NTS, INC.

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash flow from operating activities:
Net income (loss)	$ (287,901)	$ 186,981
Adjustments required to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	2,033,529	1,664,842
Compensation in connection with the issuance of warrants and options issued for professional services	31,690	53,085
Decrease in bad debt provision	(93,153)	(168,047)
Accrued interest and exchange rate on bonds	98,905	574,530
Unearned gain due to hedging		(44,509)
Amortization of bonds issuance and finance costs	136,200	72,345
Deferred tax provision	(254,382)	(21,220)
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable	1,485,926	(262,455)
Decrease (increase) in inventories	(30,931)	2,005
Decrease (increase) in long-term receivables	773	(79,904)
Decrease (increase) in prepaid expenses and other receivables	605,053	(510,891)
Decrease in other long-term liabilities	(1,350,006)	(16,308)
Decrease in trade payables	1,051,075	1,838,366
Decrease in other liabilities and accrued expenses	(1,150,082)	(289,182)
Net cash provided by operating activities	2,276,696	2,999,638
Cash flow from investing activities:
Purchases of equipment	(1,960,986)	(3,007,575)
Purchases of equipment for the projects under the United States Department of Agriculture, net of grants received	(2,913,388)	(725,115)
Net cash used in investing activities	(4,874,374)	(3,732,690)
Cash flow from financing activities:
Repayment of short-term loans from banks and others		(244,335)
Repayment of long-term loans	(477,358)
Proceeds from long-term loans		1,700,000
Repayment of capital lease obligation	(98,979)	(118,268)
Proceeds from long-term loans from the United States Department of Agriculture	725,030	4,456,619
Repayment of long-term loans from United States Department of Agriculture	(432,136)	(517,153)
Proceeds from exercise of options	30,117
Increase in restricted cash		(1,579,891)
Net cash provided by (used in) financing activities	(253,326)	3,696,972
Net increase (decrease) in cash and cash equivalents	(2,851,004)	2,963,920
Cash and cash equivalents at the beginning of the period	4,981,942	3,908,620
Cash and cash equivalents at the end of period	2,130,938	6,872,540
Cash paid for:
Interest	1,025,323	746,277
Purchase of fixed assets by capital lease arrangements	259,389
Purchase of fixed assets included in accounts payable		$ 1,665,418

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2014	Dec. 31, 2013
CURRENT ASSETS:
Cash and cash equivalents	$ 2,130,938	$ 4,981,942
Accounts receivable, net	4,072,951	5,465,724
Prepaid expenses and other receivables	2,949,592	3,554,645
Deferred taxes	1,032,703	1,063,237
Inventories	233,677	202,746
Total current assets	10,419,861	15,268,294
BONDS ISSUANCE AND FINANCE COSTS, NET	918,501	1,054,701
OTHER LONG-TERM ASSETS	2,392,023	2,392,796
FIXED ASSETS, NET	104,048,396	105,174,830
INTANGIBLE ASSETS, NET	961,012	1,090,618
Total assets	118,739,793	124,981,239
CURRENT LIABILITIES:
Short-term bank credit and current maturities of notes payable	6,172,171	5,679,457
Trade payables	11,664,283	14,969,482
Other liabilities and accrued expenses	4,490,787	5,640,869
Current maturities of obligations under capital leases	278,705	261,894
Current maturities of bonds	4,318,599	4,197,510
Total current liabilities	26,924,545	30,749,212
DEFERRED TAXES, NET	902,454	1,187,370
NOTES PAYABLE TO THE UNITED STATES DEPARTMENT OF AGRICULTURE, NET OF CURRENT MATURITIES	41,996,826	41,920,254
NOTES PAYABLE, NET OF CURRENT MATURITIES	16,582,500	17,336,250
BONDS PAYABLE, NET OF CURRENT MATURITIES	3,505,865	3,528,049
OBLIGATIONS UNDER CAPITAL LEASES, NET OF CURRENT MATURITIES	628,532	484,933
OTHER LONG-TERM LIABILITIES	149,788	1,499,794
Total liabilities	90,690,510	96,705,862
COMMITMENTS AND CONTINGENT LIABILITIES
SHAREHOLDERS' EQUITY:
Common stock of $0.001 par value per share: 75,000,000 shares authorized at March 31, 2014 and December 31, 2013; 43,452,272 and 43,418,847 issued and outstanding at March 31, 2014 and December 31, 2013, respectively	43,452	43,419
Additional paid-in capital	57,555,292	57,493,518
Foreign currency translation adjustment	(1,805,791)	(1,805,791)
Retained deficit	(27,743,670)	(27,455,769)
Total Equity	28,049,283	28,275,377
Total liabilities and shareholders' equity	$ 118,739,793	$ 124,981,239