Multiguide GmbH v. Broer
 In addition, all assets of MTI (its inventory and business equipment) were
purchased by RTB Canada. By way of an invoice dated May 31, 2016, MTI set the
inventory of their stock at an amount of $216,481.84, and applied a discount of
96.3045% (or $208,481.75) and invoiced RTB Canada for a total of only $9,040.14
for the inventory (due by December 31, 2016). Neither Mr. Rummeny nor Mr. Broer
were able to explain how the discount factor of 96.3045% was calculated.
Mr. Rummeny did provide the following answers in response to questions raised at
his examination for discovery:
Request 20: Confirm the book value at this RTB Canada purchased the
remaining assets of MTI for, and produce all documents that show that book
Response 20: In response to request #20, it is Mr. Rummeny’s
understanding that the value of the inventory was set at $251,688 as outlined
in the financial statements of MTI for 2015, 2016 and 2017. Mr. Rummeny
notes that the PDM’s which were not all market ready, are included in this
Request 21: Confirm if any payments have been made by RTB Canada to
MTI under the MSA, and if so provide particulars (dates and amounts) of
such payments made by RTB Canada to MTI under the MSA.
Response 21: There are no payments from RTB Safe Traffic [RTB Canada]
to MTI under the MSA. There was one profitable year for RTB Safe Traffic in
2018 where a profit of CDN $12,983.00 was earned.
Request 24: Provide responses to the two unanswered questions on
document RUM000162 (a Thursday, January 17, 2019 8:25 AM email from
Marc Rummeny to Joan Brown) i.e.
The management prepared financials have $289,927.38 of recorded
sales of products (inclusive of sales to RTB Safe Traffic in the total
amount of $216,481.84) and less $208,481.75 of sales refunds
(netted against sales). The sales refund of $208,481.75 appears to
have all been provided to RTB Safe Traffic [RTB Canada] pursuant to
an invoice dated May 31, 2016. Can you please send me support for
the entry? Can you explain the sales to RTB Safe Traffic [RTB
Canada]? Were they recorded at cost? Was the discount of
$208,481.75 intended to reverse the sales?
Services income of $229,476.11 includes $75,628 in recognized
deferred income. Can you please send me support for how/why the
deferred income was recognized in 2016?
In response to request #24, the sales from MTI to RTB Safe Traffic [RTB
Canada] related to inventory. Mr. Rummeny has been unable to ascertain