Annual ReportITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.Our Business OverviewPolar Petroleum ("Polar") was incorporated in the State of Nevada on March 22, 2011 as Post Data, Inc. We were previously a development stage company formed for purposes of decommissioning electronic data storage devices for permanent inoperability and unrecoverability of electronic data contained therein. On July 30, 2012, our management changed and we entered into the oil and gas business to engage in the exploration, development and production of oil and gas properties primarily in the State of Alaska. The Company has selected March 31 as it fiscal year end.Results of Operations for the fiscal years ended March 31, 2013 and March 31, 2012RevenuesThe Company has not generated any revenues for the fiscal years ended March 31, 2013 and 2012.Operating ExpensesThe Company expenses for fiscal years ended March 31, 2013 and 2012 were $374,807 and $52,421, respectively. Operating expenses increased in 2013 due to directors' salaries, consulting expenses, and increased operational activities with the purchase of the Alaska Oil and Gas Property Leases as well as the issuance of stock for services. We anticipate incurring further increased expenses once we begin exploration activities and will require additional funding to support our working capital needs.Net loss for the year ended March 31, 2013 and 2012 was $375,442 and $52,437, respectively.Financial ConditionTotal assets. Total assets at March 31, 2013 and 2012 were $1,352,393 and $0, respectively. Total assets consist of cash, prepaid expenses and deposits, equipment, website, and oil and gas properties.Total liabilities. Total liabilities at March 31, 2013 and 2012 were $1,064,822 and $3,487, respectively. Total liabilities at March 31, 2013 consist of account payables and accrued expenses of $28,895, shareholder loans of $60,927, current portion of note payable of $475,000 and long term portion of note payable of $500,000 due under the Oil and Gas Lease Purchase Agreement.Liquidity and Capital ResourcesThe accompanying financial statements have been prepared assuming that the Company will continue as a going concern which contemplates, among other things, the realization of assets and satisfaction of liabilities in the ordinary course of business.The Company has a net loss from operations for the fiscal year ended March 31, 2013. Because of the absence of positive cash flows from operations, the Company will require additional funding for continuing the development and marketing of products. These factors raise substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.We are not presently able to meet our obligations as they come due. At March 31, 2013 we had working capital deficit of $552,318 or the amount by which our current liabilities exceed our current assets. Our working capital deficit was due to the results of purchases of oil and gas properties.Net cash used in operating activities for the fiscal year ended March 31, 2013 was $191,004. Net cash used in investing activities for the year ended March 31, 2013 was $365,555. Net cash provided by financing activities for the year ended March 31, 2013 was $550,552, generated primarily from proceeds of sales of our common stock.
