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 March 31, 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 000-28581

                               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.)

            16935 West Bernardo Drive, Suite 212, San Diego, CA 92660
                     (Address of principal executive office)

         Registrants telephone no., including area code (858) 618-17101

                                       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  March 31, 2001
Common Stock, $0.001                             35,472, 972







                                TABLE OF CONTENTS
                          PART 1. FINANCIAL INFORMATION

Heading                                                                   Page

Item 1.                    Consolidated Financial Statements              3

                           Consolidated Balance Sheets  December 31, 2000
                              And March 31, 2001                          5-6

                           Consolidated Statements of Operations   three months
                              Ended March 31, 2001 and March 31, 2000     7

                           Consolidated Statement of Stockholders Equity  8-10

                           Consolidated Statements of Cash Flows  three months
                                Ended March 31, 2000 and 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                            21-22

Item 3.                    Defaults Upon Senior Securities                23

Item 4.                    Submission of Matter to a Vote of              23
                               Securities Holders

Item 5.                    Other Information                              23

Item 6.                    Exhibits and Reports on Form 8-K               23

                           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 March 31, 2001,  and the
related  audited  balance  sheet of the Company as of  December  31,  2000,  the
unaudited  statement  of  operations  and cash flows for the three  months ended
March 31, 2001 and 2000 the audited  statements of  stockholders  equity for the
period  from  January 1, 2000  through  March 31, 2001 are  attached  hereto and
incorporated herein by this reference.

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





                                        3







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


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


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


We have the reviewed  accompanying  consolidated balance sheets of VoIP Telecom,
Inc. (Formerly  Presidents  Telecom,  Inc.) as of March 31, 2001 and the related
statements of income,  changes to stockholders  equity,  and cash flows for the
three  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.

Our review was made for the purpose of expressing  limited  assurance that there
are no material modifications that should be made to the financial statements in
order  for  them  to  be  in  conformity  with  generally  accepted   accounting
principles.  The information  included in the accompanying  schedules of selling
and  administrative  expenses  is  presented  only  for  supplementary  analysis
purposes.  Such  information  has been  subjected to the inquiry and  analytical
procedures applied in the review of the basic financial  statements,  and we are
not aware of any material modifications that should be made to it.



______ ___________________________
ARMANDO C. IBARRA, CPA - APC

June 25, 2001





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

                                                        2001               2000
                                     ASSETS
CURRENT ASSETS
   Cash                                             $   40,358        $   50,392
   Accounts receivable                                 179,134           145,852
   Receivable - related party                            1,450             1,450
   Loan receivable                                     153,622           153,622
   Prepaid expenses                                      2,906             2,906
     Total Current Assets                              377,470           354,222
NET PROPERTY & EQUIPMENT                               432,372         1,506,720
                  TOTAL ASSETS                      $  809,842        $1,860,942




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

                                                        2001             2000
                      LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
   Accounts payable                                $    693,012    $  1,236,659
   Loans payable                                        312,070         233,266
     Total Current Liabilities                        1,005,082       1,469,925
LONG TERM LIABILITIES
   Loan payable - related party                               0         122,785
     Total Long Term Liabilities                              0         122,785
TOTAL LIABILITIES                                     1,005,082       1,592,710
STOCKHOLDERS' EQUITY
   Common stock ($0.0001 par value, 100,000,000 shares
   authorized; 35,472,972 and 32,674,192 shares issued
   and outstanding as of March 31, 2001 and December 31,
   2000 respectively.)                                    3,548           3,268
   Additional paid-in capital                        11,922,092      11,642,494
   Deficit accumulated during development stage     (12,120,880)    (11,377,530)

     Total Stockholders' Equity                        (195,241)        268,232
TOTAL LIABILITIES
                   & STOCKHOLDERS' EQUITY           $    809,841    $  1,860,942





                           VoIP TELECOM, INC.
                  (Formerly Presidents Telecom, Inc.)
                 Consolidated Statements of Operations
             For the Three Months Ended March 31, 2001 and 2000
                                            2001           2000
         REVENUES
    Sales                             $    184,629    $          0
    Costs of revenues                            0               0
      Total Net Revenues                   184,629               0
 OPERATING COSTS
    Depreciation                            26,753               0
    Bank Charges                               690               0
    Bad debt expense                     1,306,998       1,004,210
    Administrative expenses                400,315       2,082,582
      Total Operating Costs              1,734,756       3,086,792
 OTHER INCOME & (EXPENSES)
    Interest income                              7               0
    Loss on investment                           0         (15,000)
    Other income                           869,605               0
    Exchange gain or loss                       15               0
    Impairment of goodwill                       0               0
    Interest expense                       (62,850)              0
      Total Other Income & Expenses        806,777         (15,000)
 NET (LOSS)                           $   (743,350)   $ (3,101,792)
BASIC EARNINGS (LOSS) PER SHARE       $      (0.02)   $      (0.07)
 WEIGHTED AVERAGE NUMBER OF
  COMMON SHARES OUTSTANDING             34,362,558      44,311,314
 DILUTED EARNINGS (LOSS) PER SHARE    $      (0.02)   $          0
 WEIGHTED AVERAGE OF DILUTED
  COMMON SHARES OUTSTANDING             34,462,558               0



          VoIP TELECOM, INC.
         (Formerly Presidents Telecom, Inc.)
            Consolidated Statement of Changes in Stockholders' Equity
        From May 4, 1987(Inception) through March 31, 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 for cash
at $ 0.15 per share                       1,200,000           120       149,880

Contributed capital                               -             -            67

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

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

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

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

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

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

Stock offering costs                              -             -      (607,928)

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

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

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





                                                            Deficit
                                                           Accumulated
                                              Stock         During the
                                           Subscription   Development
                                            Receivable      Stage        Total

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

Common stock issued for cash                      -              -        1,000

Net loss from inception on May 4,
1997 through December 31, 1997                    -         (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 for cash
at $ 0.15 per share                        (150,000)             -            -

Contributed capital                               -              -           67

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

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

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

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

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

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

Stock offering costs                              -              -     (607,928)

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

Common stock issued for services
at $ 1.00 per share                               -              -    1,808,600

Common stock issued for services
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 March 31, 2001



                                                        Common       Additional
                                           Common        Stock        Paid in
                                           Shares       Amount        Capital

continued

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

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

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

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

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

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

Common stock issued for Access
Network Limited at $ 0.83 per share       4,800,000           480     3,999,520

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

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

Receipt of subscription receivable                -             -             -

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

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

Options exercised at $ 0.4167                 2,400             1           999

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

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

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

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

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




                                                            Deficit
                                                           Accumulated
                                              Stock         During the
                                            Subscription   Develpment
                                              Receivable      Stage     Total

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

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

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

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

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

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

Common stock issued for Access
Network Limited at $ 0.83 per share       4,800,000           480     3,999,520

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

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

Receipt of subscription receivable                -             -             -
Options exercised at $ 0.2084                12,000             1         2,499

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

Options exercised at $ 0.4167                 2,400             1           999

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

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

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

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

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











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

                                                          Common     Additional
                                          Common          Stock       Paid In
                                          Shares          Amount      Capital


Common stock issued for services
at $ 0.10 per share                      1,800,000           180       179,820

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

Common stock issued for services
at $ 0.10 per share                         20,000             2         2,026

Common stock issued for services
at $ 0.10 per share                        250,000            25        24,975

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

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

 Balance, March  31, 2001               35,472,972   $     3,548   $11,922,092






                                                        Deficit
                                                      Accumulated
                                        Stock          During The
                                      Subscription    Development
                                        Receivable        Stage       Total

Common stock issued for services
at $ 0.10 per share                          -              -         180,000

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

Common stock issued for services
at $ 0.10 per share                          -              -           2,028

Common stock issued for services
at $ 0.10 per share                          -              -          25,000

Common stock issued for debt service
at $ 0.10 per share                          -              -          62,850

 Net loss for the period ended
 March 31, 2001                              -       (743,350)       (743,350)

 Balance, March  31, 2001              $     -   $(12,120,880)   $   (195,240)










                           VoIP TELECOM, INC.
                  (Formerly Presidents Telecom, Inc.)
                 Consolidated Statements of Cash Flows
           For the Three Months Ended March 31, 2001 and 2000
                                                  2001           2000
CASH FLOWS FROM OPERATING ACTIVITIES
      Income (loss) from operations          $  (743,350)   $(3,101,792)
      Depreciation expense                        26,753              0
     (Increase) in accounts receivable           (33,282)             0
      Increase (decrease) in
     accounts payable                           (543,647)             0
     (Increase) in loans receivable                    0     (1,004,210)
     (Increase) in prepaid expenses                    0              0
      Bad debt                                         0      1,004,211
      Impairment of goodwill                           0              0
     Common stock issued for services            279,878      2,320,635
     Net Cash Provided by
     Operating Activities                     (1,013,649)      (781,156)
CASH FLOWS FROM INVESTING ACTIVITIES
      Net purchase of fixed assets                (6,000)      (400,000)
      Disposal of Equipment                    1,053,596              0
     Net Cash Used by Investing Activities     1,047,596       (400,000)
CASH FLOWS FROM FINANCING ACTIVITIES
     Increase in loans payable                   (43,981)       127,930
     Common stock issued for
     subscription receivable                           0              0
     Common stock issued for cash                      0      1,106,806
     Paid in capital                                   0              0
     Net Cash Provided by
    Financing Activities                         (43,981)     1,234,736
    Net Increase (Decrease) in Cash              (10,034)        53,580
    Cash at Beginning of Year                     50,392            156
    Cash at End of Year                      $    40,358    $    53,736
    Schedule of Non-Cash Activities
    Common stock issued for services         $   279,878    $         0
    Common stock issued for
    acquisition of subsidiaries              $        0     $    15,000










NOTE 1.  ORGANIZATION AND DESCRIPTION OF BUSINESS

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

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

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

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

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

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

On January 1, 2001,  the Company  rescinded  the  acquisition  of  International
Communications  and Equipment,  Inc.  (ICE).  The Company removed the assets and
liabilities of ICE from the consolidated statement.  VoIP recorded income in the
amount of $ 869,605 that derived from the rescinded deal with ICE.






NOTE 1.  ORGANIZATION AND DESCRIPTION OF BUSINESS (CONTINUED)

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

NOTE 2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Accounting Method

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

b. Basic Loss per Share

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

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

c. Basis of Consolidation

The  consolidated  financial  statements  of VoIP  Telecom,  Inc.  include those
accounts  of  VoIP  Telecom,  Inc.,  Access  Network  Limited.  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.





NOTE 2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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.

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 three months ended 2001 is $ 26,753.




NOTE 3 -   INCOME TAXES
                                      March 31 ,        December 31,_
                                          2001             2000
Deferred tax assets:
Net operating loss carryforwards      $    743,350    $ 11,281,619
Other                                         -0-            -0-
Valuation allowance                       (743,350)    (11,281,619)

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 -  NOTES PAYABLE

Notes payable as of March 31, 2001, consist of the following:

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

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

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


NOTE 5 -  GOING CONCERN

As shown in the  accompanying  financial  statements  the Company has incurred a
deficit of  $12,120,880  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 6 -  PROPERTY & EQUIPMENT

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


                                                                 March 31, 2001

Equipment                                                             $ 535,053
                                     ------------------------------------------
                                     ------------------------------------------
Office furniture                                                         40,428
                ---------------------------------------------------------------
                                                                      $ 575,481
                                     ------------------------------------------
Less Accumulated Depreciation                                          (143,109)
                                               --------------------------------
                                               --------------------------------

                                     ------------------------------------------
                                     ------------------------------------------
Net Property and Equipment                                            $ 432,372
                                               ================================


NOTE 7 -  RELATED PARTY TRANSACTIONS

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

b. The Company has received advances of $ 184,785 from a stockholder as of March
31,  2001.  As of  March  31,  2001 the  Company  has not  established  specific
repayment terms.


 NOTE 8 -  STOCK TRANSACTIONS

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

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

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

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




NOTE 8 -  STOCK TRANSACTIONS (CONTINUTED)

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

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

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

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

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

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

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

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

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

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

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

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

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






NOTE 8 -  STOCK TRANSACTIONS (CONTINUTED)

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

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

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

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

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

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

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

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 35,472,692  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 were the  compensation to employees
should be recognized over the period(s) in which the related  employee  services
are rendered.  In accordance  with  paragraph 19 of SFAS 123 the fair value of a
stock option granted is estimated using an option-pricing model.

     A total of 1,639,405  shares were issued for services to management and key
employees for the year ended March 31, 2001.









                 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  $12,120,880  since
inception through March 31, 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 March 31, 2001 the Company has $337,470 in total  current  assets and
equity of $(195,241) with which to pay its obligations. The Company is involved
in a best efforts  financing in order to increase the  Companys  liquidity  and
capital resources.



Results of Operations

     For the first  quarter  ended March 31,  2001 the  Company had  revenues of
$184,629 and expenses of  $1,734,756  compared to revenues of $0 and expenses of
$3,086,792 as of March 31, 2000.


Net Operating Loss

     The Company has  accumulated  approximately  $12,120,880  of net  operating
losses  caryforwards  as of March 31, 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  2016.  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.

                                       20

Sale of Common Capital Stock

     In  January  the  Company  issued  1,800,000  shares of common  stock to RB
Capital and Equities in trust for the settlement of debt to a Investor Relations
firm.

     In February the Company issued 100,000 shares to RST Investment, Ltd., as a
consulting  fee and 20,280  shares to Brent Purin for a finders fee.  Also,  the
Company issued 628,500 shares to 36 investors in a Private Placement in March of
2000 as penalty shares.

     In March the  Company  issued  250,000  shares to  Alexander  Anderson,  an
officer  and  director,  in  consideration  of a  cancellation  of a  management
contract.

     As of  March  31,  2001  there  were  35,472,972  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

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



                                       21
     In February the Company issued 100,000 shares to RST Investment, Ltd., as a
consulting  fee and  20,280  shares of  common  stock at $.10 per share to Brent
Purin for a finders fee. Also, the Company issued 628,500 shares to 36 investors
in a Private Placement in March of 2000 as penalty shares.

     In March the  Company  issued  250,000  shares of common  stock at $.10 per
share to Alexander  Anderson,  an officer and director,  in  consideration  of a
cancellation of a management contract.

     As of  March  31,  2001  there  were  35,472,972  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 10K SB filed by reference on April 18, 2001.














                                       23

                                   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: April 30, 2001

                                                      By:/S/Michael Tan
                                                            Michael Tan
                                                            President















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