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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNITED
      STATES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      AND EXCHANGE COMMISSION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Washington,
      D.C. 20549</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><strong>Form
      8-K</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
      REPORT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
      to Section 13 OR 15(d) of the Securities Exchange Act of
      1934</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
        of
        Report (Date of earliest reported) August 22, 2006</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 16pt; FONT-FAMILY: Times New Roman"><strong>TACTICAL
                AIR DEFENSE SERVICES, INC.</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
                name of registrant as specified in its charter)</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Nevada</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
                or other jurisdiction of incorporation)</font></div>
            </td>
            <td valign="top" width="26%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>333-79405</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Commission
                File Number)</font></div>
            </td>
            <td valign="top" width="26%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>88-0455809</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
                Employer Identification No.)</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>1550
                Ostler Court, Vancouver, British Columbia, Canada
                V7G-2P1</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Telephone
                No.: (604) 924-8000</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
                and telephone number of Registrant's principal</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">executive
                offices and principal place of business)</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
                address, if changed since last
                report.)</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below):</font></div>
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            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#3982;</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Written
                communications pursuant to Rule 425 under the Securities Act (17
                CFR
                230.425)</font></div>
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            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#3982;</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
                material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                240.14a-12)</font></div>
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            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#3982;</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
                communications pursuant to Rule 14d-2(b) under the Exchange Act (17
                CFR
                240.14d-2(b))</font></div>
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    </div>
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    <div>
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            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#3982;</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
                communications pursuant to Rule 13e-4(c) under the Exchange Act (17
                CFR
                240.13e-4(c))</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      1.01 Entry Into a Material Definitive Agreement.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      July
      14, 2006, Tactical Air Defense Services, Inc., a Nevada corporation (&#8220;TADS&#8221;)
      filed a Current Report on 8-K (the &#8220;July 14 8-K&#8221;) announcing that it and three
      of its recently formed wholly owned Nevada subsidiaries (the &#8220;TADS Subsidiaries&#8221;
and, collectively with TADS, the &#8220;Company&#8221;) entered into a definitive Asset
      Purchase Agreement (as amended from time to time, the &#8220;AeroGroup Agreement&#8221;)
      with AeroGroup Incorporated, a Utah corporation and its three wholly owned
      Delaware subsidiaries (the &#8220;AeroGroup Subsidiaries&#8221; and, collectively with
      AeroGroup Incorporated, &#8220;AeroGroup&#8221;), pursuant to which the Company will acquire
      substantially all of the assets of AeroGroup (the &#8220;AeroGroup Assets&#8221;) and in
      exchange therefore, will issue stock and assumed certain indebtedness, warrants
      and other obligations of AeroGroup (the &#8220;AeroGroup Acquisition&#8221;). </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      closing of the AeroGroup Acquisition is contemplated to take place in early
      September of 2006 and is conditioned upon, among other things, various
      government permits being secured by the Company and completion of consolidated
      audited financial statements by the Company&#8217;s auditors relating to the
      transaction. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition to being dependent upon completion of satisfactory auditors report
      with
      respect to consolidated financial statements of the Company and AeroGroup,
      the
      closing of the AeroGroup Acquisition is dependent on the Company securing
      government licenses and permits with the ATF, the CCR and ITAR that will enable
      it to own and operate fully functioning military aircraft, to perform and become
      assignees of AeroGroup under certain military training contracts and to enter
      into similar government contracts in the future utilizing such assets for
      training of military personnel (collectively, the &#8220;Government Licenses&#8221;). In
      order to secure these Government licenses, the Company must appoint the current
      director and executive officer of AeroGroup as well as retain other qualified
      persons to the Board of Directors or as officers of the Company, as discussed
      herein. The AeroGroup Assets to be acquired are detailed in the July 14 8-K
      the
      provisions of which are incorporated by reference herein and include, without
      limitation, several modern MiG 29 combat fighter aircraft, various patents,
      AeroGroup rights under four U.S. government contracts and the rights to certain
      training curriculum.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      provisions of the AeroGroup Agreement provide that in the event that the above
      referenced conditions are not satisfied within seventy-five (75) days after
      the
      date of the Agreement (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>i.e.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      September 25, 2006) unless extended by the parties, said appointees will resign
      and will re-elect Mr. Sinclair as sole director and officer, and the transaction
      may be terminated by the parties without recourse. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Appointment
      of Interim Management - Modification to Agreement</strong></font></div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      order
      to secure the Government Licenses required to be obtained as a condition to
      closing, Derick Sinclair, the Company&#8217;s existing sole board member, has,
      effective as of August 22, 2006, resigned and appointed Mark T. Daniels, the
      current President and Chief Executive Officer of AeroGroup, as the sole director
      of TADS and as its Secretary and Treasurer. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additionally,
      effective as of the date hereof, Charles Searock (USAF Ret. Lt. General) has
      been appointed as President and John Riley Farley has been appointed as Vice
      President and Chief Financial Officer of TADS (Messers. Daniels, Searock and
      Farley being sometimes referred to herein as the &#8220;Interim Management&#8221;). It was
      originally agreed and disclosed that Mr. Peer would act as Vice President,
      however, due to personal commitments, Mr. Peer has indicated that he will be
      unable to serve as President. Accordingly, the AeroGroup Agreement has been
      amended to reflect the replacement of Mr. Peer by Mr. Farley. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      statements made in this Current Report on 8-K referencing the AeroGroup
      Acquisition are qualified in their entirety by reference to the text of the
      AeroGroup Agreement, as amended on August 22, 2006 and are expressly made
      subject to the more complete information set forth therein, except to the extent
      modified herein. A more detailed description of the AeroGroup Agreement can
      be
      found in the July 14 8-K filed by TADS, the provisions of which are incorporated
      by reference herein and updated as set forth herein. The full text of the
      Amendment to the AeroGroup Agreement dated August 22, 2006 is furnished as
      an
      exhibit herewith.</font></div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      5.01.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Changes
      in Control of Management</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      accordance with the AeroGroup Agreement, as amended, Mr. Derick Sinclair, our
      current sole director and executive officer, has appointed the Interim
      Management named above as of August 22, 2006. These appointments are made on
      an
      interim basis solely to facilitate the AeroGroup Acquisition. Additional
      information relating to the Interim Management is set forth below. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">None
      of
      the persons comprising the Interim Management own any securities of the Company
      or have any options or other rights to acquire any securities of the Company.
      However, no shares have been issued yet in connection with the AeroGroup
      Acquisition. Additionally, at the closing, TADS will pay AeroGroup 14,989,800
      restricted shares of TADS common stock (&#8220;Common Stock&#8221;) in exchange for the
      AeroGroup Assets, resulting in the ownership by AeroGroup of approximately
      80%
      of our voting stock after the transaction. Additionally, the Company will be
      assuming approximately $8.5</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">million
      of convertible indebtedness (inclusive of interest) which will be convertible
      into approximately 36,506,113 shares of Common Stock as of the date hereof
      and
      warrants to acquire 21,566,805 shares of Common Stock. The assumed indebtedness
      includes the assumption of AeroGroup&#8217;s obligations under a $1.1 million 12%
      Secured Convertible Promissory Note (the &#8220;Secured Daniels Note&#8221;) issued to Mr.
      Daniels which is secured by senior lien on all of the AeroGroup Assets being
      acquired and a $366,602 principal amount unsecured 12% promissory note to Mr.
      Daniels (the &#8220;Unsecured Daniels Note&#8221;), which will become convertible into
      Common Stock at $.15 per share and warrants to acquire 2,444,013 shares of
      Common Stock at $.15 per share. Mr. Daniels is an executive officer, director
      and controlling stockholder of AeroGroup which will result in indirect
      beneficial ownership by Mr. Daniels of shares issued to AeroGroup in connection
      with the AeroGroup Acquisition. (See &#8220;Certain Relationships and Related Party
      Transactions,&#8221; below). The issuance of shares in the AeroGroup Acquisition will
      therefore result in direct and indirect beneficial ownership by Mr. Daniels
      of
      81.4% of our Common Stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
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      </div>
      <div>&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      the
      AeroGroup Acquisition is not consummated before September 25, 2005, unless
      extended by the parties, the Interim Management will resign and Mr. Sinclair,
      as
      current sold director and executive officer, will be reappointed as director,
      president and secretary. (See &#8220;Entry Into a Material Definitive Agreement&#8221;
above).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      5.02</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Departure
      of Directors or Principal Officers; Election of Directors; Appointment of
      Principal Officers. </strong></font></div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Appointment
      of Interim Director and Officers</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      of
      August 22, 2006, Derick Sinclair, the Company&#8217;s existing sole board member has
      resigned and appointed Messrs. Daniels, Farley and Searock as the Interim
      Management to the positions set forth below. Upon closing of the AeroGroup
      Acquisition, the below appointees will continue to serve in such positions
      until
      their resignation or their replacement. In the event that above referenced
      conditions to the closing of the AeroGroup Acquisition are not satisfied by
      September 25, 2006 </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>(i.e.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      seventy-five (75) days after the date of the Agreement), unless extended by
      the
      parties, said appointees will resign and re-elect Mr. Sinclair as Director,
      and
      the transaction may be terminated by the parties without recourse, and without
      issuance of any shares. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Mark
      Daniels.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Mr.
      Daniels has been appointed as the sole director of the Company and as the
      Secretary and Treasurer of the Company as of August 22, 2006. Currently, and
      since 2002, Mr. Daniels has been the sole board member, President and the Chief
      Executive officer of AeroGroup. Prior to such time, and since 1998, Mr. Daniels
      was Vice President and a Manager of Global Aviation Associates, Inc., a Florida
      based aircraft leasing company that leased military and non military aircraft
      to
      government and commercial contractors. Between 1988 and 1998, Mr. Daniels was
      President and Founder of National Search Services, Inc, an investigative
      services company. Between 1989 and 2001, Mr. Daniels was elected as a director
      of the National Aviation Museum, a Not-For-Profit corporation located in
      Oklahoma, where Mr. Daniel&#8217;s primary responsibility was the acquisition and
      importation of military fighter aircraft. Mr. Daniels is&#160;primarily
      responsible for the development of AeroGroup&#8217;s business as an aviation
      government contractor to outsource fighter aircraft for training and other
      purposes to the U.S. Government and other countries. Mr. Daniels is also an
      inventor, having numerous patents on file that are directly related to utility
      and methods of military type aircraft. Certain of these patents are owned by
      AeroGroup and are being acquired as part of the AeroGroup Acquisition.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Lt.
      General (Ret.) Charles Searock. </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Searock has been appointed as the President of the Company effective August
      22,
      2006. From December 1996 through his retirement in August 2001, Mr. Searock
      was
      Chief Executive Officer of Dynasil Corp. Mr. Searock entered the Air National
      Guard in 1954 and entered the US Air Force in 1956 and served as Commander
      of
      the 380</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>th</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      and
      393</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>rd</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Bombardment Squadron and in numerous other distinguished capacities and officer
      positions until his military retirement in 1993, where he attained the rank
      of
      Lt. General. Mr. Searock holds a number airmen ratings and aircraft type ratings
      for both civilian and military aircraft with over 7,000 flying hours. Mr.
      Searock earned his Bachelor of Science degree in 1954 from the University of
      Nebraska at Omaha. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">4</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
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      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>John
      Riley Farley.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Mr.
      Farley has been appointed as Vice President, effective as of August 22, 2006.
      Prior to such time, and since 1998, Mr. Farley has been a manager of Area Wide
      Realtors Inc., a commercial and residential real estate development and finance
      firm. Between 1980 and 1997 Mr. Farley served in various executive capacities
      of
      First National Bank of Whitewright (Sherman, Whitewright and Dennison branches),
      where he was eventually appointed as President and Chief Executive Officer.
      Prior to such time Mr. Farley founded and operated his own livestock feed
      corporation in Texas. Mr. Farley Served in the Air Force Reserve at Carswell
      Air
      force Base -336</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>th</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Squadron, between 1970 and 1976 when he was Honorably Discharged. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      directors of the Company do not receive any compensation for their services
      as
      members of the Board of Directors, but are entitled to reimbursement for
      expenses incurred in connection with their attendance at Board of Directors&#8217;
meetings. Officers are appointed by the Board of Directors and serve at the
      discretion of the Board. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
      the
      best of the Company&#8217;s knowledge, there are no proceedings to which any of the
      foregoing individuals, or any associate of any such person, is a party adverse
      to the Company or any of its subsidiaries or has a material interest adverse
      to
      the Company or any of its subsidiaries. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
      are
      no family relationships among our directors or officers. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Certain
      Relationships and Related Transactions</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prior
      to
      the appointment of the above persons as Interim Management, such persons were
      not directors of, nor did any of them hold any position with the Company. The
      Interim Management have consented to hold the above referenced positions with
      the Company to secure the Government Licenses, and to the best of their
      knowledge, such persons (i) do not have a family relationship with any of the
      directors, executive officers or control persons of the Company; (ii) do not
      beneficially own any equity securities, or rights to acquire any equity
      securities of the Company other than as disclosed in this Current Report on
      8-K;
      (iii) have not been involved in any transactions with the Company other than
      the
      AeroGroup Acquisition, as described above, nor have any of them had any business
      relationships with the Company or any of its directors, executive officers
      or
      affiliates; and (iv) have not been the subject of any civil regulatory
      proceeding or any criminal proceeding.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Notes
      and Warrants Issued to Mark T. Daniels</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      part
      of the AeroGroup Acquisition, the Company will be assuming AeroGroup&#8217;s
      obligations under the $1.1 million principal amount of 12% Secured Daniels
      Note
      issued to Daniels, a principal and controlling shareholder of AeroGroup, which
      is secured by senior lien on all of the AeroGroup Assets being acquired. The
      Secured Daniels Note will be assumed by TADS and will be immediately convertible
      into Common Stock of TADS at a conversion price of $.50 per share, or 2,200,000
      shares of Common Stock (plus additional shares that may be issuable upon
      conversion of interest) in the case of the AeroGroup transaction. The issuance
      of the shares in accordance with the AeroGroup Acquisition will, thereby, result
      in Mr. Daniels indirectly owning a majority of our outstanding shares.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additionally,
      Mr. Daniels was issued a 12% Unsecured Daniels Note in the amount of $366,602
      reflecting amounts loaned to AeroGroup by Daniels to fund AeroGroup&#8217;s operations
      and warrants to purchase shares of AeroGroup. The obligation of this Unsecured
      Daniels Note and warrant will be assumed by TADS at the closing of the AeroGroup
      Acquisition. An aggregate of up to 4,888,026 shares of Common Stock may be
      issued upon conversion of the Unsecured Daniels Note and exercise of the warrant
      at a conversion price of $.15 per share, plus additional shares that may be
      issued upon conversion of accrued interest. Neither the Unsecured Daniels Note
      nor the warrant are convertible or exercisable within 60 days of the date of
      this filing.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Acquisition
      of Aircraft and Simulator Assets from Entities owned y Mr. Daniels.
</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      June
      of 2006, AeroGroup acquired substantially all of the assets of three limited
      liability companies owned by Mr. Daniels, Onesource Financial Holdings, LLC,
      Genesis Capital Services, LLC, and Resource Financial Holdings, LLC. These
      assets (the &#8220;Daniels Assets&#8221;) included two MiG 29 fighter jets and four full
      motion aircraft flight simulators. The Daniels Assets were acquired by AeroGroup
      in exchange for the assumption by the AeroGroup subsidiaries of certain of
      indebtedness incurred by Daniels in connection with his acquisition of these
      assets and certain other consideration. These assets were appraised by a
      certified aircraft appraiser and AeroGroup believes that the acquisition of
      these assets from Daniels was at terms that were no less favorable to it then
      if
      the Company had attempted to acquire these assets in the open market.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      above
      Daniels Assets are part of the AeroGroup Assets being acquired by the Company
      in
      the AeroGroup Acquisition. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      9.01 Financial Statements and Exhibits.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)
      Financial statements of businesses acquired.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No
      financial statements are filed herewith. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)
      Pro
      forma financial information.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No
      pro
      forma financial statements are filed herewith.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)
      Shell
      company transactions.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      registrant does not believe financial statements and pro forma financial
      information is required by Rule 3-05(a) of Regulation S-X. Said financial
      statements and financial information will be filed upon closing of the AeroGroup
      Acquisition. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)
      Exhibits.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Exhibits to this report are listed in the Index to Exhibits which immediately
      follows the signature page hereto.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
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    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.</font></div>
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          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">TACTICAL
              AIR DEFENSE SERVICES, INC.</font></strong></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Date:&#160;
August
              22, 2006</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;/s/
              Derick Sinclair</font></td>
          </tr>
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            <td colspan="2"><font style="FONT-FAMILY: " size="1">&#160;</font></td>
            <td align="left">
              <hr style="COLOR: black" align="left" noshade size="2" width="80%"><font size="2">Name:
              Derick Sinclair</font></td>
          </tr>
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            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Title:&#160;
              President, C.E.O.&#160;&#160;</font></td>
          </tr>

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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">7</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INDEX
      TO EXHIBITS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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                No.</strong></font></div>
            </td>
            <td align="left" valign="top" width="64%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Description
                </strong></font></div>
            </td>
          </tr>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amendment
                dated August 22, 2006, to Asset Purchase Agreement by an among Tactical
                Air Defense Services, Inc., Resource Aviation Financial Holdings,
                Inc.,
                Genesis Aviation Acquisition, Inc. and OneSource Aviation Acquisition,
                Inc., as purchasers, and AeroGroup Incorporated, Resource Financial
                Holding Acquisition, Inc. and OneSource Acquisition, Inc., as sellers,
                dated as of July 14, 2006. </font></div>
            </td>
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{"company-data": {"conformed-name": "TACTICAL AIR DEFENSE SERVICES, INC.", "cik": "0001077915", "assigned-sic": "1000", "irs-number": "880409369", "state-of-incorporation": "NV", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "333-79405", "film-number": "061051873"}, "business-address": {"street1": "1550 OSTLER CT", "city": "NORTH VANCOUVER", "state": "A1", "zip": "V7G 2P7", "phone": "604-990-2072"}, "mail-address": {"street1": "1550 OSTLER CT", "city": "NORTH VANCOUVER", "state": "A1", "zip": "V7G 2P7"}, "former-company": {"former-conformed-name": "NATALMA INDUSTRIES INC", "date-changed": "19990501"}}
Unassociated Document
UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
Washington,
      D.C. 20549
Form
      8-K
CURRENT
      REPORT
Pursuant
      to Section 13 OR 15(d) of the Securities Exchange Act of
      1934
Date
        of
        Report (Date of earliest reported) August 22, 2006
TACTICAL
                AIR DEFENSE SERVICES, INC.
(Exact
                name of registrant as specified in its charter)
Nevada
(State
                or other jurisdiction of incorporation)
333-79405
(Commission
                File Number)
88-0455809
(IRS
                Employer Identification No.)
1550
                Ostler Court, Vancouver, British Columbia, Canada
                V7G-2P1
Telephone
                No.: (604) 924-8000
(Address
                and telephone number of Registrant's principal
executive
                offices and principal place of business)
(Former
                address, if changed since last
                report.)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below):
ྎ
Written
                communications pursuant to Rule 425 under the Securities Act (17
                CFR
                230.425)
ྎ
Soliciting
                material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                240.14a-12)
ྎ
Pre-commencement
                communications pursuant to Rule 14d-2(b) under the Exchange Act (17
                CFR
                240.14d-2(b))
ྎ
Pre-commencement
                communications pursuant to Rule 13e-4(c) under the Exchange Act (17
                CFR
                240.13e-4(c))
Item
      1.01 Entry Into a Material Definitive Agreement.
On
      July
      14, 2006, Tactical Air Defense Services, Inc., a Nevada corporation ("TADS")
      filed a Current Report on 8-K (the "July 14 8-K") announcing that it and three
      of its recently formed wholly owned Nevada subsidiaries (the "TADS Subsidiaries"
and, collectively with TADS, the "Company") entered into a definitive Asset
      Purchase Agreement (as amended from time to time, the "AeroGroup Agreement")
      with AeroGroup Incorporated, a Utah corporation and its three wholly owned
      Delaware subsidiaries (the "AeroGroup Subsidiaries" and, collectively with
      AeroGroup Incorporated, "AeroGroup"), pursuant to which the Company will acquire
      substantially all of the assets of AeroGroup (the "AeroGroup Assets") and in
      exchange therefore, will issue stock and assumed certain indebtedness, warrants
      and other obligations of AeroGroup (the "AeroGroup Acquisition").
The
      closing of the AeroGroup Acquisition is contemplated to take place in early
      September of 2006 and is conditioned upon, among other things, various
      government permits being secured by the Company and completion of consolidated
      audited financial statements by the Company's auditors relating to the
      transaction.
In
      addition to being dependent upon completion of satisfactory auditors report
      with
      respect to consolidated financial statements of the Company and AeroGroup,
      the
      closing of the AeroGroup Acquisition is dependent on the Company securing
      government licenses and permits with the ATF, the CCR and ITAR that will enable
      it to own and operate fully functioning military aircraft, to perform and become
      assignees of AeroGroup under certain military training contracts and to enter
      into similar government contracts in the future utilizing such assets for
      training of military personnel (collectively, the "Government Licenses"). In
      order to secure these Government licenses, the Company must appoint the current
      director and executive officer of AeroGroup as well as retain other qualified
      persons to the Board of Directors or as officers of the Company, as discussed
      herein. The AeroGroup Assets to be acquired are detailed in the July 14 8-K
      the
      provisions of which are incorporated by reference herein and include, without
      limitation, several modern MiG 29 combat fighter aircraft, various patents,
      AeroGroup rights under four U.S. government contracts and the rights to certain
      training curriculum.
The
      provisions of the AeroGroup Agreement provide that in the event that the above
      referenced conditions are not satisfied within seventy-five (75) days after
      the
      date of the Agreement (
i.e.
,
      September 25, 2006) unless extended by the parties, said appointees will resign
      and will re-elect Mr. Sinclair as sole director and officer, and the transaction
      may be terminated by the parties without recourse.
Appointment
      of Interim Management - Modification to Agreement
In
      order
      to secure the Government Licenses required to be obtained as a condition to
      closing, Derick Sinclair, the Company's existing sole board member, has,
      effective as of August 22, 2006, resigned and appointed Mark T. Daniels, the
      current President and Chief Executive Officer of AeroGroup, as the sole director
      of TADS and as its Secretary and Treasurer.
2
Additionally,
      effective as of the date hereof, Charles Searock (USAF Ret. Lt. General) has
      been appointed as President and John Riley Farley has been appointed as Vice
      President and Chief Financial Officer of TADS (Messers. Daniels, Searock and
      Farley being sometimes referred to herein as the "Interim Management"). It was
      originally agreed and disclosed that Mr. Peer would act as Vice President,
      however, due to personal commitments, Mr. Peer has indicated that he will be
      unable to serve as President. Accordingly, the AeroGroup Agreement has been
      amended to reflect the replacement of Mr. Peer by Mr. Farley.
The
      statements made in this Current Report on 8-K referencing the AeroGroup
      Acquisition are qualified in their entirety by reference to the text of the
      AeroGroup Agreement, as amended on August 22, 2006 and are expressly made
      subject to the more complete information set forth therein, except to the extent
      modified herein. A more detailed description of the AeroGroup Agreement can
      be
      found in the July 14 8-K filed by TADS, the provisions of which are incorporated
      by reference herein and updated as set forth herein. The full text of the
      Amendment to the AeroGroup Agreement dated August 22, 2006 is furnished as
      an
      exhibit herewith.
Item
      5.01.
Changes
      in Control of Management
In
      accordance with the AeroGroup Agreement, as amended, Mr. Derick Sinclair, our
      current sole director and executive officer, has appointed the Interim
      Management named above as of August 22, 2006. These appointments are made on
      an
      interim basis solely to facilitate the AeroGroup Acquisition. Additional
      information relating to the Interim Management is set forth below.
None
      of
      the persons comprising the Interim Management own any securities of the Company
      or have any options or other rights to acquire any securities of the Company.
      However, no shares have been issued yet in connection with the AeroGroup
      Acquisition. Additionally, at the closing, TADS will pay AeroGroup 14,989,800
      restricted shares of TADS common stock ("Common Stock") in exchange for the
      AeroGroup Assets, resulting in the ownership by AeroGroup of approximately
      80%
      of our voting stock after the transaction. Additionally, the Company will be
      assuming approximately $8.5
million
      of convertible indebtedness (inclusive of interest) which will be convertible
      into approximately 36,506,113 shares of Common Stock as of the date hereof
      and
      warrants to acquire 21,566,805 shares of Common Stock. The assumed indebtedness
      includes the assumption of AeroGroup's obligations under a $1.1 million 12%
      Secured Convertible Promissory Note (the "Secured Daniels Note") issued to Mr.
      Daniels which is secured by senior lien on all of the AeroGroup Assets being
      acquired and a $366,602 principal amount unsecured 12% promissory note to Mr.
      Daniels (the "Unsecured Daniels Note"), which will become convertible into
      Common Stock at $.15 per share and warrants to acquire 2,444,013 shares of
      Common Stock at $.15 per share. Mr. Daniels is an executive officer, director
      and controlling stockholder of AeroGroup which will result in indirect
      beneficial ownership by Mr. Daniels of shares issued to AeroGroup in connection
      with the AeroGroup Acquisition. (See "Certain Relationships and Related Party
      Transactions," below). The issuance of shares in the AeroGroup Acquisition will
      therefore result in direct and indirect beneficial ownership by Mr. Daniels
      of
      81.4% of our Common Stock.
3
If
      the
      AeroGroup Acquisition is not consummated before September 25, 2005, unless
      extended by the parties, the Interim Management will resign and Mr. Sinclair,
      as
      current sold director and executive officer, will be reappointed as director,
      president and secretary. (See "Entry Into a Material Definitive Agreement"
above).
Item
      5.02
Departure
      of Directors or Principal Officers; Election of Directors; Appointment of
      Principal Officers.
Appointment
      of Interim Director and Officers
As
      of
      August 22, 2006, Derick Sinclair, the Company's existing sole board member has
      resigned and appointed Messrs. Daniels, Farley and Searock as the Interim
      Management to the positions set forth below. Upon closing of the AeroGroup
      Acquisition, the below appointees will continue to serve in such positions
      until
      their resignation or their replacement. In the event that above referenced
      conditions to the closing of the AeroGroup Acquisition are not satisfied by
      September 25, 2006
(i.e.
,
      seventy-five (75) days after the date of the Agreement), unless extended by
      the
      parties, said appointees will resign and re-elect Mr. Sinclair as Director,
      and
      the transaction may be terminated by the parties without recourse, and without
      issuance of any shares.
Mark
      Daniels.
Mr.
      Daniels has been appointed as the sole director of the Company and as the
      Secretary and Treasurer of the Company as of August 22, 2006. Currently, and
      since 2002, Mr. Daniels has been the sole board member, President and the Chief
      Executive officer of AeroGroup. Prior to such time, and since 1998, Mr. Daniels
      was Vice President and a Manager of Global Aviation Associates, Inc., a Florida
      based aircraft leasing company that leased military and non military aircraft
      to
      government and commercial contractors. Between 1988 and 1998, Mr. Daniels was
      President and Founder of National Search Services, Inc, an investigative
      services company. Between 1989 and 2001, Mr. Daniels was elected as a director
      of the National Aviation Museum, a Not-For-Profit corporation located in
      Oklahoma, where Mr. Daniel's primary responsibility was the acquisition and
      importation of military fighter aircraft. Mr. Daniels is primarily
      responsible for the development of AeroGroup's business as an aviation
      government contractor to outsource fighter aircraft for training and other
      purposes to the U.S. Government and other countries. Mr. Daniels is also an
      inventor, having numerous patents on file that are directly related to utility
      and methods of military type aircraft. Certain of these patents are owned by
      AeroGroup and are being acquired as part of the AeroGroup Acquisition.
Lt.
      General (Ret.) Charles Searock.
Mr.
      Searock has been appointed as the President of the Company effective August
      22,
      2006. From December 1996 through his retirement in August 2001, Mr. Searock
      was
      Chief Executive Officer of Dynasil Corp. Mr. Searock entered the Air National
      Guard in 1954 and entered the US Air Force in 1956 and served as Commander
      of
      the 380
th
and
      393
rd
Bombardment Squadron and in numerous other distinguished capacities and officer
      positions until his military retirement in 1993, where he attained the rank
      of
      Lt. General. Mr. Searock holds a number airmen ratings and aircraft type ratings
      for both civilian and military aircraft with over 7,000 flying hours. Mr.
      Searock earned his Bachelor of Science degree in 1954 from the University of
      Nebraska at Omaha.
4
John
      Riley Farley.
Mr.
      Farley has been appointed as Vice President, effective as of August 22, 2006.
      Prior to such time, and since 1998, Mr. Farley has been a manager of Area Wide
      Realtors Inc., a commercial and residential real estate development and finance
      firm. Between 1980 and 1997 Mr. Farley served in various executive capacities
      of
      First National Bank of Whitewright (Sherman, Whitewright and Dennison branches),
      where he was eventually appointed as President and Chief Executive Officer.
      Prior to such time Mr. Farley founded and operated his own livestock feed
      corporation in Texas. Mr. Farley Served in the Air Force Reserve at Carswell
      Air
      force Base -336
th
Squadron, between 1970 and 1976 when he was Honorably Discharged.
The
      directors of the Company do not receive any compensation for their services
      as
      members of the Board of Directors, but are entitled to reimbursement for
      expenses incurred in connection with their attendance at Board of Directors'
meetings. Officers are appointed by the Board of Directors and serve at the
      discretion of the Board.
To
      the
      best of the Company's knowledge, there are no proceedings to which any of the
      foregoing individuals, or any associate of any such person, is a party adverse
      to the Company or any of its subsidiaries or has a material interest adverse
      to
      the Company or any of its subsidiaries.
There
      are
      no family relationships among our directors or officers.
Certain
      Relationships and Related Transactions
Prior
      to
      the appointment of the above persons as Interim Management, such persons were
      not directors of, nor did any of them hold any position with the Company. The
      Interim Management have consented to hold the above referenced positions with
      the Company to secure the Government Licenses, and to the best of their
      knowledge, such persons (i) do not have a family relationship with any of the
      directors, executive officers or control persons of the Company; (ii) do not
      beneficially own any equity securities, or rights to acquire any equity
      securities of the Company other than as disclosed in this Current Report on
      8-K;
      (iii) have not been involved in any transactions with the Company other than
      the
      AeroGroup Acquisition, as described above, nor have any of them had any business
      relationships with the Company or any of its directors, executive officers
      or
      affiliates; and (iv) have not been the subject of any civil regulatory
      proceeding or any criminal proceeding.
Notes
      and Warrants Issued to Mark T. Daniels
As
      part
      of the AeroGroup Acquisition, the Company will be assuming AeroGroup's
      obligations under the $1.1 million principal amount of 12% Secured Daniels
      Note
      issued to Daniels, a principal and controlling shareholder of AeroGroup, which
      is secured by senior lien on all of the AeroGroup Assets being acquired. The
      Secured Daniels Note will be assumed by TADS and will be immediately convertible
      into Common Stock of TADS at a conversion price of $.50 per share, or 2,200,000
      shares of Common Stock (plus additional shares that may be issuable upon
      conversion of interest) in the case of the AeroGroup transaction. The issuance
      of the shares in accordance with the AeroGroup Acquisition will, thereby, result
      in Mr. Daniels indirectly owning a majority of our outstanding shares.
5
Additionally,
      Mr. Daniels was issued a 12% Unsecured Daniels Note in the amount of $366,602
      reflecting amounts loaned to AeroGroup by Daniels to fund AeroGroup's operations
      and warrants to purchase shares of AeroGroup. The obligation of this Unsecured
      Daniels Note and warrant will be assumed by TADS at the closing of the AeroGroup
      Acquisition. An aggregate of up to 4,888,026 shares of Common Stock may be
      issued upon conversion of the Unsecured Daniels Note and exercise of the warrant
      at a conversion price of $.15 per share, plus additional shares that may be
      issued upon conversion of accrued interest. Neither the Unsecured Daniels Note
      nor the warrant are convertible or exercisable within 60 days of the date of
      this filing.
Acquisition
      of Aircraft and Simulator Assets from Entities owned y Mr. Daniels.
In
      June
      of 2006, AeroGroup acquired substantially all of the assets of three limited
      liability companies owned by Mr. Daniels, Onesource Financial Holdings, LLC,
      Genesis Capital Services, LLC, and Resource Financial Holdings, LLC. These
      assets (the "Daniels Assets") included two MiG 29 fighter jets and four full
      motion aircraft flight simulators. The Daniels Assets were acquired by AeroGroup
      in exchange for the assumption by the AeroGroup subsidiaries of certain of
      indebtedness incurred by Daniels in connection with his acquisition of these
      assets and certain other consideration. These assets were appraised by a
      certified aircraft appraiser and AeroGroup believes that the acquisition of
      these assets from Daniels was at terms that were no less favorable to it then
      if
      the Company had attempted to acquire these assets in the open market.
The
      above
      Daniels Assets are part of the AeroGroup Assets being acquired by the Company
      in
      the AeroGroup Acquisition.
Item
      9.01 Financial Statements and Exhibits.
(a)
      Financial statements of businesses acquired.
No
      financial statements are filed herewith.
(b)
      Pro
      forma financial information.
No
      pro
      forma financial statements are filed herewith.
(c)
      Shell
      company transactions.
The
      registrant does not believe financial statements and pro forma financial
      information is required by Rule 3-05(a) of Regulation S-X. Said financial
      statements and financial information will be filed upon closing of the AeroGroup
      Acquisition.
(d)
      Exhibits.
The
      Exhibits to this report are listed in the Index to Exhibits which immediately
      follows the signature page hereto.
6
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.
TACTICAL
              AIR DEFENSE SERVICES, INC.
Date: 
August
              22, 2006
By: /s/
              Derick Sinclair
Name:
              Derick Sinclair
Title: 
              President, C.E.O.
7
INDEX
      TO EXHIBITS
Exhibit
                No.
Description
10.1
Amendment
                dated August 22, 2006, to Asset Purchase Agreement by an among Tactical
                Air Defense Services, Inc., Resource Aviation Financial Holdings,
                Inc.,
                Genesis Aviation Acquisition, Inc. and OneSource Aviation Acquisition,
                Inc., as purchasers, and AeroGroup Incorporated, Resource Financial
                Holding Acquisition, Inc. and OneSource Acquisition, Inc., as sellers,
                dated as of July 14, 2006.
8