**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-Q**

| **x** | **Quarterly                Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act                of 1934** |
|-------|--------------------------------------------------------------------------------------------------------------------------------|

**For      the quarterly period ended March 31, 2008.**

**or**

| **o** | **Transition                Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act                of 1934** |
|-------|---------------------------------------------------------------------------------------------------------------------------------|

**For      the transition period from**
**            **
**to**
**            **
**.**

**Commission      File Number: 001-33541**

**Polaris      Acquisition Corp.**

**(Exact      Name of Registrant as Specified in its Charter)**

| **Delaware**                                                                                        |   | **26-0443717**                                        |
|-----------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|
| **(State or Other Jurisdiction of****Incorporation or Organization)** |   | **(I.R.S. Employer****Identification No.)** |

**2200 Fletcher Avenue 4**
**th**

** Floor**

**Fort Lee,      New Jersey 07024**

**(Address      of Principal Executive Offices including Zip Code)**

**(201)      242-3500**

**(Registrant's      Telephone Number, Including Area Code)**

| Large                Accelerated Filer   o | Accelerated Filer   o   |
|-----------------------------------------------------------|--------------------------------------------------|
| Non-Accelerated                Filer   x   | Smaller Reporting Company   o          |
| (Do not check if Smaller Reporting              Company)  |                                             |

----

|                                                                                                             | Page   |
|------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                             |   |
| Part                I: Financial Information:                                                                    |   |
|                                                                                                             |   |
| Item                1 –Financial Statements:                                                               |   |
|                                                                                                             |   |
| Condensed                Balance Sheets                                                                          | 3      |
|                                                                                                             |   |
| Condensed                Statements of Operations                                                                | 4      |
|                                                                                                             |   |
| Condensed                Statement of Stockholders’ Equity                                                 | 5      |
|                                                                                                             |   |
| Condensed                Statements of Cash Flows                                                                | 6      |
|                                                                                                             |   |
| Notes                to Unaudited Condensed Financial Statements                                                 | 7      |
|                                                                                                             |   |
| Item                2 – Management’s Discussion and Analysis or Results of                Operations | 12     |
|                                                                                                             |   |
| Item                3 – Quantitative and Qualitative Disclosures about Market                Risk          | 13     |
|                                                                                                             |   |
| Item                4 – Controls and Procedures                                                            | 14     |
|                                                                                                             |   |
| Part                II. Other Information                                                                        |   |
|                                                                                                             |   |
| Item                2 – Unregistered Sales of Equity Securities and Use of                Proceeds         | 14     |
|                                                                                                             |   |
| Item                6 – Exhibits                                                                           | 15     |
|                                                                                                             |   |
| Signatures                                                                                                       | 16     |

----

**Polaris      Acquisition Corp.**

**(a          corporation in the development stage)**

**BALANCE          SHEETS**

|                                                                                                                                                                                                                                              |   | **March                    31,** |                     |                                |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------------------------|-------------------------------------|--------|
|                                                                                                                                                                                                                                              |   | **2008**                         |                     | **December                    31,** |   |
|                                                                                                                                                                                                                                              |   | **(unaudited)**                  |                     | **2007**                            |   |
| **ASSETS**                                                                                                                                                                                                                                        |   |                             |                     |                                |   |   |   |
|                                                                                                                                                                                                                                              |   |                             |                     |                                |   |   |   |
| Current                    Assets:                                                                                                                                                                                                                |   |                             |                     |                                |   |   |   |
|                                                                                                                                                                                                                                              |   |                             |                     |                                |   |   |   |
| Cash                                                                                                                                                                                                                                              |   | $                                | 130,805                  |                                | $      | 12,801 |   |
| Investments                    Held in Trust                                                                                                                                                                                                      |   |                             | 150,660,136              |                                |   | - |   |
| Prepaid                    Expenses                                                                                                                                                                                                               |   |                             | 130,473                  |                                |   | - |   |
|                                                                                                                                                                                                                                              |   |                             |                     |                                |   |   |   |
| Total                    Current Assets                                                                                                                                                                                                           |   |                             | 150,921,414              |                                |   | 12,801 |   |
|                                                                                                                                                                                                                                              |   |                             |                     |                                |   |   |   |
| Deferred                    Tax Asset                                                                                                                                                                                                             |   |                             | 33,076                   |                                |   | - |   |
| Deferred                    Offering Costs                                                                                                                                                                                                        |   |                             | -                        |                                |   | 175,802 |   |
|                                                                                                                                                                                                                                              |   |                             |                     |                                |   |   |   |
| **Total                    Assets**                                                                                                                                                                                                               |   | **$**                            | **150,954,490**          |                                | **$**  | **188,603** |   |
|                                                                                                                                                                                                                                              |   |                             |                     |                                |   |   |   |
| **LIABILITIES                    AND STOCKHOLDERS' EQUITY**                                                                                                                                                                                       |   |                             |                     |                                |   |   |   |
|                                                                                                                                                                                                                                              |   |                             |                     |                                |   |   |   |
| **Current                    Liabilities:**                                                                                                                                                                                                       |   |                             |                     |                                |   |   |   |
|                                                                                                                                                                                                                                              |   |                             |                     |                                |   |   |   |
| Accrued                    Operating Expenses                                                                                                                                                                                                     |   | $                                | 131,358                  |                                | $      | - |   |
| Income                    Taxes Payable                                                                                                                                                                                                           |   |                             | 292,693                  |                                |   | - |   |
| Accrued                    Offering Costs                                                                                                                                                                                                         |   |                             | -                        |                                |   | 51,365 |   |
| Due                    to Affiliate                                                                                                                                                                                                               |   |                             | -                        |                                |   | 12,911 |   |
| Note                    Payable to Affiliate                                                                                                                                                                                                      |   |                             | -                        |                                |   | 100,000 |   |
| Deferred                    Underwriting Fee                                                                                                                                                                                                      |   |                             | 6,750,000                |                                |   | - |   |
|                                                                                                                                                                                                                                              |   |                             |                     |                                |   |   |   |
| **Total                    Liabilities**                                                                                                                                                                                                          |   |                             | 7,174,051                |                                |   | 164,276 |   |
|                                                                                                                                                                                                                                              |   |                             |                     |                                |   |   |   |
| **Common                    Stock, subject to possible conversion of 4,499,999 shares at                    conversion                    value**                                                                                                 |   |                             | 44,999,990               |                                |   | - |   |
|                                                                                                                                                                                                                                              |   |                             |                     |                                |   |   |   |
| Commitments                    (Note 5)                                                                                                                                                                                                           |   |                             |                     |                                |   |   |   |
|                                                                                                                                                                                                                                              |   |                             |                     |                                |   |   |   |
| **Stockholders'                    Equity**                                                                                                                                                                                                       |   |                             |                     |                                |   |   |   |
|                                                                                                                                                                                                                                              |   |                             |                     |                                |   |   |   |
| Preferred                    stock, $.0001 par value Authorized 1,000,000 shares; none issued                    and                    outstanding                                                                                               |   |                             | -                        |                                |   | - |   |
| Common                    stock, $.0001 par value Authorized 55,000,000 shares Issued and                    outstanding 19,312,500 shares (which includes 4,499,999 shares                    subject to                    possible conversion) |   |                             | 1,931                    |                                |   | 518 |   |
|                                                                                                                                                                                                                                              |   |                             |                     |                                |   |   |   |
| Additional                    Paid in Capital                                                                                                                                                                                                     |   |                             | 98,403,770               |                                |   | 24,482 |   |
|                                                                                                                                                                                                                                              |   |                             |                     |                                |   |   |   |
| Income/(Deficit)                    Accumulated During the Development Stage                                                                                                                                                                      |   |                             | 374,748                  |                                |   | (673 | ) |
|                                                                                                                                                                                                                                              |   |                             |                     |                                |   |   |   |
| **Total                    Stockholders' Equity**                                                                                                                                                                                                 |   |                             | 98,780,449               |                                |   | 24,327 |   |
|                                                                                                                                                                                                                                              |   |                             |      |                                |   |       |   |
| **Total                    Liabilities and Stockholders' Equity**                                                                                                                                                                                 |   | **$**                            | **150,954,490**          |                                | **$**  | **188,603** |   |

----

**Polaris          Acquisition Corp.**

**(          a corporation in the development stage )**

**STATEMENTS          OF OPERATIONS**

**(Unaudited)**

|                                                                      |   |                              |       | **Period From**         |   |
|---------------------------------------------------------------------------|--------|-----------------------------------|------------|------------------------------|--------|
|                                                                      |   | **For The Three ** |       | **June 18, 2007**  |   |
|                                                                      |   | **Months Ended**             |       | **(inception) to**      |   |
|                                                                      |   | **March 31, 2008**      |       | **March 31, 2008** |   |
|                                                                      |   |                              |       |                         |   |
| Formation                    Costs                                        |   | $                                 | -          |                         | $      | 1,062 |   |
| Trustee                    Fees                                           |   |                              | 3,494      |                         |   | 3,494 |   |
| Administrative                    Fees                                    |   |                              | 22,500     |                         |   | 22,500 |   |
| Professional                    Fees                                      |   |                              | 24,515     |                         |   | 24,515 |   |
| Operating                    Costs                                        |   |                              | 46,435     |                         |   | 46,435 |   |
| Delaware                    Franchise Taxes                               |   |                              | 28,055     |                         |   | 28,055 |   |
|                                                                      |   |                              |       |                         |   |   |   |
|                      Operating Loss                                  |   |                              | (124,999   | )                            |   | (126,061 | ) |
|                                                                      |   |                              |       |                         |   |   |   |
| Interest                    Income                                        |   |                              | 760,886    |                         |   | 761,275 |   |
|                                                                      |   |                              |       |                         |   |   |   |
| Income                    Before Provision For Income Taxes               |   |                              | 635,887    |                         |   | 635,214 |   |
|                                                                      |   |                              |       |                         |   |   |   |
| Provision                    For Income Taxes                             |   |                              | 260,466    |                         |   | 260,466 |   |
|                                                                      |   |                              |       |                         |   |   |   |
| Net                    Income                                             |   | $                                 | 375,421    |                         | $      | 374,748 |   |
|                                                                      |   |                              |       |                         |   |   |   |
| Weighted                    average shares outstanding, basic and diluted |   |                              | 16,769,918 |                         |   | 8,838,672 |   |
|                                                                      |   |                              |       |                         |   |   |   |
| Basic                    and diluted net income per share                 |   | $                                 | 0.02       |                         | $      | 0.04 |   |

----

**Polaris          Acquisition Corp.**

**(          a corporation in the development stage )**

**STATEMENT          OF STOCKHOLDERS' EQUITY**

**For          the Period from June 18, 2007 (Inception) to March 31,          2008**

|                                                                                                                                                                                                                                                                                                          |   |                    |                                                     |                      |   |                                         |   | Income/(Deficit)       |                                                           |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|----------------------------------------------------------|---------------------------|--------|----------------------------------------------|--------|------------------------|----------------------------------------------------------------|--------|--------|
|                                                                                                                                                                                                                                                                                                          |   |                    |                                                     | Additional           |   | Accumulated                                  |   | Total                  |                                                           |
|                                                                                                                                                                                                                                                                                                          |   |  Common Stock |                                                     | Paid - In  |   | During the                              |   | Stockholders'          |                                                           |
|                                                                                                                                                                                                                                                                                                          |   | Shares                  |                                                     | Amount                    |   | Capital                                 |   | Development Stage |                                                           | Equity |   |
|                                                                                                                                                                                                                                                                                                          |   |                    |                                                     |                      |   |                                         |   |                   |                                                           |   |   |
| Issuance                    of Units to Founders on June 18, 2007 at approximately $0.005                    per                    share                                                                                                                                                                     |   |                    | 5,175,000                                                |                      | $      | 518                                          |   | $                      | 24,482                                                         |   |   |   |   | $ | 25,000 |   |
|                                                                                                                                                                                                                                                                                                          |   |                    |                                                     |                      |   |                                         |   |                   |                                                           |   |   |   |   |   |   |   |
| Net                    Loss                                                                                                                                                                                                                                                                                   |   |                    |                                      |                      |   |                          |   |                   |                                            |   |   | (673 | ) |   | (673 | ) |
|                                                                                                                                                                                                                                                                                                          |   |                    |                                                     |                      |   |                                         |   |                   |                                                           |   |   |   |   |   |   |   |
| Balance                    at December 31, 2007                                                                                                                                                                                                                                                               |   |                    | 5,175,000                                                |                      |   | 518                                          |   |                   | 24,482                                                         |   |   | (673 | ) |   | 24,327 |   |
|                                                                                                                                                                                                                                                                                                          |   |                    |                                                     |                      |   |                                         |   |                   |                                                           |   |   |   |   |   |   |   |
| Contribution                    of shares to capital on January 11, 2008                                                                                                                                                                                                                                      |   |                    | (862,500                                                 | )                         |   | (87                                          | )      |                   | 87                                                             |   |   |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                          |   |                    |                                                     |                      |   |                                         |   |                   |                                                           |   |   |   |   |   |   |   |
| Sale                    of 4,500,000 Private Placement Warrants at $1 per warrant                                                                                                                                                                                                                             |   |                    |                                                     |                      |   |                                         |   |                   | 4,500,000                                                      |   |   |   |   |   | 4,500,000 |   |
|                                                                                                                                                                                                                                                                                                          |   |                    |                                                     |                      |   |                                         |   |                   |                                                           |   |   |   |   |   |   |   |
| Sale                    of 15,000,000 units on January 17, 2008 at $10 per unit through                    public                    offering (net of underwriter's                    discount and offering expenses) including                    4,499,999 shares subject to possible conversion |   |                    | 15,000,000                                               |                      |   | 1,500                                        |   |                   | 138,879,191                                                    |   |   |   |   |   | 138,880,691 |   |
|                                                                                                                                                                                                                                                                                                          |   |                    |                                                     |                      |   |                                         |   |                   |                                                           |   |   |   |   |   |   |   |
| Proceeds                    subject to possible conversion                                                                                                                                                                                                                                                    |   |                    |                                                     |                      |   |                                         |   |                   | (44,999,990                                                    | )      |   |   |   |   | (44,999,990 | ) |
|                                                                                                                                                                                                                                                                                                          |   |                    |                                                     |                      |   |                                         |   |                   |                                                           |   |   |   |   |   |   |   |
| Unaudited:                                                                                                                                                                                                                                                                                                    |   |                    |                                                     |                      |   |                                         |   |                   |                                                           |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                          |   |                    |                                                     |                      |   |                                         |   |                   |                                                           |   |   |   |   |   |   |   |
| Net                    Income                                                                                                                                                                                                                                                                                 |   |                    |                            |                      |   |                          |   |                   |                             |   |   | 375,421 |   |   | 375,421 |   |
|                                                                                                                                                                                                                                                                                                          |   |                    |                                                     |                      |   |                                         |   |                   |                                                           |   |   |   |   |   |   |   |
| Balance                    at March 31, 2008                                                                                                                                                                                                                                                                  |   |                    | 19,312,500                                               |                      | $      | 1,931                                        |   | $                      | 98,403,770                                                     |   | $      | 374,748 |   | $ | 98,780,449 |   |

----

**Polaris          Acquisition Corp.**

**(          a corporation in the development stage )**

**STATEMENTS          OF CASH FLOWS**

**(Unaudited)**

|                                                                                                                                                                         |   |                              |         | **Period From**         |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------------|------------------------------|--------|
|                                                                                                                                                                         |   | **For The Three ** |         | **June 18, 2007**  |   |
|                                                                                                                                                                         |   | **Months Ended**             |         | **(inception) to**      |   |
|                                                                                                                                                                         |   | **March 31, 2008**      |         | **March 31, 2008** |   |
| **Cash Flows                    from Operating Activities**                                                                                                             |   |                              |         |                         |   |   |   |
|                                                                                                                                                                         |   |                              |         |                         |   |   |   |
| Net                    Income                                                                                                                                                |   | $                                 | 375,421      |                         | $      | 374,748 |   |
| Adjustments                    to reconcile net income to net cash used in operating activities                    Increase                    in accrued operating expenses |   |                              | 131,358      |                         |   | 131,358 |   |
| Increase                    in income taxes payables                                                                                                                         |   |                              | 292,693      |                         |   | 292,693 |   |
| Increase                    in prepaid expenses                                                                                                                              |   |                              | (130,473     | )                            |   | (130,473 | ) |
| Interest                    earned on trust                                                                                                                                  |   |                              | (760,136     | )                            |   | (760,136 | ) |
| Increase                    in deferred tax asset                                                                                                                            |   |                              | (33,076      | )                            |   | (33,076 | ) |
|                                                                                                                                                                         |   |                              |         |                         |   |   |   |
| Net                    Cash Used in Operating Activities                                                                                                                     |   |                              | (124,213     | )                            |   | (124,886 | ) |
|                                                                                                                                                                         |   |                              |         |                         |   |   |   |
|                                                                                                                                                                         |   |                              |         |                         |   |   |   |
| **Cash                    Flows from Investing Activities**                                                                                                                  |   |                              |         |                         |   |   |   |
|                                                                                                                                                                         |   |                              |         |                         |   |   |   |
| Investments                    placed in trust                                                                                                                               |   |                              | (150,000,000 | )                            |   | (150,000,000 | ) |
| Disbursements                    from trust                                                                                                                                  |   |                              | 100,000      |                         |   | 100,000 |   |
|                                                                                                                                                                         |   |                              |         |                         |   |   |   |
| Net                    Cash Used in Investing Activities                                                                                                                     |   |                              | (149,900,000 | )                            |   | (149,900,000 | ) |
|                                                                                                                                                                         |   |                              |         |                         |   |   |   |
|                                                                                                                                                                         |   |                              |         |                         |   |   |   |
| **Cash                    Flows from Financing Activities**                                                                                                                  |   |                              |         |                         |   |   |   |
|                                                                                                                                                                         |   |                              |         |                         |   |   |   |
| Proceeds                    from sale of units to public                                                                                                                     |   |                              | 150,000,000  |                         |   | 150,000,000 |   |
| Proceeds                    from private placement of warrants                                                                                                               |   |                              | 4,500,000    |                         |   | 4,500,000 |   |
| Proceeds                    from sale of units to Founders                                                                                                                   |   |                              | -            |                         |   | 25,000 |   |
| Proceeds                    from notes payable to affiliates of Founders                                                                                                     |   |                              | -            |                         |   | 100,000 |   |
| Payment                    of notes payable Founders                                                                                                                         |   |                              | (100,000     | )                            |   | (100,000 | ) |
| Proceeds                    from due to affiliates                                                                                                                           |   |                              | -            |                         |   | 12,911 |   |
| Payment                    of due to affiliates                                                                                                                              |   |                              | (12,911      | )                            |   | (12,911 | ) |
| Payment                    of offering costs                                                                                                                                 |   |                              | (4,244,872   | )                            |   | (4,369,309 | ) |
|                                                                                                                                                                         |   |                              |         |                         |   |   |   |
| **Net                    Cash Provided by Financing Activities**                                                                                                             |   |                              | 150,142,217  |                         |   | 150,155,691 |   |
|                                                                                                                                                                         |   |                              |         |                         |   |   |   |
| **Net                    Increase in Cash**                                                                                                                                  |   |                              | 118,004      |                         |   | 130,805 |   |
|                                                                                                                                                                         |   |                              |         |                         |   |   |   |
| **Cash                    at Beginning of Period**                                                                                                                           |   |                              | 12,801       |                         |   | - |   |
|                                                                                                                                                                         |   |                              |         |                         |   |   |   |
| **Cash                    at End of Period**                                                                                                                                 |   | $                                 | 130,805      |                         | $      | 130,805 |   |
|                                                                                                                                                                         |   |                              |         |                         |   |   |   |
| **Supplemental                    Disclosure of Noncash Financing Activities**                                                                                               |   |                              |         |                         |   |   |   |
|                                                                                                                                                                         |   |                              |         |                         |   |   |   |
| Accrual                    of deferred offering costs                                                                                                                        |   | $                                 | -            |                         | $      | - |   |
|                                                                                                                                                                         |   |                              |         |                         |   |   |   |
| Accrual                    of deferred underwriting fee                                                                                                                      |   | $                                 | 6,750,000    |                         | $      | 6,750,000 |   |

----

**POLARIS      ACQUISITION CORP.**

**(A      CORPORATION IN THE DEVELOPMENT STAGE)**

**NOTES      TO UNAUDITED FINANCIAL STATEMENTS**

| **Note                1.** | **BASIS                OF PRESENTATION**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                       | The                financial statements of Polaris Acquisition Corp. (the “Company”) at                March 31, 2008, for the three months ended March 31, 2008 and                for the period from June 18, 2007 (inception) to March 31, 2008                (cumulative), are unaudited. In the opinion of management, all adjustments                (consisting of normal accruals) have been made that are necessary                to                present fairly the financial position of the Company as of March 31,                2008 and the results of its operations and its cash flows for the                three                months ended March 31, 2008, and for the period from June 18,                2007 (inception) to March 31, 2008. Operating results for the interim                periods are not necessarily indicative of the results to be expected                for a                full fiscal year. The December 31, 2007 balance sheet has been                derived from the audited financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                       | The                statements and related notes have been prepared pursuant to the rules                and                regulations of the U.S. Securities and Exchange Commission. Accordingly,                certain information and footnote disclosures normally included in                financial statements prepared in accordance with generally accepted                accounting principles may be omitted pursuant to such rules and                regulations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| **Note                2.** | **ORGANIZATION                AND BUSINESS OPERATIONS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                       | Polaris                Acquisition Corp. (the "Company") was incorporated in Delaware on                June 18,                2007 for the purpose of effecting a merger, stock exchange, asset                acquisition, stock purchase, reorganization or other similar business                combination with an operating business.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                       | The                registration statement for the Company's Offering (as described in                Note 3)                was declared effective on January 14, 2008. The Company consummated                the                Offering on January 17, 2008 , and received gross proceeds of                approximately $154,500,000, including $4,500,000 of proceeds from                the                private placement ("the Private Placement") sale of 4,500,000 sponsors’                warrants to certain affiliates of the Company. The net proceeds were                approximately $143,381,000.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                       | The                Company's management has broad discretion with respect to the specific                application of the net proceeds of this Offering, although substantially                all of the net proceeds of this Offering are intended to be generally                applied toward consummating a business combination with an operating                business ("Business Combination"). There is no assurance that the                Company                will be able to successfully affect a Business Combination. Upon                the                closing of the Offering and Private Placement, $150,000,000, including                $6,750,000 of the underwriters' discounts and commissions (as described                in                Note 3), is being held in a trust account ("Trust Account") and invested                in United States "government securities" within the meaning of Section                2(a)(16) of the Investment Company Act of 1940 having a maturity                of 180                days or less or in money market funds meeting certain conditions                under                Rule 2a-7 promulgated under the Investment Company Act of 1940 until                the                earlier of (i) the consummation of its first Business Combination                and (ii)                liquidation of the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                       | The                Placing of funds in the Trust Account may not protect those funds                from                third party claims against the Company. Although the Company will                seek to                have all vendors, providers of financing, prospect target businesses                or                other entities it engages, execute agreements with the Company waiving                any                right, title, interest or claim of any kind in or to any monies held                in                the Trust Account, there is no guarantee that they will execute such                agreements or that such agreements, if executed, will insure that                no                claims are filed against the Trust. Two of the Company's affiliates                have                agreed that they will be liable under certain circumstances to ensure                that                the proceeds in the Trust Account are not reduced by the claims of                target                businesses or vendors, providers of financing, service providers                or other                entities that are owed money by the Company for services rendered                to or                contracted for or products sold to the Company. There can be no assurance                that they will be able to satisfy those obligations. The net proceeds                not                held in the Trust Account may be used to pay for business, legal                and                accounting due diligence on prospective acquisitions and continuing                general and administrative expenses. Additionally, up to an aggregate                of                $1,800,000 of interest earned on the Trust Account balance may be                released                to the Company to fund working capital requirements and additional                funds                may be released to fund tax                obligations. |

----

**POLARIS      ACQUISITION CORP.**

**(A      CORPORATION IN THE DEVELOPMENT STAGE)**

**NOTES      TO UNAUDITED FINANCIAL STATEMENTS**

| **Note                2.** | **ORGANIZATION                AND BUSINESS OPERATIONS-Continued**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                       | The                Company, after signing a definitive agreement for the acquisition                of a                target business, is required to submit such transaction for stockholder                approval. In the event that stockholders owning 30% or more of the                shares                sold in the Offering vote against the Business Combination and exercise                their conversion rights described below, the Business Combination                will not                be consummated. All of the Company's stockholders prior to the Offering                ("Founders"), have agreed to vote their founding shares of common                stock in                accordance with the vote of the majority of the shares voted by all                other                stockholders of the Company ("Public Stockholders") with respect                to any                Business Combination and in favor of an amendment to our certificate                of                incorporation to provide for the Company's perpetual existence. After                consummation of a Business Combination, these voting safeguards will                no                longer be applicable.                                                                                                                                                                                                                                                                                                                                                                    |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                       | With                respect to a Business Combination which is approved and consummated,                any                Public Stockholder who voted against the Business Combination may                demand                that the Company convert his or her shares. The per share conversion                price                will equal the amount in the Trust Account, calculated as of two                business                days prior to the consummation of the proposed Business Combination,                divided by the number of shares of common stock held by Public                Stockholders at the consummation of the Offering. Accordingly, Public                Stockholders holding 4,499,999 shares sold in the Offering may seek                conversion of their shares in the event of a Business Combination.                Such                Public Stockholders are entitled to receive their per share interest                in                the Trust Account computed without regard to the shares of common                stock                held by the Founders prior to the consummation of the Offering.                Accordingly, a portion of the net proceeds from the Offering (29.99%                of                the amount held in Trust Fund, including the deferred portion of                the                underwriters' discount and commission) has been classified as common                stock                subject to possible conversion on the accompanying March 31, 2008                balance                sheet. |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                       | The                Company's Certificate of Incorporation provides that the Company                will                continue in existence only until January 11, 2010. If the Company                has not                completed a Business Combination by such date, its corporate existence                will cease and it will dissolve and liquidate for the purposes of                winding                up its affairs. In the event of liquidation, it is likely that the                per                share value of the residual assets remaining available for distribution                (including Trust Fund assets) will be less than the initial public                offering price per share in the Offering (assuming no value is attributed                to the Warrants contained in the Units to be offered in the Offering                discussed in Note 3).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                       | **CONCENTRATION                OF CREDIT RISK**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                       | The                Company maintains cash in a bank deposit account which, at times,                exceeds                federally insured (FDIC) limits. The Company has not experienced                any                losses on this account.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                       | **DEFERRED                INCOME TAXES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                       | Deferred                income taxes are provided for the differences between bases of assets                and                liabilities for financial reporting and income tax purposes. A valuation                allowance is established when necessary to reduce deferred tax assets                to                the amount expected to be realized.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                       | **INCOME                PER COMMON SHARE**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                       | Income                per share is computed by dividing net income by the weighted-average                number of shares of common stock outstanding during the period. The                effect                of the 15,000,000 outstanding warrants issued in connection with                the                Offering, the 4,500,000 outstanding warrants issued in connection                with the                Founders' initial unit purchase and the 4,500,000 outstanding warrants                issued in connection with the Private Placement has not been considered                in                diluted income per share calculations since the warrants cannot be                exercised until the later of the Company’s initial business combination or                January 11, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                       | **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 at the date of the financial statements                and the reported amounts of expenses during the reporting period.                Actual                results could differ from those                estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

----

**POLARIS      ACQUISITION CORP.**
**(A        CORPORATION IN THE DEVELOPMENT STAGE)**

**NOTES        TO UNAUDITED FINANCIAL STATEMENTS**

| **Note                2.** | **ORGANIZATION                AND BUSINESS OPERATIONS-Continued**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                       | **FAIR                VALUE OF FINANCIAL INSTRUMENTS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                       | The                fair values of the Company's assets and liabilities that qualify                as                financial instruments under SFAS No. 107 "Disclosures about Fair                Value of                Financial Instrument," approximate their carrying amounts presented                in the                balance sheet at March 31, 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                       | The                Company accounts for derivative instruments, if any, in accordance                with                SFAS No. 133 "Accounting for Derivative Instruments and Hedging                Activities" as amended ("SFAS 133"), which establishes accounting                and                reporting standards of derivative instruments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                       | **NEW                ACCOUNTING PRONOUNCEMENTS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                       | In                July 2006, the Financial Accounting Standards Board ("FASB") issued                FASB                Interpretation No. 48, "Accounting for Uncertainty in Income Taxes,"                an                interpretation of FASB Statement No. 109 ("FIN 48"), which provides                criteria for the recognition, measurement, presentation and disclosure                of                uncertain tax position. A tax benefit from an uncertain position                may be                recognized only if it is "more likely than not" that the position                is                sustainable based on its technical merits. The provisions of FIN                48 are                effective for fiscal years beginning after December 15, 2006. The                adoption                of FIN 48 did not have a material effect on the Company's financial                condition or results of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                       | The                Company does not believe that any recently issued, but not yet effective,                accounting standards if currently adopted would have a material effect                on                the accompanying financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| **Note                3.** | **INITIAL                PUBLIC OFFERING**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                       | On                January 17, 2008, the Company sold 15,000,000 units ("Units") in                the                Offering at a price of $10 per Unit. Each Unit consists of one share                of                the Company's common stock and one Redeemable Common Stock Purchase                Warrant ("Warrants"). Each Warrant will entitle the holder to purchase                from the Company one share of common stock at an exercise price of                $7.00                commencing the later of the completion of a Business Combination                and                January 11, 2009 and expiring January 10, 2010. The Company may redeem                all                of the Warrants, at a price of $.01 per Warrant upon 30 days' notice                while                the Warrants are exercisable, only in the event that the last sale                price                of the common stock is at least $14.25 per share of any 20 trading                days                within a 30 trading day period ending on the third day prior to the                date                on which notice of redemption is given. In accordance with the warrant                agreement relating to the Warrants to be sold and issued in the Offering,                the Company is only required to use its best efforts to maintain                the                effectiveness of the registration statement covering the Warrants.                The                Company will not be obligated to deliver securities, and there are                no                contractual penalties for failure to deliver securities, if a registration                statement is not effective at the time of exercise. Additionally,                in the                event that a registration is not effective at the time of exercise,                the                holder of such Warrant shall not be entitled to exercise such Warrant                and                in no event (whether in the case of a registration statement not                being                effective or otherwise) will the Company be required to net cash                settle                the warrant exercise. Consequently, the Warrants may expire unexercised                and unredeemed. |

----

**POLARIS      ACQUISITION CORP.**

**(A      CORPORATION IN THE DEVELOPMENT STAGE)**

**NOTES      TO UNAUDITED FINANCIAL STATEMENTS**

| **Note                3.** | **INITIAL                PUBLIC OFFERING-Continued**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                       | The                Company entered into an agreement with the underwriters of the Offering                (the "Underwriting Agreement"). The Underwriting Agreement required                the                Company to pay 2.5% of the gross proceeds of the Offering as an                underwriting discount plus an additional 4.5% of the gross proceeds                of the                Offering only upon consummation of a Business Combination. The Company                paid an underwriting discount of 2.5% of the gross proceeds of the                Offering ($3,750,000) in connection with the consummation of the                Offering                and has placed 4.5% of the gross proceeds of the Offering ($6,750,000)                in                the Trust Account. The Company did not have to pay any discount related                to                the Sponsors' Warrants sold on a private placement basis. The underwriters                have waived their right to receive payment of the 4.5% of the gross                proceeds for the Offering upon the Company's liquidation if the Company                is                unable to complete a Business Combination.                                      |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                       | Pursuant                to purchase agreements, the Founders have purchased from the Company,                in                the aggregate, 4,500,000 warrants for $4,500,000 (the Sponsors' Warrants).                The purchase and issuance of the Sponsors' Warrants occurred                simultaneously with the consummation of the Offering on a private                placement basis. All of the proceeds the Company received from these                purchases were placed in the Trust Account. The Sponsors' Warrants                are                identical to the Warrants included in the Units sold in the Offering                except that if the Company calls the warrants for redemption, the                Sponsors' Warrants will be exercisable on a cashless basis so long                as such                warrants are held by the initial purchasers or their affiliates.                The                Sponsors' Warrants may not be sold or transferred until 45 days after                the                consummation of a Business Combinations. The purchase price of the                Sponsors' Warrants has been determined to be the fair value of such                warrants as of the purchase date. |

 

| **Note                4.** | **NOTE                PAYABLE TO AFFILIATE AND RELATED PARTY                TRANSACTIONS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                       | The                Company issued an aggregate $100,000 unsecured promissory note to                an                affiliated company on July 12, 2007. The note was non-interest bearing                and                was payable on the earlier of the consummation of the Offering by                the                Company or July 12, 2008. The note was repaid from the net proceeds                of the                Offering.                                                                                                                                               |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                       | An                affiliated company advanced $12,911. No formal repayment arrangement                was                in place and no interest was due on the advance. The advance was                repaid.                                                                                                                                                                                                                                                                                                                                                                                    |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                       | The                Company has entered into an administrative service agreement with                an                affiliated company as more fully described in Note 5                below.                                                                                                                                                                                                                                                                                                                                                                                                    |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| **Note                5.** | **COMMITMENTS                AND RELATED PARTY TRANSACTIONS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                       | The                Company has agreed to pay up to $7,500 a month in total for office                space                and general and administrative services to an affiliated company.                Services                commenced on January 11, 2008 and will terminate upon the earlier                of (i)                the completion of the Business Combination or (ii) the Company's                liquidation. ** **The                Company has incurred $22,500 related to this agreement which is included                in Administrative and General Expenses. |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                       | Pursuant                to letter agreements which the Founders have entered into with the                Company                and the underwriters, the Founders have waived their right to receive                distributions with respect to their founding shares upon the Company's                liquidation.                                                                                                                                                                                                                                                                       |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| **Note                6.** | **PREFERRED                STOCK**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                       | The                Company is authorized to issue 1,000,000 shares of preferred stock                with                such designations, voting and other rights and preferences as may                be                determined from time to time by the Board of Directors.                                                                                                                                                                                                                                                                                                                 |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                       | The                agreement with the underwriters prohibits the Company, prior to a                Business                Combination, from issuing preferred stock which participates in the                proceeds of the Trust Account or which votes as a class with the                Common                Stock on a Business Combination.                                                                                                                                                                                                                                               |

----

**POLARIS      ACQUISITION CORP.**
**(A        CORPORATION IN THE DEVELOPMENT STAGE)**

**NOTES        TO UNAUDITED FINANCIAL STATEMENTS**

| **Note                7.** | **COMMON                STOCK**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                       | On                June 18, 2007, 4,312,500 shares of common stock were issued to nine                (9)                stockholders (Founders). Such shares were purchased at an average                purchase                price of approximately $0.006 per share. Effective November 8, 2007,                the                Company's Board of Directors authorized a stock dividend of 0.2 share                of                common stock for each outstanding share of common stock. All references                in                the accompanying financial statements to the number of shares of                stock                have been retroactively restated to reflect this transaction. In                January                2008, the Founders contributed an aggregate of 862,500 shares back                to                capital. The over-allotment option was not exercised and the Founders                forfeited 562,500 shares in April 2008 to maintain a 20% ownership                of the                common shares after the Offering. |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Note                8**. | **                  Income Taxes**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                       |                   The provision for income taxes for the three months ended March 31,                2008 consists of the following:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

| Current:                        |   |   |    |
|---------------------------------|--------|--------|---------|
| Federal                         |   | $      | 227,585 |   |
| State                           |   |   | 65,957  |   |
| Total                  current  |   |   | 293,542 |   |
| Deferred:                       |   |   |    |   |
| Federal                         |   |   | (33,076 | ) |
| State                           |   |   | -       |   |
| Total                  deferred |   |   | (33,076 | ) |
|                            |   |   |    |   |
|                            |   | $      | 260,466 |   |

| Expense                deferred for income tax purposes   |   | $      | 38,855 |   |
|---------------------------------------------------------------------|--------|--------|--------|--------|
| Valuation                allowance                        |   |   | (5,779 | )      |
|                                                      |   | $      | 33,076 |   |

| Statutory                U.S. federal rate               |   |   | 34.00  | % |
|----------------------------------------------------------|--------|--------|--------|---|
| State                income taxes, net of federal effect |   |   | 7.20   | % |
| Non-deductible                expenses                   |   |   | -      | % |
| Valuation                allowance                       |   |   | (0.30) | % |
| Effective                Tax Rate                        |   |   | 40.90  | % |

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| **ITEM 2.** | **MANAGEME****NT’S                DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF                OPERATIONS** |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------|

**Forward      Looking Statements**

**Critical      Accounting Policies**

**Overview**

| Net                proceeds from our initial public offering and private placement of                warrants placed in trust |   | $      | 143,250,000     |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------|--------|
| Deferred                underwriters’ discounts and commissions                                                         |   |   | 6,750,000       |   |
| Total                interest received to date                                                                                |   |   | 760,136         |   |
| Withdrawals                for operating expense through March 31, 2008                                                       |   |   | (100,000        | )      |
|                                                                                                                          |   |   |            |   |
| **Total                funds held in trust account as of March 31,                2008**                                 |   | **$**  | **150,660,136** |   |

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**Results      of Operations for the three month period ended March 31,      2008**

**Liquidity      and Capital Resources**

**Off-Balance      Sheet Arrangements**

| **ITEM 3.** | **QUANTITATIVE                AND QUALITATIVE DISCLOSURES ABOUT MARKET                RISK** |
|------------------|----------------------------------------------------------------------------------------------|

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| **ITEM 4.** | **CONTROLS                AND PROCEDURES** |
|------------------|--------------------------------------------|

**PART      II - OTHER INFORMATION **

| **ITEM 2.** | **UNREGISTERED                SALES OF EQUITY SECURITIES AND USE OF                PROCEEDS** |
|------------------|-----------------------------------------------------------------------------------------------|

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| **ITEM 6.** | **EXHIBITS** |
|------------------|--------------|

| **Exhibit No.** |   | **Description**                                                                                                |
|----------------------|--------|----------------------------------------------------------------------------------------------------------------|
| 31                   |   | Section                302 Certification of Chief Executive Officer                                            |
|                 |   |
| 32                   |   | Section                906 Certification of Chief Executive Officer and Chief Financial                Officer |

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**SIGNATURES**

|                                 | **POLARIS                  ACQUISITION CORP.**                                                                                                                 |
|--------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                 |                                                                                                                                                           |
| Dated:                  May 14, 2008 |                                                                                                                                                           |
|                                 | /s/                  Marc V. Byron                                                                                                                             |
|                                 |                       Marc V. Byron                                                                                                        |
|                                 |                       Chairman and Chief Executive Officer                                                                                 |
|                                 |                       (Principal Executive Officer and Principal Accounting and Financial Officer) |

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