H time can count toward the L-1A limit, but not on the facts stated here: her earlier H-1B stay was followed by more than one continuous year abroad before the current L-1 period, so those fourteen months do not reduce this seven-year period.
H and L share one seven-year account
The L-1 regulation limits an executive or manager to a total of seven years in the United States in L status, and it provides that time spent in H classification counts toward the same limit. The count is of time physically in the United States; a period of at least one year abroad after an earlier stay breaks the sequence and allows a new period to begin. In the hypothetical, the H-1B stay was a decade ago and she lived in Canada for years afterward, so it was followed by more than a year abroad and does not reduce the current seven-year period; had the H-1B ended a few months before the L-1A began, the fourteen months would have been subtracted.
Each extension petition must also re-establish the qualifying relationship between the La Pêche roastery and its subsidiary, that both are doing business, and that her role remains primarily managerial or executive. Once the limit is reached, she must remain outside the United States for a year before a new L-1 or H-1B, unless she has adjusted to permanent residence.