Foreign Currency Translation

The functional currency of the Company’s Sangui GmbH and Sangui KG subsidiaries is the local currency, the Euro. Accordingly, assets and liabilities of the subsidiary are translated into U.S. dollars at period-end exchange rates. All equity account balances have been translated at the historical rates. Revenues and expenses are translated at the average exchange rates in effect for the period. The resulting translation gains or losses are recorded as a component of accumulated other comprehensive income in the consolidated statement of stockholders’ equity. For the years ended June 30, 2022 and 2021, the Company recognized a gain on translation adjustment in the amount of $6,930 and a loss of $2,237, respectively. Gains of $99,722 respectively, losses of $34,585 resulted from foreign currency transactions as of June 30, 2022 and 2021.

The exchange rates used to calculate values and results of operations for the years ended June 30, 2022 and 2021, were as follows:

Pursuant to ASC 830-20-35, Foreign Currency Matters, the Company accounts for the translation of transactions denominated in foreign currencies in the Parent Company’s books as transaction gains (losses) recognized in General & Administrative expenses.