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 September 30, 2001
                                       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 000-20847

                               VOIP TELECOM, 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.)

                       4126 Delp Street, Memphis, TN 38118
                     (Address of principal executive office)

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

                                       N/A
                    (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  September 30, 2001
Common Stock, $0.0001                          40,722,972
                                        i






                                TABLE OF CONTENTS
                          PART 1. FINANCIAL INFORMATION

Heading                                                                Page

Item 1.                    Consolidated Financial Statements             3

                           Consolidated Balance Sheets  September 30, 2001
                              And December 31, 2000                     4-6

                           Consolidated Statements of Operations   nine months
                          Ended September 30, 2001 and September 30, 2000 7

                           Consolidated Statement of Stockholders Equity 8-10

                           Consolidated Statements of Cash Flows  nine months
                            nded September 30, 2001 and September 30, 2000 11

                           Notes to Consolidated Financial Statements    12-18

Item 2.                    Managements Discussion and Analysis and
                          Result of  Operations                           19-20




                           PART II. OTHER INFORMATION

Item 1.                    Legal Proceedings                            20

Item 2.                    Changes in Security                          20

Item 3.                    Defaults Upon Senior Securities              20

Item 4.                    Submission of Matter to a Vote of            20
                               Securities Holders

Item 5.                    Other Information                            20

Item 6.                    Exhibits and Reports on Form 8-K             20

                           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 September 30, 2001,  and
balance sheet of the Company as of December 31, 2000,  derived from the Companys
audited  financial  statements,  the unaudited  statement of operations and cash
flows for the nine months ended  September  30, 2001 and  September 30, 2000 the
statement  of  stockholders  equity  for the  period  from May 4,  1987  through
September  30,  2001  are  attached  hereto  and  incorporated  herein  by  this
reference.

     Operating  results  for  the  quarter  ended  September  30,  2001  are not
necessarily  indicative  of the results that can be expected for the year ending
December 31, 2001.







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




To 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  September  30,  2001 and the
related statements of operations, changes in stockholders equity, and cash flows
for the three and nine months then  ended,  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, CPA - APC

November 13, 2001





                               VoIP TELECOM, INC.
                       (Formerly Presidents Telecom, Inc.)


                                     ASSETS

                                Nine Months
                                   Ended       Year Ended
                               September 30,   December 31,
                                  2001            2000

CURRENT ASSETS
Cash                        $      16,915  $    50,392
Accounts receivable               402,357      145,852
Receivable-related party                0        1,450
Loan receivable                   153,622      153,622
Prepaid expenses                        0        2,906
                                       ----------------------------------------

Total Current Assets              572,894      354,222

NET PROPERTY & EQUIPMENT          376,840    1,506,720

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

TOTAL ASSETS                  $  949,735   $1,860,942



                               VoIP TELECOM, INC.
                       (Formerly Presidents Telecom, Inc.)
                           Consolidated Balance Sheets

                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                        Nine Months
                                          Ended         Year Ended
                                       September 30,   December 31,
                                           2001           2000

CURRENT LIABILITIES
Accounts payable                       $     993,847 $   1,236,659
Notes payable                                338,411       233,266
Interest payable                               3,266             0
Accrued expenses                              32,357             0
                                            ------------------------------------

Total Current Liabilities                  1,367,882     1,469,925

LONG-TERM LIABILITIES
Loan payable-related party                    73,412       122,785
                                            ------------------------------------

Total Long-Term Liabilities                   73,412       122,785

TOTAL LIABILITIES                          1,441,294     1,592,710

STOCKHOLDERS' EQUITY
Common stock ($0.0001 par
value, 50,000,000 shares
authorized 32,727,975
and 29,679,195 shares issued
and outstanding for
September 30, 2001 and
December 31, 2000, respectively)               3,273         2,968
Additional paid-in capital                 9,424,867     9,142,794
Deficit accumulated
during development stage                     (95,911)      (95,911)
Deficit                                   (9,823,788)   (8,781,619)

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

Total Stockholders' Equity                  (491,559)      268,232

TOTAL LIABILITIES
                                            ------------------------------------
& STOCKHOLDERS' EQUITY                  $    949,735 $   1,860,942



                               VoIP TELECOM, INC.
                       (Formerly Presidents Telecom, Inc.)
                      Consolidated Statements of Operations

                                        Nine Months      Nine Months
                                           Ended           Ended
                                        September 30,   September 30,
                                             2001            2000


REVENUES
Sales                             $       647,471$              0
                                          -------------------------------------

Total Net Revenues                        647,471              0

OPERATING COSTS
Depreciation & amortization                80,297        268,501
Bank charges                                1,171              0
Bad debt expense                                0        711,790
Administrative expenses                 1,882,914      1,693,688
                                          -------------------------------------

Total Operating Costs                   1,964,382      2,673,979

OTHER INCOME & (EXPENSES)

Interest income                               308             62
Loss on investment                       (150,260)             0
Other income                                    0              0
Exchange gain or loss                          16              0
Impairment of goodwill                          0     (7,031,953)
Gain on disposal of asset                       0              0
Other expenses                            (12,256)             0
Interest expense                          (63,066)       (19,202)
                              --------------------------------- ------

Total Other Income & (Expenses)          (225,258)    (7,051,093)
                                ------------------------------- ------

NET INCOME (LOSS)                 $    (1,542,169)$    (9,725,072)
                                ------------------------------------- ------
                                ===================================== ======

BASIC EARNINGS (LOSS) PER SHARE $       (0.04) $          (0.57)
                                =====================================


WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING              34,413,190     17,157,834



                                        Three months    Three months
                                        ended            ended
                                        September 30    September 30
                                        2001            2000


REVENUES
Sales                            $       206,772$             0
                       ------------------------------------------

Total Net Revenues                       206,772              0

OPERATING COSTS
Depreciation & amortization               26,782        268,501
Bank charges                                 397              0
Bad debt expense                               0        711,790
Administrative expenses                1,288,224      1,789,599
                              ---------------------------------------------

Total Operating Costs                  1,315,402      2,769,890

OTHER INCOME & (EXPENSES)

Interest income                                0             62
Loss on investment                             0              0
Other income                                   0              0
Exchange gain or loss                          0              0
Impairment of goodwill                         0     (7,031,953)
Gain on disposal of asset                      0              0
Other expenses                           (11,625)             0
Interest expense                               0        (19,202)

Total Other Income & (Expenses)          (11,625)    (7,051,093)
                               ---------------------------------------------

NET INCOME (LOSS)                       (1,120,255)$ (9,820,983)
                              ---------------------------------------------


BASIC EARNINGS (LOSS) PER SHARE     $       (0.03) $      (0.47)
                                =============================================


WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING             35,295,252     20,867,534







                               VoIP TELECOM, INC.
                       (Formerly Presidents Telecom, Inc.)
            Consolidated Statement of Changes in Stockholders' Equity
               From May 4, 1987(Inception) through June 30, 2001

                                                            Common    Additional
                                                Common      Stock     Paid in
                                                shares      amount     Capital
Inception, May 4, 1987                            - $             -       $   -

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

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


Balance, December 31, 1997                 12,000,000         1,200        (200)

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


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

Common stock issued December 31, 1998
for cash at $ 0.15 per share                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 for services at $ 1.00
for services valued at $ 0.84 per share         6,000             1       4,999

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

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


Common stock issued 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 per share                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       Earnigns       Total


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

Common stock issued for cash                    -              -          1,000

Net loss from inception on May 4,
1997 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 per share             (150,000)             -              -


Contributed capital                             -              -             67

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

Stock issued for services at $ 1.00
for services valued at $ 0.84 per share         -              -          5,000

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


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


Common stock issued 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 per share                    -              -        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 June 30, 2001
                                                        Common       Additional
                                           Common       Stock         Paid in
                                           Sahres       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 for
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 on
August 30, 2000
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 on December 27, 2000
for cash at $ 0.10 per share                120,000            12        11,988

Common stock issued
December 27, 2000
for cash at $ 0.10
per share                                   500,000            50        49,950

Common stock issued on
December 31, 2000
for services valued
at $ 0.17 per share                         520,000            52        87,448

Net loss for the year ended
December 31, 2000                                 -             -             -
-------------------------------------------------------------------------------
Balance, December 31, 2000               32,674m192   $     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 for
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 on August 30, 2000
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 on December 27, 2000
for cash at
$ 0.10 per share                                     -             -     12,000

Common stock issued December 27, 2000
for cash at
$ 0.10 per share                                     -             -     50,000

Common stock issued on December 31, 2000
for services valued
at $ 0.17 per share                                  -             -     87,500

Net loss for the year ended
December 31, 2000                                    -  (11,281,61) (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 June 301, 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
at $ 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
June 30, 2001 for services
valued at $.10 per share                       250,000       25           2,475

Common stock issued
July 17, 2001 at
$.10 per share                                8,000,000      800        799,200

Net loss for the
period ended
Septembewr 30, 2001                             -               -       -

Balance September 30, 2001                 40,722,972     4,073    $12,424,067






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
June 30, 2001 for services
valued at $.10 per share                   -                -         2,500

ommon stock issued
July 17, 2001 at
$.10 per share                              -               -        800,000

Net loss for the
period ended
Septembewr 30, 2001                         -          (1,542,169)  (1,542,169)

Balance June 30, 2001                   $  -          $(12,919,699) $(491,559)





                               VoIP TELECOM, INC.
                       (Formerly Presidents Telecom, Inc.)
                      Consolidated Statements of Cash Flows

                                        Nine months    Nine Months
                                        ended          ended
                                        September 30   September 30
                                        2001            2000
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (loss)
from operations                   $    (1,542,169)$   (9,725,072)$
Depreciation &
Amortization Expense                        80,297        268,501
(Increase) in
accounts receivable                       (255,055)      (150,000)
(Increase) in
loans receivable                                 0     (1,647,426)
Increase in
officers advances                                0           (354)
(Increase) /
decrease in prepaid expenses                 2,906              0

Increase /
(decrease) in accounts payable            (242,812)       580,826
Increase in
interest payable                             3,266              0
Increase in
accrued expenses                            32,357              0
Impairment
of goodwill                                      0      7,031,953
Bad debt                                         0        711,790
Common stock
issued for services                      1,082,378      1,091,806
                              ----------------------------------- ------       -

Net cash provided /
(used) by operating activities            (838,832)    (1,837,976)

CASH FLOWS FROM INVESTING ACTIVITIES

Net purchase of
fixed assets                                (6,000)      (894,846)
Common stock retired
in ICE recission                          (300,000)             0
Disposal of equipment                    1,055,583              0
                              ----------------------------------- ------       -

Net cash provided /
(used) by investing activities             749,583       (894,846)

CASH FLOWS FROM FINANCING ACTIVITIES

Increase (decrease)
in loans payable                            55,772        (20,687)
Proceeds from
loan payable                                     0        342,980
Subscription
receivable                                       0        150,000
Common stock
issued for cash                                  0      2,376,885
                                             -----------------------------------

Net cash provided /
(used) by financing activities              55,772      2,849,178
                                             ---------------------------------


Net increase /
(decrease) in cash                         (33,477)       116,356

Cash at beginning of period                 50,392            156
                                             -----------------------------------

Cash at end of period              $        16,915$        116,512
Supplemental
Cash Flow Disclosures


Cash paid during
year for interest                      $    63,066         19,202

Schedule of
Non-Cash Activities

Common Stock issued
for services                       $       282,469$      1,091,806
Common Stock issued
for acquisition of subsidiaries    $          0         $6,515,000
Common stock retired
in ICE recission                   $         0    $              0







                                        Three months    Three months
                                        ended           ended
                                        September 30    September 30
                                        2001            2000


CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (loss)
from operations                   $    (1,120,255)$    (9,820,983)
Depreciation &
Amortization Expense                        26,782        268,501
(Increase) in
accounts receivable                        (19,204)      (150,000)
(Increase) in
loans receivable                                 0     (1,647,426)
Increase in
officers advances                                0           (354)
(Increase) / decrease
in prepaid expenses                          2,906             0
Increase / (decrease)
in accounts payable                        144,615        580,826
Increase in
interest payable                                 0             0
Increase in
accrued expenses                            (1,669)            0
Impairment
of goodwill                                      0     7,031,953
Bad debt                                         0        711,790
Common stock
issued for services                        800,000      1,096,806

Net cash provided /
(used) by operating activities            (166,825)    (1,928,887)

CASH FLOWS FROM INVESTING ACTIVITIES

Net purchase of
fixed assets                                     0       (894,846)
Common stock
retired in ICE recission                         0              0
Disposal of equipment                        5,427              0

Net cash provided /
(used) by investing activities               5,427       (894,846)

CASH FLOWS FROM FINANCING ACTIVITIES

Increase (decrease)
in loans payable                           145,713        (20,687)
Proceeds from
loan payable                                     0        342,980
Subscription receivable                          0              0
Common stock issued for cash                     0      2,617,952


Net cash provided /
(used) by financing activities             145,713      2,940,245


Net increase /
(decrease) in cash                         (15,685)       116,512

Cash at beginning
of period                                   32,600              0

Cash at end of period               $        16,915$        116,512

Supplemental
Cash Flow Disclosures


Cash paid during
year for interest                         $       0        $19,202

Schedule of Non-Cash Activities

Common Stock issued
for services                               $    0       $1,096,806
Common Stock issued fo
r acquisition of subsidiaries              $    0       $6,515,000
Common stock retired
in ICE recission                           $    0     $          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

                                          September 30,        December 31,
                                           2001                       2000
Deferred tax assets:
Net operating tax loss carryforwards   $  1,542,169         $    11,377,530
Other                                       -0-                   -0-

Valuation allowance                     (1,542,169)             (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 $12,919,699 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.
                   September 30, 2001
         --------------------------------
Equipment                       $ 535,636
Office furniture                   34,335
         --------------------------------
                                $ 569,971
Less Accumulated Depreciation    (193,131)
         --------------------------------
         --------------------------------

Net Property and Equipment      $ 376,840
         ================================


          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 September 30, 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 nine months ended September 30, 2001.




                                        1








                 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  $(12,919,699)  since
inception through September 30, 2001.

     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  September  30,  2001 the  Company  has  $572,894  in current  assets
compared to $354,222 in current  assets as of December 31, 2000. The $572,894 in
current  assets  in  compromised  of  $16,915  in  cash,  $402,357  in  accounts
receivable and $153,622 in loans receivable As of September 30, 2001 the Company
has current  liabilities of $1,367,882 compared to $1,469,925 as of December 31,
2000.  However,  the Company has a net equity of  $(491,559) as of September 30,
2001 compared to $268,232 as of December 31, 2000.

     Management  realizes the Companys  operations  do not generate  sufficient
revenues to cover operating  costs.  The Companys  auditors have also expressed
the  Companys  going  concern  and  ability of the  Company to  continue in the
reviewed financial statement.

Results of Operations

     For the nine months ended  September 30, 2001,  the Company had revenues of
$647,471  compared  to $0 for the same  period of 2000.  Total  operating  costs
decreased from  $2,673,979 to $1,964,382 for the nine months ended September 30,
2001 compared to September 30, 2000. Bad debt expense decreased $711,790 for the
nine  months  ended  September  30,  2001  compared  to the same period the year
before.  Depreciation and amortization  decreased  approximately $188,000 due to
the recission of the ICE  Communication  acquisition.  For the nine months ended
September  30,  2001 the  company  has a net loss of  $(1,542,169)  compared  to
$9,725,072 for the same period the year before.

     For the three months ended  September  30, 2001 the Company had revenues of
$1,454,488  compared  to $0 for the  same  period  of 2000.  Operating  expenses
decreased  $2,254,488.  This is predominately  due to a $711,790 decrease in bad
debt  expense as of the three months ended  September  30, 2001  compared to the
same period of 2000. Also  contributing to the drop in the operating costs was a
decrease  of  $501,375  in  administrative  costs.  For the three  months  ended
September 30, 2001 the company has a net operating  loss of $1,120,255  compared
to a net operating loss if $9,820,983 for the same period of 2000.

Net Operating Loss

     The Company has  accumulated  approximately  $12,919,699  of net  operating
losses  caryforwards  as of June 30, 2001,  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 2021. In the

     19 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

     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.

     As of September 30, 2001 the Company had 40,722,972  shares of common stock
outstanding.

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

     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.

     As of September 30, 2001 the Company had 40,722,972  shares of common stock
outstanding.

                     ITEM 3. DEFAULTS UPON SENIOR SECURITIES

         None.

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

         None.

                            ITEM 5. OTHER INFORMATION


         None.


                       ITEM 6. EXHIBITS AND REPORTS ON 8-K

a.       Form 10Q filed by reference on 7/3/2001
b.       Form 10QSB filed by reference on 8/31/2001
c.       Form 8K filed by reference on 9/20/2001
                                       20





                                   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: March 20, 2002

                                                  By: /S/ Ron Lowe
                                                         Ron Lowe
                                                         President