access to CCI’s financial records throughout 2009, she received monthly financial
reports, and she had access to a computer, through which she could review specific
 Contrary to an assumption made by the plaintiffs’ business valuation expert, (which I will
review later in these reasons), Cheryl testifies that it would be wrong to assume that
CCI’s 2009 annual recorded sales were inaccurate. She denies that CCI made an
additional $189,000 in unrecorded sales in 2009.
 Cheryl confirms that from the commencement of its active operations, on January 1,
2009, CCI operated with a point of sale (“POS”) system, whereby information with
respect to “restaurant sales” of food and beverages were inputted immediately into the
restaurant’s accounting software, whenever an order was placed. Similarly, credit card
payments, which accounted for 55 to 65 percent of the payments for CCI’s food and
beverage sales, were inputted directly into its POS system, in real time. All of CCI’s
sales and expenses were recorded in its books and records in 2009. During her evidence,
Cheryl also reviewed CCI’s 2009 financial statements (Notice to Reader) prepared by its
then accountant, Horne LLP, and confirmed that to the best of her knowledge, those
financial statements accurately record all of CCI’s sales (revenue) and expenses in 2009,
which reveal among other things a total gross annual revenue of $778,125.
 Throughout 2009, Cheryl received monthly financial reports and an annual financial
report prepared by CCI’s accountant, which she contemporaneously reviewed. The
reports always appeared to be accurate. She confirms that CCI incurred an operating loss
of $195,001 in 2009, which she acknowledges is “way more” than the $50,000 loss that
she says she estimated in 2008.
 In this proceeding, Cheryl challenges the validity and quantum of CCI’s recorded debt
owed to its related parties (Rob, Retro Suites and RJM Holding Inc.). During her cross-
examination, Cheryl reviewed a copy of CCI’s financial records that record the opening
balances of its related-party debt as of January 1, 2009, specifically: a $188,439 debt
associated with related-party funded purchases of CCI’s kitchen equipment in 2008; an
approximate $56,000 debt associated with related-party funded purchases of CCI’s
furnishings and fixtures in 2008; and a debt of $97,938 for related-party expenditures to
build out CCI in 2008. Cheryl verified the accuracy of the kitchen equipment and
furnishing costs, noting that she was personally involved in those purchases. Cheryl
initially disputed CCI’s obligation to pay for the build out of the restaurant, reasoning
that the improvements were made to “Rob’s building”. However, she did not dispute the
accuracy of the recorded amount spent to affect the build out.
 Cheryl confirms that as of December 31, 2009, she was aware that CCI was indebted to
its related parties in the amount of $544,000. Although she states that she does not think
that the value of the build out costs ought to have been included in CCI’s 2009 related-
party debt (approximately $100,000), she never shared that position with Rob in 2009 or
2010. Cheryl agrees that even excluding the amount of the debt related to the restaurant’s
build out, CCI owed at least $444,000 in related-party debt as of December 31, 2009,
which she concedes had to be repaid to Rob.