3


                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, 2001

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

                        Commission File Number: 000-28047

                               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.)

                       4126 Delp Street, Memphis, TN 38118
               (Address of principal executive offices) (Zip Code)

Issuers telephone no.:  (901) 365-7650

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. $ 890,698

     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, 2001
         Common Stock, $.0001 Par Value               40,722,972


                       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                             6
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                                         6-7

Item 6.          Managements Discussion and Analysis or Plan of
                     Operation                                        7-11

Item 7.          Financial Statements                                11

Item 8.          Changes in and Disagreements with Accountants on
                      Accounting and Financial Disclosure            11

                                                     PART III

Item 9.          Directors, Executive Officers, Promoters and Control persons;
                     Compliance with Section 16(a) of the Exchange Act    12-14

Item 10.         Executive Compensation                                  14-15

Item 11.        Security Ownership of Certain Beneficial Owners and
                     Management                                          15

Item 12.        Certain Relationships and Related Transactions           16

Item 13.        Exhibits and Reports on Form 8-K                         16

SIGNATURES               S-1













                                     PART I

This document includes statements that may constitute forward-looking statements
made pursuant to the Safe harbor provisions of the Private Securities Litigation
reform Act of 1995.The  Company would like to caution certain readers  regarding
certain  forward-looking  statements  in  this  documents  and  in  all  if  its
communications to shareholders and others, on managements projections, estimates
and  all  other  communications.   Statements  that  are  based  on  managements
projections, estimates and assumptions are forward-looking statements, the words
believe,  expect,  anticipate,  intend  and similar  expressions  generally
identify forward-looking statements.  While the Company believes in the veracity
of all statements made herein,  forward-looking statements are necessarily based
upon a number of estimates, and assumptions that, while considered reasonable by
the  Company,  are  inherently  subject to  significant  business,  economic and
competitive  uncertainties and contingencies and know and unknown risks. Many of
the  uncertainties  and contingencies can affect events and the Companys actual
results  and could  cause its  actual  results  to differ  materially  from this
expressed  in any  forward-looking  statements  made by,  or on  behalf,  of the
Company.

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 Limited for 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  rescission
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.  ON January 1, 2001 the  Company  rescinded  its  acquisition  of ICE
whereby the Company returned the assets subject to the liabilities of ICE to its
former  owners in exchange for the  3,000,000  shares of common stock which VOIP
paid for ICE. The  3,000,000  shares of common  stock have been  returned to the
companies  treasury.  As  of  December  31,  2001  the  Company  had  authorized
100,000,000 shares at $0.0001 par value of which 40,722,972 were outstanding.

     The Company,  through Access Network, Ltd., 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 Access  Network,  Ltd.,  offers  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 manufacturer 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 currently has eleven  employees.  Eight of these employees work
in Asia for Access  Network,  Ltd. The eight  employees  at the Access  Network,
Ltd., subsidiary work full time. There are three employees at the administrative
office, 2 of which who work full time for the company and one part time.

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.  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.

Facilities

The issuer maintains an  administrative  office in Memphis,  Tennessee , at 4126
Delp Street which, is rented on a month to month lease for $500 (US). The office
is  approximately  1200 square  feet.  A statutory  office,  resident  agent for
services at 2921 N. Tenaya  Way,  Las Vegas,  NV 89128.  Access  Network,  Ltd.,
operates a corporate  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 of the research
and development is performed by 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 an  administrative  office in Memphis,  Tennessee , at
4126 Delp Street which,  is rented on a month to month lease for $500 (US).  The
office is approximately 1200 square feet. A statutory office, resident agent for
services at 2921 N. Tenaya  Way,  Las Vegas,  NV 89128.  Access  Network,  Ltd.,
operates 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, 2001.

                                                      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 200
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.

    2000               High          Low
First Quarter    $      6.00$       3.500
Second Quarter   $      5.00$       2.00
Third Quarter    $      3.00$        .75
Fourth Quarter   $      2.00$        .60

   2001
First Quarter    $       .60$        .09
Second Quarter   $       .50$        .04
Third Quarter    $       .11$        .01
Fourth Quarter   $       .06$        .01

     As of December 31, 2001 the Company had issued and  outstanding  40,722,972
shares of common stock and there were  approximately 103 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 January 1, 2001 the Company rescinded their ICE acquisition. The Company
retired  the  3,000,000  shares of common  stock  that were  issued  for the ICE
acquisition.

     On January 25, 2001 the Company issued  1,800,000 shares of common stock at
$.10 per share to RB Capital and Equities in trust for the settlement of debt to
an Investor Relations firm.

     On March 10,  2001 the Company  issued  100,000  shares to RST  Investment,
Ltd., at $.10 per share as a consulting fee and on February 20, 2001 the Company
issued 20,280  shares at $.10 per share to Brent Purin for a finders fee.  Also,
the Company  issued  628,500  shares to 36 investors on February 9, 2001 at $.10
per share in a Private Placement in March of 2000 as penalty shares.

     On March 9, 2001 the Company issued  250,000 shares to Alexander  Anderson,
an officer and director,  in  consideration  of a  cancellation  of a management
contract at $.10 per share for consideration of $25,000.

     On June 10, 2001 the Company  issued 250,000 shares of common stock at $.01
for a total  of  $2,500  to  Cameron  House  Publishing,  Inc.,  for  consulting
services.

     On July 17, 2001 the Company  issued  8,000,000  shares of common  stock as
$.10 par  value  for  consulting  fees  linked  to a  possible  acquisition  for
consideration of $800,000.

     All of the  above  shares  were  issued  under  section  4(2)  of the  1933
Securities Act.

     As of December 31, 2001 the Company has  40,722,972  shares of common stock
issued and outstanding. 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, 2001 and 2000.  The Company  consolidates  the
operations of VOIP Telecom,  Inc., and Access  Network,  Ltd. It should be noted
that the Company became fully operational in December of 2000.

Results of Operations

     For the year ended  December  31,  2001 the  Company  revenues  of $890,698
compared to revenues of $240,456 for the same period that year before. It should
be noted that the Company  became fully  operational in the 4th quarter of 2000.
Cost of revenues increased $87,576.  This is largely attributed to the increased
traffic and long distance service minutes the Company has to purchase to provide
their service.

Expenses

     The Company has total  expenses of $2,493,647  for the year ended  December
31, 2001 compared to expenses of $8,819,155 for the same period the year before.
A  major  reason  for  this  decrease  is that  there  is no  write  off for the
impairment  of goodwill for the year ended  December  31,  2001.  Administrative
expenses decreased $994,759 this can mostly be attributed to the ICE rescission.
Also,  bad debt expense  decreased from $875,562 for the year ended December 31,
2000 to $0 for the year ended  December  31,  2001.  Depreciation  expense  also
decreased  approximately  $600,000,  this  can  also  be  attributed  to the ICE
rescission.  The  Company  has a loss of $150,260 in the sale of assets and from
the rescission of the ICE acquisition.

Liquidity and Capital Resources

The  Companys  management  acknowledged  that  there is a severe  impairment  of
liquidity  in regards to the  Companys  financial  statements.  The  Company has
$507,937 in current assets compared to $1,729,443 in current  liabilities.  This
presents a poor 1:3.4  current  ratio.  This is  compared  to current  assets of
$354,222 in current assets  compared to $1,469,925 in current  liabilities and a
1:4.2 current ratio for the year ended December 31, 2000.

It  should be noted  that in the  Companys  audited  financial  statements  for
December 31, 2001 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 2f.

Net Operating Losses

     The Company has  accumulated  $(13,270,974)  of net operating  losses as of
December 31, 2001,  which may used to reduce taxes in future years through 2021.
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

                  Ron Lowe                  58            President/Director

                  B. Grant Hunter           38            CEO/Chairman of
                                                          the Board

                  Mary Eubanks              65            Secretary/Treasurer/
                                                          Director

                  Michael Tan               36            Director

                  Stephen Tan               65            Director

                  W. Burley Shedd           46            Director

                  Ed Gatlin                 61            Director

     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  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.

     There are three working  officers,  two are on a full time basis and is one
in a part time basis.

     At  present  the  Company  does have  employment  agreements  in place with
certain directors,  executive officers and employees. 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.

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

         Ron Lowe (Thim Fook Low), President
     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.

         B. Grant Hunter, CEO/Chairman of the Board
     B. Grant  Hunter.  Mr. Hunter is an  entrepreneur  who has spent his entire
career  building a large,  family owned,  privately held company,  Lynn Whitsett
Corporation  specializing in the high  temperature  process  vessels.  Under Mr.
Hunters guidance, the company operates in an international scale

         Mary Eubanks, Secretary/Treasurer/Director
     Mary A. Eubanks.  Ms. Eubanks graduated from Christian  Brothers College in
1981. Her degree is in public accounting.  She has been a Tennessee Licensed CPA
since  1983.  After the CPA  practice  was sold,  she  became  employed  by Lynn
Whitsett Corp., in December of 1999 as the controller.

         Michael Tan,  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.
Mr. Tan is  currently  the  president  of 5 G wireless  Communications,  Inc., a
publicly traded company.

         Stephen Tan, Director
     Mr. Tan is currently  serving as the Director of VOIP Telecom,  Inc.  Since
1997 he has served as an Investment Consultant to Asia Pacific Telecoms, Canada.
He has also served a director to Taawwaseen Golf and Country Club, SC.

         W. Burley Shedd, Director
     W. Burley Shedd.  Mr. Shedd is general manager of Mobile,  Alabama division
of Lynn  Whitsett,  a refractory  construction  firm.  Mr. Shedd  graduated from
Clemson University in 1978 with a BS degree in Ceramic  Engineering.  He is also
the owner of several investment companies.

         Ed Gatlin, Director
     Ed H. Gatlin.  Mr. Gatlin was the founder and CEO of Ig-Lo Products  CorpHe
is currently a partner and  Chairman of Empire  Express,  Inc.  Mr.  Gatlin also
serves on various boards in the Memphis community.  He is a 1962 graduate of the
University of Mississippi and possesses a BBA degree.


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

         Ron Lowe, President
     Mr. Lowes compensation  package consists of a consulting  contract which he
is paid $10,000 monthly by Access Network, Ltd.

     B.  Grant  Hunter,  CEO/Chairman  of the  Board  Mr.  Hunters  compensation
consists of a consulting contract which he is paid $26,920 per month by VOIP.

         Mary Eubanks, Secretary/Treasurer/Director
     Ms. Eubanks  compensation  package consists of a consulting  contract which
she is paid $1,000 per month by VOIP.

     W. Burley Shedd,  Director Mr. Shedd does not have a compensation  package,
currently.

         Ed Gatlin, Director
     Mr. Gatlins compensation package consists of a consulting contract which he
is paid $500 per month by VOIP.

         Michael Tan, Director
         Mr. Tan does not have a compensation package, currently

         Stephen Tan, Director
         Mr. Tan does not have any compensation package, currently.


     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, 2001 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

Ron Lowe                       President      Common   1,000,000           2.5%
Seranacoon North
Ave 1
#03-503
Kitchener Complex, Singapore
200808

B. Grant Hunter                CEO/           Common      87,539            .2%
6234 Heather Drive             Chairman
Memphis, TN 38119              of the Board

Mary Eubanks                   Secretary/     Common      50,700            .1%
1046 Mirror Lake Lane          Treasurer/
Cordova, TN 38117              Director

W. Burley Shedd                Director       Common      11,000            .02%
#1 Bienville Ave
Mobile, AL 36606

Ed Gatlin                      Director       Common           -           -
4555 Walnut Grovr
Memphis, TN 38117

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

Stephen Tan                    Director       Common           -           -
#02-01
Century Ville
Singapore 258707

Management and Directors as a group           Common     1,149,239         2.82%

Based on 40,722,972 shares outstanding as of December 31, 2001

Other  5% Holders

Keppell Communications                                    8,000,000        20%
Tampines St 92
Singapore

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.

     Lynn Whitsett  Corporation is 100% owned by Jerry Hunter, the father of the
Companys President, Grant Hunter.


                                     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

        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

        None
                                   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/ Ron Lowe
                                                          Ron Lowe
                                                          President


Dated:  March 26, 2002

     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/ Ron Lowe                        President, Director          March 27, 2002
Ron Lowe


/S/ B. Grant Hunter                 CEO                          March 27, 2002
B. Grant Hunter

/S/ Mary Eubanks                    Secretary                    March 27, 2002
Mary Eubanks















                               VoIP TELECOM, INC.
                       (Formerly Presidents Telecom, Inc)
                   Notes to Consolidated Financial Statements
                         For the Year December 31, 2001

                                ARMANDO C. IBARRA
                          CERTIFIED PUBLIC ACCOUNTANTS
                          ( A Professional Corporation)



Armando C Ibarra,
C.P.A.
Armando Ibarra, Jr.,
C.P.A.
Certified Public Accountants




To the Board of Directors
VoIP Telecom, Inc.
(Formerly Presidents Telecom, Inc.)



     We have  audited the  accompanying  balance  sheets of VoIP  Telecom,  Inc.
(Formerly  Presidents  Telecom,  Inc.) as of December  31, 2001 and 2000 and the
related  statements of operations,  changes in  stockholders  equity,  and cash
flows  for  the  years  then  ended.   These   financial   statements   are  the
responsibility of the Companys management.  Our responsibility is to express an
opinion on these statements based on our audit.

     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 financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.

     In our opinion,  the financial statements referred to above present fairly,
in all material  respects,  the financial position of the Company as of December
31, 2001 and 2000,  and the results of its operations and its cash flows for the
years then ended, in conformity with generally accepted accounting principles.



_______________________________
ARMANDO C. IBARRA, CPA - APC

November 13, 2001









                               VoIP TELECOM, INC.
                       (Formerly Presidents Telecom, Inc.)
                           Consolidated Balance Sheets
                        As of December 31, 2001 and 2000


                                     ASSETS

                                                       2001            2000
                                            ------------------------------------

CURRENT ASSETS
Cash                                               $    8,743         $   50,392
Accounts receivable                                   269,591            145,852
Receivable - related party                             28,781              1,450
Loan receivable                                       200,822            153,622
Prepaid expenses                                            0              2,906
                                    --------------------------------------------

Total Current Assets                                  507,938            354,222

NET PROPERTY & EQUIPMENT                              323,317          1,506,720

OTHER ASSETS
Deposits                                               55,354                  0
                                    --------------------------------------------

TOTAL ASSETS                                       $  886,609         $1,860,942
                                    ============================================



                               VoIP TELECOM, INC.
                       (Formerly Presidents Telecom, Inc.)
                           Consolidated Balance Sheets
                        As of December 31, 2001 and 2000

                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                                     2001               2000
                                               ---------------------------------

CURRENT LIABILITIES
Accounts payable                               $    897,088        $  1,236,659
Accrued expenses                                    207,130                   0
Loans payable                                       625,224             233,266
                                        ------------------- -------------------

Total Current Liabilities                         1,729,443           1,469,925


LONG TERM LIABILITIES
Loan payable - related party                              0             122,785
                                        ------------------- -------------------

Total Long Term Liabilities                               0             122,785


TOTAL LIABILITIES                                 1,729,443           1,592,710

STOCKHOLDERS' EQUITY

Common stock ($0.0001 par
value, 100,000,000 shares
authorized; 40,722,972
and 32,674,192 shares issued
and outstanding for 2001
and 2000, respectively)                               4,073               3,268
Additional paid-in capital                       12,424,067          11,642,494
Deficit accumulated during
development stage                                   (95,911)            (95,911)
Deficit                                         (13,175,063)        (11,281,619)
                                        ------------------- -------------------

Total Stockholders' Equity                         (842,834)            268,232

                                        ------------------- -------------------
TOTAL LIABILITIES
& STOCKHOLDERS' EQUITY                         $    886,609        $  1,860,942
                                        =================== ===================



                               VoIP TELECOM, INC.
                       (Formerly Presidents Telecom, Inc.)
                      Consolidated Statements of Operations
                  For the Year Ended December 31, 2001 and 2000


                                          2001              2000
                                    --------------------------------

REVENUES
Sales                              $      890,698 $      240,456
Costs of revenues                        (290,495)      (202,919)
                                ----------------------------------------

Total Net Revenues                        600,203         37,537

OPERATING COSTS
Depreciation                              133,820        733,802
Bad debt expense                                0        879,562
Administrative expenses                 2,134,387      3,129,146
                                 ----------------------------------------

Total Operating Costs                   2,268,208      4,742,510

OTHER INCOME & (EXPENSES)

Interest income                             1,667          2,939
Other expenses                            (13,780)       (49,806)
Exchange gain or loss                    (150,260)           (50)
Impairment of goodwill                          0     (4,000,000)
Interest expense                          (63,066)       (29,728)
                                ----------------------------------------

Total Other Income & Expenses            (225,439)    (4,076,645)

NET (LOSS)                        $    (1,893,444) $   (8,781,618)
                                 ----------------------------------------
                                 ========================================

BASIC EARNINGS (LOSS) PER SHARE   $       (0.05)   $      (0.02)
                                 ========================================


WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING              39,003,147     20,320,478
                                 ========================================




                               VoIP TELECOM, INC.
                       (Formerly Presidents Telecom, Inc.)
            Consolidated Statement of Changes in Stockholders' Equity
              From May 4, 1987(Inception) through December 31, 2001

                                                        Common       Additional
                                        Common          Stock         Paid in
                                        Stock           Amount       Capital

Inception,
May 4, 1987                                  -          $     -        $      -


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

Net loss from
inception on May 4,
1987 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
December 31, 1998
for cash at $ 0.15                   1,200,000              120         149,880

Contributed capital                          -                -              67

Common stock issued
June 17, 1998
for cash at $
0.84 per share                         108,002               11          89,989

Stock issued on
June 2, 2000
for services
valued at $ 0.84                         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
on March 31, 2000
for cash at
$ 0.54 per share                     2,752,276              275       2,752,001

Common stock
issued on March 31, 2000
for cash at $ 0.20                   3,810,000              381         761,619

Stock offering costs                  (607,928)

Common stock issued
on April 20, 2000
for services valued
at $ 3.00 per share                     60,000                6         179,994

Common stock issued
on April 28, 2000
for services valued
at $ 1.00 per share                  1,080,600              108       1,080,492

Common stock issued
on May 17, 2000

for services valued
at $ 0.50 per share                     25,000                3          12,497









                               Stock
                               Subscription   Retained
                               Receivable      Earnings         Total


Inception,
May 4, 1987                          -             -             -

Common stock
issued for cash                      -             -         1,000

Net loss from
inception on May 4,
1987 through
December 31, 1997                    -        (1,000)       (1,000)

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
December 31, 1998
for cash at $ 0.15            (150,000)            0             0

Contributed capital                  -             -            67

Common stock issued
une 17, 1998
for cash at
$ 0.84 per share                     -             -        90,000

Stock issued on
June 2, 2000
for services
valued at $ 0.84                     -             -         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
on March 31, 2000
for cash at $ 0.54
per share                            -             -     2,752,276

Common stock issued
on March 31, 2000
for cash at $ 0.20                   -             -       762,000

Stock offering costs                 -             -      (607,928)

Common stock issued
on April 20, 2000
for services valued
at $ 3.00 per share                  -             -       180,000

Common stock issued on
April 28, 2000
for services valued at
$ 1.00 per share                     -             -     1,080,600

Common stock issued on
May 17, 2000
for services valued
at $ 0.50 per share                  -             -        12,500






                               VoIP TELECOM, INC.
                       (Formerly Presidents Telecom, Inc.)
            Consolidated Statement of Changes in Stockholders' Equity
              From May 4, 1987(Inception) through December 31, 2001



                                                        Common       Additional
                                        Common          Stock        Paid In
                                        Shares          Amount       Capital

continued

Common stock issued
on May 19, 2000

for services valued
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
on June 30, 2000
for acquisition of
ICE at $ 0.83 per share                  3,000,000            300      2,499,700

Common stock issued
on June 30, 2000
Access Network
Limited at $ 0.83
per share                                4,800,000            480      3,999,520

Common stock issued
on August 30, 2000
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





                                    Stock
                                 Subscription       Retained
                                 receivable         Earnings      Total



continued

Common stock issued
on May 19, 2000
for services valued
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
on June 30, 2000
for acquisition of
ICE at $ 0.83 per share                  -              -       2,500,000

Common stock issued
on June 30, 2000
Access Network
Limited at $ 0.83 per share              -              -       4,000,000

Common stock issued
on August 30, 2000
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.)
            Consolidated Statement of Changes in Stockholders' Equity
              From May 4, 1987(Inception) through December 31, 2001


                                                       Common        Additional
                                  Common               Stock         Paid in
                                  Shares               Amount        Capital

continued

Recission of ICE
at $ 0.10 per share               (3,000,000)           (300)       (299,700)

Common stock issued
on January 25, 2001
for services a
t $ 0.10 per share                 1,800,000             180         179,820

Common stock issued
on February 9, 2001
for debt service at
$ 0.10 per share                     628,500              63          62,787

Common stock issued
on February 20, 2001
for services at
$ 0.10 per share                      20,280               2           2,026

Common stock issued
on March 9, 2001
for services valued
at $ 0.10 per share                  250,000              25          24,975

Common stock issued
March 10, 2001
for services valued
at $ 0.10 per share                  100,000              10           9,990

Common stock issued on
June 30, 2001
for services valued
at $ 0.10 per share                  250,000              25           2,475

Common stock issued
on July 17, 2001
at $ 0.10 per share                8,000,000             800         799,200

Net loss for the period ended
December 31, 2001                          -               -               -


Balance, December 31, 2001        40,722,972           4,073    $ 12,424,067





                                        Stock
                                        Subscription  Retained
                                        Receivable    Earnings     Total
continued

Recission of ICE
at $ 0.10 per share                       -              -        (300,000)

Common stock issued
on January 25, 2001
for services a
t $ 0.10 per share                        -              -         180,000

Common stock issued
on February 9, 2001
for debt service at
$ 0.10 per share                          -              -          62,850

Common stock issued
on February 20, 2001
for services at
$ 0.10 per share                          -              -           2,028

Common stock issued
on March 9, 2001
for services valued
at $ 0.10 per share                       -              -          25,000

Common stock issued
March 10, 2001
for services valued
at $ 0.10 per share                       -              -          10,000

Common stock issued on
June 30, 2001
for services valued
at $ 0.10 per share                       -              -           2,500

Common stock issued
on July 17, 2001
at $ 0.10 per share                       -              -         800,000

Net loss for the period ended
December 31, 2001                         -     (1,893,444)     (1,893,444)

Balance, December
31, 2001                        $         -   $(13,270,974)   $   (842,834)





                               VoIP TELECOM, INC.
                       (Formerly Presidents Telecom, Inc.)
                      Consolidated Statements of Cash Flows
                 For the Years Ended December 31, 2001 and 2000


                                                      2001          2000
                                            ------------------------------------

CASH FLOWS FROM OPERATING ACTIVITIES

Income (loss) from operations                    $    (1,893,444) $ (8,781,618)
Depreciation expense                                     133,820       733,802
(Increase) in accounts receivable                       (123,739)     (147,302)
Increase in accounts payable                            (339,571)    1,236,659
(Increase) in loans receivable                           (74,531)     (153,622)
(Increase) in prepaid expenses                             2,906        (2,906)
Bad debt                                                       0       879,562
(Increase) in deposits                                   (55,354)            0
Increase in accrued expenses                             207,130             0
Impairment of goodwill                                         0     4,000,000
Common stock issued for services                       1,082,378     1,389,405

Net Cash (used) by Operating Activities               (1,060,405)     (846,021)

CASH FLOWS FROM INVESTING ACTIVITIES

Net purchase of fixed assets                              (6,000)   (2,240,522)
Common stock retired in ICE recission                   (300,000)            0
Net gain on recission of ICE                           1,055,583             0

Net Cash provided / (Used) by Investing Activities       749,583    (2,240,522)

CASH FLOWS FROM FINANCING ACTIVITIES

Increase in loans payable                                269,173       356,051
Common stock issued for subscription receivable                0       150,000
Common stock issued for cash                                   0           718
Paid in capital                                                0     2,986,061

Net Cash Provided by Financing Activities                269,173     3,136,779

Net Increase / (Decrease) in Cash                        (41,649)       50,236

Cash at Beginning of Year                                 50,392           156

Cash at End of Year                              $       8,743 $        50,392

Supplemental Cash Flow Disclosures

Cash paid during year for interest               $      63,066 $        29,728

Schedule of Non-Cash Activities

Common stock issued for services                $    1,082,378 $    1,389,405
Common stock issued for acquisition
 of subsidiaries                                 $           0 $     7,899,999
Common stock retired in ICE recission           $    (300,000) $            0






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 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.


NOTE 2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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., and Access  Network  Limited.  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.

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.



NOTE 2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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 3 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 nine months-ended 2001 is $ 80,297.


NOTE 3 -   INCOME TAXES

                                      December 30,        December 31,
                                        2001                2000
Deferred tax assets:
Net operating tax loss carryforwards   $ 13,270,974    $ 11,377,530
Other                                        -0-           -0-

Valuation allowance                     (13,270,974)    (11,377,530)

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.








NOTE 4 -  GOING CONCERN

As shown in the  accompanying  financial  statements  the Company has incurred a
deficit of  $13,270,974  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 5 -  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.

                 December 31, 2001

         --------------------------------
Equipment                       $ 535,636
Office furniture                   34,335
         --------------------------------
                                $ 569,971
Less Accumulated Depreciation    (246,131)
         --------------------------------
         --------------------------------

Net Property and Equipment      $ 323,317
         ================================


 NOTE 6 -  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.

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.


NOTE 6 -  STOCK TRANSACTIONS (CONTINUTED)

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
ICE 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.

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.



NOTE 6 -  STOCK TRANSACTIONS (CONTINUTED)

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 525,000 shares of common stock for cash
valued at $0.17 per share.

On January 1, 2001 the Company recinded the issuance of 3,000,000 shares for the
acquisition of ICE at a value of $0.10.

On January 25,  2001 the Company  issued  1,800,000  shares of common  stock for
services valued at $0.10 per share.

On February 9, 2001 the Company  issued  628,500 shares of common stock for debt
settlement valued at $0.10 per share.

On February  20,  2001 the  Company  issued  20,280  shares of common  stock for
services valued at $0.10 per share.

On March 9, 2001 the Company  issued 100,000 shares of common stock for services
valued at $0.10 per share.

On March 10, 2001 the Company issued 250,000 shares of common stock for services
valued at $0.10 per share. As of March 31, 2001 there were 35,472,972  shares of
common stock outstanding.

On June 30, 2001 the Company  issued 250,000 shares of common stock for services
valued at $0.01 per share.

On July 17,  2001 the  Company  issued  8,000,000  shares  of  common  stock for
services valued at $0.10 per share.

As of  December  31,  2001 the Company  had  40,722,972  shares of common  stock
outstanding.








NOTE 7 -  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  valuations  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 where 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  10,170,280  shares were issued for  services to  management  and key
employees for the year ended December 31, 2001.