2


                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   FORM 10-KSB
(Mark One)
     [X]  Annual  Report  Pursuant  to  Section  13 or 15(d)  of The  Securities
Exchange Act of 1934 For the Fiscal Year Ended December 31, 2000

     [ ]  Transition  Report  Pursuant to Section 13 or 15(d) of the  Securities
Exchange Act of 1934

                        Commission File Number: 000-27715

                               VOIP TELECOM, INC.
                 (Name of small business issuer in its charter)

                  Nevada                        000-28697
(State or other jurisdiction of            (I.R.S. Employer
incorporation or organization)            Identification No.)

            16935 West Bernardo Drive, Suite 232, San Diego, CA 92127
               (Address of principal executive offices) (Zip Code)

Issuers telephone no.:  (858) 618-1710

Securities registered pursuant to Section 12(b) of the Exchange Act:  None

Securities registered pursuant to Section 12(g) of the Exchange Act:  Common

Check  whether the issuer (1) filed all reports  required to be filed in Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Check if there is no disclosure of delinquent  filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure  will be contained,  to
the best of the  Registrants  knowledge,  in  definitive  proxy or  information
statements  incorporated  by  reference  in Part III of this Form  10-KSB or any
amendment to this Form 10-KSB. [ ]

State the issuers revenues for its most recent fiscal year. $ 240,456.00

State the  aggregate  market  value of the voting  stock held by  non-affiliates
computed by reference  to the price at which the stock was sold,  or the average
bid and ask  prices  of such  stock  as of a  specified  date  within  60  days.
$6,664,457 (based on price of $.50 per share as of January 3, 2001.

State the number of shares outstanding of each of the issuers classes of common
equity, as of the latest practicable date.

       Class                              Outstanding as of December 31, 2000
 Common Stock, $.001 Par Value                       32,674,192


                       DOCUMENTS INCORPORATED BY REFERENCE
                                                                 NONE
Transitional Small Business Disclosure Format.       Yes [x]        No [  ]


                               VOIP TELECOM, INC.
                                TABLE OF CONTENTS
                                   PART I Page
Item 1.          Description of Business                                 3-5
Item 2.          Description of Property                                 5
Item 3.          Legal Proceedings                                       6
Item 4.          Submission of Matter to a Vote of Security Holders      6
                                     PART II
Item 5.          Market for Common Equity and Related Stockholder
                     Matters                                             6-9

Item 6.          Managements Discussion and Analysis or Plan of
                     Operation                                           9-12

Item 7.          Financial Statements                                    12

Item 8.          Changes in and Disagreements with Accountants on
                      Accounting and Financial Disclosure                12

                                    PART III

Item 9.          Directors, Executive Officers, Promoters and Control persons;
                     Compliance with Section 16(a) of the Exchange Act   12-15

Item 10.         Executive Compensation                                  16-17

Item 11.        Security Ownership of Certain Beneficial Owners and
                     Management                                          17-18

Item 12.        Certain Relationships and Related Transactions           18-19

Item 13.        Exhibits and Reports on Form 8-K                         20


SIGNATURES                                                                S-1





                                     PART I

Item 1.     Description of Business

Business Development
The  Company  was  incorporated  May 4, 1987  under the laws of Nevada as Energy
Realty  Corporation.  On July 31,  1993 the  Companys  name  changed  to Balcor
International  and on December 18, 1998 the name was again  changed to Dimension
House Inc. On  September  28,  1999 the Company  entered  into an  agreement  to
acquire a start up Costa Rican  telecommunication  company and underwent another
name change to  Presidents  Telecom,  Inc. On March 1, 2000 the Company  entered
into an agreement to acquire International  Communications and Equipment (ICE)
for 3,000,000 shares of Presidents  Telecom common stock. ICE intends to further
develop a high quality Internet Protocol  Telecommunications  Network in Europe.
Also on March 1, 2000 the Company  entered into an agreement to purchase  Access
Network Limitedfor  4,800,000 shares of common stock.  Access Network intends to
establish an Internet  Protocol (IP) network  servicing  selected  countries and
providing throughout Asia. In conjunction with the acquisition of Access Network
Ltd. And International Communication and Equipment, Inc. the Company changes its
name to VOIP  Telecom,  Inc.,  on April 17, 20001 to reflect the type of telecom
technology  utilized.  On May 15,  2000 the  Company  entered  into a  recission
agreement  and  relinquished  control of Global  E-Com.  During 2000 the Company
completed the purchase of Clarent VOIP Telecom equipment and proceeded to deploy
units in Asia and Europe.  Both operating units commenced traffic termination in
December  2000 on a limited  basis  reflecting a partial  deployment  of telecom
equipment. As of December 31, 2000 the Company had authorized 100,000,000 shares
at $0.0001 par value of which 32,674,192 were outstanding.

The Company, through wholly owned subsidiaries,  provides international switched
long distance  services.  These calls  typically  originate on a local  exchange
carrier  network and are  transported  to the callers  domestic  long  distance
provider,  which in turn  carries  the  call to an  international  VOIP  Telecom
switch.  VOIP networks pick up the call and send it directly to a  corresponding
switch operated in the country of destination. Once reaching that destination it
is then  routed  to the party  being  called  through  that  countrys  domestic
telephone  network.  VOIP  technology  consisted of an  integrated  hardware and
software  product (a gateway) that converts  voice,  fax and data into packets
that can se sent over Internet Protocol networks. The packets are directed along
the  fastest  route to the  destination  where  they are  reassembled  ready for
receipt by fax, computer or listener.  The efficiency of this system is that the
cost of the total circuit set is required is far less than a typical PSTN setup.
Using the same network  infrastructure as any other long distance carrier,  VOIP
increases  network capacity by an 8:1 advantage in terms of  communications  put
through.




Product and Services

The subsidiary companies offer international  switched long distance services in
joint venture  arrangements  whereby the local  partner  provides the license to
terminate/or  originate  calls and a location  where the equipment  owned by the
subsidiary company is located.

Regulations

The  Company is subject to  governmental  regulations  in Asia and  Europe.  The
governmental  regulation  compliance is taken care of by the local joint venture
partner.

Availability of Materials and Supplies

The Company has established a relationship  with Clarent  Corporation of Redwood
City,  California.  Clarent is a  manufacture  of VOIP switches and servers that
have proven to be very  efficient in the industry and currently is recognized to
be  the  industry  leader.   Equipment   suppliers  are  available  through  the
manufacturer  with no supply problems being evident and Clarent  provides a wide
variety of after sales  service and support.  The equipment is  manufactured  in
analogue or digital, depending on the location required. All of the products are
readily available and the Company does not use any raw materials.

Marketing

Services are marketed by the local joint venture  partner,  which eliminates the
need for administrative  staff in the local area. The joint venture partner also
administers the sale and distribution of prepaid calling cards.

Competition
As VOIP technology is relatively  new, there is no significant  data in terms of
competitors in the markets which the Company operates in.

Employees

The Company subsidiaries presently have six full time employees three located in
Asia and three in North America, which service Europe.  Administrative  services
are provided by consultants on a fee for service basis.

Management intends to hire additional  employees only as needed and as funds are
available. In such cases,  compensation will be consistent with prevailing wages
for the services  rendered.  It is not anticipated that the Company will have to
add employees until the Company expands out of Asia and Europe. Currently, there
are no plans for this expansion.

The Company does not anticipate in the immediate  future to offer any employee a
bonus profit sharing or defined compensation
plan.  There are no employment contracts with employees or directors.

Facilities

The issuer  maintains  and  administrative  office in  Vancouver  BC Canada,  at
1116-1030 West Georgia  Street,  Vancouver  which, is rented on a month to month
lease for $1,000 (US). The office is approximately  800 square feet. A statutory
office,  resident agent for services at 2921 N. Tenaya Way, Las Vegas, NV 89128.
The Company rents this office space for $250.00 per month. A US corporate office
in San Diego  California at 16935 West Bernardo Drive,  Suite 232, San Diego, CA
92127.  The Company  rents this office on a month to month basis for $300.00 per
month.  Subsidiary  companies operate a corporation office in Singapore at Block
808, French Road, #05-175,  Kitchener Complex, Singapore 200808 which, is rented
on a month to month basis for $353 (US). The office space is  approximately  800
square feet.

Research and Development

The Company  does not do any  research  and  development.  All the  research and
development is prepared b Clarent Corporation who provides the equipment.

Patents and Trademarks

The Company does not hold any patents or  trademarks in the United States or any
other jurisdictions.

Industry Segments

No information is presented on industry segments.

Item 2.     Description of Property

The issuer  maintains  and  administrative  office in  Vancouver  BC Canada,  at
1116-1030 West Georgia  Street,  Vancouver  which, is rented on a month to month
lease for $1,000 (US). The office is approximately  800 square feet. A statutory
office,  resident agent for services at 2921 N. Tenaya Way, Las Vegas, NV 89128.
The Company rents this office space for $250.00 per month. A US corporate office
in San Diego  California at 16935 West Bernardo Drive,  Suite 232, San Diego, CA
92127.  The Company  rents this office on a month to month basis for $300.00 per
month.  Subsidiary  companies operate a corporation office in Singapore at Block
808, French Road, #05-175,  Kitchener Complex, Singapore 200808 which, is rented
on a month to month basis for $353 (US). The office space is  approximately  800
square feet.



Item 3.     Legal Proceedings

The Company is not a part of any material pending legal  proceedings and no such
actions  by or to the best of its  knowledge,  against  the  Company,  have been
threatened.


Item 4.    Submission of Matters to a Vote of Security Holders

No matters were submitted to a vote of the Companys  Securities  Holders during
the fourth quarter of the Companys fiscal year ending December 31, 2000.

                                                                PART II

Item 5.  Market for Common Equity and Related Stockholders Matters

The  Companys  common  stock  is  traded  in the  over the  counter  market  and
quotations  are published on the OTC Bulletin Board under the symbol VOTM and in
the National Quotation Bureau, Inc. Quotations in the Companys common stock set
forth below do not  constitute a reliable  indication of the price that a holder
of the common  stock  could  expect to receive  upon the sale of any  particular
quantity thereof

The  following  table  sets  forth the  range of high and low bid  prices of the
common stock for each calendar  quarterly period since the first quarter of 1999
as reported  by the OTC  Bulletin  Board.  The  Companys  common  stock  became
eligible  for trading on the OTC  Bulletin  Board  during the fourth  quarter of
1998.  Prices reported  represents  prices between dealers do not include retail
markups,  markdowns and  commissions  and do not  necessarily  represent  actual
transactions.


                           1999                      High              Low
                           First Quarter             $.03              $.06
                           Second Quarter            $.05              $.15
                           Third Quarter             $.15              $.25
                           Fourth Quarter            $.25              $9.00

                           2000
                           First Quarter             $6.00             $3.50
                           Second Quarter            $5.00             $2.00
                           Third Quarter             $3.00             $.75
                           Fourth Quarter            $2.00             $.60

As of December 31, 2000 the Company had issued and outstanding 32,674,195 shares
of common stock and there were  approximately 102 shareholders of record,  which
figure does not take into account those shareholders whose certificates are held
in the name of broker-dealers.

The ability of an individual  shareholder  to trade their shares in a particular
state may be subject to various rules and regulations of that state. A number of
states  require  that an issuers  securities  be  registered  in their state or
appropriately  exempted from registration before the securities are permitted to
trade in that  state.  Presently,  the  Company  had no plans  to  register  its
securities in any particular  state.  Further,  most likely the Companys shares
will be  subject  to the  provisions  of  Section  15(g)  and Rule  15g-9 of the
Securities  Exchange Act of 1934,  as amended  (the  Exchange  Act),  commonly
referred  to as the  penny  stock  rule,  Section  15 (g) sets  forth  certain
requirements   for   transactions  in  penny  stocks  and  Rule  15g-9  (d)  (1)
incorporates  the  definition  of penny stock as that used in Rule 3a51-1 of the
Exchange Act.

The Commission generally defines penny stock to be an equity security that has a
market  price  less that $5.00 per share,  subject to certain  exceptions.  Rule
3a51-1 provides that an equity security is considered to be a penny stock unless
that  security  is;  registered  and  traded on a national  securities  exchange
meeting  specified  criteria set by the Commission;  authorized for quotation on
the NASDAQ Stock Market;  issued by a registered  investment  company;  excluded
from the  definition  on the basis of price (at  least  $5.00 per  share) of the
issuers net tangible assets; or exempted from the definition by the Commission.
If the  Companys  shares are deemed to be a penny stock,  trading in the shares
will be subject to additional sales practice  requirements on broker-dealers who
sell penny stock to persons  other than  established  customers  and  accredited
investors,  generally  persons  with  assets in excess of  $1,000,000  or annual
income exceeding $200,000, or $300,000 together with their spouse.

For  transactions  covered by these rules,  brokers-dealers  must make a special
suitability  determination  for the  purchase of such  securities  and must have
received  the  purchasers  written  consent  to the  transaction  prior  to the
purchase.  Additionally,  for any  transaction  involving a penny stock,  unless
exempt,  the rules require the delivery,  prior to the first  transaction,  of a
risk  disclosure  document  relating to the penny stock market.  A broker-dealer
must disclose the commissions payable to both the quotations for the securities.
Finally, monthly statements must be sent disclosing recent price information for
the penny stocks held in the account and  information  on the limited  market in
penny   stocks.   Consequently,   these  rules  may   restrict  the  ability  of
brokers-dealers  to trade and/or maintain a market in the Companys Common stock
and may affect the ability of shareholders to sell their shares.

Recent Sales of Unregistered Securities

On March 15, 2000 the Company  issued  6,000  shares of common  stock to Central
American Fuel  Technologies.  The shares were issued at $2.50 and were issued to
acquire  100% of the  company.  The shares  were  issued  under 4(2) of the 1933
Securities Act and bear a restrictive legend.

On March 31,  2000 the Company  issued  2,727,276  shares of common  stock to 36
subscribers  under a 506  offering.  The shares were offered at $1.00 per share.
These shares were issued under section 4(2) of the 1933  Securities Act and bear
a restrictive legend.

On March 31,  2000 the  Company  issued  3,810,000  shares of common  stock to 5
subscribers  under an  investment  letter.  The shares were issued under section
4(2) of the 1933 Securities Act and bear a restrictive legend.

On April 20, 2000 the Company  issued  60,000 shares of common stock to 3 people
for services.  The shares were issued at $3.00 per share. The shares were issued
under section 4(2) of the 1933 Securities Act and bear a restrictive legend.

On April 28,  2000 the  Company  issued  1,080,000  shares of common  stock to 5
people for services.  The shares were issued at $1.00 per share. The shares were
issued under  section  4(2) of the 1933  Securities  Act and bear a  restrictive
legend.

On May 17, 2000 the Company  issued 25,000 shares of common stock one person for
services. The shares were issued at $.50 per share. The shares were issued under
section 4(2) of the 1933 Securities Act and bear a restrictive legend.

On May 19, 2000 the Company  issued  172,834  shares of common stock to 3 people
for services.  The shares were issued at $.20 per share.  The shares were issued
under section 4(2) of the 1933 Securities Act and bear a restrictive legend.

On June 30, 2000 Alexander Anderson exercised 75,0000 options at $.42 per share.
The shares were issued under section 4(2) of the 1933  Securities Act and bear a
restrictive legend.

On June 30, 2000 Alexander  Anderson  exercised  60,000 shares.  The shares were
exercised at $.21 per share.  The shares were issued  under  section 4(2) of the
1933 Securities Act and bear a restrictive legend.

On June 30, 2000 Alexander  Anderson  exercised  60,000 shares.  The shares were
exercised at $.21 per share.  The shares were issued  under  section 4(2) of the
1933 Securities Act and bear a restrictive legend.

On June 30, 2000 the Company  issued  2,152,140  shares of common  stock for the
settlement of debt.  These shares were issued at $.20 per share. The shares were
issued under  section  4(2) of the 1933  Securities  Act and bear a  restrictive
legend.

On June 30, 2000 the Company issued  4,800,000 shares of common stock to acquire
100% of Access  Network  Limited  at $.83 per  share.  The  shares  were  issued
pursuant  to  section  4(2) of the 1933  Securities  Act and bear a  restrictive
legend.


On August 30, 2000 the Company  issued  109,343  shares of common  stock for the
settlement  of debt.  The shares  were  issued  under  section  4(2) of the 1933
Securities Act and bear a restrictive legend.

On August  30,  2000 the  Company  issued  3,000,000  shares of common  stock to
acquire 100% of International  Communications and Equipment at $1.00 per shares.
The shares were issued under section 4(2) of the 1933  Securities Act and bear a
restrictive legend.

On October 1, 2000 Alexander Anderson exercised options on 12,000 shares at $.21
per  share.  The  shares  were  issued  pursuant  to  section  4(2) of the  1933
Securities Act and bear a restrictive legend.

On October 4, 2000 RST Co.,  exercised  45,000 options at $.4167 per share.  The
shares were issued  under  section  4(2) of the 1933  Securities  Act and bear a
restrictive legend.

On December 27, 2000 the Company  issued 120,000 shares of common stock for cash
to Babac Imai at $.10 per shares.  The shares were issued under  section 4(2) of
the 1933 Securities Act and bear a restrictive legend.

On December 27, 2000 the Company  issued 500,000 shares of common stock for cash
under an  investment  letter.  The shares were issued under  section 4(2) of the
1933 Securities Act and bear a restrictive legend.

On December  27,  2000 the Company  issued  520,000  shares of common  stock for
services to JBF  Management  at $.10 per share.  The shares  were  issued  under
section 4(2) of the 1933 Securities Act and bear a restrictive legend.

Dividend Policy

The Company has not declared or paid cash dividends or made distributions in the
past,  and the Company does not  anticipate  that it will pay cash  dividends or
make  distributions in the foreseeable  future. The Company currently intends to
retain and reinvest future earnings to finance and expand its operations.

Item 6.     Managements Discussion and Analysis or Plan of  Operation

The following  information  should be read in conjunction  with the consolidated
financial statements and notes thereto appearing elsewhere in this Form 10-KSB.

Plan of Operation

The following discussion pertains to the Companys result of operations as of the
years ended December 31, 1999 and 2000. The Company  consolidates the operations
of International Communication & Equipment and Access Communications.  It should
be noted that the Company became fully operational in December of 2000.

Results of Operations

The Company  became fully  operational  in December  2000 and for the first time
ever the Company  could offer  their VOIP  services to the public.  For the year
ended  December  31, 2000 the Company had  revenues of  $240,456,  with costs of
revenues in the amount of $202,219,  therefore;  the Company has net revenues of
$37,537. This is compared to $0, for 1999.

Expenses

The Company has total  expenses in the amount of $11,281,619 in 2000 compared to
$93,461 in 1999. $6,500,000 of this increase was from the impairment of goodwill
from the purchase of Access Network Limited and International Communications and
Equipment.  There was also  approximately  a $3,129,000  increase in general and
administrative   expenses.  This  was  monthly  related  to  consulting  charges
inconjunction  with getting the  subsidiaries up and running.  Depreciation  and
amortization  was up by  $733,802.  This is due to the fact that the Company had
purchased a significant  amount of equipment that was not held in 1999. Bad debt
expenses  also  increased  to  $879,562.  This is  predominately  related to the
recission of the Global E-Com transaction.

Liquidity and Capital Resources

The Company has $354,222 in current  assets  compared to  $1,469,925  in current
liabilities.  However,  this ratio should improve through 2001 as the Company is
now in an operational state.

It  should be noted  that in the  Companys  audited  financial  statements  for
December 31, 2000 the Companys  auditor  raises the question  about the Company
being  able to  continue  as a going  concern.  The  ability  of the  Company to
continue  as a going  concern is  dependent  on the  significant  generation  of
revenue from the Companys  services.  See audited financial  statements opinion
letter and note 3.

Net Operating Losses

The Company has accumulated $(11,377,530) of net operating losses as of December
31, 1999,  which may used to reduce taxes in future years through 2015.  The use
of these losses to reduce future  income taxes will depend on the  generation of
sufficient  taxable  income prior to the  expiration of the net  operating  loss
carryforwards.

In the event of certain  changes in  control  of the  Company,  there will be an
annual limitation on the amount of the net operating loss  carryforwards,  which
can be used. The potential tax benefit of the net operating  loss  carryforwards
have been offset by a valuation allowance of the same amount.

Inflation

In the opinion of  management,  inflation  has not had a material  effect on the
operations of the Company.

Recent Accounting Pronouncements

The  Financial  Accounting  Standards  Board has issued  Statement  of Financial
Accounting (SFAS), No. 133, Accounting for Derivative Instruments.  SFAS No.
133  provides a  different  method for  accounting  for  derivative  instruments
embedded in other  contracts  and  hedging  activities.  Derivative  instruments
represent   rights  or  obligations  that  meet  the  definition  of  assets  or
liabilities  and should be reported in the financial  statements.  Fair value is
the most relevant measure for financial statements and the only relevant measure
for derivative  instruments.  Derivative  instruments should be measured at fair
value and  adjustments  to the  Companys  derivative  of hedging  items  should
reflect  changes in their fair  value  that are  attributable  to the risk being
hedged and that arise while the hedge is in effect.  SFAS.  No. 133 is effective
for financial statements ending after June 15, 1999. SFAS No. 133 implementation
did not have a material effect on the financial statements.

The Financial  Accounting  Standards Board has also issued 44PB Opinion No. 25).
APN No. 25 APB Opinion No. 25 APB Opinion No. 25, Accounting for Stock Issued to
Employees,  was issued in October 1972. Since its issuance,  questions have been
raised about its application and diversity in practice has developed. During its
consideration of the accounting for stock-based compensation,  which lead to the
issuance of SFAS No. 123,  Accounting  for Stock Based  Compensation,  the Board
decided not to address  practice  issues related to Opinion 25 because the Board
had planned to supersede Opinion 25. However,  Statement 123 permits entities to
continue  applying  Opinion  25  to  stock  compensation   involving  employees.
Consequently,  questions  remain about the application of Opinion 25 in a number
of different circumstances.

This  Interpretation  clarifies the  application  of Opinion 25 for only certain
issues.  It does not address any issued  related to the  application of the fair
value method in Statement 123. The issues  addressed  herein were selected after
receiving input from members of both the FASB Emerging Issues Task Force and the
task force on stock  compensation  that assisted in the development of Statement
123.  Among other issues,  this  Interpretation  clarifies (a) the definition of
employee for purposes of applying  Opinion 25, (b) the criteria for  determining
whether  a  plan  qualified  as a  noncompensatory  plan,  (c )  the  accounting
consequence of various  modifications  to the terms of a previously  fixed stock
option or award,  and (d) the accounting  for an exchange of stock  compensation
awards in a business combination.

FIN44 is effective for financial statements issued for periods ending after July
1, 2000.  The  implementation  of FIN 44 did not have a  material  affect on the
financial statement.




Inflation

In the opinion of management,  inflation will not have a material  effect on the
operations of the Company.

Risk Factors and Cautionary Statements

Forward-looking statements in this report are made pursuant to the safe harbor
provisions of the Private Securities  Litigation Reform Act of 1995. The Company
wished to advise readers that actual result may differ  substantially  from such
forward-looking   statements,   Forward-looking  statements  involve  risks  and
uncertainties  that could cause actual results to differ  materially  from those
expressed in or implied by the  statements,  including,  but not limited to, the
following:  the ability of the Company to  complete  development  of its primary
products  and its  ability  to  successfully  market  its  product  if and  when
developed and other risks detailed in the Companys periodic report filings with
the Securities and Exchange Commission.

Item 7.  Financial Statements

See the financial statements annexed to this report.

Item 8.  Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure

VOIP Telecom,  Inc. former  auditors Jones,  Jensen and Co. were dismissed as of
February 6, 2001. In the past two years the accountants  report on the financial
statements  did not  contain an adverse  opinion,  disclaimer  of opinion or was
modified as to uncertainty,  audit scope, or accounting principles. The decision
to change  accountants  was  recommend  and approved by the  companys  Board of
Directors.


Item 9.  Directors, Executive Officers, Promoters and Control Persons;
Compliance with Section 16(a) of the Exchange Act.

         The executive officers and directors of the Company are as follows:

      Name                                   Age               Position


Michael Tan                                   35         President/Director

Alexander Anderson                            52         CEO/Director

Ken Martin                                    50         Executive VP/Director

Ken Berscht                                   62         Vice President/Director

Richard Jordan                                55         CFO

Thim Fook Low                                 57         Director

Tan Sek Toh                                   65         Director

Hee Dong Yoo                                  55         Chairman of the Board

All directors hold office until the next annual meeting of stockholders or until
their  successors  have been duly  qualified.  Directors  will be elected at the
annual  meeting  and serve for one year  terms.  There  are no  agreements  with
respect to the  election  of  directors.  The Company  has not  compensated  its
directors  for service on the Board of Directors or any committee  thereof.  Any
non-employee  director of the Company shall be reimbursed for expenses  incurred
for  attendance  at meetings of the Board of Directors  and any committee of the
Board of  Directors.  The  executive  committee of the Board of Directors to the
extent permitted under Nevada law, consists of three directors and exercises all
the power and  authority  of the Board of  Directors  in the  management  of the
management  of the business and affairs of the Company  between  meetings of the
Board of  Directors.  Each  executive  officer is appointed by and serves at the
discretion of the Board of Directors.

None of the officers and/or  directors of the Company are officers and directors
of any other publicly traded  corporation,  nor have any of the directors and/or
officers,  nor any of the  affiliates  or  promoters  of the  Company  filed any
bankruptcy  petition,  been  convicted  in or been the  subject  of any  pending
criminal proceedings, or the subject to any order, judgment, or decree involving
the  violation  of any state or  federal  securities  laws  within the past five
years.

The directors will initially  devote time to the Company affairs on an as needed
basis.

All of the working officers and employees are on a full time basis. There is one
other full time employee.

At present the Company does not have any employment agreements in place with any
directors,  executive  officer  or  employee.  The  Company  may  enter  into an
agreement with certain qualified executive officers if deemed appropriate by the
Board of Directors to be in the best  interest of the Company.  No agreement has
been effected as of the date hereof.

The business experience of each of the persons listed below during the past five
years is as follows:

         Michael Tan, President/Director
     Mr. Tan is a Singaporean  who attended school in Vancouver after serving in
the Singapore Armed forces for 2 years,  completed his B.S. at the University of
British  Columbia.  Since 1999 Mr. Tan has been actively involved in the telecom
business  in Asia and has served on the boards of 2  previous  public  companies
prior, to assuming the position of the Company President in September 2000.

         Alexander Anderson, CEO/Director
     Mr. Anderson was a founding  shareholder of Dimension  House,  Inc. on 1999
during the development stage of that company and held the position of President.
In October 1999 as Dimension House acquired an interest in a Costa Rican telecom
company, new management was acquired and Mr. Anderson took a reduced role in the
company  affairs.  In March  2000,  Dimension  House  rescinded  the Costa Rican
agreement and acquired two development  Stage VOIP networks and underwent a name
change  to  VOIP   Telecom,   Inc.  Mr.   Anderson   assumed   more   management
responsibilities  at that time. In September  2000 Mr. Michael Tan was appointed
President to provide day to day operational  experience and Mr. Anderson focused
on the administrative and other business matters of the company. Mr. Anderson is
a veteran of 30 years in the  Financial  Service  Industry  and has held  senior
positions  in all  aspects  of  banking.  He has also  managed  both  retail and
commercial  branch  operations  and for the last 5 years he has  specialized  in
serving the investment  industry.  Mr.  Anderson has been in the board and as an
officer of 3 public  companies  during this time,  which  companies  were in the
mining industry and also for a telecommunications company operating in Asia.

         Ken Martin, Executive VP/Director
     Mr.  Martine is the  founder,  Chief  Executive  Officer and  President  of
International  Communications  and Equipment,  Inc. and its predecessor  company
Lite Wave Corporation.  He has been involved in the communications  industry for
11 years in al aspect of the  business  and has  strong  international  contacts
having worked with local and international  governments representing their PTTs
and communications  companies.  In addition to consulting to  telecommunications
companies, he has been involved with sales, investments and designing of systems
particularly  relating to long distance and local network switching systems. Mr.
Martin holds a degree in Navel  Architecture  from Devon Port Navel  College UK.
Mr. Martin  operates  International  Communications  and Equipment  Inc, with no
initial emphasis  throughout Europe and Russia, and the Middle East and looks to
expand the  operations  into other areas,  which would  generate  higher  margin
traffic.

         Ken Berscht, VP/Director
     Mr. Berscht is a veteran of the securities and investment  industry  having
been active in all  aspects of the  industry  since  1981.  He holds a degree in
Business  Administration  granted by the  University of Western  Ontario and was
authorized to deal in securities by both Canadian and US regulatory  bodies.  He
is very active in the public  markets since 1984 and held senior  positions with
three brokerage  houses in the US and Canada  until1993 at which time he entered
the  venture  capital  markets.  In 1994 he became an officer  and  director  of
several  private  and  public  companies  and was active in  assisting  to raise
capital.  Present  interests  include  consulting  for  mining  and  oil and gas
companies.   Mr.  Berscht  has  extensive  international  contact  and  will  be
responsible for  introducing  the company to Europe when listing  agreements are
formalized with the Frankfort exchange.

         Richard Jordan, CFO
     Mr. Jordan is a CGA and has been involved with public  companies since 1994
being corporate secretary for 2 CDNX listed companies. After being in management
of private  companies for 20 years Mr. Jordan entered into the Mortgage  Banking
field in  Vancouver  in 1987.  In 1999 he  focused  his  business  on  providing
accounting services to public companies.

         Thim Fook Low, Director
     Mr. Low is President of Access Network Limited in Singapore and responsible
for all Telecommunications business in South East Asia. Mr. Low on completion of
post  secondary  education  and  one  year in  Government  service,  joined  the
Singapore Military in 1967 and after 25 years in the communications corporation,
retired to enter the private sector as a communications  consultant.  Since that
time he has been active in all areas of telecommunications throughout South East
Asia and in particular China.

         Tan Sek Toh, Director
     Mr. Toh is a  professional  engineer who received his  certifications  from
Loughborough  University  in U.K.  and  the  Imperial  College  of  Science  and
Technology  in  London.  In 1964  Mr.  Toh  founded  one of the  largest  TV and
Electronic  equipment  manufactures in South East Asia,  which was listed on the
Singapore  Stock  Exchange.  In 1980 Mr. Toh  retired  from  public life and the
Republic  of  Singapore   acknowledged  his  contribution  to  the  Republic  by
presenting  him with a  lifetime  contribution  title of P.B.M.  In 1981 Mr. Toh
located to Vancouver  Canada and has held several  directorships  in private and
public  companies  since that time. Mr. Toh is fluent in Chinese and English and
leads the VOIP team on overseas business trips.

         Hee Dong Yoo, Chairman of the Board of Directors
     Mr. Hee Dong Yoo holds a Bachelor of Business  Administration and Master of
Computer  Science  degree  from  Seoul  University  and has been  involved  with
international  technology  business  for  over 30  years.  During  this  time he
represented various divisions of Samsung in Korea and overseas. Most recently he
was Vice  Chairman of the  electronic  products  and  components  division of an
established  Korean engineering firm and has now relocated in a similar position
to manage the  Telecommunication  and media  business  for another  large Korean
company.

Section 16(a) Beneficial Ownership Reporting Compliance

Each of the  Companys  officers  and  directors  are  required to file a Form 3,
Annual  Statement of Changes in  Beneficial  Ownership on or before the 45th day
after the end of the fiscal year.  These reports have not been filed in a timely
basis and have recently been filed.

Item 10.  Executive Compensation

         Michael Tan, President/Director
     Mr. Tans compensation package consists of a consulting contract under which
he is paid $10,000 monthly and has been granted company stock options of 540,000
exercisable at $0.50 until maturity of August 31,2001

         Alexander Anderson, CEO/Director
     Mr. Andersons  compensation package consists of a consulting contract under
which he is paid $5,000 monthly and he has been granted company stock options of
480,000 exercisable at $0.50 until maturity of September 7, 2001.

         Ken Martin, Executive VP/Director
     Mr. Martins services are contracted out to International Communications and
Equipment,  Inc. and his compensation  package consists of a consulting contract
under which he is paid $10,000 per month. Mr. Martin has been granted VOIP stock
options of 420,000 exercisable at $0.50 until maturity of September 7, 2001.

         Ken Berscht, VP/Director
     Mr. Berscht compensation package consist of the responsibility for investor
relations   corporate  financing  and  security  issues.  Mr.  Berscht  receives
consulting income of $8,000 per month under a consulting contract.

         Richard Jordan, CFO
     Mr. Jordan provides  accounting services through a management company which
also provides  administration  services and he is paid $5,000 per month, under a
consulting  contract,  and has been  granted  company  stock  options of 120,000
exercisable at $.50 until maturity of September 7, 2001.

         Thim Fook Low, Director
     Mr. Lows services are contracted out to Access Network,  Ltd., where is the
President and Chief Executive Officer.  Under and employment consulting contract
Mr.  Lows salary is set at $6,000 US monthly and he has been granted VOIP stock
options  of  360,000,  300,000 of which are set at $0.50 and 60,000 of which are
set at $0.417 to expire September 7, 2001

         Tan Sek Toh, Director
     Mr. Toh  represents  VOIPs  interest  with Telecom  companies in China and
leads the company representatives who travel to China to complete contracts. Mr.
Toh is compensated under a consulting contract at $3,000 per month for providing
this service to the company.

         Hee Dong Yoo, Chairman of the Board
     Mr.  Yoo  serves  as  Chairman  of  the  Board  and  is   responsible   for
introductions  to South East Asian  companies and businessmen who are interested
in doing  business  with  VOIP.  Mr.  Yoo  receives  a monthly  payment  under a
consulting contract of $5,000 and has been granted VOIP stock options of 300,000
exercisable at $0.50 until maturity of September 7, 2001.

There  are no  annunity,  pension  or  retirement  benefits  proposed  to pay to
officers,  directors or employees of the  Corporation in the event of retirement
date pursuant to any presently  existing plan provided or  contributed to by the
Corporation or any of its subsidiaries.

No remuneration  other than that reported in paragraph (a) of this item proposed
to be in the future  directly or indirectly by the corporation to any officer or
director under any plan which is presently existing.

Item 11.  Security Ownership of Certain Beneficial Owners and Management

The following table sets forth information, to the best knowledge of the Company
as of December 31, 2000 with respect to each director and officer and management
as a group and any holder owning more than 5% of the outstanding common stock.

Name and              Position          Title of   Amount of      Percentage(1)
 Address                                 Class        Shares
-------------------------------------------------------------------------------

Michael Tan           President         Common              -        -
4 Keng Chin Road      Director
Singapore 258707

Alexander Anderson    CEO               Common        344,000        1.0%
16-1 Aspenwood Dr.    Director
Port Moody BC
Canada V3H4X8

Ken Martin           Exec. VPCommon                3,000,000        9.35%
8544 NE 122nd #257   Director
Kirkland, WA 98033

Ken Berscht          VP                Common              -        -
1900-700 9th Ave.    Director
SA Calgary SL
Canada T2P3V4


Richard Jordan       CFO               Common              -        -
2363 Fraserview Drive
Vancouver, BC
Canada V5P2N5

Thim Fook Low        Director Common               1,200,000        3.74%
Block 808, French Road
#05-175
Kitchener Complex
Singapore 200808

Tan Sek Toh          Director                              -        -
1344 Whitby Road
West Vancouver, BC
Canada V7S2N5

Hee Dong You         Chairman                              -        -
Soeul, Korea         of the Board

Management and Directors as a group Common          4,544,000       14.17%

Item 12.  Certain Relationships and Related Transactions

The  Companys  officers and  directors are subject to the doctrine of corporate
opportunities only insofar as it applies to business  opportunities in which the
Company has indicated an interest,  either through its proposed business plan or
by way of an express statement of interest  contained in the Companys  minutes.
If directors are presented  with business  opportunities  that may conflict with
business  interests  identified  by the  Company,  such  opportunities  must  be
promptly  disclosed to the Board of Directors and made available to the Company.
In the event the Board shall reject an opportunity to presented and only in that
event, any of the Companys  officers and directors may avail themselves of such
an  opportunity.  Every  effort will be made to resolve any  conflicts  that may
arise in favor of the Company.  There can be no assurance,  however,  that these
efforts will be successful.

It should be noted that Kenneth Martin who is the Executive Vice President and a
director of VOIP was a 100% owner of International  Communications and Equipment
when it was purchased by VOIP.

On June 30, 2000 Alexander Anderson exercised 75,0000 options at $.42 per share.
The shares were issued under section 4(2) of the 1933  Securities Act and bear a
restrictive legend.

On June 30, 2000 Alexander  Anderson  exercised  60,000 shares.  The shares were
exercised at $.21 per share.  The shares were issued  under  section 4(2) of the
1933 Securities Act and bear a restrictive legend.

On June 30, 2000 Alexander  Anderson  exercised  60,000 shares.  The shares were
exercised at $.21 per share.  The shares were issued  under  section 4(2) of the
1933 Securities Act and bear a restrictive legend.

On October 1, 2000 Alexander Anderson exercised options on 12,000 shares at $.21
per  share.  The  shares  were  issued  pursuant  to  section  4(2) of the  1933
Securities Act and bear a restrictive legend.






                                                                PART V

Item 13. Exhibits and Reports on From 8-K

(a)      Exhibits  FILED BY REFERNCE

       Articles of Incorporation, filed as  Exhibit to Form 10-SB

       By Laws, filed as Exhibit to Form 10-SB

       Subsidiaries

       Articles of Incorporation filed as Exhibit to Form 10-SB

27       Financial Data Schedule

        Exhibits so marked have  heretofore  been filed with the
        Securities and Exchange  Commission as part of the filing  indicated
        are incorporated herein by reference.

(b)      Reports  on Form 8-K

                  Dated November 15, 1999.

                  Annual Meeting with Proxy Information and Proxy
                                                              SIGNATURES

     In accordance with Section 13 or 15 (d) of the Exchange Act. The Registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                                      VOIP TELECOM, Inc.



                                                      By:/S/ Michael Tan
                                                             Michael Tan
                                                             President


Dated:  April 13, 2001

     In  accordance  with the Exchange Act, this report has been signed below by
the following  persons on behalf of the  Registrant and in the capacities and on
the dates indicated.

Signature                  Title                              Date

/S/ Michael Tan          President, Director                  April 2, 2001
Michael Tan


/S/ Ken Berscht          Vice President                      April 2, 2001
Ken Berscht

/S/ Alexander Anderson   Common                     April 2, 2001
Alexander Anderson




15

                       350 E Street, Chula Vista, CA 91910
                     Tel: (619) 422-1348 Fax: (619) 422-1465
                                ARMANDO C. IBARRA
                          CERTIFIED PUBLIC ACCOUNTANTS
                          ( A Professional Corporation)


Armando C. Ibarra
C.P.A.
Members of the California Society of
Armando
C.P.A.
Certified Public Accountants


To the Board of Directors
VoIP Telecom, Inc.
(Formerly Presidents Telecom, Inc.)
(A Development Stage Company)


We have audited the  accompanying  consolidated  balance sheets of VoIP Telecom,
Inc.  (Formerly  Presidents  Telecom,  Inc.)(A  Development Stage Company) as of
December 31, 2000 and the related consolidated statements of operations, changes
in  stockholders  equity  and  cash  flows  for  the  year  then  ended.  These
consolidated  financial  statements  are  the  responsibility  of the  Companys
management.  Our  responsibility  is to express  an  opinion on these  financial
statements  based on our audit. The financial  statements of VoIP Telecom,  Inc.
(Formerly  Presidents  Telecom,  Inc.) from January 1, 1999 to December 31, 1999
were audited by other  auditors whose reports have been furnished to us, and our
opinion, insofar as it relates to the cumulative data through December 31, 1999,
is based solely on the reports of the other auditors.

We conducted our audit in accordance with generally accepted auditing standards.
Those standards  require that we plan and perform the audit to obtain reasonable
assurance  about  whether  the  consolidated  financial  statements  are free of
material  misstatement.  An audit includes examining,  on a test basis, evidence
supporting the amounts and disclosures in the consolidated financial statements.
An audit also includes assessing the overall financial  statement  presentation.
We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the consolidated  financial statements referred to above present
fairly, in all material respects,  the financial position of VoIP Telecom,  Inc.
(Formerly  Presidents  Telecom,  Inc.)(A  Development  Stage  Company)  and  its
subsidiaries  as of December 31, 2000,  and the results of their  operations and
their cash flows for the year then ended in conformity  with generally  accepted
accounting principles. Our opinion, insofar as it relates to the cumulative data
through December 31, 1999, is based solely on the report of the other auditors.

The  financial  statements  have been  prepared  assuming  that the Company will
continue as a going concern. As discussed in Note 4 to the financial statements,
the Companys losses from operations raise  substantial  doubt about its ability
to continue as a going  concern.  The  financial  statements  do not include any
adjustments that might result from the outcome of this uncertainty.

/S/ Armando C. Ibarra
ARMANDO C. IBARRA, CPA - APC

April 7, 2001



                             VoIP TELECOM, INC.
                     (Formerly Presidents Telecom, Inc.)
                          (A Development Stage Company)
                           Consolidated Balance Sheets
                                      ASSETS
                                2000              1999
CURRENT ASSETS
Cash                         $   50,392   $      156
Accounts receivable             145,852            0
Receivable - related party        1,450            0
Loan receivable                 153,622            0
Prepaid expenses                  2,906            0
Total Current Assets            354,222          156
NET PROPERTY & EQUIPMENT      1,506,720            0
TOTAL ASSETS                 $1,860,942   $      156





                               VoIP TELECOM, INC.
                      (Formerly Presidents Telecom, Inc.)
                         (A Development Stage Company)
                          Consolidated Balance Sheets
                        As of December 31, 2000 and 1999
                   LIABILITIES AND STOCKHOLDERS' EQUITY
                                                   2000               1999
CURRENT LIABILITIES
Accounts payable                               $  1,236,659    $          0
Loans payable                                       233,266               0
Total Current Liabilities                         1,469,925               0
LONG TERM LIABILITIES
Loan payable - related party                        122,785               0
Total Long Term Liabilities                         122,785               0
TOTAL LIABILITIES                                 1,592,710               0
STOCKHOLDERS' EQUITY
Common stock ($0.0001 par value, 100,000,000 shares
authorized; 32,674,192 and 13,314,002 shares issued
and outstanding for 2000
and 1999, respectively)                               3,268           1,332
Additional paid-in capital                       11,642,494         244,735
Stock subscription receivable                             0        (150,000)
Deficit accumulated during development stage    (11,377,530)        (95,911)
Total Stockholders' Equity                          268,232             156
TOTAL LIABILITIES
& STOCKHOLDERS' EQUITY                         $  1,860,942    $        156









                   VoIP TELECOM, INC.
           (Formerly Presidents Telecom, Inc.)
              (A Development Stage Company)
          Consolidated Statements of Operations
   For the Twelve Months Ended December 31, 2000 and 1999
         And from May 4, 1987 (inception) through December 31, 2000
                                                                      From
                                                                  Inception on
                                                                  May 4, 1987
                                                                    through
                                                      Restated     December 31,
                                     2000                1999         2000
REVENUES
Sales                             $    240,456    $          0    $    240,456
Costs of revenues                     (202,919)              0        (202,919)
Total Net Revenues                      37,537               0          37,537
OPERATING COSTS
Depreciation                           733,802               0         733,802
Bad debt expense                       879,562               0         879,562
Administrative expenses              3,129,146          93,461       3,225,057

Total Operating Costs                4,742,510          93,461       4,838,421
OTHER INCOME & (EXPENSES)
Interest income                          2,939               0           2,939
Other expenses                         (49,806)              0         (49,806)
Exchange gain or loss                      (50)              0             (50)
Impairment of goodwill              (6,500,000)              0      (6,500,000)
Interest expense                       (29,728)              0         (29,728)
Total Other Income & Expenses       (6,576,645)              0      (6,576,645)
NET (LOSS)                        $(11,281,619)   $    (93,461)   $(11,377,530)
BASIC EARNINGS (LOSS) PER SHARE                   $     (0.555)   $     (0.020)
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING           20,320,478       5,259,096
DILUTED EARNINGS (LOSS) PER SHARE                 $     (0.555)   $      0.000
WEIGHTED AVERAGE OF DILUTED
COMMON SHARES OUTSTANDING           20,331,437               0





                               VoIP TELECOM, INC.
                       (Formerly Presidents Telecom, Inc.)
                          (A Development Stage Company)
              From May 4, 1987(Inception) through December 31, 2000

                                                          Common    Additional
                                        Common             Stock     Paid in
                                        Shares            Amount     Capital

Inception, May 4, 1987                       $   -       $     -       $     -

Common stock issued for cash            12,000,000         1,200          (200)

Net loss from inception on May 4,
1997 through December 31, 1997
Balance, December 31, 1997              12,000,000         1,200          (200)

Net loss for the year ended December
31, 1998                                         -             -             -


Balance, December 31, 1998              12,000,000         1,200          (200)


Common stock issued for cash
at $ 0.15 per share                      1,200,000           120       149,880


Contributed capital                              -             -            67

Stock issued for cash at $ 1.00 per
share                                      108,002            11        89,989

Stock issued for services at $ 1.00
per share                                    6,000             1         4,999

Net loss for the year ended
December 31, 1999                                -             -             -

Balance, December 31, 1999              13,314,002         1,332       244,735

Common stock issued for cash
at $ 0.54 per share                      2,752,276           275     2,752,001

Common stock issued for cash
at $ .20 per share                       3,810,000           381       761,619

Stock offering costs                             -             -      (607,928)

Common stock issued for services
at $ 3.00 per share                         60,000             6       179,994

Common stock issued for services
at $ 1.00 per share                      1,080,600           108     1,080,492

Common stock issued for services
at $ 0.50 per share                         25,000             3        12,497



                                                        Deficit
                                                        Accumulated
                                           Stock       During the
                                        Subscription   Development
                                          Receivable    Stage          Total


Inception, May 4, 1987                   $      -       $     -             -

Common stock issued for cash                    -             -         1,000

Net loss from inception on May 4,
1997 through December 31, 1997
Balance, December 31, 1997                      0        (1,000)            0

Net loss for the year ended December
31, 1998                                        -        (1,450)       (1,450)


Balance, December 31, 1998                      -        (2,450)       (1,450)


Common stock issued for cash
at $ 0.15 per share                      (150,000)            -             -


Contributed capital                             -             -            67

Stock issued for cash at $ 1.00 per
share                                           -             -        90,000

Stock issued for services at $ 1.00
per share                                       -             -         5,000

Net loss for the year ended
December 31, 1999                               -       (93,461)      (93,461)

Balance, December 31, 1999               (150,000)      (95,911)          156

Common stock issued for cash
at $ 0.54 per share                             -             -     2,752,276

Common stock issued for cash
at $ .20 per share                              -             -       762,000

Stock offering costs                            -             -      (607,928)

Common stock issued for services
at $ 3.00 per share                             -             -       180,000

Common stock issued for services
at $ 1.00 per share                             -             -     1,080,600

Common stock issued for services
at $ 0.50 per share                             -             -        12,500









                               VoIP TELECOM, INC.
                       (Formerly Presidents Telecom, Inc.)
                          (A Development Stage Company)
              From May 4, 1987(Inception) through December 31, 2000

                                                             Common  Additional
                                             Common          Stock    paid in
                                              Shares         Amount   capital

Common stock issued for services
at $ 0.17 per share                         172,834            17        28,788

Common stock issued to acquire 100%
of Central America Fuel Technologies,
Inc. on March 15, 2000                        6,000             1        14,999

Options exercised at $ 0.42 per share        75,000             7        31,243

Options exercised at $ 0.21 per share        60,000             6        12,494

Options exercised at $ 0.21 per share        60,000             6        12,494

Common stock issued for ICE at
$ 0.83 per share                          3,000,000           300     2,499,700
Common stock issued for Access

Network Limited at $ 0.83 per share       4,800,000           480     3,999,520

Common stock issued for debt
settlement at $ 0.20 per share            2,152,140           215       358,475

Common stock issued for debt
settlement at $ 0.83 per share              109,340            11        90,741

Receipt of subscription receivable                -             -             -

Options exercised at $ 0.2084                12,000             1         2,499

Options exercised at $ 0.4167                42,600             4        17,746

Options exercised at $ 0.4167                 2,400             1           999

Common stock issued for cash
at $ 0.10 per share                         120,000            12        11,988

Common stock issued for cash
at $ 0.10 per share                         500,000            50        49,950

Common stock issued for services
-at $ 0.16827 per share                     520,000            52        87,448

Net loss for the year ended
December 31, 2000                                 -             -             -

Balance, December 31, 2000               32,674,192   $     3,268   $11,642,494










                                                        Deficit
                                                        Accumulated
                                           Stock        during the
                                          Subscrption   development
                                           Receivabel   stage        Total




Common stock issued for services
at $ 0.17 per share                            -              -          28,805

Common stock issued to acquire 100%
of Central America Fuel Technologies,
Inc. on March 15, 2000                         -              -          15,000

Options exercised at $ 0.42 per share          -              -          31,250

Options exercised at $ 0.21 per share          -              -          12,500

Options exercised at $ 0.21 per share          -              -          12,500

Common stock issued for ICE at
$ 0.83 per share                               -              -       2,500,000
Common stock issued for Access

Network Limited at $ 0.83 per share            -              -       4,000,000

Common stock issued for debt
settlement at $ 0.20 per share                 -              -         358,690

Common stock issued for debt
settlement at $ 0.83 per share                 -              -          90,752

Receipt of subscription receivable       150,000              -         150,000

Options exercised at $ 0.2084                  -              -           2,500

Options exercised at $ 0.4167                  -              -          17,750

Options exercised at $ 0.4167                  -              -           1,000

Common stock issued for cash
at $ 0.10 per share                            -              -          12,000

Common stock issued for cash
at $ 0.10 per share                            -              -          50,000

Common stock issued for services
-at $ 0.16827 per share                        -              -          87,500

Net loss for the year ended
December 31, 2000                              -    (11,281,619)    (11,281,619)

Balance, December 31, 2000               $     -   $(11,377,530)        268,232





                         VoIP TELECOM, INC.
                 (Formerly Presidents Telecom, Inc.)
                    (A Development Stage Company)
                Consolidated Statements of Cash Flows
           For the Years Ended December 31, 2000 and 1999
     And from May 4, 1987 (inception) through December 31, 2000

                                                                        From
                                                                    Inception on
                                                                     May 4, 1987
                                                                        through
                                                        Restated    December 31,
                                       2000              1999           2000
    CASH FLOWS FROM OPERATING ACTIVITIES
Income (loss)
from operations                    $(11,281,619)   $    (93,461)   $(11,377,530)
Depreciation
expense                                 733,802               0         733,802
(Increase) in
accounts receivable                    (147,302)         (1,450)       (147,302)
Increase in
accounts payable                      1,236,659               0       1,236,659
(Increase) in
loans receivable                       (153,622)              0        (153,622)
(Increase) in
prepaid expenses                         (2,906)              0          (2,906)
Bad debt                                879,562               0         879,562
Impairment of
goodwill                              6,500,000               0       6,500,000
Common stock issued
for services                          1,389,405           5,000       1,394,405
Net Cash Provided by
Operating Activities                   (846,021)        (89,911)       (936,932)
CASH FLOWS FROM INVESTING ACTIVITIES
Net purchase of
fixed assets                         (2,240,522)              0      (2,240,522)
Net Cash Used by
Investing Activities                 (2,240,522)              0      (2,240,522)
CASH FLOWS FROM FINANCING ACTIVITIES
Common stock issued
for subscription receivable             150,000        (150,000)              0
Common stock issued
for cash                                    718             131             849
Paid in capital                       2,986,061         239,936       3,226,997
Net Cash Provided by
Financing Activities                  3,136,779          90,067       3,227,846




                         VoIP TELECOM, INC.
                 (Formerly Presidents Telecom, Inc.)
                    (A Development Stage Company)
          Consolidated Statements of Cash Flows (continued)
           For the Years Ended December 31, 2000 and 1999
     And from May 4, 1987 (inception) through December 31, 2000


                                                              From
                                                           Inception on
                                                           May 4, 1987
                                                            through
                                                Restated    December 31,
                                       2000        1999          2000

Net Increase (Decrease)
in Cash                               50,236          156       50,392
Cash at Beginning
of Year                                  156            0            0
Cash at End
of Year                           $   50,392   $      156   $   50,392
Supplemental Cash
Flow Disclosures
Cash paid during
year for interest                 $   29,728   $        0   $   29,728
Schedule of
Non-Cash Activities
Common stock issued
for services                      $1,389,405   $        0   $1,389,405
Common stock issued
for acquisition of subsidiaries   $7,800,000   $        0   $7,800,000









                               VoIP TELECOM, INC.
                       (Formerly Presidents Telecom, Inc)
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements
                 For the Years Ended December 31, 2000 and 1999

NOTE 1.  ORGANIZATION AND DESCRIPTION OF BUSINESS

VoIP Telecom,  Inc. (the Company) was incorporated,  May 4, 1987, under the laws
of the state of  Nevada,  as Energy  Realty  Corporation.  On July 31,  1993 the
Companys name changed to Balcor International and on December 18, 1998 the name
was again changed to Dimension  House,  Inc. As of December 31, 1998 the Company
had no operations and in accordance  with SFAS # 17 was considered a development
stage  company.  As of December  31, 1998 the  Company was  authorized  to issue
100,000,000  shares  of  $0.0001  par  value of  which  10,000,000  shares  were
outstanding.  On October  28, 1999 the  Company  changed its name to  Presidents
Telecom, Inc.

Pursuant to an  acquisition  agreement  and plan of merger dated as of March 15,
2000  between the Company  then known as  Presidents  Telecom,  Inc. and Central
America Fuel Technology, Inc. (CAFT), a Nevada corporation,  all the outstanding
common shares of CAFT were exchanged for 5,000 restricted common shares of VoIP.

On April 1, 2000, the Company acquired 100% of the issued and outstanding shares
of  International  Communications  and  Equipment,  Inc.  (ICE) in exchange  for
3,000,000  shares of VoIPs common stock.  ICE is establishing an  International
telecommunications  network  using the Voice  Over  Internet  Protocol.  ICE has
recently received  approval for a Russian joint venture,  which will be serviced
through a wholly owned  German subsidiary using the latest in Clarent technology
and equipment.

ICE was founded in 1996.  Under a joint venture  agreement  negotiated  with the
Crosna Group, a banking-satellite-telecom  conglomerate in Moscow, ICE shall own
50% of the Crosna project and shall be the managing venture  partner.  The joint
venture  will  provide  the  Company  long  distance  carrier  serves for the 89
regional  carriers serving the Russian  Federation over a landline and satellite
network. The Companys initial equipment configuration,  already installed, will
offer  telephony  long  distance  calling  services  to  people in  Moscow,  St.
Petersburg, Yaroslavl, Volgograd and outbound to other countries.

On April 1, 2000, the Company acquired 100% of the issued and outstanding shares
of Access  Network  Limited in exchange for  4,800,000  shares of the  Companys
common stock. The Company provides long distance voice communication services.

On April 17, 2000, the Company changed its name to VoIP Telecom, Inc.

Through subsidiaries,  the Company delivers international long distance services
via flexible,  server-based  networks  consisting of re-sale  arrangements  with
other long distance providers, various foreign termination relationships, VoIPs
own international servers and leased/owned  transmission  facilities.  Employing
digital  switching  and  transmission  technologies  supported by  comprehensive
monitoring and technical  support  personnel,  the Company provides  services in
foreign countries.



NOTE 2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Accounting Method

The Companys  financial  statements  are prepared  using the accrual  method of
accounting. The company has elected a December 31, year end.

b. Basic Loss per Share

In February  1997,  the FASB issued SFAS No. 128,  Earnings  Per Share,  which
specifies the computation, presentation and disclosure requirements for earnings
(loss) per share for entities  with  publicly  held common  stock.  SFAS No. 128
supersedes the provisions of APB No. 15, and requires the  presentation of basic
earnings (loss) per share and diluted earnings (loss) per share. The Company has
adopted the provisions of SFAS No. 128 effective December 6, 1993 (inception).

Basic net loss per share excludes  dilution and is computed by dividing net loss
by the weighted average number of common shares  outstanding during the reported
periods.  Diluted net loss per share reflects the potential  dilution that could
occur if a stock  option  and  other  commitments  to issue  common  stock  were
exercised.

c. Basis of Consolidation

The  consolidated  financial  statements  of VoIP  Telecom,  Inc.  include those
accounts of VoIP  Telecom,  Inc.,  Access  Network  Limited,  and  International
Communications & Equipment Inc. All significant  intercompany  transactions have
been eliminated.

d. Cash Equivalents

The Company  considers  all highly liquid  investments  with a maturity of three
months or less when purchased to be cash equivalents.

e. Estimates and Adjustments

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of assets  and  liabilities  and  disclosure  of
contingent  assets and  liabilities at the date of the financial  statements and
the  reported  amounts of revenues  and expenses  during the  reporting  period.
Actual results could differ from those estimates.






NOTE 2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)


     f. Basis of Presentation and Considerations  Related to Continued Existence
(going concern)

     The Companys financial statements have been presented on the basis that it
is a going  concern,  which  contemplates  the  realization  of  assets  and the
satisfaction of liabilities in the normal course of business.

     The  Companys  management  intends  to raise  additional  operating  funds
through operations and/or debt offerings.

g.  Income Taxes

The Company  accounts  for income  taxes using the asset and  liability  method.
Under the asset and liability  method,  deferred income taxes are recognized for
the tax consequences of temporary  differences by applying  enacted  statutory
tax rates  applicable  to future  years to  differences  between  the  financial
statement carrying amounts and the tax bases of existing assets and liabilities.
Deferred tax assets are reduced by a valuation allowance when, in the opinion of
management,  it is more likely than not that some portion or all of the deferred
tax assets will not be realized. See note 5 regarding income tax benefit.

h. Property & Equipment

Property  and  equipment  are  recorded at cost.  Minor  additions  renewals are
expensed in the year incurred.  Major additions and renewals are capitalized and
depreciated over their estimated useful lives.  Depreciation and amortization is
calculated using  straight-line and accelerated  methods for income tax purposes
(five years for vehicles and equipment,  and seven years for office  furniture).
Total depreciation for the year ended 2000 is $733,802.


NOTE 3 -  GOING CONCERN

As shown in the  accompanying  financial  statements  the Company  has  incurred
deficits of  $11,281,619  and $93,461 for the years ended  December 31, 2000 and
1999,  respectively,  and has incurred a deficit totaling  $11,377,530 since its
inception in 1987.  The ability of the Company to continue as a going concern is
dependent  on  the   significant   generation  of  revenue  from  the  Companys
international  long distance services.  The financial  statements do not include
any adjustments  that might be necessary if the Company is unable to continue as
a going concern.





NOTE 4 -   INCOME TAXES

                                                December 31 ,
                                         2000                  1999
Deferred tax assets:
Net operating loss carryforwards   $  11,281,619            $    93,461
Other                                   -0-                      -0-
Valuation allowance                  (11,281,619)               (93,461)

Net deferred tax assets            $    -0-                 $    -0-

Realization of deferred tax assets is dependent upon  sufficient  future taxable
income during the period that deductible temporary differences and carryforwards
are expected to be available to reduce  taxable  income.  As the  achievement of
required  future taxable income is uncertain,  the Company  recorded a valuation
allowance.


NOTE 5 -  NOTES PAYABLE

Notes payable as of December 31, 2000, consist of the following:

Unsecured  promissory  note of $165,000  dated November 2, 2000 with an interest
rate at the annual  floating rate of US Prime+ 4%. The maturity date is November
2, 2001.

Unsecured  promissory  note of $15,000 dated  November 13, 2000 with an interest
rate at 10%. The maturity date is November 2, 2001.

Unsecured  promissory  note of $50,000 dated  November 22, 2000 with an interest
rate at 10% per annum.  The maturity  date is November  22,  2001,  or under the
terms of a funding  commitment  to fund up to $4,000,000 by way of a convertible
debenture. Conversion can be exercised at a price of $0.25 per share.





NOTE 6 -  PROPERTY & EQUIPMENT

Property  is  stated  at cost.  Additions,  renovations,  and  improvements  are
capitalized.  Maintenance  and repairs,  which do not extend  asset  lives,  are
expensed as incurred. Depreciation is provided on a straight-line basis over the
estimated useful lives ranging from 27.5 years for commercial rental properties,
5 years for tenant improvements, and 5 - 7 years on furniture and equipment.


                                     2000
                             ---------------------
                             ---------------------
Equipment                       $ 2,194,494
  -----------------------------------------
  -----------------------------------------
Office furniture                     34,897
  -----------------------------------------
Computer                             11,131
---------------------------------------------------
                                $ 2,240,522
  -----------------------------------------
Less Accumulated Depreciation      (733,802)
                      ---------------------
                      ---------------------

  -----------------------------------------
  -----------------------------------------
Net Property and Equipment      $ 1,506,720
                      =====================


NOTE 7 -  RELATED PARTY TRANSACTIONS

a. On  September  1, 2000 the Company  entered  into a twelve  month  consulting
agreement.  Alexander  Anderson  will  serve  the  Company  in the  capacity  of
consultant in  consideration of which the Company will pay to the consultant the
sum of $10,000  monthly or such  greater  sum as may be approved by the Board of
Directors of the Company.

b. The  Company has  received  advances of  $122,785  from a  stockholder  as of
December  31,  2000.  As of December  31,  2000 the Company has not  established
specific repayment terms.

 NOTE 8 -  STOCK TRANSACTIONS

As of December 31, 1998 the Company had 12,000,000 shares  outstanding.  On June
17, 1998,  the Company issued  1,200,000  shares of common stock valued at $0.15
per share for cash.

On June 17,  1998 the Company  issued  108,002  shares of common  stock for cash
valued at $1.00 per share.

On June 17, 1998.  The Company  issued 6,000 shares of common stock for services
valued at $1.00 per share.

As of  December  31,  1999 the Company  had  13,314,002  shares of common  stock
outstanding.



NOTE 8 -  STOCK TRANSACTIONS (CONTINUTED)

On March 31, 2000, the Company issued  2,752,276 shares of common stock for cash
valued at $0.54 per share.

On March 31, 2000, the Company issued  3,810,000 shares of common stock for cash
valued at $0.20 per share.

On April 20, 2000 the Company  issued 60,000 shares of common stock for services
valued at $3.00 per share.

On April 28,  2000,  the Company  issued  1,080,600  shares of common  stock for
services valued at $1.00 per share.

On May 17, 2000,  the Company  issued 25,000 shares of common stock for services
valued at $0.50 per share.

On May 19, 2000,  the Company issued 172,834 shares of common stock for services
valued at $0.17 per share.

On June 2, 2000 the Company  issued 6,000 shares of common stock to acquire 100%
of Central America Fuel Technologies, Inc. valued at $2.50 per share.

On June 30, 2000 the Company had 75,000 shares of common stock exercised  valued
at $0.42 per share.

On June 30, 2000 the Company had 60,000 shares of common stock exercised  valued
at $0.21 per share.

On June 30, 2000 the Company had 60,000 shares of common stock exercised  valued
at $0.21 per share.

On June 30, 2000 the Company issued  3,000,000 shares of common stock to acquire
International Communication & Equipment valued at $0.83 per share.

On June 30, 2000 the Company issued  4,800,000 shares of common stock to acquire
Access Network Limited valued at $0.83 per share.

On August 30, 2000 the Company issued  2,152,140 shares of common stock for debt
settlement valued at $0.20 per share.





NOTE 8 -  STOCK TRANSACTIONS (CONTINUTED)

On August 30, 2000 the Company  issued  109,340  shares of common stock for debt
settlement valued at $0.83 per share.

On  October 1, 2000 the  Company  had 12,000  shares of common  stock  exercised
valued at $0.2084 per share.

On October 4, 2000 the Company had 42,600  shares of common  stock  exercised at
$0.4167 per share.

On October  12,  2000 the Company  had 2,400  shares of common  stock  exercised
valued at $0.4167 per share.

On December 27, 2000 the Company  issued 120,000 shares of common stock for cash
valued at $0.10 per share.

On December 27, 2000 the Company  issued 500,000 shares of common stock for cash
valued at $0.10 per share.

On December 31, 2000 the Company  issued 520,000 shares of common stock for cash
valued at $0.16827 per share.

NOTE 9 -  ISSUANCE OF SHARES FOR SERVICES  STOCK OPTIONS

The company  has a  nonqualified  stock  option  plan,  which  provides  for the
granting of options to key employees, consultants, and nonemployees directors of
the Company.  The  valuation of shares for services are based on the fair market
value of services.  The Company has elected to account for the stock option plan
in accordance  with paragraph 30 of SFAS 123 were the  compensation to employees
should be recognized over the period(s) in which the related  employee  services
are rendered.  In accordance  with  paragraph 19 of SFAS 123 the fair value of a
stock option granted is estimated using an option-pricing model.

A total of  1,389,405  shares were issued for  services  to  management  and key
employees for the year ended December 31, 2000.