SOX News

FreeFlow Creates New Program to Help Corporations Donate Inventory to Meet Sarbanes-Oxley Compliance

(Dec 08, 2007)-- Recognizing a critical need in the community, FreeFlow, announced an innovative program that brings new options for manufacturers to donate excess inventory. United Way Silicon Valley (United Way) has joined with FreeFlow to be the first recipient of donated obsolete and excess products from manufacturers, distributors and retailers.

As the end of the year approaches, corporations must address their idle inventory stored in warehouses, as Sarbanes-Oxley regulations require companies to eliminate fully expensed inventory before the end
of their fiscal year. Socially responsible companies are also considering how their donations will impact their communities. By participating in FreeFlow's year-end giving program, United Way can help manufacturers comply with critical accounting practices through the donation of their obsolete and excess inventory. United Way receives the inventory directly as a contribution, meeting charitable donation requirements on the part of the companies providing the inventory.

Once the inventory has been donated to United Way Silicon Valley, FreeFlow then auctions the products on their behalf, using its proven suite of business services. The proceeds from the sale go directly to United Way to fund their community's most critical health and human care needs. With millions of dollars of unused obsolete and excess inventory losing value in warehouses across the country this new corporate giving program is an opportunity for companies to maximize their returns and have a meaningful impact on the community at the same time.

"FreeFlow is thrilled to have the opportunity to use our technology to benefit an organization that is so greatly respected for the services they provide in the greater Silicon Valley," noted Alan Scroope, FreeFlow's CEO. "We think this program is a win-win in that it helps companies readily eliminate their obsolete inventory at year's end, while providing non-profit organizations, such as United Way Silicon Valley, with greater resources to improve the lives of thousands of people in need."

"We have experienced the generosity of companies for years and we are excited to have an additional revenue stream that not only benefits our community, but also our corporate partners," commented Kevin O'Connor, Interim CEO, United Way Silicon Valley.

FreeFlow has proven to be a top supply chain partner by addressing its customers' need to disposition aging or end-of-life products and excess components. The company offers a fully-hosted solution to sell at-risk, excess, obsolete, returned, and refurbished inventory in the B2B arena. FreeFlow provides companies with innovative pre-auction and post-auction business services, including market intelligence to establish reserve and target pricing, the identification of the buying community appropriate to the products, configuration and merchandising of their private marketplace, and performs all financial settlements.

FreeFlow's inventory asset management solution is utilized in the high-tech, automotive, consumer package goods, telecommunications, and apparel industries.

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