UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549


                                   FORM 10-Q
                                   (Mark One)


     [X]  QUARTERLY  REPORT  PURSUANT TO SECTION 13 OR 15 (d) OF THE  SECURITIES
          EXCHANGE ACT OF 1934


               For the quarterly period ended September 30, 2000
                                       OR


     [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
         EXCHANGE ACT OF 1934


                For the transition period from ______ to ______

                         Commission File No. 0-20660


                              DIRECT INSITE CORP.
                        (F/K/A Computer Concepts Corp.)
             (Exact name of registrant as specified in its charter)


             Delaware                                11-2895590
   (State or other jurisdiction of                 (I.R.S. Employer
    incorporation or organization)                  Identification  No.)


        80 Orville Drive, Bohemia, N.Y.                 11716
   (Address of principal executive offices)           (Zip Code)


Registrant's telephone number, including area code      (631) 244-1500



Indicate  by check  mark  whether  the  registrant:  (1) has filed  all  reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.

                                Yes    [X]               No ___


The number of shares of $.0001 par value  stock  outstanding  as of October  31,
2000 was: 21,922,506.

<PAGE>

                      DIRECT INSITE CORP. AND SUBSIDIARIES
                        (F/K/A Computer Concepts Corp.)


PART I - FINANCIAL INFORMATION                                           Page


Condensed Consolidated Balance Sheets as of September 30, 2000 and
     December 31, 1999                                                    3

Condensed Consolidated Statements of Operations and Comprehensive Income
    For the Three and Nine Months Ended September 30, 2000 and 1999       4

Condensed Consolidated Statements of Cash Flows
   For the Nine Months ended September 30, 2000 and 1999                  5

Notes to Condensed Consolidated Financial Statements                 6 - 15

Management's Discussion and Analysis of Financial Condition and
   Results of Operations                                            16 - 21


PART II - OTHER INFORMATION

Item 1. Legal Proceedings                                               22

Item 2. Changes in Securities                                           22

Item 3. Defaults Upon Senior Securities                                 22

Item 4. Submission of Matters to a Vote of Security Holders             22

Item 5. Other Information                                               22

Item 6. Exhibits and Reports on Form 8-K                                22

Signatures                                                              23

<PAGE>

                      DIRECT INSITE CORP. AND SUBSIDIARIES
                        (F/K/A Computer Concepts Corp.)
                     CONDENSED CONSOLIDATED BALANCE SHEETS

                 AS OF SEPTEMBER 30, 2000 AND DECEMBER 31, 1999
                       (In thousands, except share data)


<TABLE>
<CAPTION>
                                                September 30,        December 31,
                                                    2000                1999
                                                -------------        ------------
                                                 (Unaudited)
<S>                                              <C>                   <C>
ASSETS

Current assets
  Cash and cash equivalents                      $   2,182             $  1,852
  Accounts receivable,  net of  allowance for
    sales  returns and doubtful accounts of
    $36 and $493 in 2000 and 1999, respectively        232                  443
  Investment in Softworks, held for sale                 -               10,329
  Assets held for sale - ComputerCOP                     -                3,876
  Deferred tax assets, current                           -                9,197
  Advances to officers                                   -                1,822
  Prepaid expenses and other current assets            383                  865
  Investment in NetWolves Corporation               15,000                    -
  Cash held in escrow                               10,214                    -
                                                 ---------             ---------
    Total current assets                            28,011               28,384

  Property and equipment, net                        1,263                1,345
  Other assets                                         681                  295
                                                 ---------            ---------
                                                 $  29,955            $  30,024
                                                 =========             =========
LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities
  Accounts payable and accrued expenses         $   1,664             $   5,446
  Restructuring costs payable, current portion      1,749                     -
  Deferred maintenance revenue                         11                    42
  Income taxes payable                              2,870                    50
                                                ---------             ---------
    Total current liabilities                       6,294                 5,538

Convertible debenture, net of discount of $430      1,570                     -
Restructuring costs payable, long-term              1,035                     -
                                                ---------             ---------
    Total liabilities                               8,899                 5,538
                                                ---------             ---------

Commitments and contingencies

   Shareholders' equity

  Common  stock,   $.0001  par  value;
    150,000,000   shares  authorized;
    21,922,506  and  20,765,825  shares
    issued  in 2000  and  1999,
    respectively;  and 21,922,506 and
    20,529,245 shares  outstanding
    in 2000 and 1999, respectively                      2                     2

  Additional paid-in capital                      103,696               102,868
  Unearned compensation                              (164)                    -
  Accumulated deficit                             (59,733)              (77,766)
  Accumulated other comprehensive loss            (22,745)                 (225)
                                                ---------             ---------
                                                   21,056                24,879
  Common stock in treasury, at cost -
      236,580 shares                                    -                  (393)
                                                ---------             ---------
  Total shareholders' equity                       21,056                24,486
                                                ---------             ---------
                                                $  29,955             $  30,024
                                                =========             =========
</TABLE>

See notes to condensed consolidated financial statements

                                       3

<PAGE>
                      DIRECT INSITE CORP. AND SUBSIDIARIES
                         (F/K/A Computer Concepts Corp.)
                      CONDENSED CONSOLIDATED STATEMENTS OF
                      OPERATIONS AND COMPREHENSIVE INCOME
                                  (Unaudited)
        FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
                        (In thousands, except share data)

<TABLE>
<CAPTION>
                                             Three Months Ended        Nine Months Ended
                                             ------------------        -----------------
                                                September 30,            September 30,
                                                -------------            -------------
                                             2000        1999         2000         1999
                                             ----        ----         ----         ----
<S>                                       <C>           <C>         <C>           <C>
Revenue
   Software licenses, net                 $     -       $   385      $    35      $ 7,326
   Maintenance                                 11            11           32        3,560
   Professional services                      546           410        1,516       13,533
                                          -------       -------      -------      -------
                                              557           806        1,583       24,419
                                          -------       -------      -------      -------
Cost of revenue
   Software licenses, net                       -           157           11          434
   Maintenance                                  -             -            -          548
   Professional services                       64           109          231       11,926
                                          -------       -------      -------      -------
                                               64           266          242       12,908
                                          -------       -------      -------      -------
Gross margin                                  493           540        1,341       11,511
                                          -------       -------      -------      -------

Operating expenses
   Research and development                   380         2,081        3,840        7,825
   Sales and marketing                        344         2,607        4,133       14,007
   General and administrative                 794         1,309        4,571        5,966
   Amortization and depreciation              218         1,019          652        3,698
   Non-recurring restructuring charge          81             -       15,086            -
                                          -------       -------      -------      -------
                                            1,817         7,016       28,282       31,496
                                          -------       -------      -------      -------
Operating loss                             (1,324)       (6,476)     (26,941)     (19,985)

Other income (expenses)
  Gain on sale of Softworks                     -             3       47,813       16,444
  Gain on sale of ComputerCOP
    assets held for sale                        -             -        8,534            -
  Interest income (expense), net              131           194          675          210
  Equity in earnings of Softworks               -           446            -          321
  Minority interest in earnings of
    Softworks                                   -             -            -          (46)
                                          -------       -------      -------      -------

Income (loss) before (provision for)
  benefit from income taxes                (1,193)       (5,833)      30,081       (3,056)
(Provision for) benefit from income
  taxes                                       379           (42)     (12,048)        (102)
                                          -------       -------      -------      -------
Net income (loss)                         $  (814)      $(5,875)     $18,033      $(3,158)
                                          =======       =======      =======      =======
Other comprehensive (loss) income
  Unrealized loss on marketable
    securities                             (3,870)           -       (22,520)          -
  Foreign currency translation
    adjustments                                 -            87            -           90
                                          -------       -------      -------      -------
Comprehensive  loss                       $(4,684)      $(5,788)     $(4,487)     $(3,068)
                                          =======       =======      =======      =======

Basic net income (loss) per share         $ (0.04)      $ (0.28)     $  0.84      $ (0.15)
                                          =======       =======      =======      =======
Diluted net income (loss) per share       $ (0.04)      $ (0.28)     $  0.82      $ (0.15)
                                          =======       =======      =======      =======
Basic weighted average common
  shares outstanding                       21,923        20,736       21,460       20,429
                                          =======       =======      =======      =======
Diluted weighted average common
     shares outstanding                    21,923        20,736       21,878       20,429
                                          =======       =======      =======      =======
</TABLE>

See notes to condensed consolidated financial statements

                                       4
<PAGE>
                      DIRECT INSITE CORP. AND SUBSIDIARIES
                        (F/K/A Computer Concepts Corp.)
                     CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                                  For the nine months ended
                                                                        September 30,
                                                                  -------------------------
                                                                    2000             1999
                                                                  --------         --------
                                                                        (In thousands)
<S>                                                               <C>               <C>
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
Cash flows from operating activities
  Net income (loss)                                               $  18,033         $ (3,158)
  Adjustments to reconcile net income (loss) to
    net cash used in operating activities
      Depreciation and amortization
        Software costs                                                    -            1,532
        Property and equipment                                          663              803
        Excess of cost over fair value of net assets acquired             -            1,523
        Amortization of debt discount                                     9                -
        Other                                                             2                -
      Equity in earnings of Softworks                                     -             (321)
      Minority interest in net income of Softworks                        -               46
      Provision for doubtful accounts                                    27               93
      Deferred income taxes                                           9,197                -
      Common stock and options issued for services                    2,554            2,150
      Common stock issued for settlement of restructuring charges     1,180                -
      NetWolves common stock issued for services and for
        settlement of restructuring charges                           2,000
      Softworks common stock exchanged for services                       -            2,522
      Gain on sale of Softworks and ComputerCOP                     (56,347)         (16,444)
  Changes in operating assets and liabilities
      Accounts receivable                                               184           16,731
      Installment accounts receivable                                     -              149
      Inventories                                                         -              168
      Prepaid expenses and other current assets                         534            1,695
      Assets held for sale - ComputerCOP                                (18)               -
      Cash held in escrow                                              (214)               -
      Other assets                                                     (388)             283
      Accounts payable and accrued expenses                          (4,193)          (5,377)
      Restructuring costs payable                                     2,784                -
      Income taxes payable                                            2,820           (2,043)
      Deferred income taxes                                               -              290
      Deferred revenue                                                  (31)          (1,388)
                                                                   --------         --------
        Net cash used in  operating activities                      (21,204)            (746)
                                                                   --------         --------
Cash flows from investing activities
  Proceeds from the sale of Softworks stock
    (net of $3,157 expenses - 2000)                                  48,301           17,406
  Reduction in cash resulting from excluding
  Softworks from consolidation                                            -           (6,759)
  Proceeds from exercises of options to purchase
  Softworks common stock                                                  -              240
  Cash utilized in the ComputerCOP/NetWolves transaction
    (including $1,819 of expenses)                                  (22,319)               -
  Investment in NetWolves Corporation                                (4,500)               -
  Capital expenditures                                                 (581)          (1,391)
  Cash received from the license of technology                            -              400
  Software development and technology purchases                           -             (351)
  Repayment of officers' loans, net                                     899               72
                                                                   --------         --------
        Net cash provided by investing activities                    21,800            9,617
                                                                   --------         --------
Cash flows from financing activities
  Payment of dividend                                                (2,194)               -
  Acquisition of treasury stock                                           -             (296)
  Proceeds from long term debt (net of $72 of financing
    costs in 2000)                                                    1,928            2,021
  Repayments of long term debt                                            -           (5,072)
                                                                   --------         --------
        Net cash used in financing activities                         (266)           (3,347)
                                                                   --------         --------
Effects of exchange rate changes on cash and cash equivalents             -                2
                                                                   --------         --------
Net increase in cash and cash equivalents                               330            5,526
Cash and cash equivalents, beginning of period                        1,852            8,176
                                                                   --------         --------
Cash and cash equivalents, end of period                           $  2,182         $ 13,702
                                                                   ========         ========
</TABLE>
     See notes of condensed consolidated financial statements.

                                       5
<PAGE>
                      DIRECT INSITE CORP. AND SUBSIDIARIES
                        (F/K/A Computer Concepts Corp.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)

        FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999



1    Interim financial information

The  condensed  consolidated  balance  sheet as of September  30, 2000,  and the
condensed  consolidated  statements of operations and  comprehensive  income and
cash flows for the three and nine months ended September 30, 2000 and 1999, have
been prepared by the Company without audit.  These interim financial  statements
include all  adjustments,  consisting only of normal recurring  accruals,  which
management  considers  necessary  for  a  fair  presentation  of  the  financial
statements  for the above  periods.  The results of operations for the three and
nine months ended September 30, 2000, are not necessarily  indicative of results
that may be expected for any other interim periods or for the full year.

These condensed  consolidated financial statements should be read in conjunction
with the consolidated  financial statements and notes thereto for the year ended
December 31, 1999.  The  accounting  policies  used in preparing  the  condensed
consolidated  financial  statements are consistent  with those  described in the
December 31, 1999, consolidated financial statements.

2    The Company

At the  annual  shareholders'  meeting  held in August  2000,  the  shareholders
elected to change the corporate name to Direct Insite Corp.  (formerly  Computer
Concepts Corp.) to better reflect the initiation of new business strategies.

Direct Insite Corp. and subsidiaries (the "Company")  primarily develop,  market
and support  information  delivery software  products and services.  The Company
makes  use  of its  proprietary  data  access  technology,  d.b.Express,  in its
d.b.Express  Internet Information Server, more commonly referred to as a "Server
Farm." This service  presently is being marketed  solely for  telecommunications
analysis.  The Server Farm permits end users the ability to visually  access and
analyze information  through the Internet.  Data can be visually presented using
the Company's patented data visualization technology.  Additionally,  subsequent
to September 30, 2000, the Company entered into a license agreement,  which will
enable it to add to its suite of  products  and  services a complete  Electronic
Bill  Presentment  and Payment  ("EBPP),  as well as an Internet  Customer  Care
("ICC") tool set.

In 2000, Company began offering a new consulting  service.  The primary function
of the  consulting  service is to create cost savings for its customers  through
effectively  negotiating their  telecommunications  and network service provider
contracts.  The Company is combining this service with its Server Farm to create
a unique,  powerful detailed  customer profile.  This new, enhanced profile will
allow  customers  to  efficiently  optimize  all   telecommunications   contract
compliance,  establish  traffic  metrics,  monitor  invoice  accuracy  and  rate
compliance as well as support  complex  invoicing  and  reporting  requirements,
exception reporting and electronic invoicing, all via the Internet.

The most significant  portion of the Company's  operations had historically been
conducted  through  one  of its  subsidiaries,  Softworks,  Inc.  ("Softworks").
Through  Softworks,  the  Company  developed,  marketed  and  supported  systems
management software products for corporate mainframe data centers. Softworks was
wholly owned by the Company  through June 29, 1998,  and majority  owned through
March 31, 1999. On January 27, 2000, the Company sold its remaining  interest to
EMC Corporation for approximately $61 million in cash, before expenses (Note 8).

In June 1998,  the Company  completed an  acquisition  of software  (and related
sales and marketing  rights) which is designed to provide non computer  literate
owners (e.g. parents, guardians,  schools, etc.) the ability to identify threats
as well as objectionable material that may be viewed by users of the computer on
the  Internet  (e.g.  children).  On February  14,  2000,  the Company  sold the
ComputerCOP technology to NetWolves Corporation (Note 8).

In 1997, the Company  created a business unit,  "professional  services",  which
primarily  resells  computer  hardware and for a fee, will assist in the design,
construction and installation of technology systems. In 1999, this business unit
had one major  contract,  involving two customers,  which was completed in 1999.
The Company does not currently have any other sales  contracts for this business
unit and is no longer actively pursuing new contracts.

                                       6

<PAGE>

                      DIRECT INSITE CORP. AND SUBSIDIARIES
                        (F/K/A Computer Concepts Corp.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)

        FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999


3    Restructuring

In the first quarter of 2000, the Company's  newly  appointed Board of Directors
approved and the Company announced a restructuring plan that will streamline the
Company's  operations  and overhead  structure,  including:  (i)  elimination of
employees,  expenses and commitments  that supported the ComputerCOP  technology
(sold to  NetWolves,  Note 8),  (ii)  elimination  of  employees,  expenses  and
commitments  that  supported  the  Company's  development  project  related to a
multi-media  display station (Note 11), and (iii) general reduction of operating
expenses. As a result, the Company recorded a non-recurring restructuring charge
of $15,086,000  during the nine months ended September 30, 2000,  related to the
termination of 53 employees,  retirement  packages for certain Company  officers
and directors, certain long-term consulting contracts and operating leases. Cash
requirements of this plan are estimated at  $12,406,000;  $1,180,000 was settled
with Company stock;  and $1,500,000 was settled with NetWolves  common stock. As
of September 30, 2000, the remaining cash requirement is $2,784,000,  $1,749,000
is payable over the next twelve months,  and $1,035,000 is payable through March
2005.

The restructuring  charge includes costs directly related to the Company's plan.
EITF No.  94-3 and SEC  Staff  Accounting  Bulletin  No.  100  provide  specific
requirements  as to appropriate  recognition of costs  associated  with employee
termination  benefits  and other  exit  costs.  Employee  termination  costs are
recognized  when  details of the  severance  arrangements  are  communicated  to
affected  employees (all 53 employees  were actually  terminated in March 2000).
Other exit costs (such as contractual  obligations) that are not associated with
or that do not benefit  activities  that will be continued are recognized at the
date of  commitment to an exit plan subject to certain  conditions.  Other costs
directly related to the  restructuring  that are not eligible for recognition at
the commitment date are expensed as incurred.

The  activity  in the  restructuring  accrual  through  September  30,  2000  is
summarized below:

<TABLE>
<CAPTION>

                                                Officer/director
                                 Employee          retirement        Consulting     Operating
                                terminations        packages          contracts       Leases     Other     Total
                                ------------    -----------------    ------------   ----------   -----     -----
<S>                            <C>               <C>                <C>            <C>        <C>       <C>
Restructuring charge
   to operations,
   quarter ended March
     31, 2000                   $2,243,000        $7,535,000         $3,681,000     $369,000   $985,000  $14,813,000

Restructuring charges
   to operations and
   adjustments, after
   March 31, 2000                 (70,000)          140,000                   -            -    203,000      273,000
                               ----------        ----------          ----------   ----------  ----------  ----------
   Subtotal                     2,173,000         7,675,000           3,681,000      369,000  1,188,000   15,086,000
Cash expenditures              (1,567,000)       (5,507,000)         (1,865,000)     (93,000)  (590,000)  (9,622,000)
Company stock
  issuances                      (200,000)         (100,000)           (630,000)           -   (250,000)  (1,180,000)
Netwolves stock
  exchanged                             -        (1,500,000)                  -            -          -   (1,500,000)
                               ----------        ----------          ----------   ----------  ----------  ----------
Restructuring accrual,
  September 30, 2000           $  406,000        $  568,000          $1,186,000   $  276,000  $ 348,000  $ 2,784,000
                               ==========        ==========          ==========   ==========  ========== ===========
</TABLE>

                                       7


<PAGE>
                      DIRECT INSITE CORP. AND SUBSIDIARIES
                        (F/K/A Computer Concepts Corp.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)

        FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999


--   Employee termination costs represent severance and related benefits for the
     53 employees that were  terminated in March 2000: 18 employees in sales and
     administration, 14 employees involved in the development project related to
     a multi-media  display station,  11 employees related to ComputerCOP and 10
     employees  in general  research and  development.  Of these  employees,  44
     received   severance  benefits  generally  payable  over  3  to  9  months,
     commencing  April 2000; one of these employees also received 100,000 shares
     of Company common stock (valued at $200,000)  towards the settlement of his
     severance obligation.

--   Officer/director  retirement packages represent retirement packages for the
     Company's  Chairman,  its Chief  Executive  Officer and other board members
     aggregating $7,675,000. $1,500,000 was paid with 75,000 shares of NetWolves
     common  stock  (valued at $20 per  share),  $100,000  was paid with  50,000
     shares of Company common stock, $558,000 was paid in March 2000, $4,949,000
     was paid in the second and third quarters, $500,000 is payable on or before
     March 1, 2001 and the $68,000 balance relates to employee  benefits payable
     over various time periods.

--   The Company settled 5 long-term consulting contracts that will no longer be
     required for an aggregate of  $3,681,000.  The Company  agreed to pay off a
     1999  consulting  agreement  with S.J. & Associates,  Inc. for  $1,276,000.
     Additionally,  the Company  settled three  consulting  agreements that were
     entered into during 2000 (originally  totaling $1,785,000) for an aggregate
     of  $1,277,000  (one of the  agreements,  settled for  $524,000,  is with a
     related  party).  Further,  the  Company  paid  $1,128,000  as  part  of  a
     retirement   arrangement  with  the  Company's   general   counsel.   These
     obligations  are payable as follows:  $630,000  was paid in the form of the
     Company's  common stock;  $500,000 cash was paid in March 2000;  $1,365,000
     cash was paid in the second and third quarters;  and the $1,186,000 balance
     is payable through March 2005.

--   Operating  leases  represent the settlement of the remaining lease payments
     with respect to certain  automobile and equipment leases that are no longer
     required.  Payments are expected to be paid over the remaining terms of the
     leases, which range from 1 to 32 months.

--   Other costs represent consulting fees related to the creation and execution
     of the restructuring  plan (including  $250,000 to S.J. & Associates,  Inc.
     paid in the form of 125,000 shares of the Company's  common  stock),  legal
     fees and other exit costs.

4       Shareholders' equity

In  February  2000,  the  Company   declared  a  dividend  of  $0.10  per  share
(aggregating  $2,194,000)  to its  shareholders  of record on March 15, 2000 and
paid on May 1, 2000.

During the quarter ended March 31, 2000, the Company issued  1,821,500 shares of
its common  stock  valued at $2.00 per share  based on the  quoted  price of the
Company's common stock. The Company also recorded  transactions  with respect to
treasury stock and stock options in the first quarter of 2000 as detailed below:

--   Issued  590,000  shares  of its  common  stock  as  settlement  of  certain
     employee,  director and  consultant  liabilities  in  conjunction  with its
     restructuring plan (Note 3). The shares were valued at $1,180,000.

--   Issued  534,000  shares  of its  common  stock as  settlement  of  employee
     bonuses.  The shares  were  valued at  $1,068,000,  of which  $468,000  was
     accrued in 1999.

--   Issued 697,500 shares of its common stock to various  consultants for which
     it recorded a non cash charge to earnings of $1,395,000. S.J. & Associates,
     Inc. was issued 375,000 of these shares upon achieving certain  performance
     goals pursuant to its 1999 contract.

--   The Company's  Chairman and Chief Executive Officer tendered 410,179 shares
     of the Company's common stock, valued at $923,000 based on the quoted price
     at the time, towards the repayment of officers' loans.

--   The Company  retired  236,580  shares of treasury  stock  purchased  by the
     Company in 1999.  The shares  were  returned  to  authorized  but  unissued
     status.

--   In March 2000, the Company  granted 285,000 options to employees and 70,000
     options to consultants for services  previously  rendered.  All options are
     fully vested,  are  exercisable at $2.09 per share and expire  December 31,
     2001. The employee  options have an intrinsic value of zero and the options
     to   consultants   were   valued  at   $59,000   using  the   Black-Scholes
     option-pricing model.
                                       8

<PAGE>

                      DIRECT INSITE CORP. AND SUBSIDIARIES
                        (F/K/A Computer Concepts Corp.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)

        FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999



During the quarter ended June 30, 2000, the Company granted 1,349,000 options to
employees  and  members  of the  Board  of  Directors  and  562,000  options  to
consultants for services.  The options are exercisable as follows:  1,741,000 at
$0.75 per share and 170,000 at $1.03 per share.  The  employee  options  have an
intrinsic  value of zero,  expire  May 31,  2005,  and  vest  periodically  from
immediate to thirty-one  months.  The options to  consultants  expire in a range
from December 31, 2002 to May 31, 2005, vest  periodically  from immediate to 24
months, and were valued at $216,000,  of which $17,000 and $35,000 (the pro-rata
value of vested  options)  was  recognized  in the  second  and third  quarters,
respectively.

During the nine month period ended  September 30, 1999,  the Company  issued the
following restricted common stock as detailed below:

--   As part of a bonus incentive  compensation plan, the Company issued 655,500
     shares to several non-executive  employees for which it recorded a non-cash
     charge to earnings of $1,010,000.

--   Issued 660,500 shares of its common stock to various  consultants for which
     it recorded a non-cash charge to earnings of $1,050,000.

--   In lieu of cash, in January 1999,  the Company issued 115,000 shares for an
     acquisition  of a technology  license.  The Company  recorded  amortization
     expense of $58,000 during the nine months ended September 30, 1999.

Pursuant  to a Board  Resolution  adopted in  January,  1999,  the  Company  was
authorized  to  repurchase  shares of its common stock at times and amounts that
would be in the best  interest  of the  Company.  In the third  quarter of 1999,
174,380 shares of common stock were purchased at an average price of $1.697.  In
the fourth quarter of 1999, an additional  62,200 shares were  repurchased at an
average price of $1.552.

Pursuant to a Board  Resolution  adopted in August 1999,  the Company  paid,  on
November 15, 1999, a cash dividend of $6,000,000 (approximately $0.29 per share)
to shareholders of record as of September 30, 1999.

5   Legal matters

In March  1995,  an action was  commenced  against  the  Company and a number of
defendants  unrelated to the Company which action was later amended  naming only
the Company and three of its officers as defendants.  The complaint alleges that
certain  third  parties,  unrelated  to the  Company,  transferred  certificates
representing  1,000,000  shares of the Company's  common stock to the plaintiff.
The  complaint  further  alleges that such shares were  endorsed in blank by the
third  parties  and  became  bearer  securities,  which were  negotiated  to the
plaintiff by physical  delivery.  The certificates had not been legally acquired
from the Company  and the  certificates  were  reported  to the  Securities  and
Exchange  Commission  by the  Company  as  stolen  certificates.  Plaintiff  has
requested  validation of the transfer of the certificates and is seeking damages
of an unspecified  amount,  consisting of alleged  diminution in market value of
the subject shares from 1994 through the date of any judgment in the plaintiff's
favor. The Company denied plaintiff's allegations and filed a motion for summary
judgment. In November 1999, the motion for summary judgment was granted in favor
of the Company and its officers on the grounds that the purported endorsement on
the  certificates  was  ineffective to transfer  ownership of the  certificates.
However, the plaintiff filed an appeal, which is being contested by the Company.
The  Company is unable to predict  the  ultimate  outcome  of this  appeal  and,
accordingly,  no  adjustments  have  been  made  in the  consolidated  financial
statements for any potential losses or potential issuance of common stock.

                                       9
<PAGE>

                      DIRECT INSITE CORP. AND SUBSIDIARIES
                        (F/K/A Computer Concepts Corp.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)

        FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999



During 1999, the Company and certain officers  received  notification  that they
had been named as  defendants in a class action  alleging  violations of certain
securities  laws with respect to the content of certain  Company  announcements.
The Company and its counsel are vigorously  defending the matter.  However,  the
Company  is  unable  to  predict  the  ultimate   outcome  of  this  claim  and,
accordingly,  no  adjustments  have  been  made  in the  consolidated  financial
statements for any potential losses or potential issuance of common stock.

In August  1999,  The Company and its  directors  were served with a  derivative
action  complaint  alleging  awards  of excess  compensation  and  requesting  a
judgment in favor of the Company for such excess  compensation.  The Company and
defendants have denied the allegations and are vigorously  defending the matter,
however,  the  Company  is unable to  predict  the  outcome  of this  claim and,
accordingly,  no  adjustments  have  been  made  in the  consolidated  financial
statements in regard to this matter.

In November 1999, the Company (through one of its  subsidiaries)  was added as a
party in an amended  complaint.  The complaint alleged that a Company consultant
violated a personal  non-  compete  agreement  in  performing  services  for the
Company.  The plaintiffs  contended that they were compelled to offer terms more
generous to their customers than they otherwise  would have offered.  Plaintiffs
did not disclose the amount of their alleged  damages and  requested  injunctive
relief. The Company denied the allegation and vigorously defended the matter. In
September  2000,  pursuant to  stipulation  of the Company and  plaintiffs  in a
Settlement Agreement, the case was effectively dismissed.

6    Reclassifications

Certain reclassifications have been made to the condensed consolidated financial
statements shown for the prior period in order to have it conform to the current
period's classifications.

7    Segment information

The Company and its subsidiaries  previously  operated in two separate  business
segments,  computer  software  and  professional  services.  With  the  sale  of
Softworks and ComputerCOP (Note 8) and the completion of its major  professional
services contract, the Company is now operating in one business segment.

Major customer

For the three  months  ended  September  30,  2000,  the  Company  had one major
customer with revenue of $433,000 (77.7% of total revenue).  For the nine months
ended  September  30, 2000,  the Company had one major  customer with revenue of
$1,238,000 (78.2% of total revenue).

8    Dispositions

     ComputerCOP Corp.

On June 30, 1998, pursuant to an Asset Purchase and Sale Agreement,  the Company
acquired  certain  software and related sales and marketing rights from Internet
Tracking & Security Ventures,  LLC ("ITSV") in exchange for 1,900,000 restricted
shares of the Company's common stock and 1,000,000  restricted  shares of common
stock of the Company's then wholly owned subsidiary,  Softworks. The acquisition
was valued at an aggregate  of  $12,210,000.  The  Agreement  also  included the
rights to the use of Richard "Bo" Dietl's name in conjunction with the promotion
and  endorsement  of the software as well as appearances by Mr. Dietl in support
of the software in regional and national marketing campaigns.

                                       10
<PAGE>

                      DIRECT INSITE CORP. AND SUBSIDIARIES
                        (F/K/A Computer Concepts Corp.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)

        FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999


The  $12,210,000  purchase  price was  allocated to the fair value of the assets
acquired at June 30, 1998,  based upon a written  valuation  from an independent
investment-banking  firm.  Accordingly,  $2,700,000  was  allocated to "Software
costs",  $4,150,000 was recorded as "Prepaid  expenses and other current assets"
and  $5,360,000  was  recorded  as "Excess of cost over fair value of net assets
acquired".  The  "assets  held for sale -  ComputerCOP"  at  December  31,  1999
included $250,000 of inventories, $1,064,000 of software costs and $2,562,000 of
goodwill.

In March 1999,  the Company  sold  certain  rights to license  ComputerCOP  to a
marketing company (Bo- Tel, Inc.) for $400,000.  The license rights were limited
to granting a specified  original  equipment  manufacturer of personal computers
the right to embed the software in its computers for sale to the general public.
Bo-Tel,  Inc. is an affiliate of ITSV, and accordingly,  this sale was accounted
for as a reduction of the cost of the assets acquired from ITSV.

Pursuant to an agreement  dated February 10, 2000, on February 14th, the Company
sold its recently formed subsidiary,  ComputerCop Corp. to NetWolves Corporation
("NetWolves",  traded on the NASDAQ  SmallCap Market under the symbol "WOLV") in
exchange  for  1,775,000  shares  of  NetWolves  common  stock.  The  assets  of
ComputerCop  Corp.  included the  ComputerCOP  technology  (and certain  related
assets  including  inventory)  and $20.5 million in cash.  The  transaction  was
treated as a sale of the ComputerCOP technology for 750,000 shares valued at $15
million and the purchase of 1,025,000  shares from  NetWolves for $20.5 million.
Additionally,  the  Company  purchased  225,000  shares from  certain  NetWolves
shareholders for $4.5 million. The sale of the Company's ComputerCOP  technology
resulted  in a  pre-tax  gain of  $8,534,000,  net of  $2,572,000  of  expenses,
recorded in the first quarter of 2000.  The  $40,000,000  value of the 2,000,000
shares of NetWolves  stock was determined  based upon the quoted market price of
the NetWolves stock at the time the transaction was agreed to and announced ($20
per share) and was also based on a fairness  opinion obtained from the Company's
investment banker.

All of the shares of NetWolves stock owned by the Company  ("Trust  Shares") are
subject to a Voting  Trust  Agreement  wherein  the  Trustee,  NetWolves'  Chief
Executive  Officer,  has been  granted the right to vote all Trust  Shares for a
minimum period of six months to a maximum period of two years.  The Voting Trust
terminates with respect to any shares sold pursuant to a registration  statement
effected  by  NetWolves.  The Voting  Trust  terminates  with  respect to shares
privately  sold (if any) if  aggregate  sales are 25% or less of the total Trust
Shares.  The  Voting  Trust also  terminates  at the end of twelve  months  with
respect to shares privately sold (if any), if aggregate sales are 50% or less of
the total Trust Shares. The Company also received piggyback  registration rights
and a one-time  demand  registration  right  effective after August 15, 2000, in
regard to the NetWolves stock.

As of September 30, 2000, the Company owns 1,875,000  shares of NetWolves common
stock:  75,000 shares were exchanged as part of the restructuring plan (Note 3),
25,000 shares were used to pay legal fees to the Company's  general counsel with
respect to the NetWolves  transaction,  and 25,000 shares were issued as a bonus
to an executive  officer.  All shares  exchanged were valued at $20. The Company
accounts for its investment in NetWolves as a marketable  security available for
sale in accordance with Statement of Financial Standards No. 115 "Accounting For
Certain  Investments in Debt and Equity  Securities." At September 30, 2000, the
quoted  market  value of the  1,875,000  shares of  NetWolves  common  stock was
$15,000,000  ($8.000 per share). The unrealized loss of $22,500,000 was recorded
as a charge to "accumulated other comprehensive  loss." On October 31, 2000, the
quoted market value of the NetWolves  common stock was $10,664,000  ($5.6875 per
share).

Softworks, Inc.

Softworks  was wholly  owned by the Company  through  June 29, 1998 and majority
owned through March 31, 1999.  Through a series of transactions that included an
initial  public  offering of  Softworks  in August  1998,  various  exchanges of
Softworks  common stock owned by the Company to  consultants  and  employees for
services  rendered,  a private  placement of Softworks common stock owned by the
Company  in  December  1998 and a  second  public  offering  in June  1999,  the
Company's ownership of Softworks was reduced from 100% to 35% as of December 31,
1999.  Accordingly,  Softworks is  accounted  for as a  consolidated  subsidiary
through March 31, 1999, and  commencing  April 1, 1999,  Softworks'  results are
accounted for using the equity method of accounting.

                                       11
<PAGE>

                      DIRECT INSITE CORP. AND SUBSIDIARIES
                        (F/K/A Computer Concepts Corp.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)

        FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999


Pursuant to a tender  offer  dated  December  21,  1999,  the  Company  sold its
remaining  35%  interest  in  Softworks  (a total of  6,145,767  shares)  to EMC
Corporation and its subsidiary  ("EMC") for $10.00 per share.  The  transaction,
which was  completed on January 27, 2000,  provided  aggregate  cash proceeds of
$61,458,000 (less  $10,000,000  placed in escrow) and resulted in a pre-tax gain
of $47,813,000,  net of $3,316,000 of expenses, recorded in the first quarter of
2000.

In connection with the tender offer, the Company entered into an Indemnification
Agreement that provides,  in part, that the Company shall indemnify EMC from all
losses sustained by EMC as a result of any breach of certain representations and
warranties  appearing in the Agreement and Plan of Merger between  Softworks and
EMC.  The term of the  Indemnification  Agreement  is two years from the date of
closing.  Pursuant to an Escrow Agreement,  the Company deposited $10,000,000 of
the sales  proceeds  into an  interest  bearing  escrow  account  to secure  any
potential  liabilities  arising  from  the  Indemnification  Agreement.  Through
September  30, 2000,  $159,000  has been  disbursed  from the escrow  account in
settlement  of a claim made by EMC.  The  escrow  funds,  net of any  additional
claims  against them (if any),  are  scheduled to be released to the Company one
year from the date of closing, January 27, 2001.

Pro forma condensed consolidated statements of operations (unaudited)

Pro forma condensed consolidated statements of operations as if the transactions
described above were  consummated as of the beginning of each of the nine months
ended September 30, 2000 and 1999, are as follows (in thousands except per share
data):

<TABLE>
<CAPTION>

                                                          Nine months ended September 30, 2000
                                                                Pro Forma Adjustments
                                                                ---------------------
                                                                               NetWolves/
                                                                Softworks     ComputerCOP
                                                 Actual        Transaction    Transaction      Pro Forma
                                                 ------        -----------    ------------     ---------
<S>                                             <C>             <C>            <C>             <C>
Revenue                                         $  1,583        $   -          $   (35)        $  1,548
Cost of revenue                                      242            -              (11)             231
                                                --------        --------       --------        --------
Gross margin                                       1,341            -              (24)           1,317
Total operating expenses *                        28,282            -             (229)          28,053
                                                --------        --------       --------        --------
Operating loss                                   (26,941)           -              205          (26,736)

Other income (expense)
  Gain on sale of Softworks                       47,813         (47,813)         -                -
  Gain on sale of ComputerCOP assets,
    held for sale                                  8,534            -           (8,534)            -
  Other, net                                         675            -             -                 675
                                                --------        --------       --------        --------
Income (loss) before provision for
   income taxes                                   30,081         (47,813)       (8,329)         (26,061)
Provision for income taxes                       (12,048)         10,234         1,783              (31)
                                                --------        --------       --------        --------
Net income (loss)                               $ 18,033        $(37,579)      $(6,546)        $(26,092)
                                                ========        ========       ========        ========
Basic net income (loss) per share               $   0.84                                       $  (1.22)
                                                ========                                       ========
Diluted net income (loss) per share             $   0.82                                       $  (1.22)
                                                ========                                       ========

*  Operating   expenses   include  a  non-recurring   restructuring   charge  of
$15,086,000.
</TABLE>

                                       12
<PAGE>

                      DIRECT INSITE CORP. AND SUBSIDIARIES
                        (F/K/A Computer Concepts Corp.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)

        FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999

<TABLE>
<CAPTION>

                                                          Nine months ended September 30, 1999
                                                                Pro Forma Adjustments
                                                                ---------------------
                                                                               NetWolves/
                                                                Softworks     ComputerCOP
                                                 Actual        Transaction    Transaction      Pro Forma
                                                 ------        -----------    ------------     ---------
<S>                                             <C>             <C>            <C>             <C>
Revenue                                          $  24,419       $(10,258)      $  (596)       $  13,565
Cost of revenue                                     12,908           (764)         (218)          11,926
                                                 ---------       --------       --------       ---------
Gross margin                                        11,511         (9.494)         (378)           1,639
Total operating expenses                            31,496         (9,342)       (3,343)          18,811
                                                 ---------       --------       --------        --------
Operating loss                                     (19,985)          (152)        2,965          (17,172)
Other income (expense)
  Gain on sale of Softworks                         16,444        (16,444)            -                -
  Other, net                                           485           (275)            -              210
                                                 ---------       --------       --------        --------
Loss before provision for income taxes              (3,056)       (16,871)        2,965          (16,962)
Provision for income taxes                            (102)            60             -              (42)
                                                 ---------       --------       --------        --------
Net income (loss)                                $  (3,158)      $(16,811)      $ 2,965         $(17,004)
                                                 =========       ========       ========        ========
Basic and diluted loss per share                 $  ( 0.15)                                     $  (0.83)
                                                 =========                                      ========
</TABLE>


9    Income taxes

The Company  accounts for income taxes under  Statement of Financial  Accounting
Standards No. 109, "Accounting for Income Taxes" ("SFAS 109"). SFAS 109 requires
the   determination  of  deferred  tax  assets  and  liabilities  based  on  the
differences  between the financial  statement and income tax bases of assets and
liabilities, using enacted tax rates. SFAS No.109 requires that the net deferred
tax asset be  adjusted  by a  valuation  allowance,  if,  based on the weight of
available  evidence,  it is more likely than not that some portion or all of the
net deferred tax asset will not be realized.

As a result of the  Company's  sale of its  remaining  interest in  Softworks in
January 2000 and the sale of its  ComputerCOP  technology in February 2000 (Note
8),  the  Company  recognized  a taxable  gain in the first  quarter of 2000 and
utilized all of its currently  available net operating loss  carryforwards.  The
Company's tax provision for the nine months ended  September 30, 2000,  consists
of deferred tax expense of $9,197,000 and current tax expense of $2,851,000.

10   Earnings per share

Basic  earnings  per share are based on the  weighted  average  number of common
shares  outstanding  during the period.  For the nine months ended September 30,
2000, the Company's  dilutive  instruments  are "in the money" stock options and
convertible debentures.  The Company uses the treasury stock method to calculate
the effect that the  conversion of stock options would have on diluted  earnings
per share ("EPS") and assumes that  convertible  debentures  were converted into
common stock at the later of the  beginning  of the period or the issuance  date
and  makes  adjustments  with  respect  to the  related  interest  expense.  The
following  table  sets  forth  the  computation  of basic  and  diluted  EPS (in
thousands, except per share data):

                                       13

<PAGE>

                      DIRECT INSITE CORP. AND SUBSIDIARIES
                        (F/K/A Computer Concepts Corp.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)

        FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999

<TABLE>
<CAPTION>


        <S>                                                 <C>
        Numerator:
          Net income                                        $   18,033
          Plus interest on convertible debenture                    10
                                                            ----------
          Net income plus assumed conversions               $   18,043
                                                            ==========

        Denominator:
          Weighted average shares outstanding
          (Denominator for basic EPS)                           21,460

          Effect of dilutive securities
            Stock options                                          382
            Convertible debentures                                  36
                                                            ----------
          Denominator for diluted EPS                           21,878
                                                            ==========

        Basic net income per share                          $     0.84
        Diluted net income per share                        $     0.82
</TABLE>


For the three and nine months ended  September 30, 1999 and for the three months
ended  September 30, 2000,  outstanding  stock  options,  warrants,  convertible
debentures and other  potential  stock issuances have not been considered in the
computation  of diluted  earnings per share  amounts,  since the effect of their
inclusion would be antidilutive.

11   Multi-media display station

During 1999, the Company began to develop a unique multi-media  display station,
which  combines  Internet  strategy and  e-commerce  with  multi-media  forms of
delivery,  presentation  and  interaction  with  end-users.  This Internet based
communications/advertising network was being designed by the Company to create a
means  by  which  businesses   could  promote   specific   brand/product/service
awareness.  The Company  intended to market this technology in association  with
owners and/or managers of high traffic venue areas (i.e., malls, airports, etc.)
to local,  regional and national  businesses.  From inception  through March 31,
2000,  the  Company  invested  approximately  $7,000,000  in its  marketing  and
development  efforts (charged to operations as incurred).  Additional funds will
be required in order to complete development and bring the product to market. As
part of the Company's  restructuring plan (Note 3), the newly appointed Board of
Directors agreed that it was in the Company's best interest to immediately cease
all funding of this project,  while maximizing its value. As a result,  in April
2000, the Company entered into a contractual arrangement with an unrelated third
party,  whereby the  Company  transferred  all of its  in-process  research  and
development technology related to the multi-media display station for the rights
to 50% of the  future  profits  (as  defined),  if any,  from the third  party's
operation  or sale of this  technology.  The third  party  agreed to utilize its
contacts in the  industry  and also agreed to fund all future  costs  associated
with the continued  development and marketing of the display station.  There can
be no  assurances  that the  Company  will  recognize  any  proceeds  from  this
transaction.  The related intangible assets continue to be recorded at their net
book value of zero.

12   Convertible Debentures

On  September  27,  2000,  the  Company  entered  into an  agreement  to sell an
aggregate  principal  amount  of  $3,000,000  of  Convertible   Debentures  (the
"Debentures")  bearing  interest at a rate of 6% per annum,  due  September  27,
2002. The Company sold a $2,000,000  Debenture on September 27, 2000, a $500,000
Debenture on October 27, 2000 and, subject to certain  conditions,  will sell an
additional $500,000 Debenture on November 27, 2000.

                                       14

<PAGE>

                      DIRECT INSITE CORP. AND SUBSIDIARIES
                        (F/K/A Computer Concepts Corp.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)

        FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999


The  Debentures  cannot be converted  into shares of the Company's  common stock
until February 25, 2001 and then at no more than 16.67% of the Debentures issued
to the Holder on the original  issue date every 15 days.  The  conversion  price
shall be the lesser of $0.90 or 82% of the  average per share  market  value for
five  trading  days during the twenty  trading days  immediately  preceding  the
applicable conversion date. The Company has the right,  exercisable at any time,
to  prepay  all or  any  portion  of the  outstanding  principal  amount  of the
Debentures for which conversion notices have not previously been delivered.  The
prepayment  amount is 130% of the  principal  balance  converted,  plus  accrued
interest.

In connection with the sale of the Debentures, the Company is required to file a
Registration  Statement  prior to November  30,  2000 in which it must  register
4,384,000 shares of common stock for resale by the Holders of the Debentures, if
converted.  The agreement  provides for various covenants and events of default,
including:  (i)  failure  by the  Company  to have  its  Registration  Statement
declared  effective by the SEC on or before February 24, 2001 and (ii) delisting
or suspension of the Company's  common stock from trading on the Nasdaq SmallCap
Market.  Should an event of default (as defined)  occur,  the agreement  imposes
various penalties including immediate conversion of the debentures into cash, as
well as cash penalties of 3% of the outstanding principal balance per month.

The convertible  debentures have a minimum assured discount of 18% from the fair
value of the  Company's  common  stock,  as  defined.  In  connection  with that
discount,  the  Company  recorded  debt  discount of  $439,000  upon  receipt of
$2,000,000 in funds and is amortizing  the discount over the period the security
was issued to the date it first becomes  convertible.  Accordingly,  the Company
recorded a non-cash interest charge of $9,000 in the third quarter of 2000.

                                       15
<PAGE>

                      DIRECT INSITE CORP. AND SUBSIDIARIES
                         (F/K/A Computer Concepts Corp.)
                      MANAGEMENT DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

        FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999


Forward looking statements

All statements  other than  statements of historical  fact included in this Form
10-Q including,  without limitation,  statements under, "Management's Discussion
and Analysis of Financial  Condition  and Results of  Operations"  regarding the
Company's financial position,  business strategy and the plans and objectives of
management for future operations, are forward-looking  statements.  When used in
this Form 10-Q, words such as  "anticipate,"  "believe,"  "estimate,"  "expect,"
"intend"  and  similar  expressions,  as  they  relate  to  the  Company  or its
management, identify forward-looking statements. Such forward-looking statements
are based on the  beliefs of  management,  as well as  assumptions  made by, and
information  currently available to, the Company's'  management.  Actual results
could  differ  materially  from  those   contemplated  by  the   forward-looking
statements  as a  result  of  certain  factors  including  but not  limited  to,
fluctuations in future operating results, technological changes or difficulties,
management  of future  growth,  the risk of errors or failures in the  Company's
software products,  dependence on proprietary  technology,  competitive factors,
risks associated with potential  acquisitions,  the ability to recruit personnel
and the dependence on key personnel.  Such statements  reflect the current views
of  management  with respect to future events and are subject to these and other
risks,  uncertainties  and assumptions  relating to the  operations,  results of
operations, growth strategy and liquidity of the Company. All subsequent written
and oral  forward-looking  statements  attributable  to the  Company  or persons
acting  on its  behalf  are  expressly  qualified  in  their  entirety  by  this
paragraph.

Overview

Direct Insite Corp.  (f/k/a/  Computer  Concepts  Corp.) and  subsidiaries  (the
"Company")  primarily develop,  market and support information delivery software
products.  The Company  makes use of its  proprietary  data  access  technology,
d.b.Express,  in its  d.b.Express  Internet  Information  Server,  more commonly
referred to as a "Server Farm." The Server Farm permits end-users the ability to
visually  access and  analyze  information  through  the  Internet.  Data can be
visually presented using the Company's  patented data visualization  technology.
This service presently is being marketed solely for telecommunications analysis.
Subsequent to September 30, 2000, the Company entered into a license  agreement,
which will  enable it to add to its suite of  products  and  services a complete
Electronic Bill Presentment and Payment ("EBPP), as well as an Internet Customer
Care ("ICC") tool set.

During  the second  quarter of 2000,  Company  began  offering a new  consulting
service.  The  primary  function  of the  consulting  service is to create  cost
savings   for   its   customers    through    effectively    negotiating   their
telecommunications  and  network  service  provider  contracts.  The  Company is
combining  this  service  with its  Server  Farm to  create a  unique,  powerful
detailed  customer  profile.  This new, enhanced profile will allow customers to
efficiently  optimize  all  telecommunications  contract  compliance,  establish
traffic metrics, monitor invoice accuracy and rate compliance as well as support
complex invoicing and reporting requirements, exception reporting and electronic
invoicing, all via the Internet.

In the first quarter of 2000, the Company's  newly  appointed Board of Directors
approved and the Company  announced a  restructuring  plan that it believes will
streamline  the  Company's  operations  and reduce  overhead.  As a result,  the
Company recorded a non-recurring restructuring charge of $15,086,000 in the nine
months ended September 30, 2000.

In February 2000 the Company sold its recently  formed  subsidiary,  ComputerCop
Corp. to NetWolves Corp.  ("NetWolves") for 1,775,000 shares of NetWolves common
stock.

The most significant  portion of the Company's  operations had historically been
conducted  through  one  of its  subsidiaries,  Softworks,  Inc.  ("Softworks").
Through  Softworks,  the  Company  developed,  marketed  and  supported  systems
management software products for corporate mainframe data centers. Softworks was
wholly owned by the Company  through June 29, 1998,  and majority  owned through
March 31, 1999. On January 27, 2000, the Company sold its remaining  interest to
EMC Corporation.

In 1997, the Company  created a business unit,  "professional  services",  which
primarily  resells  computer  hardware and for a fee, will assist in the design,
construction and installation of technology systems. In 1999, this business unit
had one major  contract,  involving two customers,  which was completed in 1999.
Historically,  net margins generated from this business unit were extremely low.
The Company does not currently have any other sales  contracts for this business
unit and is not  actively  pursuing new low margin  contracts.  The Company will
only  accept  new   contracts  if  it  believes  the  contract   will   generate
significantly higher margins.

                                       16
<PAGE>

                      DIRECT INSITE CORP. AND SUBSIDIARIES
                         (F/K/A Computer Concepts Corp.)
                      MANAGEMENT DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

        FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999



Results of operations

Commencing April 1, 1999, Softworks' results were accounted for using the equity
method of accounting and were no longer consolidated. Under the equity method of
accounting, the Company's share of Softworks' earnings or losses was included in
the Company's  consolidated  operating  results in a single line item. Pro forma
condensed  consolidated  operating  results as if Softworks  were  accounted for
using the equity  method for the nine months  ended  September  30,  1999,  on a
consistent basis with the actual results for the other periods presented,  is as
follows:

                      Direct Insite Corp. and Subsidiaries
                         (F/K/A Computer Concepts Corp.)
      Actual and Pro Forma Condensed Consolidated Statements of Operations


<TABLE>
<CAPTION>
                               For the three months ended September 30,       For the nine months ended September 30,
                                           (in thousands)                                  (in thousands)

                                        2000              1999                         2000             1999
                                      (Actual)          (Actual)                      (Actual)        (Pro-forma)
                                      --------           -------                      --------        -----------



<S>                                   <C>               <C>                           <C>              <C>
Revenue
   Software licenses, net             $      -          $    385                      $    35          $    596
   Maintenance                              11                11                           32                32
   Professional services-server farm       546               410                        1,516               948
   Professional services - hardware          -                 -                            -            12,585
                                      --------          --------                     --------          --------
                                           557               806                        1,583            14,161
Cost of Revenue
   Software licenses                         -               157                           11               218
   Maintenance                               -                 -                            -                 -
   Professional services - server farm      64               109                          231               218
   Professional services - hardware          -                 -                            -            11,708
                                      --------          --------                     --------          --------
     Gross margin                          493               540                        1,341             2,017
                                      --------          --------                     --------          --------
Research and development costs             380             2,081                        3,840             5,324
Sales and marketing costs                  344             2,607                        4,133             9,066
General and administrative costs           794             1,309                        4,571             4,776
Amortization and depreciation              218             1,019                          652             2,988
Non-recurring restructuring charge          81                 -                       15,086                 -
                                      --------          --------                     --------          --------
                                         1,817             7,016                       28,282            22,154
                                      --------          --------                     --------          --------
     Operating loss                     (1,324)           (6,476)                     (26,941)          (20,137)

Gain on sale of Softworks                    -                 3                       47,813            16,444
Gain on sale of ComputerCOP
   assets held for sale                      -                 -                        8,534                 -
Equity in earnings (loss) of Softworks       -               446                            -               367
Interest and other income
   (expense), net                          131               194                          675               210
(Provision for) benefit from income
   taxes                                   379               (42)                     (12,048)              (42)
                                      --------          --------                     --------          --------
Net income (loss)                     $   (814)         $ (5,875)                    $ 18,033          $ (3,158)
                                      ========          ========                     ========          ========

</TABLE>

                                       17

<PAGE>

                      DIRECT INSITE CORP. AND SUBSIDIARIES
                         (F/K/A Computer Concepts Corp.)
                      MANAGEMENT DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

        FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999



The following  discussion is based on the operating  results as presented in the
table above.

For the three months ended September 30, 2000 and 1999,  Server Farm revenue was
$546,000  and  $410,000,  respectively,  an increase of 33%. For the nine months
ended  September  30,  2000 and  1999,  revenue  was  $1,516,000  and  $948,000,
respectively,  an increase of 60%. At present,  the Server Farm  technology  has
been developed to provide services solely for  telecommunications  analysis. The
Company is  currently  negotiating/finalizing  several new  contracts,  which if
consummated,  should continue to increase revenue.  During the first nine months
of 2000,  the Company's  primary source of revenue was generated from the Server
Farm.  While  there can be no  assurances,  the  Company  believes  that its new
consulting services will begin to generate revenue in the first quarter of 2001.
Substantially  all of the revenue in the software  license  category  relates to
ComputerCOP.  During the first quarter of 2000, the Company sold the ComputerCOP
technology.  See Note 8. For the three month  period ended  September  30, 2000,
total  revenue  decreased by $249,000,  when  compared to the three month period
ended  September  30,  1999,  primarily  as a result of a $385,000  decrease  in
ComputerCOP  sales,  offset by a $136,000 increase in Server Farm sales. For the
nine  month  period  ended  September  30,  2000,  total  revenue  decreased  by
$12,578,000,  when  compared to the nine month period ended  September 30, 1999,
primarily  as a result  of a  $12,585,000  decrease  in its  hardware  reselling
business  unit,  and a  $561,000  decrease  in  ComputerCOP  sales,  offset by a
significant $568,000 increase in Server Farm sales.

The Server  Farm  generates  much  higher  gross  margin  than did the  hardware
reselling  business unit. The Server Farm cost of revenue consists  primarily of
the direct labor  associated with  processing  call detail records.  The cost of
revenue  related to the  resale of  computer  hardware  consisted  primarily  of
amounts paid to the Company's  suppliers  for goods and services.  While revenue
related to the Server Farm for the  three-month  period ended September 30, 2000
increased  $136,000 when compared to the three months ended  September 30, 1999,
costs as a percentage of revenue decreased to 11.7% from 26.6%. Similarly, while
revenue related to the Server Farm for the nine-month period ended September 30,
2000  increased  $568,000 when  compared to the nine months ended  September 30,
1999,  costs as a  percentage  of revenue  decreased  to 15.2% from  23.0%.  The
Company  believes  that the cost of  revenue  associated  with the  Server  Farm
revenue is not directly proportional. As such, as revenue increases, costs, as a
percentage of revenue,  should  decrease.  The depreciation of the Server Farm's
hardware is included in "Amortization and depreciation."

Management  believes  that the costs saving  measures it has put in place during
the second quarter,  in addition to the effects of the restructuring plan (which
includes the  elimination of expenses  attributable  to the multi- media display
station),  as well as the sale of  ComputerCOP  during  the  first  quarter  are
reflected in the third quarter operating  expenses  discussed below. While there
can be no  assurances,  the Company  believes that, for other than expenses that
vary with sales volume,  these costs savings should continue for the foreseeable
future.

Research and  development  expenses  include  costs for the  development  of the
multi-media display station, salaries and related costs for software developers,
quality  assurance  and  documentation   personnel  involved  in  the  Company's
research,  development  and  maintenance  efforts.  Costs  attributable  to  the
development  of the  multi-media  display  station was  $1,296,000  for the nine
months ended September 30, 1999, and increased by $497,000 to $1,793,000 for the
nine months ended  September  30, 2000 (none of which were  attributable  to the
quarter ended  September  30, 2000).  Pursuant to the  restructuring  plan,  the
Company ceased development of this project in the first quarter of 2000, thereby
eliminating  these  development  costs.  With respect to the Server  Farm,  when
comparing the three and nine month  periods  ended  September 30, 2000 and 1999,
the  Company  reduced  its  development  costs  by  $1,140,000  and  $1,981,000,
respectively.

Sales and marketing  expenses include  salaries and related costs,  commissions,
travel,  facilities,  communications  costs  and  promotional  expenses  for the
Company's  direct sales  organization and marketing  staff.  Expenses  decreased
$2,263,000 to $344,000 for the three-month period ended September 30, 2000, when
compared to $2,607,000 for the three month period ended September 30, 1999. This
decrease was mainly comprised of reductions  pursuant to the restructuring plan,

                                       18

<PAGE>

                      DIRECT INSITE CORP. AND SUBSIDIARIES
                         (F/K/A Computer Concepts Corp.)
                      MANAGEMENT DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

        FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999


which included  $619,000 related to consultants'  fees, and $327,000 as a result
of reduced staffing levels.  Additional  reductions of approximately  $1,011,000
were a result of the sale ComputerCOP in the first quarter 2000. Further,  there
was a reduction of expenses of $187,000 as a result of a contractual arrangement
wherein the Company no longer is responsible for the marketing  efforts relating
to the multi-media  display station.  These reductions were offset by $80,000 of
expenses   attributable  to  the  Company's  new  consulting  service.  For  the
nine-month period ended September 30, 2000,  expenses decreased by $4,933,000 to
$4,133,000  when compared to $9,066,000 for the same period last year.  Included
in this decrease were reductions  pursuant to the  restructuring  plan including
$1,613,000  related to consultants'  fees;  $392,000 to reduced staffing levels;
and  reductions  of  approximately  $3,104,000  due to the sale of  ComputerCOP.
Offsetting these decreases was a year over year increase of $166,000  pertaining
to the multi-media  display station due to the Company's effort during the first
quarter of 2000 to heavily market the multi-media  display  station,  as well as
$167,000 of expenses attributable to the Company's new consulting service.

General  and  administrative   expenses  include  administrative  and  executive
salaries and related benefits,  legal, accounting and other professional fees as
well as general corporate overhead.  Expenses decreased $515,000 to $794,000 for
the  three-month  period ended  September 30, 2000,  when compared to the three-
month period ended  September 30, 1999 and decreased  $205,000 to $4,571,000 for
the nine month period ended  September 30, 2000 when compared to the same period
last  year.  Major  factors  contributing  to  the  three-month  and  nine-month
decreases include, among other things, staff reductions,  reduced legal expenses
and the reduction in the retention of financial consultants.

Amortization and depreciation  expenses  decreased  $801,000 and $2,336,000 when
comparing  the  three  and  nine-month  periods  ended  September  30,  2000 and
September 30, 1999,  respectively.  The decreases are primarily  attributable to
the elimination of purchased  software and goodwill  acquired in the ComputerCOP
transaction. See Note 8.

Gain on sale of Softworks of $47,813,000  represents the gain  associated with a
tender  offering  for  the  purchase  of  Softworks  common  stock  made  by EMC
Corporation, which was completed on January 27, 2000. See Note 8.

Gain on sale of  ComputerCOP  assets held for sale of $8,534,000  represents the
gain  associated  with an agreement  dated February 10, 2000 for the sale of the
ComputerCOP subsidiary to NetWolves Corporation. See Note 8.

As a result of the  Company's  sale of its  remaining  interest in  Softworks in
January 2000 and the sale of its  ComputerCOP  technology in February  2000, the
Company  recognized a taxable gain in the first quarter of 2000 and utilized all
of its currently available net operating loss  carryforwards.  The Company's tax
provision for the nine months ended September 30, 2000, of $12,058,000, consists
of deferred tax expense of $9,197,000 and current tax expense of $2,851,000.


                                       19
<PAGE>

                      DIRECT INSITE CORP. AND SUBSIDIARIES
                         (F/K/A Computer Concepts Corp.)
                      MANAGEMENT DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

        FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999



Financial Condition and Liquidity

For the nine-month  period ended  September 30, 2000,  the Company  continued to
incur  operating  losses.  The  Company  used  substantial  amounts  of  cash in
operating activities during the three months ended March 31, 2000. However, as a
result of the cost saving measures  implemented as part of the restructure  plan
put in affect in March, 2000, the Company has and believes it should continue to
see substantial reductions in its operating costs and use of funds when compared
to prior  periods.  The Company  financed  its  operating  activities  primarily
through sale of Softworks  common stock.  In January 2000,  the Company sold its
remaining  interest in Softworks to EMC Corporation  and its subsidiary  ("EMC")
for $10.00 per share. The transaction provided cash proceeds of $48,301,000 (net
of expenses and fees of $3,157,000),  and  $10,000,000,  which were placed in an
interest  bearing escrow  account.  The escrow funds,  net of any claims against
them (if any),  are  scheduled  to be  released to the Company one year from the
date of closing,  January 27, 2001.  Also during the first quarter of 2000,  the
Company sold ComputerCOP  Corp. for 1,775,000 shares of NetWolves Corp.,  valued
at $20 per share  (aggregating  $35,500,000).  The assets of  ComputerCOP  Corp.
included the  ComputerCOP  technology  (and  certain  related  assets  including
inventory) and  $20,500,000 in cash. The Company  purchased  225,000  additional
shares from certain  NetWolves  shareholders  for  $4,500,000.  The Company paid
approximately $1,819,000 in related fees and expenses. See Note 8.

In the first quarter of 2000, the Company's  newly  appointed Board of Directors
approved and the Company  announced a  restructuring  plan that it believes will
streamline  the  Company's  operations  and  overhead  structure  (Note 3).  Key
elements of the restructure plan include: (i) elimination of employees, expenses
and commitments  that supported the ComputerCOP  technology  (sold to NetWolves,
see Note 8), (ii)  elimination  of  employees,  expenses  and  commitments  that
supported the Company's  development  project  related to a multi- media display
station  (see Note 11),  and (iii)  general  reduction  of  corporate  operating
expenses.  The restructuring  activity for the nine month period ended September
30, 2000, is summarized in the table below:

<TABLE>
<CAPTION>

                                                Officer/director
                                 Employee          retirement        Consulting     Operating
                                terminations        packages          contracts       Leases     Other     Total
                                ------------    -----------------    ------------   ----------   -----     -----
<S>                            <C>               <C>                <C>            <C>        <C>       <C>

Restructuring charge
   to operations,
   quarter ended March
   31, 2000                     $ 2,243,000      $ 7,535,000         $ 3,681,000    $ 369,000  $ 985,000  $14,813,000
Restructuring charges
   to operations and
   adjustments, after
   March 31, 2000                   (70,000)         140,000                   -            -    203,000      273,000
                                -----------      -----------         -----------    ---------  ---------  -----------
     Subtotal                     2,173,000        7,675,000           3,681,000      369,000  1,188,000   15,086,000
Cash expenditures                (1,567,000)      (5,507,000)         (1,865,000)     (93,000)  (590,000)  (9,622,000)
Company stock
   issuances                       (200,000)        (100,000)           (630,000)           -   (250,000)  (1,180,000)
Netwolves stock
   exchanged                              -       (1,500,000)                  -            -          -   (1,500,000)
                                -----------      -----------         -----------   ----------  ---------  -----------
Restructuring accrual,
   September 30, 2000           $   406,000      $   568,000          $1,186,000   $  276,000  $ 348,000   $2,784,000
                                ===========      ===========         ===========   =-========  =========  ===========

Of the total outstanding liability of $2,784,000,  $1,035,000,  is payable after
one year.
</TABLE>

                                       20

<PAGE>

                      DIRECT INSITE CORP. AND SUBSIDIARIES
                         (F/K/A Computer Concepts Corp.)
                      MANAGEMENT DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

        FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999




As discussed  above and as detailed in the Condensed  Consolidated  Statement of
Cash Flows,  during the nine month period ended  September 30, 2000, the Company
received  $48,301,000  from the sale of Softworks,  $2,000,000  (less $72,000 in
related expenses) from the sale of a convertible debenture, utilized $26,819,000
in  the   NetWolves/ComputerCOP   transaction   and   $21,204,000  in  operating
activities,  which  includes  $9,622,000  toward the  restructuring,  and paid a
dividend to its stockholders totaling $2,194,000, resulting in a cash balance of
$2,182,000  as of September 30, 2000.  The Company's  cash balance as of October
31, 2000 is approximately $1,812,000.

Management's current short-term plan is primarily focused on achieving operating
profit by successfully  marketing innovative software products and services that
capitalize on the Company's  patented  technologies.  To achieve its goals,  the
Company has restructured its operations,  which reduced its operating  expenses,
while continuing to market the Server Farm. Additionally, the Company intends to
successfully  market its new  consulting  service.  The  Company is  continually
reviewing its long-term business strategy.

Management  believes that its plan will ultimately enable the Company to achieve
positive cash flows from  operations.  Until such time,  the Company has several
sources to fund its short and long term  plans.  The Company  believes  that its
present  cash  on  hand  plus  the  possible  sale  of  an  additional  $500,000
convertible debenture, and, if necessary a partial liquidation of its investment
in Netwolves  should provide  adequate funding until it receives the $10,214,000
currently  being held in escrow which is  scheduled  to become  available to the
Company (net of any claims) in January 2001. After which the Company believes it
will have sufficient funding to fulfill its plan.

NetWolves is an innovator of all-in-one Internet gateway software systems, which
is a trend in the networking industry due to the enhanced functionality, offered
to end-users.  Their primary  product is marketed under the trade name,  FoxBox.
NetWolves  incorporates  a  series  of  software  modules  managed  by a  single
administrative  interface  that  protects  end user  investment  and offers cost
savings.  NetWolves  also offers  Internet  based  distance  training and profit
enhancing programs for the petroleum industry. At September 30, 2000, the quoted
market value of the 1,875,000  shares of NetWolves  common stock was $15,000,000
($8.000  per  share).  On  October  31,  2000,  the quoted  market  value of the
NetWolves common stock was $10,664,000 ($5.6875 per share).

As discussed in Note 11, in April 2000,  the Company  entered into a contractual
arrangement with an unrelated third party,  whereby the Company  transferred all
of its in-process research and development technology related to the multi-media
display  station for the rights to 50% of the future  profits (as  defined),  if
any,  from the third  party's  operation or sale of this  technology.  The third
party agreed to utilize its contacts in the industry and also agreed to fund all
future costs  associated  with the  continued  development  and marketing of the
display station.  There can be no assurances that the Company will recognize any
proceeds from this transaction.

YEAR 2000 ISSUES

The Company did not experience  any  significant  malfunctions  or errors in its
operating or business  systems when the date changed from 1999 to 2000. Based on
operations  since January 1, 2000,  the Company does not expect any  significant
impact to its ongoing business as a result of the "Year 2000 issue".  However it
is  possible  that the full impact of the date  change,  which was of concern to
computer  programs  that use two digits  instead of four digits to define years,
has not been fully  recognized.  The Company believes that any such problems are
unlikely  and that should they occur,  they would be minor and  correctable.  In
addition,  the Company  could still be  negatively  affected if the Year 2000 or
similar issues adversely  affect any of its suppliers.  The Company is currently
not aware of any significant  Year 2000 or similar problems that have arisen for
any of its vendors.

The  Company  estimates  that it  expended  approximately  $50,000  on Year 2000
readiness  efforts  through  September 30, 2000. The Company does not anticipate
any further expenditure in connection with Year 2000 issues.

                                       21

<PAGE>

                      DIRECT INSITE CORP. AND SUBSIDIARIES
                        (F/K/A Computer Concepts Corp.)
                           PART II - OTHER INFORMATION

        FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999




Item 1. Legal Proceedings

        Not applicable.

Item 2. Changes in Securities

        Not applicable.

Item 3. Defaults Upon Senior Securities

        Not applicable.

Item 4. Submission of Matters to a Vote of Security Holders

At the  Company's  annual  shareholders  meeting,  held  August  23,  2000,  the
shareholders  of the Company  elected the  individuals  identified  below to the
Company's Board of Directors. Their terms expire at the next annual shareholders
meeting. James A. Cannavino,  Charles Feld, Dr. Dennis Murray, Carla J. Stovall.
The tabulation of the results of the  shareholders'  vote was:  20,284,498 - For
and 173,840 - Against.

A proposal to amend the Company's  Certificate  of  Incorporation  to change the
name of the  Company  to "Direct  Insite  Corp."  was  approved  by the vote of:
20,247,816 - For; 141,170 - Against; and 79,256 - Abstaining.

A proposal to ratify the  appointment by the Board of Directors of Hays & Co. as
the Company's  independent certified public accountants for fiscal/calendar year
2000 was approved by the vote of: 20,332,223 - For; 67,767 - Against; and 49,194
- Abstaining.

Item 5. Other Information

        Not applicable.

Item 6. Exhibits and Reports on Form 8-K.

     4.1  Form of Convertible  Debenture  Purchase Agreement dated September 27,
          2000 between  Direct Insite Corp and Greenwood  Court LLC.,  including
          exhibits.

                                       22

<PAGE>


                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.


DIRECT INSITE CORP.
(F/K/A Computer Concepts Corp.)



/s/ James Cannavino
--------------------------
James Cannavino                 Chairman and Director   October 31, 2000



/s/ George Aronson
--------------------------
George Aronson                  Chief Financial Officer October 31, 2000




                                       23