VGTel, Inc.

In October 2014, the Company has issued 250,000 common stocks to its Chief Executive Officer pursuant to his employment agreement. These shares are booked as stock-based compensation and valued at market price as of the execution date of the agreement in totaling $36,250.

In August 2014, the Company settled a balance of accounts payable $6,688 with a payment of $4,500 and recognized the gain on settlement of debt in amount of  $2,188.

VGTel continues to be focused on becoming a participant in multi-platform entertainment with an emphasis on capitalizing on the increasing demand for ultra high definition (UHD) or 4K content. Our strategy includes building and operating facilities that house visualization/restoration technology for scanning and converting films into UHD digital format and then commercially distributing those films to Giant Screen format theaters, OEMs and UHD broadcasters. To date, we have converted the following four films: Adrenaline Rush, Alaska: Spirit of the Wild, Amazing Journeys, and Bears and they are all currently being distributed for UHD broadcast. We have signed agreements and, at our wholly owned subsidiary MPSS, we are in the process of scanning three films: Dinosaurs: Giants of Patagonia, Kilimanjaro: To the Roof of Africa and Zion Canyon: Treasure of the Gods. We are also currently in negotiations to acquire the 4K rights to additional Giant Screen format films.  We will monetize and leverage our scanning facilities, opening them up to the marketplace for other entities seeking scanning and restoration services. Lastly, we plan to develop and produce original 4K and 8K content through joint ventures and investment.

The MPSS scanning lines will also serve to provide a “rights bank” of UHD content with long-lived revenue streams for the company which could meet and exceed ten year revenue cycles from the initial scanned and converted film content. We plan to continue to work closely with our distribution partner to acquire the 4K/UHD rights for a library of mainstream Giant Screen format films that have historically done well in IMAX theaters. To date, we have signed Scan and Distribution Agreements for seven films and expect that number to increase substantially as we position ourselves to meet the surge in the demand for content by broadcasters set to launch commercial channels throughout 2015.

In addition to conventional broadcasting, our growing library of UHD 4K films can be distributed through a variety of other channels including streaming over the Internet. Through our distribution partner, we have licensed our UHD 4K library of films to DirecTV and Nanotech whose streaming UltraFlix Network App delivers state-of-the-art UHD television experiences to consumers worldwide.  Bears 4K has also been licensed to Samsung and Sky Korea and Adrenaline Rush is licensed to the Oregon Museum of Science and Industry.  We are currently in negotiations with several major international services that have announced plans to launch 4K channels in 2015.  Our library of UHD/4K films will be released on 4K Blu-Ray disc when 4K Blu-ray players are made available to consumers (which, based upon statements from the Blu-ray Disc Association, is anticipated to be the 2015 holiday shopping season).