<PAGE>


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                            ------------------------

                                    FORM 10-Q
                            ------------------------

           /X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended December 31, 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 Number: 000-31411

                            ------------------------

                                  ZENGINE, INC.

             (Exact name of registrant as specified in its charter)



                       DELAWARE                          31-1638932
           (State or other jurisdiction              (I.R.S. Employer
         of incorporation or organization)           Identification Number)

                6100 STEWART AVENUE
                FREMONT, CALIFORNIA                         94538
        (Address of principal executive offices)         (Zip Code)


       Registrant's telephone number, including area code: (510) 651-6400

                            ------------------------

   Securities registered pursuant to Section 12(b) of the Act: Not applicable

    Securities registered pursuant to Section 12(g) of the Act: Common Stock,
                                  no par value

                            ------------------------

Indicate by check mark whether the Registrant (1) has filed all reports required
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months and (2) has been subject to such filing requirements for the
past 90 days (or for such shorter period that the Registrant was required to
file such reports): Yes X   No
                       ---    ---



Number of shares of Common Stock outstanding as of February 12, 2001: 17,313,044




<PAGE>


                                  ZENGINE, INC.

                   FORM 10-Q FOR PERIOD ENDED DECEMBER 31, 2000

                                TABLE OF CONTENTS



PART I - FINANCIAL INFORMATION

<TABLE>
<CAPTION>
                                                                                                PAGE NO.
                                                                                                --------
<S>                                                                                             <C>
Item 1.   Condensed Financial Statements:
           Condensed Balance Sheets................................................................1
           Condensed Statements of Operations......................................................2
           Condensed Statements of Cash Flows......................................................3
           Notes to the Condensed Financial Statements.............................................4

Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations...6

Item 3.    Quantitative and Qualitative Disclosure about Market Risk...............................8

PART II - OTHER INFORMATION

Item 1.    Legal Proceedings.......................................................................9
Item 2.    Changes in Securities and Use of Proceeds...............................................9
Item 3.    Defaults Upon Senior Securities.........................................................9
Item 4.    Submission of Matters to a Vote of Security Holders.....................................9
Item 5.    Other Information.......................................................................9
Item 6.    Exhibits and Reports on Form 8-K........................................................9
Signatures........................................................................................10
</TABLE>

         As used in this report on Form 10-Q, unless the context otherwise
requires, the terms "we," "us," or "the Company" and "Zengine" refer to Zengine,
Inc., a Delaware corporation.


<PAGE>

                                     PART I.

                     ITEM 1. CONDENSED FINANCIAL STATEMENTS

                                  ZENGINE, INC.

                            CONDENSED BALANCE SHEETS


<TABLE>
<CAPTION>
                                                              SEPTEMBER 30,   DECEMBER 31,
                                                                 2000             2000
                                                              -------------   -------------
                                                                       (UNAUDITED)
<S>                                                           <C>             <C>
Assets:
  Current assets:
    Cash and cash equivalents...............................  $50,482,659      $33,699,142
    Stock subscription receivable from MCSi.................    1,738,341           --
    Accounts receivable, net................................    2,934,797        4,374,255
    Amounts receivable from MCSi, net.......................      709,499       11,907,850
    Other current assets....................................      738,089          540,758
                                                               ----------      -----------
      Total current assets..................................   56,603,385       50,522,055
                                                               ----------      -----------
  Property and equipment, net...............................      146,233          200,840
  Capitalized software costs, net...........................      733,002          887,598
  Other assets..............................................       38,736           56,526
                                                               ----------      -----------
      Total assets..........................................  $57,521,356      $51,666,969
                                                               ==========      ===========
Liabilities and stockholders' equity:
  Current liabilities:
    Cash overdraft..........................................   $  330,655       $    --
    Accrued liabilities ....................................    1,603,376          756,363
    Deferred revenue........................................      379,174          195,428
                                                               ----------      -----------
      Total current liabilities.............................    2,313,205          951,791
                                                               ----------      -----------
 Stockholders' equity:
    Common stock, no par value, 100,000,000 shares
      authorized, 17,285,712 and 17,337,531 shares issued
      and outstanding at September 30, 2000 and December 31,
      2000, respectively....................................           --               --
    Additional paid-in capital..............................   58,884,931       58,347,225
    Unearned compensation ..................................   (2,248,372)      (1,898,996)
    Accumulated deficit.....................................   (1,414,786)      (  632,828)
    Treasury stock, at cost, 1,000 shares and 571,117 shares
      at September 30,2000 and December 31, 2000, respectively    (13,622)      (5,100,223)
                                                               ----------      -----------
      Total stockholders' equity............................   55,208,151       50,715,178
                                                               ----------      -----------
      Total liabilities and stockholders' equity............  $57,521,356      $51,666,969
                                                               ==========      ===========
</TABLE>

                   The accompanying notes are an integral part
                    of these condensed financial statements.

                                        1

<PAGE>



                                  ZENGINE, INC.

                       CONDENSED STATEMENTS OF OPERATIONS


<TABLE>
<CAPTION>
                                                                       THREE MONTHS
                                                                      ENDED DECEMBER 31,
                                                                   1999            2000
                                                               ------------    ------------
                                                                        (UNAUDITED)
<S>                                                            <C>             <C>
Revenue
  Third party ..............................................   $      7,201    $  3,515,349
  Related party ............................................        483,685       1,184,798
                                                               ------------    ------------
                                                                    490,886       4,700,147
                                                               ------------    ------------
Cost of revenue
  Third party (excludes non-cash stock-based compensation of
    $6,293 and $48,971, respectively) ......................        111,822       1,096,213
  Related party ............................................         24,703          53,800
                                                               ------------    ------------
                                                                    136,525       1,150,013
                                                               ------------    ------------
Gross profit ...............................................        354,361       3,550,134
                                                               ------------    ------------
Selling, general and administrative expenses
  Third party ..............................................        502,157       1,966,543
  Related party ............................................        217,500       1,201,657
  Non-cash stock-based compensation ........................         23,399         146,879
  Non-cash sales arrangement relating to equity issuances ..           --           202,497
                                                               ------------    ------------
                                                                    743,056       3,517,576
                                                               ------------    ------------
(Loss)/income from operations ..............................       (388,695)         32,558
Interest income ............................................         45,635         749,400
                                                               ------------    ------------
(Loss)/income before income taxes ..........................       (343,060)        781,958
Provision for income taxes .................................           --              --
                                                               ------------    ------------
Net (loss)/income ..........................................   $   (343,060)   $    781,958
                                                               ============    ============
(Loss)/earnings per share of common stock: - basic .........   $      (0.03)   $       0.05
                                                               ============    ============
                                           - diluted .......   $      (0.03)   $       0.05
                                                               ============    ============
Weighted average number of common shares outstanding:- basic     11,073,872      17,047,857
                                                               ============    ============
                                                     - diluted   11,073,872      17,332,121
                                                               ============    ============
</TABLE>

                   The accompanying notes are an integral part
                    of these condensed financial statements.

                                       2

<PAGE>


                                  ZENGINE, INC.

                       CONDENSED STATEMENTS OF CASH FLOWS




<TABLE>
<CAPTION>
                                                                       THREE MONTHS
                                                                     ENDED DECEMBER 31,
                                                                    1999           2000
                                                                -------------   ------------
                                                                         (UNAUDITED)
<S>                                                           <C>               <C>
Cash flows from operating activities:
  Net (loss)/income .........................................   $   (343,060)   $    781,958
  Adjustments to reconcile net (loss)/income to cash provided
    by operating activities:
    Depreciation and amortization ...........................         36,566         115,779
    Non-cash stock-based compensation .......................         23,399         146,879
    Non-cash sales arrangement relating to equity
      issuances .............................................           --           202,497
    Allowance for doubtful accounts .........................           --           150,000
    Changes in assets and liabilities:
      Accounts receivable ...................................        (21,757)     (1,589,458)
      Deferred revenue ......................................           --          (183,746)
      Accrued liabilities and cash overdrafts ...............         41,942      (1,177,668)
      Other current assets ..................................       (525,000)        197,331
      Other assets ..........................................           --           (17,790)
                                                                ------------    ------------
        Cash used in operating activities ...................       (787,910)     (1,374,218)
                                                                ------------    ------------
Cash flows from investing activities:
  Capital expenditures ......................................        (17,544)        (77,406)
  Capitalized software costs ................................        (49,725)       (247,576)
  Issuance of notes to MCSi .................................     (3,871,049)     (8,500,000)
  Net cash settlement under arrangements with MCSi ..........        860,286      (2,698,351)
                                                                ------------    ------------
        Cash used in investing activities ...................     (3,078,032)    (11,523,333)
                                                                ------------    ------------
Cash flows from financing activities:
  Proceeds from sales of common stock, net of related
      expenses ..............................................      3,871,049       1,190,541
  Proceeds from exercise of stock options ...................           --            10,094
  Purchase of treasury stock ................................           --        (5,086,601)
                                                                ------------    ------------
        Cash provided by/(used in) financing activities .....      3,871,049      (3,885,966)
                                                                ------------    ------------
Net increase/(decrease) in cash and cash equivalents ........          5,107     (16,783,517)
Cash and cash equivalents--beginning of period ..............            406      50,482,659
                                                                ------------    ------------
Cash and cash equivalents--end of period ....................   $      5,513    $ 33,699,142
                                                                ============    ============
</TABLE>


                   The accompanying notes are an integral part
                    of these condensed financial statements.


                                       3

<PAGE>

                                  ZENGINE, INC.

                        NOTES TO THE FINANCIAL STATEMENTS


1. BASIS OF PREPARATION

         The accompanying condensed financial statements of Zengine, Inc.
("Zengine" or the "Company") are unaudited and, in the opinion of management,
include all adjustments (which include only normal recurring adjustments)
necessary to present fairly the Company's financial position as of December
31, 2000 and the results of its operations and cash flows for the interim
periods presented. The condensed balance sheet data for September 30, 2000
are derived from the audited financial statements which are included in the
Company's Annual Report on Form 10-K, which should be read in connection with
these financial statements. In accordance with the rules of the Securities
and Exchange Commission ("SEC"), these condensed financial statements do not
include all disclosures required by generally accepted accounting principles
but conform to the guidelines for interim financial information as provided
by the instructions to Form 10-Q and Article 10 of Regulation S-X. The
results of the Company's operations for the interim periods presented are not
necessarily indicative of the operating results for the full fiscal year or
any future interim periods.

2. (LOSS)/EARNINGS PER SHARE


         The following table summarizes the computation of basic and diluted
(loss)/earnings per share calculations.


<TABLE>
<CAPTION>
                                                    THREE MONTHS
                                                  ENDED DECEMBER 31,
                                                1999            2000
                                           --------------    -----------
<S>                                        <C>               <C>
Net (loss)/income for the period .......   $     (343,060)   $   781,958
                                           ==============    ===========
Weighted average number of common shares
  outstanding--basic ...................       11,073,872     17,047,857
Dilutive impact of assumed conversion
  exercises ............................             --          284,264
                                           --------------    -----------
Weighted average number of common shares
  outstanding--diluted .................       11,073,872     17,332,121
                                           ==============    ===========
(Loss)/earnings per
common share--basic ....................   $        (0.03)   $      0.05
                                           ==============    ===========
             -diluted ..................   $        (0.03)   $      0.05
                                           ==============    ===========
</TABLE>

3. COMPREHENSIVE INCOME/(LOSS)

The Company has no components of comprehensive income except for net income;
accordingly, net income/(loss) and comprehensive income/(loss) are the same.


4. RELATED PARTY TRANSACTIONS

During the three months ended December 31, 2000, the Company made an advance
to three wholly-owned subsidiaries of MCSi totaling $8,500,000 in the form of
a 90-day secured note to assist MSCi in the purchase of the assets of the
Intellisys Group, Inc. Interest on the note accrues monthly based on the
"prime rate" as published by the WALL STREET JOURNAL. The principal amount of
the note and all accrued, but unpaid, interest will be due and payable on
March 29, 2001. The subject loan was unanimously approved by the Board of
Directors of Zengine.

During the three month period ended December 31, 2000, the Company's
administrative services agreement with MCSi was amended to include the provision
of National Sales Accounts services by MCSi. Total charges relating to the
amendment totaled $608,000 during the three months ended December 31, 2000.

Additional details of related party transactions can be found in the Company's
audited financial statements which are included in the Company's Annual Report
on Form 10-K, which should be read in connection with these financial
statements.

                                       4

<PAGE>

                                  ZENGINE, INC.

                        NOTES TO THE FINANCIAL STATEMENTS
                                   (CONTINUED)


5. EQUITY

During the period ended December 31, 2000 the Company repurchased 570,117
shares of its stock for $5,086,601. These purchases were for the purposes of
providing shares to be used for the Company's Amended and Restated 1999 Stock
Option Plan and the Employee Stock Purchase Plan.








                                       5
<PAGE>


                                  ZENGINE, INC.

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS


THE FOLLOWING DISCUSSION SHOULD BE READ IN CONJUNCTION WITH THE COMPANY'S
UNAUDITED CONDENSED FINANCIAL STATEMENTS AND THE ACCOMPANYING NOTES THERETO
INCLUDED ELSEWHERE HEREIN.


                                   NOTE AS TO
                           FORWARD-LOOKING STATEMENTS

The following information contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995 (the "Act") and
is subject to the safe harbor created by that Act. Generally, these statements
relate to business plans or strategies, projected or anticipated benefits from
potential acquisitions, projections involving anticipated revenues, earnings,
profitability or other aspects of operating results or other future developments
in the affairs of the Company or the industry in which it conducts business.
These forward-looking statements, which are based on various assumptions (some
of which are beyond the Company's control), may be identified by reference to a
future period or periods or by the use of forward-looking terminology such as
"anticipate," "believe," "commitment," "consider," "continue," "could,"
"encourage," "estimate," "expect," "intend," "in the event of," "may," "plan,"
"present," "propose," "prospect," "update," whether," "will," "would," future or
conditional verb tenses, similar terms, variations on such terms or negatives of
such terms. Although the Company believes that the anticipated results or other
expectations reflected in such forward-looking statements are based on
reasonable assumptions, it can give no assurance that those results or
expectations will be attained. Actual results could differ materially from those
indicated in such statements due to risks, uncertainties and changes with
respect to a variety of factors, including, but not limited to, the following:
the Company's limited operating history, the Company's history of losses,
expected fluctuations of quarterly results, its lengthy sales cycle, potential
performance delays, the potential loss of a major client, dependence upon its
client's business and product sales, short term advertising fees, potential loss
of key employees, potential difficulties in managing growth, the ability of its
systems to accommodate significant growth, potential software defects and system
errors, potential product liability litigation, its ability to adequately
protect its trademarks or brand identity, privacy concerns, potential breach of
e-commerce security measures, and the relationship and affiliated transactions
with its parent corporation, MCSi.

OVERVIEW

Zengine, Inc. is a single source e-business software service provider. Zengine's
KORE e-business platform creates, hosts and enhances enterprise level e-business
solutions quickly and cost-effectively on an outsourced, Internet-delivered
basis. The Company's solutions include customer applications such as extranets,
employee applications such as intranets, and e-commerce applications including
content and sales. The Company's comprehensive suite of fully integrated
software and services eliminates the need for the combination of disparate "best
of breed" offerings. The result is a single-source technology company designed
to deliver complete e-business solutions, at a fraction of the time and cost of
existing alternatives. Zengine offers a full range of integrated services for
business-to-business and business-to-consumer e-business including: Client
Platform Hosting, Website User Interface Design, Content and Merchandising
Management, Customer Relationship Management, Personalization, Advertising
Management, Order Management, Inventory Management, Order Fulfillment, End-User
Customer Service and Reporting and Analysis.

In performing services under the Zengine business model, the Company enters into
contractual arrangements with its clients that describe the services Zengine
will perform. The Company generates revenues through service fees, which include
integration and set-up, monthly subscription and transaction fees and product
sales directly to consumers through web sites Zengine has developed and
operates; and from advertising and sponsorships on Web pages the Company
services on its client's stores.


                                       6


<PAGE>

                                  ZENGINE, INC.

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS
                                   (CONTINUED)


RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED DECEMBER 31, 1999 AND

DECEMBER 31, 2000 REVENUE

Revenue for the periods presented is summarized as follows:

<TABLE>
<CAPTION>
                                                             THREE MONTHS
                                                           ENDED DECEMBER 31,
                                                       1999                  2000
                                                   -----------           -----------
<S>                                                <C>                   <C>
Service fees and product sales............         $   490,886           $ 2,956,398
Advertising and sponsorship fees..........                  -              1,743,749
                                                   -----------           -----------
                                                   $   490,886           $ 4,700,147
                                                   ===========           ===========
</TABLE>


The increase in revenues from December 31, 1999 to December 31, 2000, as
shown above, reflect the launch of Zengine's clients' e-commerce Web sites,
along with adding Web sites being serviced under the Company's e-commerce
services agreement with MCSi and revenues from the sale of products on
Company owned and operated Web sites. For the three months ended December 31,
1999, revenue was derived primarily from the Company's e-commerce services
agreement with MCSi.

At December 31, 2000, the Company had 19 e-commerce clients. Service fee
revenue from the MCSi dedicated Web sites was $1,184,798 for the three months
ended December 31, 2000, which was 25.2% of its total revenue for the period.
Zengine's current arrangement to service the MCSi dedicated Web sites expires
on October 1, 2001. In addition, the Company had advertising and sponsorship
revenue of $1,743,749 or 37.1% of total revenue, which was primarily derived
from original equipment manufacturers ("OEM") advertisers who either placed
banner advertisements on clients' Web pages which the Company serves, or
purchased preferential placement of the OEM products on clients' electronic
stores. Zengine has provided advertising or sponsorship services to 7 clients
in the three months ended December 31, 2000. MCSi has supply arrangements
with the OEM companies that purchase advertising from Zengine. Although the
Company negotiates each OEM advertising arrangement, MCSi's relationship with
the OEM companies could have influenced the Company's obtaining the
advertising and Zengine may not have obtained the advertising without MCSi's
relationship.

COST OF REVENUE AND GROSS MARGIN

The Company's cost of revenue includes the amortization of capitalized computer
software costs, the costs of its employees to perform integration and other
services, the fees it pays to MCSi under the distribution services agreement,
and the cost of products sold through Company owned and operated Web sites.

For the three months ended December 31, 2000, the Company's cost of revenue was
$1,150,013 and included $866,458 related to the cost of products sold. As a
percentage of the Company's revenues, its gross margin was 76% for the three
months ended December 30, 2000. The Company's gross margin percentage will
fluctuate depending primarily on the timing as to when it adds additional
employees to perform integration and other services and changes in its sales mix
between lower margin product sales and the Company's service offerings, which
provide higher margins.

The Company's cost of revenue for the three months ended December 31, 1999 was
$136,525 (representing a gross margin of 72%) and reflects costs it incurred for
the services the Company provided as well as the amortization of capitalized
computer software costs.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling, general and administrative expenses for the three months ended
December 31, 2000 were $3,517,576, or 75% of revenue for the period.
Zengine's primary selling, general and administrative expenses relate to
labor costs, its administrative service and leasing arrangements with MCSi,
marketing costs, costs associated with the Company's information systems and
non-cash expenses related to stock based compensation and other equity
arrangements. Selling, general and administrative expenses include $349,376
of non-cash charges, representing $146,879 of stock-based compensation
expense and $202,497 from a sales arrangement involving equity instruments.
Selling, general and administrative expenses were and will be primarily
influenced by the timing of when the Company adds additional personnel to
support these functions.

                                       7


<PAGE>

                                  ZENGINE, INC.

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS
                                   (CONTINUED)


Zengine's selling, general and administrative expenses for the three months
ended December 31, 1999 were $743,056 and relate primarily to costs incurred
to administer and market its business model. Selling, general and
administrative expenses include $23,399 of non-cash charges arising from
stock-based compensation expenses. The more significant selling, general and
administrative expenses relate to payroll and accounting processing costs,
salaries and rent.

INTEREST INCOME

Interest income increased substantially during the three months ended December
31, 2000 compared to the three months ended December 31, 1999 as a result of
investing the proceeds of the Company's initial public offering ("IPO") which
occurred on September 20, 2000.

SUMMARY

As a result of the foregoing factors, Zengine had operating income of $32,558
and net income of $781,958 during the three months ended December 31, 2000,
compared to an operating loss of $388,695 and a net loss of $343,060 in the
corresponding prior year period.

Favorable operating results should not necessarily be viewed as an indication
of Zengine's operating results for the year ending September 30, 2001.
Results of operations in the future will be impacted by a number of factors
discussed above, including the Company's ability to retain and attract new
customers, its lengthy sales cycle and the costs incurred to provide its
services and administer the business.

LIQUIDITY AND CAPITAL RESOURCES

During the three months ended December 31, 2000, the Company used $1,374,218
in cash from operations primarily as a result of net income from operations
being more than offset by an increase in accounts receivable and a decrease
in accrued liabilities. The Company used $11,523,333 of cash for investing
activities primarily as a result of $8.5 million loaned to three wholly-owned
subsidiaries of MCSi and an increase in the accounts receivable balance from
MCSi. The remaining cash used for investing activities was to fund
expenditures for software development and capital expenditures. Cash used in
financing activities of $3,885,966 is primarily the result of the purchase of
570,117 shares of the Company's common stock for $5,086,601, partially offset
by net cash inflows resulting from the sale of common stock. The stock
repurchases will be used for the Company's stock option plan and employee
stock purchase plan. Available cash is held in short-term high quality
investments.

The Company used $787,910 in cash for operations for the three months ended
December 31, 1999 primarily as a result of its net loss from operations.
Additionally, the Company used cash of $3,078,032 for investing purposes,
primarily as a result of the issuance of a demand note to MCSi and software
development costs incurred to develop the Company's technology. The Company
received $3,871,049 of cash from financing activities for the three months
ended December 31, 1999 as a result of the sale of 1,804,956 shares of common
stock to a client and another accredited investor in a private placement.

On September 20, 2000 the Company completed its IPO, resulting in net
proceeds of approximately $50.5 million. Prior to its IPO, the Company looked
to MCSi to provide the financial and capital resources it required to carry
on its business activities. Subsequent to the IPO MCSi's lending arrangements
prohibit it from loaning the Company money to provide funding for its
operations, and if the proceeds from the IPO are not sufficient to fund
future operating investing needs, the Company may have to look other sources
of financing, such as bank loans or the issuance of debt or equity
securities. In any event, the Company believes that the capital resources
provided by the IPO, will be sufficient to enable it to pursue its operations
for the foreseeable future.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company believes that there have been no material changes in the reported
market risks faced by the Company since the fiscal year ended September 30,
2000. These and other risk factors are discussed in more detail in Zengine's
Annual Report Form 10-K for the fiscal year ended September 30, 2000 under
Item 7A, "Quantitative and Qualitative Disclosures About Market Risk."


                                       8

<PAGE>

                                  ZENGINE, INC.

                           PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         None.

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

         Not applicable.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         Not applicable.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         Zengine's Annual Meeting of Stockholders will be held at the Mandarin
         Oriental Hotel, 222 Sansome Street, San Francisco, California 94104, on
         Wednesday, February 28, 2001 at 10:30 a.m. Pacific Time. The matters to
         be considered at the Annual Meeting are set forth in the Company's
         Proxy Statement, which was mailed to Zengine's stockholders of record
         on January 26, 2001.

ITEM 5.  OTHER INFORMATION

         Not applicable.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

         (a) The following Exhibits are filed as part of this Report:


<TABLE>
<CAPTION>
EXHIBIT NO.               DESCRIPTION
-----------               -----------
<S>                       <C>
3.1                       Amended and Restated Certificate of Incorporation*

3.2                       Amended and Restated Bylaws*

4.1                       Form of Common Stock Certificate*

10.1                      Loan Agreement by and among Zengine, Inc. and MCSi-California, Inc.,
                          Digital Networks Corporation and MCSi-Texas, Inc. dated as of
                          December 29, 2000

10.2                      Secured Promissory Note from MCSi-California, Inc., Digital Networks
                          Corporation and MCSi-Texas, Inc. dated as of December 29, 2000

10.3                      Security Agreement by and among Zengine, Inc., MCSi-California, Inc.,
                          Digital Networks Corporation and MCSi-Texas, Inc. dated as of
                          December 29, 2000

10.4                      Secured Continuing Corporate Guaranty dated as of December 29, 2000 from
                          MCSi-California, Inc

10.5                      Secured Continuing Corporate Guaranty dated as of December 29, 2000 from
                          Digital Networks Corporation

10.6                      Secured Continuing Corporate Guaranty dated as of December 29, 2000 from
                          MCSi-Texas, Inc
</TABLE>

*        Incorporated by reference from the Company's Registration Statement on
         Form S-1 (SEC files number 333-36312) as filed with the SEC on May 4,
         2000.


         (b)  Reports on Form 8-K

No reports on form 8-K have been filed during the quarter ended December 31,
2000.


                                       9

<PAGE>


                                   SIGNATURES

         Pursuant to the requirements of Section 13 of the Securities Exchange
Act of 1934, the Company has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.


ZENGINE, INC.

By:   /s/ JOSEPH M. SAVARINO
      -------------------------------------------
      Joseph M. Savarino
      PRESIDENT AND CHIEF EXECUTIVE OFFICER             Date: February 14, 2001



By:   /s/ LOUIS T. LIPINSKI
      -------------------------------------------
      Louis T. Lipinski
      Vice President and Chief Financial Officer        Date: February 14, 2001






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