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      AND EXCHANGE COMMISSION</strong></font></div>
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      D.C. 20549</strong></font></div>
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      8-K</strong></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>CURRENT
      REPORT</strong></font></div>
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      to Section 13 OR 15(d) of </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>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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
      of
      Report (Date of earliest event reported): June 15, 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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">US
                GLOBAL NANOSPACE, INC.</font></div>
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                name of registrant as specified in its
                charter)</font></div>
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            <td valign="top" width="33%">&#160;</td>
            <td valign="top" width="33%">&#160;</td>
            <td valign="top" width="33%">&#160;</td>
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            </td>
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                - 23339 </font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; 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</font></div>
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                Employer</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">of
                incorporation)</font></div>
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                Number)</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">Identification
                No.)</font></div>
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            <td valign="top" width="66%">&#160;</td>
            <td valign="top" width="33%">&#160;</td>
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            <td valign="top" width="66%">
              <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">2533
                North Carson Street, Suite 5107</font></div>
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                City, Nevada </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">(Address
                of principal executive offices)</font></div>
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            <td valign="top" width="33%">
              <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">(Zip
                Code)</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"><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">Registrant&#8217;s
      telephone number, including area code (775) 841-3246</font></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

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            <td valign="top" width="90%">&#160;</td>
          </tr>
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            <td valign="top" width="90%" style="border-bottom: black thin solid;">&#160;</td>
          </tr>
          <tr>
            <td valign="top" width="90%">
              <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
                name or 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"><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>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font></td>
            <td align="left">
              <div align="left"><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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              <div align="left"><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: 27pt;"><font style="FONT-FAMILY: Wingdings" size="3">o</font></td>
            <td align="left">
              <div align="left"><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 style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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            <td align="left" style="width: 27pt;"><font style="FONT-FAMILY: Wingdings" size="3">o</font></td>
            <td align="left">
              <div align="left"><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="justify">&#160;</div>
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      <hr style="MARGIN-TOP: -5px; COLOR: #000000" noshade size="1">
      <hr style="MARGIN-TOP: -13px; COLOR: #000000" noshade size="4">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      Form
      8-K and other reports filed by US Global Nanospace, Inc. (the "Registrant")
      from
      time to time with the Securities and Exchange Commission (collectively the
      "Filings") contain forward looking statements and information that are based
      upon beliefs of, and information currently available to, the Registrant's
      management as well as estimates and assumptions made by the Registrant's
      management. When used in the Filings the words "anticipate", "believe",
      "estimate", "expect", "future", "intend", "plan" or the negative if these terms
      and similar expressions as they relate to the Registrant or the Registrant's
      management identify forward looking statements. Such statements reflect the
      current view of the Registrant with respect to future events and are subject
      to
      risks, uncertainties, assumptions and other factors relating to the Registrant's
      industry, operations and results of operations and any businesses that may
      be
      acquired by the Registrant. Should one or more of these risks or uncertainties
      materialize, or should the underlying assumptions prove incorrect, actual
      results may differ significantly from those anticipated, believed, estimated,
      expected, intended or planned.</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="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="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      June
      15, 2006 the Registrant and one of its directors, Julie Seaman, entered into
      a
      Settlement Agreement and Mutual Release (the &#8220;Settlement Agreement&#8221;) with the
      owner of the Registrant&#8217;s former business facility in Arlington, Texas, Everest
      International Inc. (&#8220;Everest&#8221;), on the one hand, and USDR, Inc. (&#8220;USDR&#8221;), USDR
      Aerospace Ltd. (&#8220;USDRA&#8221;), Avcom Technologies, Ltd. (&#8220;Avcom&#8221;) and Serlings Corp.
      (&#8220;Serlings&#8221;) (collectively, the &#8220;USDR Parties&#8221;), on the other hand. On June 21,
      2006 the Registrant and Everest entered into a Modification to Settlement
      Agreement (the &#8220;Modification&#8221;) modifying the Registrant&#8217;s obligations under the
      Settlement Agreement (the Settlement Agreement and the Modification are
      hereinafter referred to collectively as the &#8220;Modified Settlement Agreement&#8221;).
      Ms. Seaman is a principal of USDR and USDRA and acted on their behalf in
      connection with the Settlement Agreement. Pursuant to the Modified Settlement
      Agreement, the Registrant agreed to convey to Everest by June 21,
      2006&#160;certain tangible assets located in the Arlington facility (the &#8220;USDR
      Assets&#8221;) which the Registrant had purchased from USDR as described
      below,&#160;and the Registrant (i) agreed to issue to Everest 893,617
      unregistered shares of common stock within 10 calendar days of June 21, 2006,
      (ii) agreed to pay Everest $10,000 in cash by June 21, 2006, (iii) forfeited
      all
      claims to the $11,000 security deposit paid by the Registrant to Everest
      pursuant to the Arlington facility lease agreement, and (iv) agreed to tender
      to
      Everest cash payment of $32,000 at 10% per year via monthly installments of
      $1,464.43 commencing on October 1, 2006 with no prepayment penalty, all in
      consideration of a full release and dismissal of the lawsuit previously filed
      by
      Everest against the Registrant and Ms. Seaman, in her capacity as guarantor
      of
      the lease, in Tarrant County District Court, Texas, on December 19, 2005. The
      USDR Parties had&#160;tangible assets located in the Arlington facility, some of
      which the Registrant used for operations. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      June
      20, 2006, the Registrant and USDR entered into a Purchase Agreement in
      connection with the transactions contemplated by the Modified Settlement
      Agreement. Pursuant to the Purchase Agreement, USDR transferred to the
      Registrant all of its right, title and interest in and to the USDR Assets in
      exchange for the issuance by the Registrant to USDR of 731,707 unregistered
      shares of common stock.</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: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      foregoing discussion is qualified in its entirety by reference to the Settlement
      Agreement, the Modification and the Purchase Agreement, all of which are
      attached as exhibits to this report and incorporated herein by
      reference.</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="left"><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="justify">&#160;</div>
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          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 45pt;">
            </td>
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibits</font></div>
            </td>
          </tr>

      </table>
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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>
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          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 72pt;">&#160;</td>
            <td align="left" style="width: 72pt;"><font size="2">Exhibit No.</font></td>
            <td align="left"><font size="2">Description</font></td>
          </tr>

      </table>
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            <td style="width: 72pt;">
            </td>
            <td align="left" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.1</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Settlement
                Agreement and Mutual Release</font></div>
            </td>
          </tr>

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          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 72pt;">&#160;</td>
            <td align="left" style="width: 72pt;"><font size="2">10.2</font></td>
            <td align="left"><font size="2">Modification to Settlement
              Agreement</font></td>
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                Agreement</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="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><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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            <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>
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                GLOBAL NANOSPACE, INC.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
                <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">(Registrant)</font></div>
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            <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>
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          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Date:&#160;June
              26, 2006</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;&#160;</font></td>
            <td>
              <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">/s/
                Carl Gruenler</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">Carl
                Gruenler, Chief Executive Officer</font></div>
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{"company-data": {"conformed-name": "US GLOBAL NANOSPACE  INC", "cik": "0001001111", "assigned-sic": "2390", "irs-number": "980134875", "state-of-incorporation": "DE", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-23339", "film-number": "06925720"}, "business-address": {"street1": "2533 NORTH CARSON STREET", "street2": "STE 5107", "city": "CARSON CITY", "state": "NV", "zip": "89706", "phone": "775-841-3246"}, "mail-address": {"street1": "2533 N CARSON STREET", "street2": "STE 5107", "city": "CARSON CITY", "state": "NV", "zip": "89706"}, "former-company": [{"former-conformed-name": "US GLOBAL AEROSPACE  INC", "date-changed": "20021016"}, {"former-conformed-name": "CARING PRODUCTS INTERNATIONAL INC", "date-changed": "19950919"}]}
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 event reported): June 15, 2006
US
                GLOBAL NANOSPACE, INC.
(Exact
                name of registrant as specified in its
                charter)
Delaware
000
                - 23339
13-3720542
(State
                or other jurisdiction
(Commission
(IRS
                Employer
of
                incorporation)
File
                Number)
Identification
                No.)
2533
                North Carson Street, Suite 5107
Carson
                City, Nevada
89706
(Address
                of principal executive offices)
(Zip
                Code)
Registrant's
      telephone number, including area code (775) 841-3246
(Former
                name or 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):
o
Written
                communications pursuant to Rule 425 under the Securities Act (17
                CFR
                230.425)
o
Soliciting
                material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                240.14a-12)
o
Pre-commencement
                communications pursuant to Rule 14d-2(b) under the Exchange Act (17
                CFR
                240.14d-2(b))
o
Pre-commencement
                communications pursuant to Rule 13e-4(c) under the Exchange Act (17
                CFR
                240.13e-4(c))
This
      Form
      8-K and other reports filed by US Global Nanospace, Inc. (the "Registrant")
      from
      time to time with the Securities and Exchange Commission (collectively the
      "Filings") contain forward looking statements and information that are based
      upon beliefs of, and information currently available to, the Registrant's
      management as well as estimates and assumptions made by the Registrant's
      management. When used in the Filings the words "anticipate", "believe",
      "estimate", "expect", "future", "intend", "plan" or the negative if these terms
      and similar expressions as they relate to the Registrant or the Registrant's
      management identify forward looking statements. Such statements reflect the
      current view of the Registrant with respect to future events and are subject
      to
      risks, uncertainties, assumptions and other factors relating to the Registrant's
      industry, operations and results of operations and any businesses that may
      be
      acquired by the Registrant. Should one or more of these risks or uncertainties
      materialize, or should the underlying assumptions prove incorrect, actual
      results may differ significantly from those anticipated, believed, estimated,
      expected, intended or planned.
Item
      1.01 Entry into a Material Definitive Agreement.
On
      June
      15, 2006 the Registrant and one of its directors, Julie Seaman, entered into
      a
      Settlement Agreement and Mutual Release (the "Settlement Agreement") with the
      owner of the Registrant's former business facility in Arlington, Texas, Everest
      International Inc. ("Everest"), on the one hand, and USDR, Inc. ("USDR"), USDR
      Aerospace Ltd. ("USDRA"), Avcom Technologies, Ltd. ("Avcom") and Serlings Corp.
      ("Serlings") (collectively, the "USDR Parties"), on the other hand. On June 21,
      2006 the Registrant and Everest entered into a Modification to Settlement
      Agreement (the "Modification") modifying the Registrant's obligations under the
      Settlement Agreement (the Settlement Agreement and the Modification are
      hereinafter referred to collectively as the "Modified Settlement Agreement").
      Ms. Seaman is a principal of USDR and USDRA and acted on their behalf in
      connection with the Settlement Agreement. Pursuant to the Modified Settlement
      Agreement, the Registrant agreed to convey to Everest by June 21,
      2006 certain tangible assets located in the Arlington facility (the "USDR
      Assets") which the Registrant had purchased from USDR as described
      below, and the Registrant (i) agreed to issue to Everest 893,617
      unregistered shares of common stock within 10 calendar days of June 21, 2006,
      (ii) agreed to pay Everest $10,000 in cash by June 21, 2006, (iii) forfeited
      all
      claims to the $11,000 security deposit paid by the Registrant to Everest
      pursuant to the Arlington facility lease agreement, and (iv) agreed to tender
      to
      Everest cash payment of $32,000 at 10% per year via monthly installments of
      $1,464.43 commencing on October 1, 2006 with no prepayment penalty, all in
      consideration of a full release and dismissal of the lawsuit previously filed
      by
      Everest against the Registrant and Ms. Seaman, in her capacity as guarantor
      of
      the lease, in Tarrant County District Court, Texas, on December 19, 2005. The
      USDR Parties had tangible assets located in the Arlington facility, some of
      which the Registrant used for operations.
On
      June
      20, 2006, the Registrant and USDR entered into a Purchase Agreement in
      connection with the transactions contemplated by the Modified Settlement
      Agreement. Pursuant to the Purchase Agreement, USDR transferred to the
      Registrant all of its right, title and interest in and to the USDR Assets in
      exchange for the issuance by the Registrant to USDR of 731,707 unregistered
      shares of common stock.
The
      foregoing discussion is qualified in its entirety by reference to the Settlement
      Agreement, the Modification and the Purchase Agreement, all of which are
      attached as exhibits to this report and incorporated herein by
      reference.
Item
      9.01 Financial Statements and Exhibits.
(a)
Exhibits
Exhibit No.
Description
10.1
Settlement
                Agreement and Mutual Release
10.2
Modification to Settlement
              Agreement
10.3
Purchase
                Agreement
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.
US
                GLOBAL NANOSPACE, INC.
(Registrant)
Date: June
              26, 2006
/s/
                Carl Gruenler
Carl
                Gruenler, Chief Executive Officer