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
GENERAL
Our mission is the development of novel and proprietary pharmaceutical, medical
and cosmetic products. We develop our products through our German subsidiary,
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
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
According to regulatory requirements, all drugs must complete preclinical and
clinical trials before approval (e.g.
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 temporarily in order to focus our attention on our chronic wound research and the products developed in conjunction with their treatment.
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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 have remained at a low level 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.
Hemospray Wound Spray
In
Since
On
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 along with more international markets entering actual distribution of the product.
In
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CE mark certification authorizing the distribution of one of SGBI's products in
the member states of the
On or about
Pursuant to the contracts dated
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
FINANCIAL POSITION
During the six months ended
We funded our operations primarily through our existing cash reserves and cash
received from the issuance of shares of common stock and notes payables from
related parties. Our stockholders' equity (deficit) increased by
RESULTS OF OPERATIONS
For the three-month and six-month period
REVENUES - Revenues reported were
RESEARCH AND DEVELOPMENT - Research and development expenses decreased by
GENERAL AND ADMINISTRATIVE and PROFESSIONAL FEES -The combined accumulated
general and administrative expenses and professional fees decreased
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2019, from
INTEREST EXPENSE - interest expenses for the three-month period ended
NET LOSS - As a result of the above factors, the net loss attributed to common
shareholders decreased to
Our consolidated net loss before non-controlling interest was
LIQUIDITY AND CAPITAL RESOURCES
For the six months ended
The Company funded its business in the first six months ended
We had a working capital deficit of approximately
At
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