Tuesday, February 12, 2008

VoIP Inc. Closing

VoIP Inc. closes its doors on Feb. 6 per thier SEC filing:

On February 5, 2008 VoIP, Inc. (the "Company") decided to reorganize its operations to focus primarily on business opportunities associated with its patented technology including "click-to-call" and "pay-per-click" applications. Associated with that decision, on February 5, 2008 the Company suspended all of its telecommunications network operations including all current revenue generating operations. The Company also reduced its workforce by 25 persons, eliminating most of its network operations and software engineering staff. The Company is currently entertaining offers on the sale of its network, and has not yet evaluated the potential financial statement impact of related impairments of its tangible and intangible assets. However, a material noncash asset impairment charge ranging up to $23.9 million to the Company's consolidated 2007 results of operations is likely.

FierceVoIP broke the story.

VoIP Inc. has closed down its call termination and network operations laying off 25 engineering staff and has told the SEC it is expecting to have to write off $24 million in losses associated with the network. The Florida based company said it would focus on its patented pay-per-call ad software. The announcement comes only a day after the company announced deals with Google and eBay for its pay-per-call ad software.

VoIP Inc is listed on the OTC market and only recently refinanced through a $2.5 million private placement . In a statement December 27 CEO Tony Cataldo, said: "We are pleased that the existing investor group recognized the significant progress we have made over the past year, and elected to provide additional capital to support our growth."

RUMORS: The CTO, Shawn Lewis, resigned and rumors swirl about his alleged felony convictions.

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