<Page>
EXHIBIT 99.1
FOR INFORMATION CONTACT:
Kevin Nyland, Vice President, Investor Relations
210.302-0402
KEVIN.NYLAND@NEWCENTURYEQUITY.COM
David P. Tusa, Senior Vice President and Chief Financial Officer
210.302-0410
DAVID.TUSA@NEWCENTURYEQUITY.COM
May 16, 2001
NEW CENTURY EQUITY HOLDINGS CORP.
ANNOUNCES PRINCETON ECOM ACQUISITION
OF INTUIT'S QUICKEN(R) BILL MANAGER
TRANSACTION MOVES PRINCETON ECOM INTO FOREFRONT
OF ELECTRONIC BILLING AND PAYMENT
SAN ANTONIO, TX...New Century Equity Holdings Corp. (Nasdaq: NCEH) today
announced that Princeton eCom ("Princeton"), the first company to present a bill
online, has acquired Quicken(R) Bill Manager, Intuit's online bill presentment
and payment service, in a long-term strategic relationship with Intuit in which
it will process payments for customers utilizing the industry leading Quicken(R)
personal financial management software.
"This transaction is not only a milestone event for Princeton eCom, but also a
very significant event for the entire electronic bill presentment and payment
industry. The transaction further moves Princeton into a proven leadership role
in the EBPP arena. We applaud Princeton's management team on the efforts
required to close the Intuit transaction." said Parris H. Holmes, Jr., Chairman
of the Board and Chief Executive Officer of New Century Equity Holdings Corp.
The transaction encompasses the acquisition of Quicken(R) Bill Manager which
will allow Princeton to provide electronic billing and payment services to
consumers who currently receive and pay their bills through the Quicken.com
website as well as Excite and Webcrawler. Princeton will also provide payment
processing services later this year to Intuit's Quicken Desktop customers. The
agreement also provides Princeton with the right to market electronic bill
presentment and payment services using the Powered by Quicken(R) Bill Manager
name, one of the most recognizable brand names in the personal financial
management arena.
The transaction will allow Princeton to market the Quicken(R) Bill Manager
"front end" capability to banks and other financial institutions or through the
company's strategic online banking software partners. Princeton currently
provides "back end" payment processing or "pay anyone" services to more than 950
banks, credit unions and other financial institutions.
Mr. Holmes added, "Since September of 1998, New Century Equity has played a key
role in the development of Princeton as a leader in the electronic bill
presentment and payment industry.
<Page>
We recognized, early on, the value of Princeton's cutting-edge technology and
the significant effect it would have on the industry. The Intuit deal further
validates our belief in the long-term value of our investment in Princeton to
New Century shareholders."
ABOUT NEW CENTURY EQUITY HOLDINGS CORP.
New Century Equity Holdings Corp. (Nasdaq: NCEH) is a holding company focused on
high growth, technology-based companies and investments. The Company's holdings
include its wholly owned operation, FIData, Inc., and its investments in
CoreINTELLECT, Inc. and Princeton eCom Corporation. FIData (WWW.FIDATA.COM)
provides instant online loan approval products and services to the financial
services industry. New Century Equity Holdings Corp. (WWW.NEWCENTURYEQUITY.COM)
is the lead investor in both CoreINTELLECT (WWW.COREINTELLECT.COM), a developer
and marketer of Internet-based solutions that acquire, filter and disseminate
business-critical knowledge and information, and Princeton eCom
(WWW.PRINCETONECOM.COM), a leading application service provider for electronic
and Internet bill presentment and payment solutions. New Century Equity Holdings
Corp. is headquartered in San Antonio, Texas.
ABOUT PRINCETON ECOM
Princeton eCom, the first company to present a bill on the Internet, is a
leading provider of electronic billing and payment services to more than 950
corporations, banks, financial institutions and payment partners including
Ameritech, GMAC Mortgage, United Technologies, UPS Capital, Mellon Global Cash
Management, Verizon Wireless, Cellular One, Corillian, S1, FiServ, and Jack
Henry.
Through strategic alliances with banks, credit unions, home banking software
providers, networks like MasterCard RPPS, and web portals, Princeton eCom has
built a comprehensive bill distribution network.
Princeton eCom enables businesses to present their consumers' bills and their
business invoices on the Internet and it provides consumers and businesses with
the ability to access and pay those bills online, over the phone, or using a
wireless digital device. It also provides electronic payment processing services
to banks, credit unions, and other financial institutions. Princeton eCom's
range of services includes electronic lockbox, electronic collection, and
electronic credit card balance transfer services as well as customer care and
customer service programs.
Princeton eCom is a privately held company. Major investors include New Century
Equity Holdings Corp. (NASDAQ: NCEH), Mellon Ventures, the private equity
partnership of Mellon Financial Corporation (NYSE: MEL), SG Capital Partners
LLC, the U.S. merchant banking affiliate of Societe Generale, Bottomline
Technologies, Terra Lycos Ventures L.P., a venture capital fund affiliated with
Terra Lycos, Inc. (NASDAQ: TRLY), and BT Investment Partners, Inc.
CERTAIN STATEMENTS CONTAINED HEREIN ARE "FORWARD-LOOKING" STATEMENTS (AS SUCH
TERM IS DEFINED IN THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995).
BECAUSE SUCH STATEMENTS INCLUDE RISKS AND UNCERTAINTIES, ACTUAL RESULTS MAY
DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING
STATEMENTS. FACTORS THAT COULD CAUSE RESULTS TO DIFFER MATERIALLY FROM THOSE
EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS INCLUDE, BUT ARE NOT
LIMITED TO, THOSE DISCUSSED IN FILINGS MADE BY THE COMPANY WITH THE SECURITIES
AND EXCHANGE COMMISSION.
<Page>
Intuit, Quicken, QuickBooks, QuickBooks Pro, TurboTax and ProSeries, among
others, are registered trademarks and/or registered service marks of Intuit Inc.
Quicken.com and QuickBooks.com, among others, are trademarks and/or service
marks of Intuit, Inc.
<Page>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Princeton eCom Corp.:
We have audited the accompanying balance sheets of Venture Finance Software
Corp. (a Delaware corporation in the development stage which became a
wholly-owned subsidiary of Intuit Inc. on August 30, 2000) as of July 31,
1999 and 2000, and the related statements of operations, stockholders'equity
and cash flows for the years then ended and for the period from inception
(February 9, 1998) to July 31, 2000. These financial statements are the
responsibility of the Company's management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Venture Finance Software
Corp. as of July 31, 1999 and 2000, and the results of its operations and its
cash flows for the years then ended and for the period from inception
(February 9, 1998) to July 31, 2000 in conformity with accounting principles
generally accepted in the United States.
Philadelphia, Pennsylvania
July 18, 2001
<Page>
VENTURE FINANCE SOFTWARE CORP.
(A DEVELOPMENT-STAGE COMPANY WHICH BECAME A WHOLLY-OWNED
SUBSIDIARY OF INTUIT INC. ON AUGUST 30, 2000)
TABLE OF CONTENTS
<Table>
BALANCE SHEETS
As of July 31, 1999 and 2000 and April 30, 2001 (unaudited)...........................1
STATEMENTS OF OPERATIONS
For the years ended July 31, 1999 and 2000, the nine months ended
April 30, 2001 (unaudited), the period from inception (February 9,
1998) to July 31, 2000, and the period from inception (February 9,
1998) to April 30, 2001 (unaudited)...................................................2
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
For the period from inception (February 9, 1998) to April 30, 2001
(unaudited)...........................................................................3
STATEMENTS OF CASH FLOWS
For the years ended July 31, 1999 and 2000, the nine months ended
April 30, 2001 (unaudited), the period from inception (February 9,
1998) to July 31, 2000, and the period from inception (February 9,
1998) to April 30, 2001 (unaudited)...................................................4
NOTES TO FINANCIAL STATEMENTS...........................................................5
</Table>
<Page>
VENTURE FINANCE SOFTWARE CORP.
(A DEVELOPMENT-STAGE COMPANY WHICH BECAME A WHOLLY-OWNED
SUBSIDIARY OF INTUIT INC. ON AUGUST 30, 2000)
BALANCE SHEETS
AS OF JULY 31, 1999 AND 2000 AND APRIL 30, 2001
(UNAUDITED)
<Table>
<Caption>
JULY 31, APRIL 30,
------------------------------ 2001
1999 2000 (UNAUDITED)
-------------- -------------- --------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 6,924,816 $ 15,415,421 $ 24,735
Prepaid expenses and other 313,008 15,192 128,607
-------------- -------------- --------------
Total current assets 7,237,824 15,430,613 153,342
PROPERTY AND EQUIPMENT, NET -- -- 276,948
INTANGIBLE ASSETS, NET 1,323,057 601,400 60,150
-------------- -------------- --------------
$ 8,560,881 $ 16,032,013 $ 490,440
============== ============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable to Intuit Inc. $ 7,061,688 $ 6,943,185 $ 11,409,847
Accrued expenses -- 1,500,000 --
-------------- -------------- --------------
Total current liabilities 7,061,688 8,443,185 11,409,847
-------------- -------------- --------------
COMMITMENTS AND CONTINGENCIES (NOTE 6)
STOCKHOLDERS' EQUITY (DEFICIT):
Class A Common Stock, $0.01 par value,
2,000,000 shares authorized, 880,000,
880,000 and 970,000 shares issued and
outstanding 8,800 8,800 9,700
Class B Common Stock, $0.01 par value,
2,000,000 shares authorized, 1,020,000,
1,020,000 and 1,020,000 shares issued
and outstanding 10,200 10,200 10,200
Additional paid-in capital 41,825,000 78,687,349 78,206,904
Deficit accumulated during
development-stage (40,344,807) (71,117,521) (89,146,211)
-------------- -------------- --------------
Total stockholders' equity (deficit) 1,499,193 7,588,828 (10,919,407)
-------------- -------------- --------------
$ 8,560,881 $ 16,032,013 $ 490,440
============== ============== ==============
</Table>
The accompanying notes are an integral part of these
financial statements.
1
<Page>
VENTURE FINANCE SOFTWARE CORP.
(A DEVELOPMENT-STAGE COMPANY WHICH BECAME A WHOLLY-OWNED
SUBSIDIARY OF INTUIT INC. ON AUGUST 30, 2000)
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED JULY 31, 1999 AND 2000, THE NINE
MONTHS ENDED APRIL 30, 2001 (UNAUDITED), THE PERIOD FROM
INCEPTION (FEBRUARY 9, 1998) TO JULY 31, 2000, AND THE
PERIOD FROM INCEPTION (FEBRUARY 9, 1998) TO APRIL 30,
2001 (UNAUDITED)
<Table>
<Caption>
FOR THE PERIOD FOR THE
FROM PERIOD FROM
FOR THE INCEPTION INCEPTION
FOR THE YEARS ENDED NINE (FEBRUARY 9, (FEBRUARY 9,
JULY 31, MONTHS ENDED 1998) TO 1998) TO
------------------------------ APRIL 30, JULY 31, APRIL 30,
1999 2000 2001 2000 2001
-------------- -------------- -------------- -------------- --------------
(unaudited) (unaudited)
REVENUES: $ -- $ 7,285 $ 21,437 $ 7,285 $ 28,722
OPERATING EXPENSES:
Cost of services 1,452,242 4,615,049 3,196,651 6,067,291 9,263,942
Development 10,257,194 11,463,494 6,985,255 26,047,236 33,032,491
Selling, general and administrative 4,313,623 15,546,378 7,947,996 21,013,498 28,961,494
Impairment of acquired intangibles
(see Note 4) -- -- -- 19,835,200 19,835,200
-------------- -------------- -------------- -------------- --------------
Total operating expenses 16,023,059 31,624,921 18,129,902 72,963,225 91,093,127
-------------- -------------- -------------- -------------- --------------
Operating loss (16,023,059) (31,617,636) (18,108,465) (72,955,940) (91,064,405)
INTEREST INCOME 689,703 844,922 79,775 1,838,419 1,918,194
-------------- -------------- -------------- -------------- --------------
NET LOSS $ (15,333,356) $ (30,772,714) $ (18,028,690) $ (71,117,521) $ (89,146,211)
============== ============== ============== ============== ==============
Basic and diluted net loss per common
share $ (8.07) $ (16.20) $ (9.11)
============== ============== ==============
Weighted average shares used in
computing net loss per share 1,900,000 1,900,000 1,980,000
============== ============== ==============
</Table>
The accompanying notes are an integral part of these
financial statements.
2
<Page>
VENTURE FINANCE SOFTWARE CORP.
(A DEVELOPMENT-STAGE COMPANY WHICH BECAME A WHOLLY-OWNED
SUBSIDIARY OF INTUIT INC. ON AUGUST 30, 2000)
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE PERIOD FROM INCEPTION (FEBRUARY 9, 1998) TO APRIL 30, 2001 (UNAUDITED)
<Table>
<Caption>
COMMON STOCK
------------------------------------------------------
CLASS A CLASS B
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
--------- ----------- ---------- ----------
BALANCE, FEBRUARY 9, 1998 (INCEPTION) -- $ -- -- $ --
Issuance of Common stock, net 880,000 8,800 1,020,000 10,200
Net loss -- -- -- --
--------- ----------- ---------- ----------
BALANCE, JULY 31, 1998 880,000 8,800 1,020,000 10,200
Net loss -- -- -- --
--------- ----------- ---------- ----------
BALANCE, JULY 31, 1999 880,000 8,800 1,020,000 10,200
Additional capital contributions (see Note 4) -- -- -- --
Stock-based compensation expense -- -- -- --
Net loss -- -- -- --
--------- ----------- ---------- ----------
BALANCE, JULY 31, 2000 880,000 8,800 1,020,000 10,200
Exercise of stock option and reversal of excess
stock-based compensation expense (unaudited) 90,000 900 -- --
Net loss (unaudited) -- -- -- --
--------- ----------- ---------- ----------
BALANCE, APRIL 30, 2001 (UNAUDITED) 970,000 $ 9,700 1,020,000 $ 10,200
========= =========== ========== ==========
<Caption>
DEFICIT
ACCUMULATED
ADDITIONAL DURING THE
PAID-IN DEVELOPMENT
CAPITAL STAGE TOTAL
------------ ------------- -------------
BALANCE, FEBRUARY 9, 1998 (INCEPTION) $ -- $ -- $ --
Issuance of Common stock, net 41,825,000 -- 41,844,000
Net loss -- (25,011,451) (25,011,451)
------------ ------------- -------------
BALANCE, JULY 31, 1998 41,825,000 (25,011,451) 16,832,549
Net loss -- (15,333,356) (15,333,356)
------------ ------------- -------------
BALANCE, JULY 31, 1999 41,825,000 (40,344,807) 1,499,193
Additional capital contributions (see Note 4) 31,500,004 -- 31,500,004
Stock-based compensation expense 5,362,345 -- 5,362,345
Net loss -- (30,772,714) (30,772,714)
------------ ------------- -------------
BALANCE, JULY 31, 2000 78,687,349 (71,117,521) 7,588,828
Exercise of stock option and reversal of excess
stock-based compensation expense (unaudited) (480,445) -- (479,545)
Net loss (unaudited) -- (18,028,690) (18,028,690)
------------ ------------- -------------
BALANCE, APRIL 30, 2001 (UNAUDITED) $ 78,206,904 $ (89,146,211) $ (10,919,407)
============ ============== =============
</Table>
The accompanying notes are an integral part of these financial statements.
3
<Page>
VENTURE FINANCE SOFTWARE CORP.
(A DEVELOPMENT-STAGE COMPANY WHICH BECAME A WHOLLY-OWNED
SUBSIDIARY OF INTUIT INC. ON AUGUST 30, 2000)
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JULY 31, 1999 AND 2000, THE NINE
MONTHS ENDED APRIL 30, 2001 (UNAUDITED), THE PERIOD FROM
INCEPTION (FEBRUARY 9, 1998) TO JULY 31, 2000, AND THE
PERIOD FROM INCEPTION (FEBRUARY 9, 1998) TO APRIL 30,
2001 (UNAUDITED)
<Table>
<Caption>
FOR THE FOR THE
PERIOD FROM PERIOD FROM
FOR THE INCEPTION INCEPTION
FOR THE YEARS ENDED NINE (FEBRUARY 9, (FEBRUARY 9,
JULY 31, MONTHS ENDED 1998) TO 1998) TO
------------------------------- APRIL 30, JULY 31, APRIL 30,
1999 2000 2001 2000 2001
-------------- -------------- -------------- ------------- --------------
(unaudited) (unaudited)
OPERATING ACTIVITIES:
Net loss $ (15,333,356) $ (30,772,714) $ (18,028,690) $ (71,117,521) $ (89,146,211)
Adjustments to reconcile net loss
to net cash used in operating
activities-
Amortization 721,666 721,657 541,250 1,563,600 2,104,850
Impairment of acquired intangibles -- -- -- 19,835,200 19,835,200
Exercise of options and reversal of
excess stock-based compensation expense -- -- (479,545) -- (479,545)
Recognition of nonemployee stock-based
compensation expense -- 5,362,345 -- 5,362,345 5,362,345
Change in assets and liabilities:
Decrease (increase) in prepaid
expenses and other 30,636 297,816 (113,415) (15,192) (128,607)
Increase (decrease) in accrued
expenses -- 1,500,000 (1,500,000) 1,500,000 --
Increase (decrease) in due to
Intuit Inc. (1,701,230) (118,503) 4,466,662 6,943,185 11,409,847
-------------- -------------- -------------- ------------- --------------
Net cash used in operating activities (16,282,284) (23,009,399) (15,113,738) (35,928,383) (51,042,121)
-------------- -------------- -------------- ------------- --------------
INVESTING ACTIVITIES:
Purchases of property, plant and
equipment -- -- (276,948) -- (276,948)
Purchase of intangibles -- -- -- (2,165,000) (2,165,000)
-------------- -------------- -------------- ------------- --------------
Net cash used in investing activities -- -- (276,948) (2,165,000) (2,441,948)
-------------- -------------- -------------- ------------- --------------
FINANCING ACTIVITIES:
Proceeds from issuance of common
stock, net -- -- -- 22,008,800 22,008,800
Proceeds from capital contributions -- 31,500,004 -- 31,500,004 31,500,004
-------------- -------------- -------------- ------------- --------------
Net cash provided by financing activities -- 31,500,004 -- 53,508,804 53,508,804
-------------- -------------- -------------- ------------- --------------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (16,282,284) 8,490,605 (15,390,686) 15,415,421 24,735
CASH AND CASH EQUIVALENTS, BEGINNING
OF PERIOD 23,207,100 6,924,816 15,415,421 -- --
-------------- -------------- -------------- ------------- --------------
CASH AND CASH EQUIVALENTS, END OF
PERIOD $ 6,924,816 $ 15,415,421 $ 24,735 $ 15,415,421 $ 24,735
============== ============== ============== ============= ==============
</Table>
The accompanying notes are an integral part of these financial statements.
4
<Page>
VENTURE FINANCE SOFTWARE CORP.
(A DEVELOPMENT-STAGE COMPANY WHICH BECAME A WHOLLY-OWNED
SUBSIDIARY OF INTUIT INC. ON AUGUST 30, 2000)
NOTES TO FINANCIAL STATEMENTS
1. THE COMPANY:
BACKGROUND
Venture Finance Software Corp. formally known as
Web Quicken, Inc., (the Company or VFSC) was
incorporated in the state of Delaware on February 9,
1998 and is a development-stage company. The Company
was established as a joint venture between Intuit Inc.
(Intuit) and other outside investors to develop and
deploy server-based personal finance products including
WebQuicken. The Company operates in the Internet
commerce business segment.
In May 1998, Intuit participated in the formation of
VFSC by acquiring a 46 percent (excludes the potential
dilutive effect of stock options being exercised)
nonvoting equity interest and an option (the Option) to
purchase all of the other outstanding securities of the
Company. In exchange for this equity interest, Intuit
granted VFSC a license of certain technology and
intellectual property rights and agreed with VFSC not to
compete in certain areas of server-based personal
finance for a period of ten years. From May 1998 through
August 2000, the Company received gross proceeds of
approximately $54.5 million in funding from several
other outside investors.
The Company entered into an Operating Agreement (the
Operating Agreement) with Intuit under which Intuit
provides certain administrative services to the Company
in consideration of a management fee. The management
fee is based on 10 percent of the expenditures managed
by Intuit on behalf of the Company and $1,000 per month
per number of employees of the Company to cover the use
of facilities. The Company incurred management fees of
$1,769,290, $2,568,117 and $4,565,498 in the years
ended July 31, 1999 and 2000, and for the period from
February 9, 1998 (inception) to July 31, 2000,
respectively. In accordance with Securities and Exchange
Commission Staff Accounting Bulletin No. 55, the
financial statements of the Company reflect all of the
expenses directly related to the activity of the Company
as well as the allocation of expenses necessary to
reflect the operation of the Company on a standalone
basis. In the opinion of the Company's management, the
allocation methods used are reasonable. However, such
allocations are not necessarily indicative of costs that
would have been incurred had the Company operated
independent of Intuit.
DEVELOPMENT-STAGE RISKS AND LIQUIDITY
Since its inception on February 9, 1998, the Company has
incurred costs to develop its product in anticipation of
future growth. Accordingly, the Company has incurred
losses since inception and such losses have continued
subsequent
5
<Page>
to July 31, 2000. As of July 31, 2000, the Company had
a deficit accumulated during the development-stage of
$71,117,521. The early development nature of the
Company's activities and the anticipation of future
growth is such that significant inherent risks exist in
the Company's operations. Completing the future growth
strategy will require funds greater than the Company
currently has available. There is no assurance that
additional equity financing will be available to the
Company as needed.
SUBSEQUENT EVENTS (UNAUDITED)
On August 30, 2000, Intuit exercised its Option and
purchased all of the outstanding securities of the
Company that were not already owned by Intuit for
approximately $115 million in cash. As a result, the
Company became a wholly owned subsidiary of Intuit.
On May 15, 2001, Princeton eCom Corporation purchased
Quicken Bill Manager from Intuit through the purchase of
certain technologies from Intuit and all of the
outstanding shares of the Company. Intuit will receive,
at Princeton eCom's election in February 2002, either an
equity stake in Princeton eCom equivalent to
approximately 20 percent of the Company's outstanding
shares measured after the transaction closes or cash.
The cash payment may be in the form of a single payment
in February 2002 equal to the value of the equity stake
at that time or in four annual installments, each in the
amount of the value of one-fourth of the equity stake at
the time the payment is made.
2. SUMMARY OF ACCOUNTING POLICIES:
INTERIM FINANCIAL STATEMENTS
The financial statements for the nine months ended April
30, 2001 are unaudited, and in the opinion of
management, include all adjustments (consisting only of
normal recurring adjustments) necessary for a fair
presentation of the financial position as of April 30,
2001 and the results of its operations for the nine
months ended April 30, 2001. The results of operations
for the nine months ended April 30, 2001 are not
necessarily indicative of the results to be expected for
the entire year.
MANAGEMENT'S USE OF ESTIMATES
The preparation of financial statements in conformity
with accounting principles generally accepted in the
United States requires management to make estimates and
assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and
the reported amounts of expenses during the reporting
period. Actual results could differ from those
estimates.
CASH AND CASH EQUIVALENTS
The Company considers all highly liquid investments
purchased with an original maturity of ninety days or
less to be cash equivalents. As of July 31, 1999 and
2000, cash equivalents consisted of mutual fund
investments.
6
<Page>
PROPERTY AND EQUIPMENT
Property and equipment are recorded at cost. Significant
additions or improvements are capitalized and
expenditures for repairs and maintenance are charged to
expense as incurred. Depreciation is provided using the
straight-line method over the estimated useful lives of
the respective assets.
INTANGIBLE ASSETS
Intangible assets consist of purchased licensed
technology that is amortized using the straight-line
method over a useful life of three years.
Amortization expense for the years ended July 31, 1999,
2000 and the period from inception (February 9, 1998) to
July 31, 2000, was $721,666, $721,657 and $1,563,000,
respectively.
COST OF SERVICES
Cost of services consist of internal salaries and
benefits and consulting fees related to the fulfillment
of the Company's products.
DEVELOPMENT
Development costs are charged to expense as incurred.
Statement of Financial Accounting Standards (SFAS)
No. 86, "Accounting for the Costs of Computer Software
to Be Sold, Leased, or Otherwise Marketed," requires
the capitalization of development costs incurred upon
achieving technological feasibility until such product
is ready for sale. The Company determines technological
feasibility to occur when beta testing with existing
clients begins. The Company's software product
development costs are being charged to expense as
incurred until technological feasibility in the form
of a working model has been established.
INCOME TAXES
The Company accounts for income taxes in accordance with
SFAS No. 109, "Accounting for Income Taxes." SFAS No.
109 requires the liability method of accounting for
income taxes. Deferred tax assets and liabilities result
from temporary differences between the financial
reporting and tax bases of assets and liabilities.
Deferred tax assets or liabilities at the end of each
period are determined using the enacted tax rates and
the laws that are expected to be in effect when the
differences reverse.
At July 31, 2000, the Company had a net operating loss
carryforward for federal income tax purposes of
approximately $37.6 million, which begins to expire in
2018. Pursuant to Internal Revenue Code Section 382,
the annual utilization of this carryforward will be
limited as a result of a change in control of the
Company, as defined. As of July 31, 2000, the Company
had net deferred tax assets of approximately $13.7
million which primarily relate to the net operating
loss carryforward. The Company has recorded a valuation
allowance for the net deferred tax asset as management
has concluded that the net deferred tax asset did not
meet the recognition criteria under SFAS No. 109.
7
<Page>
As discussed in Note 1, Intuit acquired 100 percent of
the outstanding Common stock of VFSC on August 30, 2000.
Prior to August 30, 2000, VSFC was not part of a
consolidated tax group. Effective August 30, 2000, VFSC
became a part of the Intuit consolidated tax group.
Additionally, on May 15, 2001, VFSC was acquired by
Princeton eCom Corporation. Upon acquisition, VFSC then
became a part of the Princeton eCom consolidated group.
In addition to the yearly limitation regarding the
annual utilization of VFSC's loss carryforwards pursuant
to Internal Revenue Code Section 382 (discussed above),
the income tax regulations may preclude Princeton eCom
from inheriting any of those net operating losses to the
extent those losses could have been utilized by Intuit
as part of its consolidated tax return.
STOCK-BASED COMPENSATION
The Company accounts for stock-based compensation to
nonemployees using the fair value method in accordance
with SFAS No. 123, "Accounting for Stock-Based
Compensation" and Emerging Issues Task Force (EITF)
96-18.
IMPAIRMENT OF LONG-LIVED ASSETS
In accordance with SFAS No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived
Assets to be Disposed of," if indicators of impairment
exist, the Company assesses the recoverability of the
affected long-lived assets, which include property and
equipment and intangibles, by determining whether the
carrying value of such assets can be recovered through
undiscounted future operating cash flows. If impairment
is indicated, then management measures the amount of
such impairment by comparing the carrying value of the
assets to the present value of the expected future cash
flows associated with the use of the asset. Management
believes the future cash flows to be received from the
long-lived assets will exceed the asset's carrying
value, and accordingly the Company has not recognized
any impairment losses through July 31, 2000, except
as discussed in Note 4.
NET LOSS PER COMMON SHARE
The Company has presented net loss per share pursuant to
SFAS No. 128, "Earnings per Share," and the Securities
and Exchange Commission Staff Accounting Bulletin No.
98. Basic loss per share was computed by dividing net
loss by the weighted average number of shares of Common
stock outstanding during the period. Diluted loss per
share has not been presented, since the impact on loss
per share using the treasury stock method is
antidilutive due to the Company's losses.
NEW ACCOUNTING PRONOUNCEMENTS
In June 1998, the Financial Accounting Standards Board
issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities". SFAS No. 133, as
amended by SFAS No. 137, "Accounting for Derivative
Instruments and Hedging Activities - Deferral of
Effective Date of FASB Statement No. 133 - an amendment
of FASB Statement No. 133," which had to be adopted by
the Company on August 1, 2001, provides a comprehensive
and consistent standard for the recognition and
measurement of derivatives and hedging activities. The
Company does not currently hold derivative instruments
or engage in hedging activities, and accordingly, the
adoption of this pronouncement did not have any impact
on the Company's financial position or results of
operations.
8
<Page>
3. RELATED-PARTY TRANSACTIONS:
TRANSACTIONS WITH INTUIT
As of July 31, 2000, Intuit owned 46 percent of the
outstanding common stock shares. Since incorporation,
Intuit has advanced to the Company interest-free funds
for operating requirements (including pass-through
payroll costs for Intuit employees sub-contracted to the
Company) and for purchases of licensed technology. These
expense allocations and the funds advanced are recorded
as a payable to Intuit in the financial statements of
the Company. No interest expense has been charged on
the balance payable to Intuit.
The components of the payable are as follows:
<Table>
<Caption>
JULY 31
-------------------------------
1999 2000
-------------- ---------------
Licensed technology and intellectual
property rights purchased from third
parties and paid for by Intuit $ 2,165,000 $ 2,165,000
Expenses managed by Intuit 20,204,815 43,112,712
Management fee 1,769,290 2,568,117
Cash paid to Intuit (17,077,417) (40,902,644)
-------------- --------------
Balance at year-end $ 7,061,688 $ 6,943,185
============== ==============
</Table>
In connection with the sale of common stock to Intuit
on May 4, 1998, the Company entered into the Operating
Agreement (see Note 1), a Common Stock Purchase
Agreement (the Common Stock Purchase Agreement), a
Purchase Option and Reorganization Agreement (the
Option Agreement), and an Assignment and License
Agreement with Intuit (the Assignment and License
Agreement).
In connection with the Common Stock Purchase Agreement,
the Company sold Intuit 880,000 shares of Class A common
stock for $8,800 and the license and transfer of certain
intellectual property owned by Intuit pursuant to the
Assignment and License Agreement.
The Option Agreement granted Intuit the right and option
to acquire all of the outstanding stock and other
securities of the Company not already owned by Intuit.
The Option could be exercised through the consummation
of a merger or a direct purchase of the shares in the
period beginning on the second anniversary date and
ending on the earlier of the fourth anniversary of the
Option Agreement or termination of the Option Agreement.
In August 2000, the Company exercised the Option
pursuant to the direct purchase method (see Note 1).
The Assignment and License Agreement granted the Company
exclusive, royalty-free licenses to use the WebQuicken
name and mark, and to reproduce, market, distribute and
sublicense specific Intuit software as defined in the
Assignment and License Agreement. Additionally, Intuit
granted the Company an exclusive right to provide
WebQuicken services to customers via Quicken.com for a
period of ten years and agreed not to compete with the
Company in Web-based personal finance tracking and
transacting tools for a period of ten years. The
Assignment and License Agreement term was to remain in
effect until the termination of the Purchase and Option
Agreement (see Note 4).
9
<Page>
OTHER RELATED PARTIES
Other shareholders of the Company included venture
capital funds managed by a director of Intuit. These
funds received approximately $2.4 million from Intuit
for their common shares of the Company sold in
conjunction with the exercise of the Option in August
2000. The aggregate original purchase price for the
shares held by the funds was $1.2 million.
4. STOCKHOLDERS' EQUITY:
COMMON STOCK AND CAPITAL CONTRIBUTIONS
The Company had 4,000,000 authorized shares of common
stock, consisting of 2,000,000 shares designated as
Class A common stock (Class A) of which 880,000 shares
were issued and outstanding at July 31, 1999 and 2000
and 2,000,000 shares designated as Class B (Class B)
common stock of which 1,020,000 shares were issued and
outstanding at July 31, 1999 and 2000. Class A and B
shares are identical in all rights except that Class A
shares are not entitled to vote with respect to the
election of directors. The Class A shares were issued
and reserved as follows: 880,000 shares issued to
Intuit and 100,000 shares reserved for the Company's
Chief Executive Officer, as incentive compensation in
the form of stock options vesting over a period of
four years. The Class B shares were issued to other
outside investors.
The Company has reserved from the authorized but
unissued shares of Class B common stock, the full
number of shares of such Class B common stock that may
be issued upon conversion of all the shares of issued
and reserved Class A common stock. The number of
reserved Class B shares at July 31, 1999 and 2000 were
880,000 at each such date.
Intuit purchased 880,000 shares of Class A in May 1998
for $8,800 and the license and transfer of certain
intellectual property in accordance with the Assignment
and License Agreement. The fair value of the
intellectual property was determined to be $19,835,200.
The Company has accounted for the acquisition of the
intellectual property as an immediate impairment of the
intangibles acquired because, at the date of the
transaction, the rights acquired by the Company related
solely to the successful development of WebQuicken.
WebQuicken had not met technological feasibility and
there existed significant amount of uncertainty as to
the Company's ability to complete the development of
WebQuicken. In addition, the acquired intangibles did
not have an alternative future use.
Several other investors entered into the Common Stock
Purchase agreement for the purchase of 1,020,000 shares
of Class B for $22.55 per share. The Company incurred
costs in connection with the common stock issuance of
$1,000,000. Pursuant to the Common Stock Purchase
Agreement, the Class B investors were to contribute
additional funds upon the achievement of two individual
milestones as defined in the agreement. Capital
contributions of $11,500,000 were made in August 1999
upon achievement of the first milestone. The second
milestone was never achieved. The Class B investors
subsequently agreed through an amendment to the Common
Stock Purchase Agreement and to contribute an additional
$20,000,004 in February 2000.
5. NONQUALIFIED STOCK OPTIONS AGREEMENT:
On May 4, 1998, the Company granted a nonqualified
option to purchase up to a maximum of 100,000 shares of
Class A common stock at an exercise price of $15 per
share, to an officer. Initially the option was
exercisable upon the earlier of May 4, 2002 or the time
and date immediately prior to the closing of the
exercise of the purchase option. The number of options
that vested was subject to a formula. The option vested
with respect to the number of shares that is equal to
the percentage obtained by multiplying the value
quotient
10
<Page>
(value quotient) by .25. Accordingly, since the number
of shares exercisable was not known at the issue date,
the stock option issuance was accounted for in
accordance with variable plan accounting. In December
1999, the Company amended the option agreement. Per
the amendment, the options are to vest 3.33 percent
every month beginning June 4, 1998, provided that the
officer continued to serve as a Director of the Company
(the option is a nonemployee option as the officer was
an employee of Intuit by common law definition.) In
accordance with SFAS No. 123, EITF 96-18, the Company
recorded compensation expense of $5.4 million in the
year ended July 31,2000 based on the graded vesting
schedule as there was no measurement date for the option
until December 1999. The fair value of the option was
estimated at $54.25 as of July 31, 2000 using the
Black-Scholes option pricing model with the following
assumptions: dividend yield of zero, volatility of 80
percent, risk-free interest rate of 6.07 and an expected
life of ten years.
At July 31, 1999 and 2000, the total number of options
granted is 100,000. No options were vested, exercised or
canceled in either period. There were no options
exercised or canceled in either period and, therefore,
the total number of options outstanding at July 31, 1999
and 2000 is 100,000. There were no options vested as of
July 31, 1999 and 86,667 options vested as of July 31,
2000. The remaining contractual life at July 31, 1999
and 2000 was 8.75 and 7.75 years, respectively.
In August 2000, an officer exercised 90,000 shares in
connection with Intuit's purchase of the Company's
shares. In connection with his exercise, the Company
recorded a reversal of the excess stock-based
compensation expense as the number of shares vested
at August 30, 2000 were less than the number of shares
vested used in the calculation of compensation expense
for the year ended July 31, 2000. Pursuant to the
Purchase Option Agreement, the officer was to be paid
a defined amount of cash for his vested shares by
Intuit.
6. COMMITMENTS AND CONTINGENCIES:
In November 1999, Intuit entered into a five-year
services agreement (Services Agreement) with a
significant internet portal company. Intuit and the
Company subsequently entered into a Services Agreement
whereby Intuit assigned the Company the performance
obligations under the Services Agreement and the Company
agreed to reimburse Intuit for the guaranteed payments
made by Intuit under the Services Agreement.
In accordance with the Services Agreement, the internet
portal company will establish a comprehensive electronic
bill payment and presentment service through their
network for their customers and Intuit will be
responsible for developing the billing service for the
network. Additionally, the internet portal company will
provide Intuit with promotions and impressions as
defined in the agreement and the agreement provides for
the sharing of certain revenues. Intuit will pay the
internet portal company guaranteed payments as follows:
<Table>
$3,000,000 upon execution of Services Agreement,
$3,000,000 upon partial rollout, as defined,
$3,000,000 upon launch date, as defined,
and $3,000,000, every six months after launch date for seven periods.
</Table>
11
<Page>
The Company is recording the payments as prepaid
expenses and is recognizing marketing expense based on a
straight-line amortization schedule of the guaranteed
payments. The Company recognized marketing expense in
the amount of $4,500,000, $4,500,000, $4,500,000 and
$9,000,000 for the year ended July 31, 2000, the period
from inception (February 9, 1998) to July 31, 2000, the
nine months ended April 30, 2001 and the period from
inception (February 9, 1998) to April 30, 2001,
respectively.
12