Item 2.01 Completion of Acquisition or Disposition of Assets

On August 19, 2009, IPtimize, Inc., a Delaware corporation (the "Company") was unable to reach a suitable agreement regarding the services being provided to the accounts being serviced from the August 2009 acquisition of American Fiber Systems, Inc's ("AFS") IDCOM assets and accounts. The revenue on these accounts was $64,900 per month and the direct costs and charges from AFS has been in excess of $61,000 per month, therefore providing minimal contribution margin. We have been negotiating for credits on these costs we have not been able to come to an agreement and have sold the customers to an outside third party for a monthly percentage of the revenue. We believe that this sale of customers will increase the profit margin of the Company even with the loss of revenue.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

(b) On August 17, 2009, as part of the sale of the AFS assets, Ron Pitcock, resigned as the Chief Executive Officer, and Chairman of the Board, of IPtimize, Inc. (the "Company"). Mr. Pitcock's resignation was not due to any disagreement or dispute with the Company.

(c) On August 17, 2009, Stanley F. McGinnis was elected Chairman of the Board of Directors and interim Chief Executive Officer. Mr. McGinnis has been a Director of the Company since May, 2008 and is the Chief Executive Officer and principal stockholder of Secure Signals International, Inc., a cable risk management company that developed an industry-unique theft of services program resulting in the collection of over $300 million in stolen signal revenue.

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