2022	0.871273

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NOTE 3 - COMMITMENTS AND CONTINGENCIES: Minimum Lease Payments Under Operating Leases (Tables)

9 Months Ended

Mar. 31, 2023

Tables/Schedules

Minimum Lease Payments Under Operating Leases

Minimum Lease Payments Under Operating Leases
		Office	Automotive		Total
Year ending June 30,
2022		-	-		-
2023		3,209	1,103		4,312
2024		12,951	4,412		17,363
2025		13,184	368		13,552
Thereafter		13,422	-		13,422
Total Operating Lease Obligations	$	42,766	5,883	$	48,649
Less: Amount representing imputed interest	$	(1,407)	(83)	$	(1,490)
Present Value of minimum lease payments	$	41,359	5,800	$	47,159

Weighted average discount rate	2%
Weighted average remaining term	3.01	years

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NOTE 4 - RELATED PARTY TRANSACTIONS: Notes Payable Related Parties (Tables)

9 Months Ended

Mar. 31, 2023

Tables/Schedules

Notes Payable Related Parties

Date	Loan amount in EURO	Loan amount converted into USD	Interest rate	Interest  in USD	Due
March 06, 2015	100,000	108,628	5%	42,880	June 30, 2022
December 12, 2017	25,000	27,157	2%	2,879	on demand
January 19, 2018	25,000	27,157	2%	2,823	on demand
March 13, 2018	25,000	27,157	2%	2,744	on demand
July 16, 2018	25,000	27,157	2%	2,558	on demand
September 10, 2018	25,000	27,157	2%	2,475	on demand
October 04, 2018	25,000	27,157	2%	2,439	on demand
December 27, 2018	25,000	27,157	2%	2,314	on demand
January 21, 2019	15,000	16,294	2%	1,366	on demand
February 26, 2019	25,000	27,157	2%	2,223	on demand
March 20, 2019	25,000	27,157	2%	2,190	on demand
April 08, 2019	20,000	21,726	2%	1,730	on demand
May 09, 2019	30,000	32,589	2%	2,539	on demand
June 21, 2019	30,000	32,589	2%	2,462	on demand
September 17, 2019	20,000	21,726	2%	1,537	on demand
October 04, 2019	20,000	21,726	2%	1,517	on demand
October 30, 2019	20,000	21,726	2%	1,486	on demand
January 08, 2020	10,000	10,863	2%	701	on demand
February 20, 2020	10,000	10,863	2%	676	on demand
March 06, 2020	15,000	16,294	2%	1,000	on demand
April 01, 2020	10,000	10,863	2%	651	on demand
May 05, 2020	15,000	16,294	2%	946	on demand
June 10, 2020	10,000	10,863	2%	610	on demand
July 27, 2020	10,000	10,863	2%	582	on demand
September 07, 2020	10,000	10,863	2%	557	on demand
September 21, 2020	10,000	10,863	2%	548	on demand
October 09, 2020	15,000	16,294	2%	806	on demand
December 03, 2020	10,000	10,863	2%	505	on demand
January 05, 2021	10,000	10,863	2%	485	on demand
February 11, 2021	10,000	10,863	2%	463	on demand
March 17, 2021	10,000	10,863	2%	443	on demand
July 29, 2021	10,000	10,863	2%	363	on demand
October 04, 2021	20,000	21,726	2%	646	on demand
December 01, 2021	10,000	10,863	2%	288	on demand
Total	675,000	733,241		88,432

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Mar. 31, 2023
Sangui BioTech GmbH
Equity Method Investment, Ownership Percentage	90.00%

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Foreign Currency Translation: Schedule of Foreign currency rates (Details)	9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Year End Rates
Foreign Currency Exchange Rate, Translation	0.920570	0.902405
Average Period Rates
ForeignCurrencyExchangeRateTranslation	0.968496	0.871273

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Going Concern (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022
Details
Accumulated deficit	$ 38,071,873		$ 38,071,873		$ 37,954,625
NET LOSS BEFORE NON-CONTROLLING INTEREST	$ (38,468)	$ (15,476)	(116,873)	$ (53,554)
Net Cash Used in Operating Activities			$ 20,538	$ 103,119

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Trade Accounts Receivable (Details) - USD ($)	9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Details
Accounts Receivable, Allowance for Credit Loss, Writeoff	$ 0	$ 0

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NOTE 3 - COMMITMENTS AND CONTINGENCIES (Details)	9 Months Ended
	Mar. 31, 2023
Office
Lessee, Operating Lease, Description	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.
Automobile
Lessee, Operating Lease, Description	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.
Automobile 2
Lessee, Operating Lease, Description	The company has signed a leasing contract for an automobile with a term of 36 months with monthly leasing installments of 338 Euros ($367) and an initial deposit of 9,189 Euros ($9,982) in May 2021. The automobile was delivered in August 2021.

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NOTE 3 - COMMITMENTS AND CONTINGENCIES: Minimum Lease Payments Under Operating Leases (Details)	9 Months Ended
	Mar. 31, 2023 USD ($)
2023	$ 4,312
2024	17,363
2025	13,552
Thereafter	13,422
Total Operating Lease Obligations	48,649
Less: Amount representing imputed interest	(1,490)
Present Value of minimum lease payments	47,159
Office
2023	3,209
2024	12,951
2025	13,184
Thereafter	13,422
Total Operating Lease Obligations	42,766
Less: Amount representing imputed interest	(1,407)
Present Value of minimum lease payments	$ 41,359
Weighted average discount rate	2.00%
Weighted average remaining terms	3 years 3 days
Automobile
2023	$ 1,103
2024	4,412
2025	368
Thereafter	0
Total Operating Lease Obligations	5,883
Less: Amount representing imputed interest	(83)
Present Value of minimum lease payments	$ 5,800

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NOTE 4 - RELATED PARTY TRANSACTIONS: Notes Payable Related Parties (Details) - USD ($)	Mar. 31, 2023	Dec. 01, 2021	Oct. 04, 2021	Jul. 29, 2021	Mar. 17, 2021	Feb. 11, 2021	Jan. 05, 2021	Dec. 03, 2020	Oct. 09, 2020	Sep. 21, 2020	Sep. 07, 2020	Jul. 27, 2020	Jun. 10, 2020	May 05, 2020	Apr. 01, 2020	Mar. 06, 2020	Feb. 20, 2020	Jan. 08, 2020	Oct. 30, 2019	Oct. 04, 2019	Sep. 17, 2019	Jun. 21, 2019	May 09, 2019	Apr. 08, 2019	Mar. 20, 2019	Feb. 26, 2019	Jan. 21, 2019	Dec. 27, 2018	Oct. 04, 2018	Sep. 10, 2018	Jul. 16, 2018	Mar. 13, 2018	Jan. 19, 2018	Dec. 12, 2017	Mar. 06, 2015
Interest rate		2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	5.00%
Due		on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	on demand	June 30, 2022
Director | Euro Member Countries, Euro
Loan amount in EURO	$ 675,000	$ 10,000	$ 20,000	$ 10,000	$ 10,000	$ 10,000	$ 10,000	$ 10,000	$ 15,000	$ 10,000	$ 10,000	$ 10,000	$ 10,000	$ 15,000	$ 10,000	$ 15,000	$ 10,000	$ 10,000	$ 20,000	$ 20,000	$ 20,000	$ 30,000	$ 30,000	$ 20,000	$ 25,000	$ 25,000	$ 15,000	$ 25,000	$ 25,000	$ 25,000	$ 25,000	$ 25,000	$ 25,000	$ 25,000	$ 100,000
Director | United States dollar (next day) (funds code)
Loan amount converted into USD	733,241	10,863	21,726	10,863	10,863	10,863	10,863	10,863	16,294	10,863	10,863	10,863	10,863	16,294	10,863	16,294	10,863	10,863	21,726	21,726	21,726	32,589	32,589	21,726	27,157	27,157	16,294	27,157	27,157	27,157	27,157	27,157	27,157	27,157	108,628
Interest in USD	$ 88,432	$ 288	$ 646	$ 363	$ 443	$ 463	$ 485	$ 505	$ 806	$ 548	$ 557	$ 582	$ 610	$ 946	$ 651	$ 1,000	$ 676	$ 701	$ 1,486	$ 1,517	$ 1,537	$ 2,462	$ 2,539	$ 1,730	$ 2,190	$ 2,223	$ 1,366	$ 2,314	$ 2,439	$ 2,475	$ 2,558	$ 2,744	$ 2,823	$ 2,879	$ 42,880

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NOTE 4 - RELATED PARTY TRANSACTIONS (Details) - USD ($)		3 Months Ended		9 Months Ended
	Jul. 01, 2021	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Interest Expense, Debt		$ 5,192	$ 4,562	$ 15,338	$ 13,981
Notes Payable		53,654		53,654
Proceeds from Collection of (Payments to Fund) Long-Term Loans to Related Parties	$ 1,883
Interest
Due to Related Parties, Current		88,432		88,432
Director | Principal
Due to Related Parties, Current		43,451		43,451
Loans Payable
Interest Expense, Debt				12,789	13,980
Director 2
Interest Expense, Debt				31
Director 2 | Principal
Due to Related Parties, Current		$ 12,720		12,720
Notes Payable
Interest Expense, Debt				2,503
Notes Payable2
Interest Expense, Debt				$ 9	$ 0

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NOTE 5 - STOCKHOLDERS' DEFICIT (Details) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
Details
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Common Stock, Shares Authorized	250,000,000	250,000,000
Common Stock, Shares, Issued	209,955,598	209,955,598
Common Stock, Shares, Outstanding	209,901,842	209,901,842
Treasury Stock, Common, Shares	53,756
Treasury Stock, Value	$ 19,387