THAT MARKETING SOLUTION, INC.

During October 2015, the Company entered into a capital lease for equipment for use in its operating facilities valued at $43,636. The lease calls for a down payment of $10,483 and 24 monthly payments of $1,165. For financial statement purposes, the present values of the net minimum capital lease payments have been capitalized and are being amortized over the useful life of the asset.  The lease has been imputed with interest at an annual rate of 10.31 percent. In most circumstances, management expects that in the normal course of business, leases will be renewed or replaced by other leases.

On January 7, 2016, the Company executed an Original Issue Discount Convertible Promissory Note payable to Beaufort Capital Partners LLC.  The Original Issue Discount Convertible Promissory Note was sold for a purchase price of $25,000, which amount shall become due and payable on June 7, 2016. Absent any Event of Default, the Company may prepay the Original Issue Discount Convertible Promissory Note prior to the maturity date by paying a sum of $31,000.  All overdue unpaid principal shall entail a late fee at the rate of 10% per annum.  At any time after the maturity date and ending on the date that the Original Issue Discount Convertible Promissory Note is no

On January 7, 2016, the Company filed with the Nevada Secretary of State a Certificate of Designation designating a series of preferred stock as “Series A Preferred Stock.”  The Series A Preferred Stock consists of one million (1,000,000) shares and the holders of such shares shall be entitled to notice of any stockholders’ meeting and to vote as a single class upon any matter submitted to the stockholders for a vote as follows: each Series A Holder shall have such number of votes as is determined by multiplying (a) the number of shares of Series A Preferred Stock held by such Holder, and (b) 1,000.  The Series A Preferred Stock shall not have any dividend, conversion or redemption rights or any liquidation preference.  The designation of the Series A Preferred Stock and its rights and preferences was done by the Company’s Board of Directors pursuant to the authority granted to the Board under Article IV of the Company’s Amended and Restated Articles of Incorporation, as amended.

We are currently beginning to implement and scale our operations, including the launch of our Low T, That Vitamin and Lion’s Fuel Leg and lung products, and have received an order using our micellization manufacturing process. There can be no assurance that these operations will be successful and if they do not provide positive cash flow, the Company may need to raise additional capital through further debt and/or equity offerings.  In this regard, on January 7, 2016, which is subsequent to the end of the period covered by this Report, the Company issued to Beaufort Capital Partners LLC (the “Holder”) an Original Issue Discount Promissory Note for a purchase price of $25,000 (the “Note”), which Note will become due and payable on June 7, 2016, or such later date as the Holder may agree in writing.  For a discussion of the principal terms of the Note, see the Company’s Current Report on Form 8-K dated January 7, 2016, filed with the Securities and Exchange Commission on January 13, 2016.