UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C., 20549
                                  FORM 10-Q SB

     (X)  QUARTERLY  REPORT  PURSUANT  TO SECTION 13 OR 15(D) OF THE  SECURITIES
EXCHANGE ACT OF 1934

                   For the quarter report ended June 30, 2002
                                       or

     ( )  TRANSITION  REPORT  PURSUANT TO SECTION 13 OR 15(d) OF THE  SECURITIES
EXCHANGE ACT OF 1934

                  For the transition period from to ___________

                        Commission File number 000-28047

                       DIVERSIFIED THERMAL SOLUTIONS, INC.
   (Exact name of small business issuer as registrant as specified in charter)

         Nevada                                           86-0880742
(State or other jurisdiction of                         (I.R.S. Employer
incorporation or organization)                        Identification No.)

                        4162 Delp St., Memphis, TN 83118
                     (Address of principal executive office)

         Registrants telephone no., including area code (901) 365-7650

                               VOIP TELECOM, INC.
                    (Former name, changed since last report)

     Check whether the registrant (1) has filed all reports required to be filed
by  Section  13 or 15(d)  of the  Securities  Exchange  Act of 1934  during  the
preceding 12 months (or for such shorter period that the registrant was required
to file such  reports),  Yes [X] No [ ] and (2) has been  subject to such filing
requirements for the past 90 days. Yes [X] No [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

     Indicate the number of shares outstanding of each of the issuers classes of
common stock, as of the last practicable date.

                  Class                     Outstanding as of June 30, 2002
         Common Stock, $0.0001                        4,776,149










                                TABLE OF CONTENTS
                          PART 1. FINANCIAL INFORMATION

Heading                                                                   Page

Item 1.                    Consolidated Financial Statements               3

                           Consolidated Balance Sheets  June 30, 2002
                              And December 31, 2001                        5-6

                           Consolidated Statements of Operations  six months
                              Ended June 30, 2002 and June 30, 2001       7

                           Consolidated Statement of Stockholders Equity  8-10

                           Consolidated Statements of Cash Flows six months
                              Ended June 30, 2002 and June 30, 2001      11

                           Notes to Consolidated Financial Statements    12-19

Item 2.                    Managements Discussion and Analysis and
                              Result of Operations                        20-21




                           PART II. OTHER INFORMATION

Item 1.                    Legal Proceedings                           21

Item 2.                    Changes in Security                         21

Item 3.                    Defaults Upon Senior Securities             21

Item 4.                    Submission of Matter to a Vote of           22
                               Securities Holders

Item 5.                    Other Information                           22

Item 6.                    Exhibits and Reports on Form 8-K            22

                           Signatures                                  S-1





                                       ii









                          PART 1 FINANCIAL INFORMATION

                           Item 1. Financial Statement


     The  accompanying  unaudited  financial  statements  have been  prepared in
accordance  with the  instructions  for Form  10-Q  pursuant  to the  rules  and
regulations of the Securities and Exchange  Commission  and,  therefore,  do not
include all information and footnotes  necessary for a complete  presentation of
the financial  position,  results of operations,  cash flows,  and  stockholders
equity in conformity  with  generally  accepted  accounting  principles.  In the
opinion  of  management,   all  adjustments  considered  necessary  for  a  fair
presentation  of the results of  operations  and  financial  position  have been
included and all such adjustments are of a normal recurring nature.

     The  unaudited  balance  sheet of the Company as of June 30, 2002,  and the
balance  sheet  derived from the  Companys  audited  financial  statement as of
December 31, 2001, the unaudited  statement of operations and cash flows for the
six months ended June 30, 2002 and 2001, the statements of  stockholders  equity
for the period from May 4, 1987 through  June 30, 2002 are  attached  hereto and
incorporated herein by this reference.

     Operating  results for the quarters ended June 30, 2002 are not necessarily
indicative of the results that can be expected for the year ending  December 31,
2002.





                               VoIP TELECOM, INC.
                       (Formerly Presidents Telecom, Inc)
                   Notes to Consolidated Financial Statements
                               As of June 30, 2002




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



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



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



We have reviewed the accompanying  consolidated  balance sheets of VoIP Telecom,
Inc. (Formerly  Presidents  Telecom,  Inc.) as of June 30, 2002 and December 31,
2001 and the related statements of operations,  changes in stockholders equity,
and cash flows for the three and six months  ended  June 30,  2002 and 2001,  in
accordance with Statements on Standards for Accounting Review Services issued by
the American Institute of Certified Public Accountants. All information included
in these financial  statements is the  representation  of the management of VoIP
Telecom, Inc.

A review consists  principally of inquiries of company  personnel and analytical
procedures  applied to financial data. It is substantially less in scope than an
audit in accordance with generally accepted auditing standards, the objective of
which is the expression of an opinion  regarding the financial  statements taken
as a whole. Accordingly, we do not express such an opinion.

     Based on our review, we are not aware of any  modifications  that should be
made  to the  accompanying  financial  statements  in  order  for  them to be in
conformity with generally accepted accounting principles.



 _________________________
ARMANDO C. IBARRA, CP

Chula Vista, California
July 25, 2002
24

                  296 H Street 2nd floor, Chula Vista, CA 91910
                     Tel: (619) 422-1348 Fax: (619) 422-1465

                               VoIP TELECOM, INC.
                       (Formerly Presidents Telecom, Inc.)
                                 Balance Sheets
                    As of June 30, 2002 and December 31, 2001



                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

                                                   2002              2001
                                                 ------------------------

CURRENT LIABILITIES

Accounts payable                               $    162,719    $  1,104,219
Loans payable                                        43,398         625,224
                                   ----------------------------------------

Total Current Liabilities                           206,117       1,729,443

                                   ----------------------------------------


TOTAL LIABILITIES                                   206,117       1,729,443

STOCKHOLDERS' EQUITY (DEFICIT)

Common stock ($0.0001
par value, 100,000,000 shares
authorized; 4,776,149
and 40,722,972 shares issued
and outstanding for
June 30, 2002 and December 31,

2001, respectively.)                                    477           4,073
Paid-in capital                                  12,969,684      12,424,067
Deficit accumulated during development stage        (95,911)        (95,911)
Deficit                                         (12,672,453)    (13,175,063)
                                   ----------------------------------------

Total Stockholders' Equity                          201,797        (842,834)

TOTAL LIABILITIES                  ----------------------------------------
& STOCKHOLDERS' EQUITY (DEFICIT)               $    407,914    $    886,609
                                   ========================================


     Statements of Operations
            For the Six and Three Months Ended June 30, 2002 and 2001


                                    Six Months      Three Months
                                     Ended             Ended
                                     June 30,         March 31,
                                       2002             2001
REVENUES

Sales                             $     18,700    $    440,699

Cost of revenues                       (17,840)              -

Total Revenues                             860         440,699

OPERATING COSTS

Depreciation & amortization             28,928          53,515

Bank charges                               142             774

Bad debt expense                           561               -

Administrative expenses                697,216         594,690

Total Operating Costs
                                       726,847         648,979

OPERATING INCOME (LOSS)               (725,987)       (208,280)
OTHER INCOME & (EXPENSES)


Interest income                              -             308

Loss on investment                           -        (150,260)

Exchange gain or loss                        -              16

Gain on disposal of assets           1,229,809               -

Other expenses                          (1,175)           (632)
Interest expense                           (37)        (63,066)
Total Other Income & (Expenses)
                                     1,228,597        (213,634)

NET INCOME (LOSS)                      502,610        (421,914)

BASIC EARNINGS (LOSS) PER SHARE
                                  $       0.13    $      (0.01)
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING            3,942,005      31,946,725



                                    Three Months      Three MOnths
                                        ended          ended
                                      june 30           june 30
                                        2002             2001

REVENUES

Sales                                      $ -    $    256,070

Cost of revenues                             -

Total Revenues                               -         256,070

OPERATING COSTS

Depreciation & amortization              1,060          26,762

Bank charges                                 -              84

Bad debt expense                             -               -

Administrative expenses                134,999         194,375

Total Operating Costs
                                       136,059         221,221

OPERATING INCOME (LOSS)               (136,059)         34,849

OTHER INCOME & (EXPENSES)


Interest income                              -             301

Loss on investment                           -         (12,867)

Exchange gain or loss                        -               1

Gain on disposal of assets                   -               -

Other expenses                               -            (632)

Interest expense                             -            (216)

Total Other Income & (Expenses)
                                            -         (13,413)

NET INCOME (LOSS)                  $   (136,059)   $     21,436

BASIC EARNINGS (LOSS) PER SHARE
                                  $      (0.03)   $       0.00

WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING              4,776,149      32,475,549








                               VoIP TELECOM, INC.
                       (Formerly Presidents Telecom, Inc.)
                  Statement of Changes in Stockholders' Equity
                From May 4, 1987(Inception) through June 30, 2002

                                                           Common    Additional
                                           Common           Stock     Paid-In
                                           Shares           Amount     Capital


Inception, May 4, 1987                             -      $     -     $      -


Common stock issued for cash                 600,000           60          940

Net loss from inception on May 4,
1987 through December 31, 1997                     -            -            -


Balance, December 31, 1997                   600,000           60          940

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

Balance, December 31, 1998                   600,000           60          940

Common stock issued December 31, 1998
for cash at $ 0.15
                                             60,000            6       149,994

Contributed capital                             -               -            67

Common stock issued June 17, 1998
for cash at $ 0.84 per share
                                              5,400            1        89,999
Stock issued on June 2, 2000
for services valued at $ 0.84
                                                300            1         4,999
Net loss for the year ended
December 31, 1999                                -            -            -

Balance, December 31, 1999
                                             665,700           68       245,999

Common stock issued on March 31, 2000
for cash at $ 0.54 per share
                                              137,614           13     2,752,263
Common stock issued on March 31, 2000
for cash at $ 0.20
                                              190,500           19       761,981

Stock offering costs                               -            -     (607,928)

Common stock issued on April 20, 2000
for services valued at $ 3.00 per share
                                                3,000            1       179,999

Common stock issued on April 28, 2000
for services valued at $ 1.00 per share
                                               54,030            5     1,080,595

Common stock issued on May 17, 2000
for services valued at $ 0.50 per share
                                                1,250            1        12,499




                                              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                          -         (1,000)         -

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)             -          -


Contributed capital                                 -              -         67

Common stock issued June 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


                                                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
                                     8,642            1       28,804

Common stock issued to acquire 100%
of Central America Fuel Technologies,
Inc. on March 15, 2000
                                       300            1       14,999

Options exercised at $ 0.42 per share
                                     3,750            1       31,249

Options exercised at $ 0.21 per share
                                     3,000            1       12,499

Options exercised at $ 0.21 per share
                                     3,000            1       12,499

Common stock issued on June 30, 2000
for acquisition of ICE at $ 0.83 per share
                                   150,000           15    2,499,985

Common stock issued on June 30, 2000
Access Network Limited at $ 0.83 per share
                                   240,000           24    3,999,976

Common stock issued on August 30, 2000
for debt settlement at $ 0.20 per share
                                   107,607           10      358,680

Common stock issued for debt
settlement at $ 0.83 per share
                                     5,467            1       90,751


Receipt of subscription receivable

Options exercised at $ 0.2084
                                       600            1        2,499

Options exercised at $ 0.4167
                                     2,130            1       17,749

Options exercised at $ 0.4167
                                       120            1          999

Common stock issued for cash
at $ 0.10 per share
                                     6,000            1       11,999

Common stock issued for cash
at $ 0.10 per share
                                    25,000            2       49,998

Common stock issued for services
at $ 0.16827 per share
                                    26,000            2       87,498

Net loss for the year ended
December 31, 2000

Balance, December 31, 2000
                                 1,633,710          170   11,645,592







                                        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







                                                            Common    Additional
                                              Common        Stock     Paid in
                                              stocj         amount    capital

continued

Recission of ICE at $ 0.10 per share
                                              (150,000)     (22)      (299,978)

Common stock issued on January 25, 2001
for services at $ 0.10 per share
                                                90,000        9        179,991

Common stock issued on February 9, 2001
for debt service at $ 0.10 per share
                                                31,425        2         62,848

Common stock issued on February 20, 2001
for services at $ 0.10 per share
                                                 1,014        1          2,027

Common stock issued on March 9, 2001
for services valued at $ 0.10 per share
                                                12,500        1         24,999

Common stock issued March 10, 2001
for services valued at $ 0.10 per share
                                                 5,000        1          9,999

Common stock issued on June 30, 2001
for services valued at $ 0.10 per share
                                                12,500        1          2,499

Common stock issued on July 17, 2001
at $ 0.10 per share
                                               400,000       40        799,960

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


--------------------------------------------------------------------------------
Balance, December 31, 2001
                                             2,036,149       203     12,427,937
================================================================================

Common stock issued on February 11, 2002
for services at $ 0.01 per share
                                               100,000       10         19,990

Common stock issued on February 25, 2002
for services at $ 0.12 per share
                                                20,000        2         47,998

Common stock issued on February 25, 2002
for services at $ 0.12 per share
                                             2,200,000      220        263,801

Common stock issued on March 1, 2002
for services at $ 0.50 per share
                                               420,000       42        209,958

Net income for the period ended

June 30, 2002                                        -        -              -


Balance, June 30, 2002                       2,036,149      203     12,427,937





                                               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 at $ 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 year ended

December 31, 2001                                    -  (1,893,444)  (1,893,444)

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

Common stock issued on February 11, 2002
for services at $ 0.01 per share
                                                     -         -         20,000

Common stock issued on February 25, 2002
for services at $ 0.12 per share
                                                     -         -         48,000

Common stock issued on February 25, 2002
for services at $ 0.12 per share
                                                     -         -        264,021

Common stock issued on March 1, 2002
for services at $ 0.50 per share
                                                     -         -        210,000

Net income for the period ended

June 30, 2002                                        -   502,610        502,610



Balance, June 30, 2002                               -    (12,768,364)  201,797



                               VoIP TELECOM, INC.
                       (Formerly Presidents Telecom, Inc.)
                            Statements of Cash Flows
            For the Six and Three Months Ended June 30, 2002 and 2001

                                       Six Months      Three Months
                                        Ended             Ended
                                        June 30,         March 31,
                                        2002               2001

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss)                      $   502,610    $  (421,914)

Depreciation &
amortization expense                        28,928         53,515

(Increase) decrease in
accounts receivable                        298,372       (235,851)

(Increase) decrease in
loans receivable                          (198,246)             -

(Increase) decrease in
officers advances                                -              -

(Increase) decrease in
accrued expenses                                 -         34,026

(Increase) decrease in
deposits                                    55,354              -

Increase (decrease) in
accounts payable                          (894,288)      (387,427)

Increase (decrease) in
accrued accounts payable                   (47,211)             -

Increase (decrease) in
interest payable                                 -          3,266

Common stock issued
for services                               542,021        282,378

                                           287,540       (672,007)

CASH FLOWS FROM INVESTING ACTIVITIES

Net purchase of
fixed assets                                     -         (6,000)

Common stock retired
in ICE recission                                 -       (300,000)

Disposal of equipment                      285,543      1,050,156

Net cash provided (used)
by investing activities
                                           285,543        744,156

CASH FLOWS FROM FINANCING ACTIVITIES

Increase (decrease) in
loans payable                             (581,826)       (89,941)


Net cash provided (used)
by financing activities
                                          (581,826)       (89,941)


Net increase (decrease)
in cash
                                            (8,743)       (17,792)

Cash at beginning of
period
                                             8,743         50,392

Cash at end of period

                               $                 -    $    32,600
Supplemental Cash Flow Disclosures


Cash paid during year for interest     $        37    $    63,066
Schedule of
Non-Cash Activities


Common stock issued
for services                           $   542,021    $   282,469
Common stock issued
for acquisition of subsidiaries                  $              -
                                               $ -              $
Common stock retired in
ICE recission                                    $              -
                                                 -    $  (300,000)
Gain on disposal of
assets                                                          $
                                         1,229,809            $ -





                                    Three months      Three months
                                        ended           ended
                                     June 30           June 30
                                      2002              2001




CASH FLOWS FROM OPERATING ACTIVITIES
                                       $(136,059)   $  21,436

Depreciation &
amortization expense                       1,060       26,762

(Increase) decrease in
accounts receivable                            -     (202,567)

(Increase) decrease in
loans receivable                               -            -

(Increase) decrease in
officers advances                              -            -

(Increase) decrease in
accrued expenses                               -       34,026

(Increase) decrease in
deposits                                       -            -

Increase (decrease) in
accounts payable                           2,100      156,220

Increase (decrease) in
accrued accounts payable                 113,371            -

Increase (decrease)
in interest payable                            -        3,266

Common stock issued
for services                                   -        2,500

Net cash provided (used)
by operating activities
                                         (19,528)      41,643

CASH FLOWS FROM INVESTING ACTIVITIES

Net purchase of fixed assets                   -            -


Common stock retired in
ICE recission                                  -            -

Disposal of equipment                          -       (3,440)

Net cash provided (used)
by investing activities
                                               -       (3,440)

CASH FLOWS FROM FINANCING ACTIVITIES

Increase (decrease) in
loans payable                             19,528      (45,960)

Net cash provided (used) by
financing activities
                                          19,528      (45,960)

Net increase (decrease)
in cash
                                               -       (7,758)

Cash at beginning
of period
                                               -       40,358

Cash at end of
period
                                  $            -    $  32,600

Supplemental Cash
Flow Disclosures


Cash paid during year
for interest                       $           -    $     216

Schedule of Non-Cash
Activities


Common stock issued for
services                                       -    $   2,591

Common stock issued for
acquisition of subsidiaries
                                             $ -            -

Gain on disposal of assets                   $ -          $ -


















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

On March 29, 2002 the Company sold Access Network Limited their subsidiary for a
net gain of $1,229,809.

     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. Cash Equivalents

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









NOTE 2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

c. 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.
d. 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.

e. 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.

f.  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.




NOTE 2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

g. 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 six months ended June 30, 2002 is $28,928.

NOTE 3 -   INCOME TAXES

                                     As of June 30,     As of December 31,
                                        2002                  2001

Deferred tax assets:
Net operating loss carryforwards  $  4,368,927             $      4,544,840
 Other                                    -0-                            -0-

Valuation allowance               (4,368,927)                      (4,544,840)

 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 4  NOTE RECEIVABLE

This Company sold various assets to Universal  Commerce Limited in the amount of
$399,057.  The  receivable  is due on or before March 29, 2012.  As of March 31,
2002 the note bears no interest rate.


NOTE 5. RELATED PARTY TRANSACTION

At June 30, 2002 the corporation  was indebted to a majority  shareholder in the
amount of $43,398. As of June 30, 2002 no interest has been accrued.






NOTE 6 -  GOING CONCERN

As shown in the  accompanying  financial  statements  the Company has incurred a
deficit of  $12,768,364  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 7 -  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.

                   March 31, 2002

       ---------------------------------
Equipment                       $ 12,728
       ---------------------------------
Total Equipment                 $ 12,728
Less Accumulated Depreciation     (3,871)
       ---------------------------------
       ---------------------------------

Net Property and Equipment      $  8,857
       =================================


 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.

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 8 -  STOCK TRANSACTIONS (CONTINUED)

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 8 -  STOCK TRANSACTIONS (CONTINUED)

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  rescinded  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.

On February  11, 2002 the Company  issued  2,000,000  shares of common stock for
services valued at $0.10 per share.

On February 25, 2002 the Company declared a 20:1 split of its outstanding common
stock.



NOTE 8 -  STOCK TRANSACTIONS (CONTINUED)

On February  25,  2002 the  Company  issued  20,000  shares of common  stock for
services valued at $0.12 per share.

On February  25, 2002 the Company  issued  2,200,000  shares of common stock for
services valued at $0.12 per share.

On March 1, 2002 the Company  issued 420,000 shares of common stock for services
valued at $0.50 per share. As of June 30, 2002 the Company had 4,776,149  shares
of common stock outstanding.


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 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  2,740,000  shares were issued for  services  to  management  and key
employees for the six months ended June 2002.


NOTE 10  SUBSEQUENT EVENT

In compliance with a board meeting held in May 2002, the Company on July 1, 2002
issued 15 million shares of common stock to aquire Global Holding , Inc.































                                                                   3




                 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


Going Concern and Ability of the Company to Continue

     The Company has a net  operating  loss carry forward of  $12,768,364  since
inception through June 30, 2002.

     The Companys consolidated financial statements are prepared using generally
accepted accounting principles applicable to a going concern, which contemplates
the realization of assets and liquidation of liabilities in the normal course of
business.  The  Company has not  established  revenues  sufficient  to cover its
operating costs and allow it to continue as a going concern. Management believes
that the Company will soon be able to generate revenues  sufficient to cover its
operating costs. In the interim, the Company intends to raise additional capital
through private placements of its common stock.

Liquidity and Capital Resources

     As of June 30,  2002 the  Company  has $0 in  current  assets  compared  to
current liabilities of $206,117.  This is compared to current assets of $507,938
and current  liabilities  of  $1,729,443  as of December  31,  2001.  Management
recognizes there is a severe  impairment to the Companys  financial  statements.
The current liabilities are comprised of $206,117 in accounts and notes payable.
Of this amount  $43,398 is due to B. Grant Hunter,  the Companys  President for
cash he advanced for Company expenses.

Results of Operations

     For the three months ended June 30, 2002 the Company had revenues of $0 and
operating  expenses including costs of revenues of $136,059 compared to revenues
of $256,070 and operating expenses including costs of revenues of $221,221 as of
June 30, 2001. General and Administrative  costs decreased $59,376 for the three
months  ended June 30, 2002 due to the Company  changing  direction to enter the
refractory  services  business.  Depreciation and Amortization also decreased by
$25,702 due to the fact all of the telecom  equipment no longer being present on
the Companys financial statements. For the three months ended June 30, 2002 the
Company  had a net loss of  $136,059  compared  to a net gain of $21,436 for the
same period the year before.

     For the six months  ended June 30, 2002 the Company had revenues of $18,700
and  operating  expenses  including  costs of revenues  of $744,687  compared to
revenues of  $440,699  and  operating  expenses  including  costs of revenues of
$648,979 as of June 30, 2001. General and  Administrative  expenses increased by
$102,526 for the six months ended June 30, 2002.  This can be  attributed to the
company  ridding  itself of the  telecom  assets in the first  quarter  of 2002.
Depreciation  and  Amortization  decreased  by  $24,587  mostly  due to the same
reason.  Interest expense decreased by approximately  $63,000 due to the Company
not having to finance  any  telecom  equipment.  The  Company did have a gain of
$1,229,809 on the disposition of the Access Communications  subsidiary.  For the
six months  ended June 30, 2002 the Company had net income of $502,610  compared
to a net loss of $421,914 for the same period the year before.


Net Operating Loss

     The Company has  accumulated  approximately  $12,768,364  of net  operating
losses  caryforwards  as of June 30, 2002,  which maybe offset  against  taxable
income and income  taxes in future  years.  The use of these to losses to reduce
future income taxes will depend on the  generation of sufficient  taxable income
prior to the expiration of the net loss carryforwards.  The carryforwards expire
in the year  2022.  In the event of certain  changes in control of the  Company,
there will be an annual limitation on the amount of carryforwards,  which can be
used.


Sale of Common Capital Stock

         None to report.

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  results 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 on or implied by the statements,  including, but not limited to,
the  following:  the  ability of the Company to  successfully  meet its cash and
working  capital needs,  the ability of the Company to  successfully  market its
product,  and other risks detailed in the Companys periodic report filings with
the Securities and Exchange Commission.


                            PART II OTHER INFORMATION

                            ITEM 1. LEGAL PROCEEDINGS

     There are  presently no pending legal  proceedings  to which the Company or
any of its subsidiaries are a party, to the best of knowledge of the Company. No
actions against the Company are contemplated or threatened.

                          ITEM 2. CHANGES IN SECURITIES

         None.

                     ITEM 3. DEFAULTS UPON SENIOR SECURITIES

         None.

         ITEM 4. SUBMISSION OF MATTERS TO BE A VOTE OF SECURITY HOLDERS


     At a Special  Meeting  of the  Shareholders  on May 31,  2002 the  security
holders were asked to vote on the following:

         The acquisition of Global Holdings, Inc.:

      For         Against              Abstain

2,811,626

     After the  acquisition of Global  Holdings,  Inc. was ratified a motion was
made to change the Companys name to Diversified Thermal Solutions, Inc..

      For           Against                Abstain

2,811,626





     All motions at the Special Meeting of Shareholders were approved.


                            ITEM 5. OTHER INFORMATION
         None.

                           ITEM 6.  EXHIBITS AND REPORTS ON 8-K

4.1      Amendment of Articles - name change
         8K filed by reference on September 20, 2002



                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  Report  to be  signed  in its  behalf by the
undersigned hereto duly authorized.



                                                     VOIP TELECOM, INC.


Dated: July 31, 2002

                                                     By:__________________
                                                        B. Grant Hunter
                                                        President















                                                                  S-1

                                    ........