Caspian Services (CSSV) 10-Q 20 May 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Mar. 31, 2014	12-May-14
Document And Entity Information	'	'
Entity Registrant Name	'CASPIAN SERVICES INC	'
Entity Central Index Key	'0001093430	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--09-30	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	52,657,574
Document Fiscal Period Focus	'Q2	'
Document Fiscal Year Focus	'2014	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2014	Sep. 30, 2013
In Thousands, unless otherwise specified
Current Assets	'	'
Cash	$3,023	$3,973
Trade accounts receivable, net of allowance of $2,511 and $2,796, respectively	6,681	11,075
Trade accounts receivable from related parties, net of allowance of $557 and $3,499, respectively	8	1,455
Other receivables	743	705
Inventories	1,171	1,053
Property held for sale, net of allowance of $1,084 and $1,273, respectively	114	203
Prepaid taxes	1,309	1,329
Advances paid	589	829
Deferred tax assets	587	235
Prepaid expenses and other current assets	480	571
Total Current Assets	14,705	21,428
Vessels, equipment and property, net	43,360	50,741
Drydocking costs, net	822	519
Long-term deferred tax assets	1,376	1,849
Goodwill	189	224
Intangible assets, net	17	29
Long-term prepaid taxes	3,362	4,735
Investments	11	13
Long-term other receivables, net of current portion	829	1,005
Total Assets	64,671	80,543
Current Liabilities	'	'
Accounts payable	1,796	2,409
Accounts payable to related parties	368	0
Accrued expenses	848	1,244
Taxes payable	381	911
Deferred revenue	0	10
Accelerated put option liability	20,688	19,649
Long-term debt - current portion	66,526	63,836
Total Current Liabilities	90,607	88,059
Long-term deferred revenue from related parties	0	2,619
Total Liabilities	90,607	90,678
Deficit	'	'
Common stock, $0.001 par value per share; 500,000,000 shares authorized; 52,657,574 shares issued and outstanding	53	53
Additional paid-in capital	64,827	64,827
Accumulated deficit	-59,695	-49,894
Accumulated other comprehensive loss	-20,211	-15,619
Deficit attributable to Caspian Services, Inc. Shareholders	-15,026	-633
Deficit attributable to noncontrolling interests	-10,910	-9,502
Total Deficit	-25,936	-10,135
Total Liabilities and Deficit	$64,671	$80,543

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2014	Sep. 30, 2013
In Thousands, except Share data, unless otherwise specified
ASSETS:	'	'
Allowance for doubtful accounts	$2,511	$2,796
Allowance for trade accounts receivable from related parties	557	3,499
Allowance for inventories held for sale	$1,084	$1,273
EQUITY	'	'
Common stock, par value	$0.00	$0.00
Common stock, authorized shares	500,000,000	500,000,000
Common stock, issued shares	52,657,574	52,657,574
Common stock, outstanding shares	52,657,574	52,657,574

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Revenues	'	'	'	'
Vessel revenues	$548	$440	$5,836	$4,142
Geophysical service revenues	3,155	8,237	7,268	9,338
Marine base service revenues (which includes $535 and $665 from related parties for the three and six months ended March 31, 2014, respectively and $165 and $317 from related parties for the three and six months ended March 31, 2013, respectively)	859	304	1,216	551
Total Revenues	4,562	8,981	14,320	14,031
Operating Expenses	'	'	'	'
Vessel operating costs	1,760	1,942	4,852	3,887
Cost of geophysical service revenues	2,391	3,024	4,071	4,185
Cost of marine base service	170	261	354	432
Depreciation and amortization	1,067	1,259	2,277	2,572
Impairment loss	56	0	56	0
General and administrative expense	1,900	3,392	4,050	6,123
Total Costs and Operating Expenses	7,344	9,878	15,660	17,199
Loss from Operations	-2,782	-897	-1,340	-3,168
Other Income (Expense)	'	'	'	'
Interest expense	-1,973	-1,680	-3,973	-3,533
Foreign currency transaction loss	-6,478	-70	-6,463	-148
Interest income	11	12	23	38
Other non-operating income (loss), net	-75	-109	19	987
Net Other Expense	-8,515	-1,847	-10,394	-2,656
Loss from Continuing Operations Before Income Tax	-11,297	-2,744	-11,734	-5,824
Benefit from income tax	340	382	78	726
Net loss from continuing operations	-10,957	-2,362	-11,656	-5,098
Loss from discontinued operations, net of tax of $(21) and $117 for the three and six months ended March 31, 2013, respectively	0	-361	0	-640
Net loss	-10,957	-2,723	-11,656	-5,738
Net loss attributable to noncontrolling interests	1,830	475	1,855	457
Net loss attributable to Caspian Services, Inc	-9,127	-2,248	-9,801	-5,281
Other Comprehensive Income (Loss)	'	'	'	'
Foreign currency translation adjustment	-4,593	302	-4,593	159
Comprehensive loss	-13,720	-1,946	-14,394	-5,122
Comprehensive income (loss) attributable to non-controlling interest	497	100	447	53
Comprehensive loss attributable to Caspian Services, Inc.	($13,223)	($1,846)	($13,947)	($5,069)
Basic and Diluted Loss per Share from continuing operations	($0.21)	($0.04)	($0.22)	($0.10)
Basic and Diluted Loss per Share from discontinued operations	$0	($0.01)	$0	($0.01)
Basic and Diluted Loss per Share	($0.21)	($0.05)	($0.22)	($0.11)
Weighted Average Shares Outstanding	52,657,574	52,657,574	52,657,574	52,657,574

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Revenues	'	'	'	'
Related Parties Marine Base Services Revenue	$535	$165	$665	$317
Loss from discontinued operations, tax	$0	($21)	$0	$117

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:	'	'
Net loss	($11,656)	($5,738)
Adjustments to reconcile net loss to net cash provided by operating activities:	'	'
Depreciation and amortization	2,277	3,029
Impairment loss	56	0
Gain on sale of property and equipment	0	-1,070
Accrued interest on accelerated put option	1,039	998
Foreign currency transaction loss	6,463	67
Stock based compensation	3	16
Changes in current assets and liabilities:	'	'
Trade accounts receivable	2,652	-4,318
Trade accounts receivable from related parties	1,237	-326
Other receivables	854	-55
Inventories	-339	343
Inventories held for sale	56	-2
Prepaid taxes	-186	558
Advances paid	156	107
Deferred tax assets	-49	-746
Prepaid expenses and other current assets	22	79
Long-term prepaid taxes	628	304
Long-term other receivables, net of current portion	18	26
Accounts payable	-400	-564
Accounts payable to related parties	-1,826	4
Accrued expenses	6,419	3,231
Taxes payable	-491	71
Deferred revenue	-8	1,079
Long-term deferred revenue from related parties	0	-91
Long-term deferred income tax liability	-48	-176
Net cash provided by (used in) operating activities	6,877	-3,174
Cash flows from investing activities:	'	'
Cash received from sale of vessels, equipment and property	0	2,892
Payments to purchase vessels, equipment and property	-3,002	-1,424
Net cash provided by (used in) investing activities	-3,002	1,468
Cash flows from financing activities:	'	'
Payments on long-term debt	-300	-1,400
Net cash used in financing activities	-300	-1,400
Effect of exchange rate changes on cash	-4,525	-129
Net change in cash	-950	-3,235
Cash at beginning of period	3,973	4,601
Cash at end of period	3,023	1,366
Supplemental disclosure of cash flow information:	'	'
Cash paid for interest	$300	$1,400

NOTE_1_THE_COMPANY_AND_BASIS_O

NOTE 1 - THE COMPANY AND BASIS OF PRESENTATION	6 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
NOTE 1 - THE COMPANY AND BASIS OF PRESENTATION	'
	Interim Financial Information – The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Accordingly, they are condensed and do not include all of the information and notes required by US GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair and comparable presentation have been included and are of a normal recurring nature. The accompanying financial statements should be read in conjunction with the Caspian Services, Inc. (the “Company” or “CSI”) most recent annual financial statements included in its annual report on Form 10-K filed with the SEC on January 14, 2014. Operating results for the six-month period ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending September 30, 2014.
	Discontinued Operations – In August 2013 the Company discontinued the operations of KMG. Upon determining to discontinue KMG, all prior periods presented have been restated to separately account for the discontinued operations.
	Principles of Consolidation – The accompanying condensed consolidated financial statements are presented in conformity with US GAAP and include operations and balances of Caspian Services, Inc. and its wholly-owned subsidiaries: Caspian Services Group Limited (“CSGL”), Caspian Services Group LLP (“Caspian LLP”), Caspian Services Group B.V. (“Caspian B.V.”), Caspian Services LLC (“Caspian LLC”), Caspian Geophysics, Ltd (“CGEO”), TatArka LLP (“TatArka”) and Caspian Real Estate, Ltd (“CRE”); and include majority owned subsidiary Balykshi LLP (“Balykshi”), collectively “Caspian” or the “Company.” Balykshi owns a 20% interest in a joint venture, Mangistau Oblast Boat Yard LLP (“MOBY”).  Ownership of 20% to 50% noncontrolling interests are accounted for by the equity method.  Ownership of less than a 20% interest is accounted for at cost.  Intercompany balances and transactions have been eliminated in consolidation.
	Business Condition – The Company funded a portion of the construction of its marine base through a combination of debt and equity financing pursuant to which the European Bank for Reconstruction and Development (“EBRD”) provided $18,600 of debt financing and made an equity investment in the marine base in the amount of $10,000 in exchange for a 22% equity interest in Balykshi.
	In connection with EBRD’s 22% equity interest in Balykshi, the Company entered into a Put Option Agreement granting EBRD the right to require the Company to repurchase the 22% equity interest based on Balykshi’s fair market value.  The put option is exercisable between June 2013 and June 2017.  This agreement also contains an acceleration feature that, should a triggering event occur, grants EBRD the right to require the Company to repurchase the $10,000 equity investment at a 20% annual rate of return at any time following the triggering event.
	In accordance with US GAAP the put option is an unconditional obligation and is measured at its fair value based on an estimate of the amount of cash that would be required to settle the liability.
	Under the terms of the EBRD Loan Agreement, as amended, Balykshi is required to repay the loan principal and accrued interest in eight equal semi-annual installments commencing November 20, 2011 and then occurring each May 20 and November 20 thereafter until fully repaid.  As of the date of this report, none of the required semi-annual repayment installments have been made.  The failure to pay the principal or interest on the EBRD loan when due may constitute an event of default under the EBRD Loan Agreement. The EBRD financing agreements have acceleration right features that, in the event of default, allow EBRD to declare the loans and accrued interest immediately due and payable.  As a result, the Company has included the EBRD loan and all accrued interest as current liabilities at March 31, 2014 and September 30, 2013. Additionally, an event of default may trigger the acceleration clause in the Put Option Agreement with EBRD which would allow EBRD to put its $10,000 investment in Balykshi back to the Company.  If EBRD were to accelerate its put right, the Company could be obligated to repay the initial investment plus a 20% annual rate of return. The balance of the accelerated put option liability was $20,688 and $19,649 as of March 31, 2014 and September 30, 2013, respectively. This balance includes the 20% rate of return on the $10,000 investment and is classified as a current liability.  EBRD also previously notified the Company that it believes the Company and Balykshi are in violation of certain other covenants of the EBRD financing agreements.  As of the date of this report on Form 10-Q, to the Company’s knowledge, EBRD has not sought to accelerate repayment of the loan or the put option.
	To help the Company meet its additional funding obligations to construct the marine base, in 2008 the Company entered into two facility agreements pursuant to which the Company received debt funding of $30,000.  In June and July 2011 Mr. Bakhytbek Baiseitov (the “Investor”) acquired the two facility agreements.  In connection with restructuring the facility agreements, each of which matured in 2011,in September 2011 the Company issued the Investor two secured promissory notes, a Secured Non-Negotiable Promissory Note in the principal amount of $10,800 (“Non-Negotiable Note”) and a Secured Convertible Consolidated Promissory Note in the principal amount of $24,446 (“Consolidated Note”).
	Pursuant to the terms of the Non-Negotiable Note, the Investor may, at any time, demand and receive payment of the Note by the issuance of common stock of the Company. The price per share for principal and interest shall be $.12 per share. The Investor has the right, at any time, to demand the issuance of shares in satisfaction of the Non-Negotiable Note.  If the issuance of common stock has not been demanded by the Investor or made at the election of the Company by the September 30, 2014 maturity date, the Company must repay the principal and interest in cash.
	Pursuant to the terms of the Consolidated Note, interest accrues at 12% per annum and shall be paid semi-annually in arrears on each six month anniversary of the Issuance Date (September 30, 2011).  The Consolidated Note provides for a default rate of interest of 13% per annum upon the occurrence and during the continuation of an event of default, which shall be payable in cash upon demand.  The unpaid principal amount of the Consolidated Note, and any accrued but unpaid interest thereon, shall be due and payable on September 30, 2014.
	The Investor has the right at any time following a five day written notice to convert all or any portion of the principal and any accrued but unpaid interest under the Consolidated Note into common stock at $.10 per share.
	As of the date of this report, none of the semi-annual interest payments have been made when due. The Company has, however, made partial interest payments to Investor totaling $2,000 in reduction of interest due.
	The failure to pay interest on the Consolidated Note when due is an event of default under the Consolidated Note.  In the event of a default that remains uncured, the Investor may, at any time, demand immediate repayment of the Consolidated Note.  As a result, the Company has included the Consolidated Note and all accrued but unpaid interest as current liabilities at March 31, 2014 and September 30, 2013. As of the date of this report on Form 10-Q, to the Company’s knowledge, the Investor has not demanded immediate repayment of the Consolidated Note.
	During December 2012 the Company, EBRD and the Investor outlined the terms of a potential restructuring of the Company’s financial obligations to EBRD and the Investor in a non-binding term sheet (“Term Sheet”).  Throughout the fiscal year the parties have worked to negotiate definitive agreements pursuant to the terms set out in the Term Sheet.  Subsequent to the fiscal year end, negotiations between EBRD, the Investor and the Company to restructure the Company’s financial obligations pursuant to the terms of the Term Sheet stalled and have been discontinued. However, the Company has engaged in new discussions with EBRD regarding a possible restructuring of its financial obligations to EBRD.
	Should EBRD or the Investor determine to accelerate the Company’s repayment obligations to them, the Company currently has insufficient funds to repay its obligations to EBRD or the Investor, individually or collectively, and would be forced to seek other sources of funds to satisfy these obligations.  Given the Company’s current and near-term anticipated operating results, the difficult credit and equity markets and the Company’s current financial condition, the Company believes it would be very difficult to obtain new funding to satisfy these obligations. If the Company is unable to obtain funding to meet these obligations EBRD or the Investor could seek any legal remedies available to them to obtain repayment, including forcing the Company into bankruptcy, or in the case of the EBRD loan, which is collateralized by the assets, including the marine base, and bank accounts of Balykshi and CRE, foreclosure by EBRD on such assets and bank accounts.  The Company has also agreed to collateralize the Investor’s Notes with non-marine base related assets.  The ability of the Company to continue as a going concern is dependent upon, among other things, its ability to (i) successfully restructure its financial obligations to EBRD and the Investor on terms that will allow the Company to service the restructured obligations, (ii) generate sufficient revenue from operations to satisfy its financial obligations, and/or (iii) identify a financing source that will provide the Company the ability to satisfy its financial obligations. Uncertainty as to the outcome of these factors raises substantial doubt about the Company’s ability to continue as a going concern.  The accompanying condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
	Nature of Operations – The Company’s business consists of three major business segments:
	Vessel Operations – Vessel operations consist of chartering a fleet of shallow draft offshore support vessels to customers performing oil and gas exploration activities in the Caspian Sea.
	Geophysical Services – Geophysical services consist of providing seismic data acquisition services to oil and gas companies operating onshore in Kazakhstan.
	Marine Base Services – Marine Base services consist of operating a marine base located at the Port of Bautino on the North Caspian Sea.
	Basic and Diluted Loss Per Share – Basic loss per common share is calculated by dividing net loss attributable to Caspian Services by the weighted-average number of common shares outstanding. Diluted loss per common share is calculated by dividing net loss attributable to Caspian Services by the weighted-average number of common shares outstanding giving effect to potentially dilutive issuable common shares.
	For the three and six months ended March 31, 2014 the Company had 800,000 options outstanding, 147,939 non-vested restricted shares outstanding and 402,913,333 potential shares related to convertible debt that were not included in the computation of diluted loss per common share because they would be anti-dilutive.
	For the three and six months ended March 31, 2013 the Company had 800,000 options outstanding, 441,862 non-vested restricted shares outstanding and 367,580,000 potential shares related to convertible debt that were not included in the computation of diluted loss per common share because they would be anti-dilutive.
	Fair Value of Financial Instruments – The carrying amounts reported in the accompanying condensed consolidated financial statements for other receivables, accounts receivables from related parties, accounts payable to related parties and accrued expenses approximate fair values because of the immediate nature or short-term maturities of these financial instruments. The carrying amount of long-term debts approximates fair value due to the stated interest rates approximating prevailing market rates.
	Accelerated Put Option Liability – In connection with EBRD’s $10,000 equity investment to purchase a 22% equity interest in Balykshi, the Company entered into a Put Option Agreement granting EBRD the right to require the Company to repurchase the 22% equity interest. The put option is exercisable between June 2013 and June 2017. The put price is determined based on the fair market value of Balykshi as mutually agreed by the parties. If the parties are unable to agree upon a fair market valuation, the parties agree to hire a third party expert to determine the put price on the basis of the fair market value of Balykshi, as set forth in the Put Option Agreement.  In the event there is a change in control of the Company, EBRD has the right to require the repurchase of the equity interest at its fair market value.  The Put Option Agreement also contains an acceleration feature.  Should Balykshi: (i) default on $1,000 or more of debt; (ii) fail to meet the obligations of any of the agreements between Balykshi, the Company and EBRD; (iii) be found to have made false representations to EBRD; or (iv) be declared insolvent, EBRD has the right to accelerate the put option.  If the put option is accelerated, EBRD can require the Company to repurchase the $10,000 equity investment plus a 20% per annum rate of return, taking into account any dividend or other distribution received by EBRD, at any time following one of the events mentioned above. Due to the fact that certain events of default under the EBRD Loan Agreement may have occurred and that such could trigger EBRD’s accelerated put right, we have reflected an accelerated put option liability of $20,688, although, as of the date of this quarterly report on Form 10-Q, EBRD has not sought to accelerate the put option.
	Revenue Recognition – Vessel revenues are usually derived from time charter contracts on a rate-per-day of service basis; therefore, vessel revenues are recognized on a daily basis throughout the contract period. These time charter contracts are generally on a term basis. The base rate of hire for a contract is generally a fixed rate; however, these contracts often include clauses to recover mobilization and demobilization costs and specific additional costs which are billed on a monthly basis.
	Geophysical service revenue is recognized when services are rendered, accepted by the customer and collectability is reasonably assured. Direct costs are charged to each contract as incurred along with allocated indirect costs for the specific period of service. Losses on contracts are recognized during the period in which the loss first becomes probable and reasonably estimated. Due to the nature of some of the geophysical services provided, certain customers have prepaid their contract services.  These prepayments have been deferred and are recognized as revenue as the services are provided.  At March 31, 2014 and September 30, 2013 the Company had $0 and $10, respectively, of deferred revenue related to these prepaid services.
	Marine base service revenue is recognized when services are rendered, accepted by the customer and collectability is reasonably assured.
	Receivables – In the normal course of business the Company extends credit to its customers on a short-term basis.  The principal customers for the Company’s marine vessels are major oil and natural gas exploration, development and production companies and their contractors. Credit risks associated with these customers are considered minimal. Dealings with smaller, local companies pose the greatest risks. For new geophysical services customers the Company typically requires an advance payment and the Company retains the seismic data generated from these services until payment is made in full.  The Company routinely reviews accounts receivable balances and makes provisions for doubtful accounts as necessary.  Accounts are reviewed on a case-by-case basis and losses are recognized in the period the Company determines it is likely that receivables will not be fully collected.  The Company may also provide a general provision for accounts receivable based on existing economic conditions.
	Impairment of Long-Lived Assets and Long-Lived Assets for Disposal – Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount that the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.
	Income Taxes – Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences in assets and liabilities and their respective tax bases and attributable to operating loss carry forwards. Differences generally result from the calculation of income under accounting principles generally accepted in the United States of America and the calculation of taxable income calculated under Kazakhstan income tax regulations.
	The current regime of penalties and interest related to reported and discovered violations of Kazakhstan’s laws, decrees and related regulations can be severe.  Penalties include confiscation of the amounts in question for currency law violations, as well as fines of generally 100% of the unpaid taxes.  Interest is assessable at rates of generally 0.06% per day. As a result, penalties and interest can result in amounts that are multiples of any unreported taxes. No interest or penalties have been accrued as a result of any tax positions taken.  In the event interest or penalties are assessed, we will include these amounts related to unrecognized tax benefits in income tax expense.
	A deferred tax liability is not recognized for the following types of temporary differences unless it becomes apparent that those temporary differences will reverse in the foreseeable future:
	(a) An excess of the amount for financial reporting over the tax basis of an investment in a foreign subsidiary or a foreign corporate joint venture, that is essentially permanent in duration; or
	(b) Undistributed earnings of a domestic subsidiary or a domestic corporate joint venture that is essentially permanent in duration.
	Drydocking Costs – Caspian’s vessels must be periodically drydocked and undergo certain inspections to maintain their operating classification, as mandated by certain maritime regulations.  Costs incurred to drydock the vessels for certification are capitalized and amortized over the period until the next drydocking, which is generally 24 months.  Drydocking costs comprise painting the vessels’ hulls and sides, recoating cargo and fuel tanks, and performing other engine and equipment maintenance activities to bring the vessels into compliance with classification standards.
	Foreign Currency Transactions – Caspian Services, Inc., the parent company of the subsidiaries, makes its principal investing and financing transactions in United States Dollars (USD), which is also its functional currency. Transactions and balances denominated in other currencies have been translated into USD using historical exchange rates. Exchange gains and losses from holding foreign currencies and having liabilities payable in foreign currencies are included in the results of operations.
	USD is also the functional currency of CSGL, CGEO and CRE.
	The Kazakh Tenge (KZT) is the functional currency of Caspian LLP, TatArka and Balykshy, the Euro is the functional currency of Caspian B.V. and the Russian Ruble is the functional currency of Caspian LLC. Their respective balance sheets have been translated into USD at the exchange rates prevailing at each balance sheet date. Their respective statements of comprehensive income (loss) have been translated into USD using the average exchange rates prevailing during the periods of each statement. The corresponding translation adjustments are part of accumulated other comprehensive income and are shown as part of shareholders’ equity.
	The translation of KZT denominated assets and liabilities into USD for the purpose of these consolidated financial statements does not necessarily mean the Company could realize or settle, in USD, the reported values of these assets and liabilities in USD. Likewise it does not mean the Company could return or distribute the reported USD value of its Kazakh subsidiaries’ capital to its shareholders.
	In February 2014 the Kazakh government devalued the KZT by 20%. As a result of the devaluation, during the three and six month periods ended March 31, 2014, the Company recorded foreign exchange transaction losses of $6,478 and $6,463, respectively, as a result of the remeasurement of the EBRD loan which is denominated in U.S. Dollars.
	Use of Estimates – The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.
	Comprehensive Loss – Total comprehensive loss consists of net loss and changes in accumulated other comprehensive loss.  Accumulated other comprehensive loss is presented in the consolidated statements of comprehensive income (loss) and consists of foreign currency translation adjustments.
	Concentration of Revenue – During six months ended March 31, 2014 76% of vessel revenue came from three clients: Bumi Armada Caspian LLC – 30%, Saipem Kazakhstan Branch – 26%, NC Production Operations Company B.V. – 20%. During six months ended March 31, 2014 54% of marine base service revenue came from our related party MOBY.
	Recent Accounting Pronouncements –
	In July 2013, the FASB issued Accounting Standards Update (“ASU”) No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force). The Company does not believe that adoption of the standard will have a material impact on its results of operations or financial position upon adoption.
	In March 2013, the FASB issued Accounting Standards Update (“ASU”) No. 2013-05, Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign (a consensus of the FASB Emerging Issues Task Force). The Company does not believe that adoption of the standard will have a material impact on its results of operations or financial position upon adoption.
	In February 2013, the FASB issued Accounting Standards Update (“ASU”) No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The Company does not believe that adoption of the standard will have a material impact on its results of operations or financial position upon adoption.
	In January 2013, the FASB issued Accounting Standards Update (“ASU”) No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. The Company does not believe that adoption of the standard will have a material impact on its results of operations or financial position upon adoption.
	In April 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-08, Presentation of Financial Statements and Property, Plant, and Equipment. Reporting discontinued operations and disclosures of disposals of components of an entity. The Company does not believe that adoption of the standard will have a material impact on its results of operations or financial position upon adoption.

NOTE_2_ATASH_MARINE_BASE

NOTE 2 - ATASH MARINE BASE	6 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
NOTE 2 - ATASH MARINE BASE	'
	During fiscal 2012 the Company contracted with a contractor to complete the dredging which was initially projected to cost around $3,000. However, the project was only partially completed at a cost of around $1,500 with further dredging works still required. Currently, Balykshi has insufficient funds to complete the dredging project.  Failure to complete the dredging could subject Balykshi to certain penalties, including the cancelation of permits and termination of operational activities at the marine base until the dredging is completed. The failure by Balykshi or the Company to provide financing for, or to complete, the dredging works could constitute a default under the EBRD financing agreements.
	In 2008 Balykshi entered into an agreement with the Investment Committee of the Republic of Kazakhstan and agreed to a schedule of work to be performed at the marine base. As of the date of this report, Balykshi has failed to complete approximately $3,000 of the agreed upon scheduled work, which could result in the cancellation of tax preferences granted to Balykshi by the Investment Committee.

NOTE_3_NOTES_PAYABLE

NOTE 3 - NOTES PAYABLE	6 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
NOTE 3 - NOTES PAYABLE	'
	Notes payable consists of the following:
		March 31,	September 30,
		2014	2013
	Secured non-negotiable promissory note payable to Investor; interest at 0.26%	$             10,870	$              10,856
	due September 30, 2014
	Secured convertible consolidated promissory note payable to Investor; interest at 12%	31,233	29,593
	(default interest at 13%) due September 30, 2014
	EBRD loan and accrued interest at 7% due May 2015 (default interest at 9%);
	secured by property and bank accounts	24,423	23,387
	Total Long-term Debt	66,526	63,836
	Less: Current Portion	(66,526)	(63,836)
	Long-term Debt - Net of Current Portion	$                      -	$                        -
	Notes payable consist of the following:
	EBRD Loan
	EBRD’s financing agreements contain certain financial and other covenants, the violation of which could be deemed a default under those agreements. Pursuant to the terms of the financing agreements, following delivery of written notice to Balykshi or the Company of an event of default and the expiration of any applicable grace period, EBRD may declare all or any portion of its loan together with all accrued interest immediately due and payable or payable on demand. The EBRD financing agreements also provide that in the event any indebtedness of the Company in excess of $1,000 is declared or otherwise becomes due and payable prior to its specified maturity date, such may be deemed an event of default which would allow EBRD to declare its loan immediately due and payable or payable on demand. As the EBRD loan is secured, in the event Balykshi or the Company are unable to repay the loan, EBRD could have the right to foreclose on the assets and bank accounts of Balykshi and CRE, including the marine base.
	Under the terms of the EBRD Loan Agreement, as amended, Balykshi is required to repay the loan principal and accrued interest in eight equal semi-annual installments commencing November 20, 2011 and then occurring each May 20 and November 20 thereafter until fully repaid.  As of the date of this report, none of the semi-annual repayment installments has been made by the Company,  The failure to pay the principal of, or interest on, the EBRD Loan when due constitutes an event of default under the EBRD Loan Agreement.  The EBRD Loan Agreement provides that if the Borrower fails to pay when due any amount payable by it under the Loan Agreement, the overdue amount shall bear interest at a rate that is 2% higher than the non-default rate of interest.
	As discussed below, the Company is engaged in ongoing discussions with EBRD about a potential restructuring of the terms of the EBRD financing agreements. There is no guarantee the Company will be successful in restructuring the EBRD financing agreements.
	Loan from Investor
	In 2008 the Company entered into Facility agreements with Altima Central Asia (Master) Fund Ltd. (“Altima”) and Great Circle Energy Services LLC (“Great Circle”).  Pursuant to the Facility agreements, each party made an unsecured loan to the Company in the amount of $15,000.  The Altima loan matured and became due and payable in June 2011 while the Great Circle loan matured and became due and payable in December 2011.  The Altima and Great Circle loans (“Loans”) bore interest at 13% per annum. At June 30, 2011 these loans and accrued interest totaled $42,264. During June and July 2011 an Investor acquired these Loans and on September 30, 2011 the Company and the Investor agreed to restructure the Loans.  Prior to the restructuring, the Company made payments to the Investor reducing the total debt balance to $37,246.  Within 30 days of closing, the Company agreed to make a $2,000 cash payment to the Investor which was credited as a reduction of principal due. This payment was made during fiscal 2012. In satisfaction of the remaining outstanding balance of the restructured loan obligations, the Company issued the Investor the Non-Negotiable Note in the principal amount of $10,800 and the Consolidated Note in the principal amount of $24,446.  The Company has agreed to collateralize the Investor’s Notes with non-marine base related assets.
	Non-Negotiable Promissory Note
	Pursuant to the terms of the Non-Negotiable Note, the Investor may, at any time, demand and receive payment of the Non-Negotiable Note by the issuance of common stock of the Company. The price per share for principal and interest shall be $.12 per share. The Investor has the right, at any time, to demand the issuance of shares in satisfaction of the Non-Negotiable Note.  The Company has the right to pay the principal and interest under the Non-Negotiable Note by the issuance of Company common stock on the earlier of: (i) the date on which the Company and the Investor complete renegotiation of the terms of the financing between the Company and EBRD; or (ii) the date when the Company and the Investor terminate restructuring negotiations with EBRD. If the issuance of common stock has not been demanded by the Investor or made at the election of the Company by September 30, 2014 (the Maturity Date) the Company must repay the principal and interest in cash.
	The Company is required to pay interest on the principal amount of the Non-Negotiable Note in common stock at the time of payment of the principal. Interest accrues at a rate per annum equal to 0.26%, until the Maturity Date.
	The Company will issue the Investor 90 million shares of restricted common stock to settle the principal amount of the Non-Negotiable Note, excluding shares that will be issued to the Investor in satisfaction of accrued interest.
	The Non-Negotiable Note was issued in connection with the Loan Restructuring Agreement. As the Loan Restructuring Agreement has not yet closed, the Non-Negotiable Note has been treated as a current liability in the accompanying financial statements.
	Convertible Consolidated Promissory Note
	Interest accrues on the Consolidated Note at 12% per annum and is required to be paid semi-annually in arrears on each six month anniversary of the Issuance Date (September 30, 2011).  The Consolidated Note provides for a default rate of interest of 13% per annum upon the occurrence and during the continuation of an event of default, as defined in the Consolidated Note, which shall be payable in cash upon demand.
	The unpaid principal amount of the Consolidated Note, and any accrued but unpaid interest thereon, shall be due and payable on September 30, 2014 (the Maturity Date). The Company may elect to prepay principal in increments of $1,000 at the time of any scheduled interest payment, except in the case of full repayment of principal and interest which may be made at any time.
	As of the date of this report, none of the semi-annual interest payments have been made on the date they were due.  During fiscal 2013 the Company paid $1,600 to the Investor, which was credited as a reduction of interest due under the Consolidated Note. An additional $300 was paid during the six months ended March 31, 2014 more $100 was paid in April 2014. The failure to pay the interest on the Consolidated Note is an event of default under the Consolidated Note.  In the event of a default that remains uncured, the Investor may, at any time, demand immediate repayment of the Consolidated Note.  As a result, the Company has included the Consolidated Note and all accrued interest as current liabilities at March 31, 2014 and September 30, 2013.
	The Consolidated Note is superior in rank to all future unsecured indebtedness of the Company and its subsidiaries, except for the EBRD Indebtedness.
	With the increase in the Company’s authorized common stock in May 2013, the Investor now has the right at any time following a five day written notice to convert all or any portion of the principal and any accrued but unpaid interest into common stock at $.10 per share.
	Registration Rights Agreement
	In connection with restructuring the facility agreements, the Company and the Investor agreed to enter into a Registration Rights Agreement granting the Investor the right to require the Company to register all or any part of the shares held by the Investor, including but not limited to, any shares issued in satisfaction of the Notes.  As of the date of this report, no agreement has been finalized.

NOTE_4_STOCK_BASED_COMPENSATIO

NOTE 4 - STOCK BASED COMPENSATION PLANS	6 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
NOTE 4 - STOCK BASED COMPENSATION PLANS	'
	A summary of the non-vested stock under the Company’s compensation plan at March 31, 2014 follows:
		Non-Vested	Weighted Average Grant
		Shares	Date Fair Value Per Share
	Non-vested at September 30, 2013	147,939	$0.11
	Stock granted	-	-
	Stock vested	-	-
	Non-vested at March 31, 2014	147,939	$0.11
	The value of the non-vested stock under the Company’s compensation plan at March 31, 2014 is $4.  As of March 31, 2014 unrecognized stock-based compensation was $3 and will be recognized over the weighted average remaining term of 0.3 years.

NOTE_5_COMMITMENTS_AND_CONTING

NOTE 5 - COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
NOTE 5 - COMMITMENTS AND CONTINGENCIES	'
	Economic Environment – In recent years, Kazakhstan has undergone substantial political and economic change.  As an emerging market, Kazakhstan does not possess a well-developed business infrastructure, which generally exists in more mature free market economies.  As a result, operations carried out in Kazakhstan can involve significant risks, which are not typically associated with those in developed markets. Instability in the market reform process could subject the Company to unpredictable changes in the basic business infrastructure in which it currently operates. Uncertainties regarding the political, legal, tax or regulatory environment, including the potential for adverse changes in any of these factors could affect the Company’s ability to operate commercially. Management is unable to estimate what changes may occur or the resulting effect of such changes on the Company’s financial condition or future results of operations.
	Legislation and regulations regarding taxation, foreign currency translation, and licensing of foreign currency loans in the Republic of Kazakhstan continue to evolve as the central government manages the transformation from a command to a market-oriented economy. Such legislation and regulations are not always clearly written and their interpretation is subject to the opinions of the local tax inspectors. Instances of inconsistent opinions between local, regional and national tax authorities are not unusual.
	Guarantee of Debt – The Company has agreed to guarantee payment to EBRD, on demand, all monies and liabilities which have been advanced or which shall become due, owing or incurred by MOBY to or in favor of EBRD when such shall become due.  The Company’s guarantee obligation is limited, however, to the “Caspian Pro-rata Percentage.”  The Caspian Pro-rata Percentage is an amount equal to the Company’s percentage ownership of Balykshi multiplied by Balykshi’s percentage ownership of MOBY, expressed as a percentage.  Currently, the Company owns a 78% interest in Balykshi and Balykshi owns a 20% interest in MOBY.  Therefore, the Caspian Pro-rata Percentage is currently 15.6%, which, including interest, at March 31, 2014 reflected a total maximum potential obligation of $913.  There is currently no recorded liability for potential losses under this guarantee, nor is there any liability for the Company’s obligation to fund such guarantee.

NOTE_6_RELATED_PARTY_TRANSACTI

NOTE 6 - RELATED PARTY TRANSACTIONS	6 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
NOTE 6 - RELATED PARTY TRANSACTIONS	'
	MOBY – During October 2008 the Company entered into a lease agreement with MOBY for the lease of three hectares of space at the marine base to operate a vessel repair and drydock facility. Balykshi owns a 20% joint venture interest in MOBY. The lease agreement is for 20 years and calls for a fixed rent payment of $290 per year. In November 2009, according to the agreement term, MOBY made a partial advance payment of $3,347, which is being recognized over the 20 year lease term starting from May 2010. This prepayment has been recorded as long-term deferred revenue from related parties on the balance sheet.
	During the second fiscal quarter 2014 this lease agreement was canceled. The Company off-set most of the balance of the advance received for land rental against the balance due by MOBY to Balykshi.
	The lease revenue recognized from MOBY for the three and six months ended March 31, 2014 was $535 and $665, respectively.
	The lease revenue recognized from MOBY for the three and six months ended March 31, 2013 was $165 and $317, respectively.
	Accounts receivable from related parties as of March 31, 2014 and September 30, 2013 consisted of the following:
	Related Party's Name	Description	31-Mar-14	30-Sep-13
	Bolz LLP	Seismic services	$                          8	$                        3,174
	MOBY	Marine base	-	1,330
	Demeu Energy	Advance given for vehicles delivery	275	325
	Caspian Geo Consulting	Advance given for equipment delivery	275	-
	Others	Other services	7	125
		Allowance for doubtful accounts	(557)	(3,499)
	TOTAL		$                          8	$                      1,455
	Accounts payable to related parties as of March 31, 2014 and September 30, 2013 consisted of the following:
	Related Party's Name	Description	31-Mar-14	30-Sep-13
	MOBY	Advance received for land rental	$                       368	$                              -
	TOTAL		$                     368	$                             -
	Long-term deferred revenue from related parties as of March 31, 2014 and September 30, 2013 consisted of the following:
	Related Party's Name	Description	March 31, 2014	30-Sep-13
	MOBY	Advance received for land rental	$                         -	$                        2,619
	TOTAL		$                         -	$                      2,619

NOTE_7_FAIR_VALUE_MEASUREMENTS

NOTE 7 - FAIR VALUE MEASUREMENTS	6 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
NOTE 7 - FAIR VALUE MEASUREMENTS	'
	Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, a hierarchy has been established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows:
	Level 1 – Quoted prices in active markets for identical assets or liabilities.
	Level 2 – Observable inputs other than Level 1 including quoted prices for similar assets or liabilities, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data.
	Level 3 – Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.
	The Company uses fair value to measure certain assets and liabilities on a recurring basis when fair value is the primary measure for accounting. This is done primarily for the put option liability. Fair value is used on a nonrecurring basis to measure certain assets when applying lower of cost or market accounting or when adjusting carrying values.  Fair value is also used when evaluating impairment on certain assets, including goodwill, intangibles, and long-lived assets.
	Recurring basis:
	At March 31, 2014 the Company had one liability measured at fair value on a recurring basis. The put option liability is a Level 3 measurement, which is fair valued at the put option price plus accrued interest at a rate of 20% annually.
	The fair value of the put option liability was $20,688 at March 31, 2014. As of September 30, 2013 the amount was valued at $19,649 which is the amount the Company would have had to pay if EBRD had exercised the accelerated put option. The $1,039 change during the six months ended March 31, 2014 was for the 20% rate of return and it was charged to interest expense.
	There were no changes in the valuation techniques during the current quarter.
	Nonrecurring basis:
			Fair Value Measurements at Reporting Date Using
	Description	31-Mar-14	Level 1	Level 2	Level 3
	Property held for sale	$             114	$         -	$         -	$     114
	The value of the Property held for sale was derived based on estimated sales price of the property. The estimation of sales price is made based on the market prices of similar vessels.
	For Level 3 assets, the Company’s finance department, which reports to the chief financial officer, determines the fair value measurement valuation policies and procedures.  At least annually, the finance department determines if the current valuation techniques used in the fair value measurements are still appropriate and evaluates and adjusts the unobservable inputs used in the fair value measurements based on current market conditions and third-party information.
			Fair Value Measurements at Reporting Date Using
	Description	30-Sep-13	Level 1	Level 2	Level 3
	Property held for sale	$             203	$         -	$         -	$     203

NOTE_8_SEGMENT_INFORMATION

NOTE 8 - SEGMENT INFORMATION	6 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
NOTE 8 - SEGMENT INFORMATION	'
	US GAAP establishes disclosures related to components of a company for which separate financial information is available and evaluated regularly by a company’s chief operating decision makers in deciding how to allocate resources and in assessing performance. They also require segment disclosures about products and services as well as geographic area.
	The Company has operations in three segments of its business, namely: Vessel Operations, Geophysical Services and Marine Base Services. All of these operations are located in the Republic of Kazakhstan. Corporate administration is located in the United States of America and the Republic of Kazakhstan.
	Further information regarding the operations and assets of these reportable business segments follows:
		For the Three Months		For the Six Months
		Ended March 31,		Ended March 31,
		2014	2013	2014	2013
	Capital Expenditures
	Vessel Operations	$               356	$           27	$         813	$           881
	Geophysical Services	686	456	2,188	547
	Marine Base Services	-	-	-	58
	Total segments	1,042	483	3,001	1,486
	Corporate assets	1	-	1	-
	Less intersegment investments	-	(81)	-	(62)
	Total consolidated	$            1,043	$         402	$      3,002	$        1,424
		For the Three Months		For the Six Months
		Ended March 31,		Ended March 31,
		2014	2013	2014	2013
	Revenues
	Vessel Operations	$               809	$      1,113	$      6,723	$        4,815
	Geophysical Services	3,155	8,292	7,268	9,393
	Marine Base Services	866	314	3,077	3,160
	Total segments	4,830	9,719	17,068	17,368
	Corporate revenue	-	-	-	-
	Less intersegment revenues	(268)	(738)	(2,748)	(3,337)
	Total consolidated	$            4,562	$      8,981	$    14,320	$      14,031
	Depreciation and Amortization
	Vessel Operations	$             (475)	$       (537)	$       (996)	$       (1,110)
	Geophysical Services	(284)	(349)	(607)	(731)
	Marine Base Services	(308)	(372)	(674)	(730)
	Total segments	(1,067)	(1,258)	(2,277)	(2,571)
	Corporate depreciation and amortization	-	(1)	-	(1)
	Total consolidated	$          (1,067)	$    (1,259)	$    (2,277)	$       (2,572)
	Interest expense
	Vessel Operations	$                   -	$           -	$             -	$              -
	Geophysical Services	-	(10)	-	(37)
	Marine Base Services	(1,442)	(1,212)	(2,904)	(2,581)
	Total segments	(1,442)	(1,222)	(2,904)	(2,618)
	Corporate interest expense	(531)	(458)	(1,069)	(915)
	Total consolidated	$          (1,973)	$    (1,680)	$    (3,973)	$       (3,533)
	Income/(Loss) Before Income Tax
	Vessel Operations	$          (1,768)	$    (1,765)	$    (1,206)	$       (3,183)
	Geophysical Services	174	4,133	1,733	2,916
	Marine Base Services	(8,691)	(4,284)	(10,541)	(4,150)
	Total segments	(10,285)	(1,916)	(10,014)	(4,417)
	Corporate loss	(1,012)	(828)	(1,720)	(1,407)
	Total consolidated	$        (11,297)	$    (2,744)	$  (11,734)	$       (5,824)
		For the Three Months		For the Six Months
		Ended March 31,		Ended March 31,
		2014	2013	2014	2013
	Benefit from (Provision for) Income Tax
	Vessel Operations	$               339	$      1,249	$         599	$        1,455
	Geophysical Services	1	(867)	(521)	(729)
	Marine Base Services	-	-	-	-
	Total segments	340	382	78	726
	Corporate provision for income tax	-	-	-	-
	Total consolidated	$               340	$         382	$           78	$           726
	Loss from discontinued operations
	Vessel Operations	$                   -	$              -	$             -	$                -
	Geophysical Services	-	(361)	-	(640)
	Marine Base Services	-	-	-	-
	Total segments	-	(361)	-	(640)
	Corporate	-	-	-	-
	Total consolidated	$                   -	$       (361)	$             -	$          (640)
Loss/(Income) attributable to Noncontrolling Interests
Vessel Operations	$                   -	$             -	$             -	$                -
Geophysical Services	-	98	-	80
Marine Base Services	1,830	377	1,855	377
Total segments	1,830	475	1,855	457
Corporate noncontrolling interest	-	-	-	-
Total consolidated	$            1,830	$         475	$      1,855	$           457
Net (Loss)/Income attributable to Caspian Services Inc.
Vessel Operations	$          (1,429)	$       (516)	$       (607)	$       (1,728)
Geophysical Services	175	3,003	1,212	1,627
Marine Base Services	(6,861)	(3,907)	(8,686)	(3,773)
Total segments	(8,115)	(1,420)	(8,081)	(3,874)
Corporate loss	(1,012)	(828)	(1,720)	(1,407)
Total consolidated	$          (9,127)	$    (2,248)	$    (9,801)	$       (5,281)
			March 31,	September 30,
Segment Assets			2014	2013
Vessel Operations			$    17,537	$      24,031
Geophysical Services			17,932	18,005
Marine Base Services			68,741	78,186
Total segments			104,210	120,222
Corporate assets			991	6,946
Less intersegment investments			(40,530)	(46,625)
Total consolidated			$    64,671	$      80,543

NOTE_9_SUBSEQUENT_EVENTS

NOTE 9 - SUBSEQUENT EVENTS	6 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
NOTE 9 - SUBSEQUENT EVENTS	'
	Subsequent to the end of the second fiscal quarter, TatArka acquired from KMG the 50% share in “Veritas Caspian” LLP joint venture for nominal value of $0.3.
	In April 2014 we paid $100 to the Investor, which was credited to reduce loan interest due to him.

NOTE_1_THE_COMPANY_AND_BASIS_O1

NOTE 1 - THE COMPANY AND BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Policies)	6 Months Ended
	Mar. 31, 2014
Note 1 - Company And Basis Of Presentation And Accounting Policies Policies	'
Interim Financial Information	'
	Interim Financial Information – The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Accordingly, they are condensed and do not include all of the information and notes required by US GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair and comparable presentation have been included and are of a normal recurring nature. The accompanying financial statements should be read in conjunction with the Caspian Services, Inc. (the “Company” or “CSI”) most recent annual financial statements included in its annual report on Form 10-K filed with the SEC on January 14, 2014. Operating results for the six-month period ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending September 30, 2014.
Discontinued Operations	'
	Discontinued Operations – In August 2013 the Company discontinued the operations of KMG. Upon determining to discontinue KMG, all prior periods presented have been restated to separately account for the discontinued operations.
Principles of Consolidation	'
	Principles of Consolidation – The accompanying condensed consolidated financial statements are presented in conformity with US GAAP and include operations and balances of Caspian Services, Inc. and its wholly-owned subsidiaries: Caspian Services Group Limited (“CSGL”), Caspian Services Group LLP (“Caspian LLP”), Caspian Services Group B.V. (“Caspian B.V.”), Caspian Services LLC (“Caspian LLC”), Caspian Geophysics, Ltd (“CGEO”), TatArka LLP (“TatArka”) and Caspian Real Estate, Ltd (“CRE”); and include majority owned subsidiary Balykshi LLP (“Balykshi”), collectively “Caspian” or the “Company.” Balykshi owns a 20% interest in a joint venture, Mangistau Oblast Boat Yard LLP (“MOBY”).  Ownership of 20% to 50% noncontrolling interests are accounted for by the equity method.  Ownership of less than a 20% interest is accounted for at cost.  Intercompany balances and transactions have been eliminated in consolidation.
Business Condition	'
	Business Condition – The Company funded a portion of the construction of its marine base through a combination of debt and equity financing pursuant to which the European Bank for Reconstruction and Development (“EBRD”) provided $18,600 of debt financing and made an equity investment in the marine base in the amount of $10,000 in exchange for a 22% equity interest in Balykshi.
	In connection with EBRD’s 22% equity interest in Balykshi, the Company entered into a Put Option Agreement granting EBRD the right to require the Company to repurchase the 22% equity interest based on Balykshi’s fair market value.  The put option is exercisable between June 2013 and June 2017.  This agreement also contains an acceleration feature that, should a triggering event occur, grants EBRD the right to require the Company to repurchase the $10,000 equity investment at a 20% annual rate of return at any time following the triggering event.
	In accordance with US GAAP the put option is an unconditional obligation and is measured at its fair value based on an estimate of the amount of cash that would be required to settle the liability.
	Under the terms of the EBRD Loan Agreement, as amended, Balykshi is required to repay the loan principal and accrued interest in eight equal semi-annual installments commencing November 20, 2011 and then occurring each May 20 and November 20 thereafter until fully repaid.  As of the date of this report, none of the required semi-annual repayment installments have been made.  The failure to pay the principal or interest on the EBRD loan when due may constitute an event of default under the EBRD Loan Agreement. The EBRD financing agreements have acceleration right features that, in the event of default, allow EBRD to declare the loans and accrued interest immediately due and payable.  As a result, the Company has included the EBRD loan and all accrued interest as current liabilities at March 31, 2014 and September 30, 2013. Additionally, an event of default may trigger the acceleration clause in the Put Option Agreement with EBRD which would allow EBRD to put its $10,000 investment in Balykshi back to the Company.  If EBRD were to accelerate its put right, the Company could be obligated to repay the initial investment plus a 20% annual rate of return. The balance of the accelerated put option liability was $20,688 and $19,649 as of March 31, 2014 and September 30, 2013, respectively. This balance includes the 20% rate of return on the $10,000 investment and is classified as a current liability.  EBRD also previously notified the Company that it believes the Company and Balykshi are in violation of certain other covenants of the EBRD financing agreements.  As of the date of this report on Form 10-Q, to the Company’s knowledge, EBRD has not sought to accelerate repayment of the loan or the put option.
	To help the Company meet its additional funding obligations to construct the marine base, in 2008 the Company entered into two facility agreements pursuant to which the Company received debt funding of $30,000.  In June and July 2011 Mr. Bakhytbek Baiseitov (the “Investor”) acquired the two facility agreements.  In connection with restructuring the facility agreements, each of which matured in 2011,in September 2011 the Company issued the Investor two secured promissory notes, a Secured Non-Negotiable Promissory Note in the principal amount of $10,800 (“Non-Negotiable Note”) and a Secured Convertible Consolidated Promissory Note in the principal amount of $24,446 (“Consolidated Note”).
	Pursuant to the terms of the Non-Negotiable Note, the Investor may, at any time, demand and receive payment of the Note by the issuance of common stock of the Company. The price per share for principal and interest shall be $.12 per share. The Investor has the right, at any time, to demand the issuance of shares in satisfaction of the Non-Negotiable Note.  If the issuance of common stock has not been demanded by the Investor or made at the election of the Company by the September 30, 2014 maturity date, the Company must repay the principal and interest in cash.
	Pursuant to the terms of the Consolidated Note, interest accrues at 12% per annum and shall be paid semi-annually in arrears on each six month anniversary of the Issuance Date (September 30, 2011).  The Consolidated Note provides for a default rate of interest of 13% per annum upon the occurrence and during the continuation of an event of default, which shall be payable in cash upon demand.  The unpaid principal amount of the Consolidated Note, and any accrued but unpaid interest thereon, shall be due and payable on September 30, 2014.
	The Investor has the right at any time following a five day written notice to convert all or any portion of the principal and any accrued but unpaid interest under the Consolidated Note into common stock at $.10 per share.
	As of the date of this report, none of the semi-annual interest payments have been made when due. The Company has, however, made partial interest payments to Investor totaling $2,000 in reduction of interest due.
	The failure to pay interest on the Consolidated Note when due is an event of default under the Consolidated Note.  In the event of a default that remains uncured, the Investor may, at any time, demand immediate repayment of the Consolidated Note.  As a result, the Company has included the Consolidated Note and all accrued but unpaid interest as current liabilities at March 31, 2014 and September 30, 2013. As of the date of this report on Form 10-Q, to the Company’s knowledge, the Investor has not demanded immediate repayment of the Consolidated Note.
	During December 2012 the Company, EBRD and the Investor outlined the terms of a potential restructuring of the Company’s financial obligations to EBRD and the Investor in a non-binding term sheet (“Term Sheet”).  Throughout the fiscal year the parties have worked to negotiate definitive agreements pursuant to the terms set out in the Term Sheet.  Subsequent to the fiscal year end, negotiations between EBRD, the Investor and the Company to restructure the Company’s financial obligations pursuant to the terms of the Term Sheet stalled and have been discontinued. However, the Company has engaged in new discussions with EBRD regarding a possible restructuring of its financial obligations to EBRD.
	Should EBRD or the Investor determine to accelerate the Company’s repayment obligations to them, the Company currently has insufficient funds to repay its obligations to EBRD or the Investor, individually or collectively, and would be forced to seek other sources of funds to satisfy these obligations.  Given the Company’s current and near-term anticipated operating results, the difficult credit and equity markets and the Company’s current financial condition, the Company believes it would be very difficult to obtain new funding to satisfy these obligations. If the Company is unable to obtain funding to meet these obligations EBRD or the Investor could seek any legal remedies available to them to obtain repayment, including forcing the Company into bankruptcy, or in the case of the EBRD loan, which is collateralized by the assets, including the marine base, and bank accounts of Balykshi and CRE, foreclosure by EBRD on such assets and bank accounts.  The Company has also agreed to collateralize the Investor’s Notes with non-marine base related assets.  The ability of the Company to continue as a going concern is dependent upon, among other things, its ability to (i) successfully restructure its financial obligations to EBRD and the Investor on terms that will allow the Company to service the restructured obligations, (ii) generate sufficient revenue from operations to satisfy its financial obligations, and/or (iii) identify a financing source that will provide the Company the ability to satisfy its financial obligations. Uncertainty as to the outcome of these factors raises substantial doubt about the Company’s ability to continue as a going concern.  The accompanying condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
Nature of Operations	'
	Nature of Operations – The Company’s business consists of three major business segments:
	Vessel Operations – Vessel operations consist of chartering a fleet of shallow draft offshore support vessels to customers performing oil and gas exploration activities in the Caspian Sea.
	Geophysical Services – Geophysical services consist of providing seismic data acquisition services to oil and gas companies operating onshore in Kazakhstan.
	Marine Base Services – Marine Base services consist of operating a marine base located at the Port of Bautino on the North Caspian Sea.
Basic and Diluted Loss Per Share	'
	Basic and Diluted Loss Per Share – Basic loss per common share is calculated by dividing net loss attributable to Caspian Services by the weighted-average number of common shares outstanding. Diluted loss per common share is calculated by dividing net loss attributable to Caspian Services by the weighted-average number of common shares outstanding giving effect to potentially dilutive issuable common shares.
	For the three and six months ended March 31, 2014 the Company had 800,000 options outstanding, 147,939 non-vested restricted shares outstanding and 402,913,333 potential shares related to convertible debt that were not included in the computation of diluted loss per common share because they would be anti-dilutive.
	For the three and six months ended March 31, 2013 the Company had 800,000 options outstanding, 441,862 non-vested restricted shares outstanding and 367,580,000 potential shares related to convertible debt that were not included in the computation of diluted loss per common share because they would be anti-dilutive.
Fair Value of Financial Instruments	'
	Fair Value of Financial Instruments – The carrying amounts reported in the accompanying condensed consolidated financial statements for other receivables, accounts receivables from related parties, accounts payable to related parties and accrued expenses approximate fair values because of the immediate nature or short-term maturities of these financial instruments. The carrying amount of long-term debts approximates fair value due to the stated interest rates approximating prevailing market rates.
Accelerated Put Option Liability	'
	Accelerated Put Option Liability – In connection with EBRD’s $10,000 equity investment to purchase a 22% equity interest in Balykshi, the Company entered into a Put Option Agreement granting EBRD the right to require the Company to repurchase the 22% equity interest. The put option is exercisable between June 2013 and June 2017. The put price is determined based on the fair market value of Balykshi as mutually agreed by the parties. If the parties are unable to agree upon a fair market valuation, the parties agree to hire a third party expert to determine the put price on the basis of the fair market value of Balykshi, as set forth in the Put Option Agreement.  In the event there is a change in control of the Company, EBRD has the right to require the repurchase of the equity interest at its fair market value.  The Put Option Agreement also contains an acceleration feature.  Should Balykshi: (i) default on $1,000 or more of debt; (ii) fail to meet the obligations of any of the agreements between Balykshi, the Company and EBRD; (iii) be found to have made false representations to EBRD; or (iv) be declared insolvent, EBRD has the right to accelerate the put option.  If the put option is accelerated, EBRD can require the Company to repurchase the $10,000 equity investment plus a 20% per annum rate of return, taking into account any dividend or other distribution received by EBRD, at any time following one of the events mentioned above. Due to the fact that certain events of default under the EBRD Loan Agreement may have occurred and that such could trigger EBRD’s accelerated put right, we have reflected an accelerated put option liability of $20,688, although, as of the date of this quarterly report on Form 10-Q, EBRD has not sought to accelerate the put option.
Revenue Recognition	'
	Revenue Recognition – Vessel revenues are usually derived from time charter contracts on a rate-per-day of service basis; therefore, vessel revenues are recognized on a daily basis throughout the contract period. These time charter contracts are generally on a term basis. The base rate of hire for a contract is generally a fixed rate; however, these contracts often include clauses to recover mobilization and demobilization costs and specific additional costs which are billed on a monthly basis.
	Geophysical service revenue is recognized when services are rendered, accepted by the customer and collectability is reasonably assured. Direct costs are charged to each contract as incurred along with allocated indirect costs for the specific period of service. Losses on contracts are recognized during the period in which the loss first becomes probable and reasonably estimated. Due to the nature of some of the geophysical services provided, certain customers have prepaid their contract services.  These prepayments have been deferred and are recognized as revenue as the services are provided.  At March 31, 2014 and September 30, 2013 the Company had $0 and $10, respectively, of deferred revenue related to these prepaid services.
	Marine base service revenue is recognized when services are rendered, accepted by the customer and collectability is reasonably assured.
Receivables	'
	Receivables – In the normal course of business the Company extends credit to its customers on a short-term basis.  The principal customers for the Company’s marine vessels are major oil and natural gas exploration, development and production companies and their contractors. Credit risks associated with these customers are considered minimal. Dealings with smaller, local companies pose the greatest risks. For new geophysical services customers the Company typically requires an advance payment and the Company retains the seismic data generated from these services until payment is made in full.  The Company routinely reviews accounts receivable balances and makes provisions for doubtful accounts as necessary.  Accounts are reviewed on a case-by-case basis and losses are recognized in the period the Company determines it is likely that receivables will not be fully collected.  The Company may also provide a general provision for accounts receivable based on existing economic conditions.
Impairment of Long-Lived Assets and Long-Lived Assets for Disposal	'
	Impairment of Long-Lived Assets and Long-Lived Assets for Disposal – Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount that the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.
Income Taxes	'
	Income Taxes – Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences in assets and liabilities and their respective tax bases and attributable to operating loss carry forwards. Differences generally result from the calculation of income under accounting principles generally accepted in the United States of America and the calculation of taxable income calculated under Kazakhstan income tax regulations.
	The current regime of penalties and interest related to reported and discovered violations of Kazakhstan’s laws, decrees and related regulations can be severe.  Penalties include confiscation of the amounts in question for currency law violations, as well as fines of generally 100% of the unpaid taxes.  Interest is assessable at rates of generally 0.06% per day. As a result, penalties and interest can result in amounts that are multiples of any unreported taxes. No interest or penalties have been accrued as a result of any tax positions taken.  In the event interest or penalties are assessed, we will include these amounts related to unrecognized tax benefits in income tax expense.
	A deferred tax liability is not recognized for the following types of temporary differences unless it becomes apparent that those temporary differences will reverse in the foreseeable future:
	(a) An excess of the amount for financial reporting over the tax basis of an investment in a foreign subsidiary or a foreign corporate joint venture, that is essentially permanent in duration; or
	(b) Undistributed earnings of a domestic subsidiary or a domestic corporate joint venture that is essentially permanent in duration.
Dry-docking Costs	'
	Drydocking Costs – Caspian’s vessels must be periodically drydocked and undergo certain inspections to maintain their operating classification, as mandated by certain maritime regulations.  Costs incurred to drydock the vessels for certification are capitalized and amortized over the period until the next drydocking, which is generally 24 months.  Drydocking costs comprise painting the vessels’ hulls and sides, recoating cargo and fuel tanks, and performing other engine and equipment maintenance activities to bring the vessels into compliance with classification standards.
Foreign Currency Transactions	'
	Foreign Currency Transactions – Caspian Services, Inc., the parent company of the subsidiaries, makes its principal investing and financing transactions in United States Dollars (USD), which is also its functional currency. Transactions and balances denominated in other currencies have been translated into USD using historical exchange rates. Exchange gains and losses from holding foreign currencies and having liabilities payable in foreign currencies are included in the results of operations.
	USD is also the functional currency of CSGL, CGEO and CRE.
	The Kazakh Tenge (KZT) is the functional currency of Caspian LLP, TatArka and Balykshy, the Euro is the functional currency of Caspian B.V. and the Russian Ruble is the functional currency of Caspian LLC. Their respective balance sheets have been translated into USD at the exchange rates prevailing at each balance sheet date. Their respective statements of comprehensive income (loss) have been translated into USD using the average exchange rates prevailing during the periods of each statement. The corresponding translation adjustments are part of accumulated other comprehensive income and are shown as part of shareholders’ equity.
	The translation of KZT denominated assets and liabilities into USD for the purpose of these consolidated financial statements does not necessarily mean the Company could realize or settle, in USD, the reported values of these assets and liabilities in USD. Likewise it does not mean the Company could return or distribute the reported USD value of its Kazakh subsidiaries’ capital to its shareholders.
	In February 2014 the Kazakh government devalued the KZT by 20%. As a result of the devaluation, during the three and six month periods ended March 31, 2014, the Company recorded foreign exchange transaction losses of $6,478 and $6,463, respectively, as a result of the remeasurement of the EBRD loan which is denominated in U.S. Dollars.
Use of Estimates	'
	Use of Estimates – The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.
Comprehensive Loss	'
	Comprehensive Loss – Total comprehensive loss consists of net loss and changes in accumulated other comprehensive loss.  Accumulated other comprehensive loss is presented in the consolidated statements of comprehensive income (loss) and consists of foreign currency translation adjustments.
Concentration of Revenue	'
	Concentration of Revenue – During six months ended March 31, 2014 76% of vessel revenue came from three clients: Bumi Armada Caspian LLC – 30%, Saipem Kazakhstan Branch – 26%, NC Production Operations Company B.V. – 20%. During six months ended March 31, 2014 54% of marine base service revenue came from our related party MOBY.
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements –
	In July 2013, the FASB issued Accounting Standards Update (“ASU”) No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force). The Company does not believe that adoption of the standard will have a material impact on its results of operations or financial position upon adoption.
	In March 2013, the FASB issued Accounting Standards Update (“ASU”) No. 2013-05, Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign (a consensus of the FASB Emerging Issues Task Force). The Company does not believe that adoption of the standard will have a material impact on its results of operations or financial position upon adoption.
	In February 2013, the FASB issued Accounting Standards Update (“ASU”) No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The Company does not believe that adoption of the standard will have a material impact on its results of operations or financial position upon adoption.
	In January 2013, the FASB issued Accounting Standards Update (“ASU”) No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. The Company does not believe that adoption of the standard will have a material impact on its results of operations or financial position upon adoption.
	In April 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-08, Presentation of Financial Statements and Property, Plant, and Equipment. Reporting discontinued operations and disclosures of disposals of components of an entity. The Company does not believe that adoption of the standard will have a material impact on its results of operations or financial position upon adoption.

NOTE_3_NOTES_PAYABLE_Tables

NOTE 3 - NOTES PAYABLE (Tables)	6 Months Ended
	Mar. 31, 2014
Note 3 - Notes Payable Tables	'
NOTES PAYABLE	'
	Notes payable consists of the following:
		March 31,	September 30,
		2014	2013
	Secured non-negotiable promissory note payable to Investor; interest at 0.26%	$             10,870	$              10,856
	due September 30, 2014
	Secured convertible consolidated promissory note payable to Investor; interest at 12%	31,233	29,593
	(default interest at 13%) due September 30, 2014
	EBRD loan and accrued interest at 7% due May 2015 (default interest at 9%);
	secured by property and bank accounts	24,423	23,387
	Total Long-term Debt	66,526	63,836
	Less: Current Portion	(66,526)	(63,836)
	Long-term Debt - Net of Current Portion	$                      -	$                        -

NOTE_4_STOCK_BASED_COMPENSATIO1

NOTE 4 - STOCK BASED COMPENSATION PLANS (Tables)	6 Months Ended
	Mar. 31, 2014
Deficit	'
A summary of the non-vested stock under the Company's compensation plan	'
	A summary of the non-vested stock under the Company’s compensation plan at March 31, 2014 follows:
		Non-Vested	Weighted Average Grant
		Shares	Date Fair Value Per Share
	Non-vested at September 30, 2013	147,939	$0.11
	Stock granted	-	-
	Stock vested	-	-
	Non-vested at March 31, 2014	147,939	$0.11

NOTE_6_RELATED_PARTY_TRANSACTI1

NOTE 6 - RELATED PARTY TRANSACTIONS (Tables)	6 Months Ended
	Mar. 31, 2014
Note 6 - Related Party Transactions Tables	'
Accounts receivable from related parties	'
	Accounts receivable from related parties as of March 31, 2014 and September 30, 2013 consisted of the following:
	Related Party's Name	Description	31-Mar-14	30-Sep-13
	Bolz LLP	Seismic services	$                          8	$                        3,174
	MOBY	Marine base	-	1,330
	Demeu Energy	Advance given for vehicles delivery	275	325
	Caspian Geo Consulting	Advance given for equipment delivery	275	-
	Others	Other services	7	125
		Allowance for doubtful accounts	(557)	(3,499)
	TOTAL		$                          8	$                      1,455
Accounts payable to related parties	'
	Accounts payable to related parties as of March 31, 2014 and September 30, 2013 consisted of the following:
	Related Party's Name	Description	31-Mar-14	30-Sep-13
	MOBY	Advance received for land rental	$                       368	$                              -
	TOTAL		$                     368	$                             -
Long-term deferred revenue from related parties	'
	Long-term deferred revenue from related parties as of March 31, 2014 and September 30, 2013 consisted of the following:
	Related Party's Name	Description	March 31, 2014	30-Sep-13
	MOBY	Advance received for land rental	$                         -	$                        2,619
	TOTAL		$                         -	$                      2,619

NOTE_7_FAIR_VALUE_MEASUREMENTS1

NOTE 7 - FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Mar. 31, 2014
Note 7 - Fair Value Measurements Tables	'
Schedule of fair value measurements	'
	Nonrecurring basis:
			Fair Value Measurements at Reporting Date Using
	Description	31-Mar-14	Level 1	Level 2	Level 3
	Property held for sale	$             114	$         -	$         -	$     114
			Fair Value Measurements at Reporting Date Using
	Description	30-Sep-13	Level 1	Level 2	Level 3
	Property held for sale	$             203	$         -	$         -	$     203

NOTE_8_SEGMENT_INFORMATION_Tab

NOTE 8 - SEGMENT INFORMATION (Tables)	6 Months Ended
	Mar. 31, 2014
Note 8 - Segment Information Tables	'
Operations and assets of reportable business segments schedule	'
	Further information regarding the operations and assets of these reportable business segments follows:
		For the Three Months		For the Six Months
		Ended March 31,		Ended March 31,
		2014	2013	2014	2013
	Capital Expenditures
	Vessel Operations	$               356	$           27	$         813	$           881
	Geophysical Services	686	456	2,188	547
	Marine Base Services	-	-	-	58
	Total segments	1,042	483	3,001	1,486
	Corporate assets	1	-	1	-
	Less intersegment investments	-	(81)	-	(62)
	Total consolidated	$            1,043	$         402	$      3,002	$        1,424
		For the Three Months		For the Six Months
		Ended March 31,		Ended March 31,
		2014	2013	2014	2013
	Revenues
	Vessel Operations	$               809	$      1,113	$      6,723	$        4,815
	Geophysical Services	3,155	8,292	7,268	9,393
	Marine Base Services	866	314	3,077	3,160
	Total segments	4,830	9,719	17,068	17,368
	Corporate revenue	-	-	-	-
	Less intersegment revenues	(268)	(738)	(2,748)	(3,337)
	Total consolidated	$            4,562	$      8,981	$    14,320	$      14,031
	Depreciation and Amortization
	Vessel Operations	$             (475)	$       (537)	$       (996)	$       (1,110)
	Geophysical Services	(284)	(349)	(607)	(731)
	Marine Base Services	(308)	(372)	(674)	(730)
	Total segments	(1,067)	(1,258)	(2,277)	(2,571)
	Corporate depreciation and amortization	-	(1)	-	(1)
	Total consolidated	$          (1,067)	$    (1,259)	$    (2,277)	$       (2,572)
	Interest expense
	Vessel Operations	$                   -	$           -	$             -	$              -
	Geophysical Services	-	(10)	-	(37)
	Marine Base Services	(1,442)	(1,212)	(2,904)	(2,581)
	Total segments	(1,442)	(1,222)	(2,904)	(2,618)
	Corporate interest expense	(531)	(458)	(1,069)	(915)
	Total consolidated	$          (1,973)	$    (1,680)	$    (3,973)	$       (3,533)
	Income/(Loss) Before Income Tax
	Vessel Operations	$          (1,768)	$    (1,765)	$    (1,206)	$       (3,183)
	Geophysical Services	174	4,133	1,733	2,916
	Marine Base Services	(8,691)	(4,284)	(10,541)	(4,150)
	Total segments	(10,285)	(1,916)	(10,014)	(4,417)
	Corporate loss	(1,012)	(828)	(1,720)	(1,407)
	Total consolidated	$        (11,297)	$    (2,744)	$  (11,734)	$       (5,824)
		For the Three Months		For the Six Months
		Ended March 31,		Ended March 31,
		2014	2013	2014	2013
	Benefit from (Provision for) Income Tax
	Vessel Operations	$               339	$      1,249	$         599	$        1,455
	Geophysical Services	1	(867)	(521)	(729)
	Marine Base Services	-	-	-	-
	Total segments	340	382	78	726
	Corporate provision for income tax	-	-	-	-
	Total consolidated	$               340	$         382	$           78	$           726
	Loss from discontinued operations
	Vessel Operations	$                   -	$              -	$             -	$                -
	Geophysical Services	-	(361)	-	(640)
	Marine Base Services	-	-	-	-
	Total segments	-	(361)	-	(640)
	Corporate	-	-	-	-
	Total consolidated	$                   -	$       (361)	$             -	$          (640)
	Loss/(Income) attributable to Noncontrolling Interests
	Vessel Operations	$                   -	$             -	$             -	$                -
Geophysical Services	-	98	-	80
Marine Base Services	1,830	377	1,855	377
Total segments	1,830	475	1,855	457
Corporate noncontrolling interest	-	-	-	-
Total consolidated	$            1,830	$         475	$      1,855	$           457
Net (Loss)/Income attributable to Caspian Services Inc.
Vessel Operations	$          (1,429)	$       (516)	$       (607)	$       (1,728)
Geophysical Services	175	3,003	1,212	1,627
Marine Base Services	(6,861)	(3,907)	(8,686)	(3,773)
Total segments	(8,115)	(1,420)	(8,081)	(3,874)
Corporate loss	(1,012)	(828)	(1,720)	(1,407)
Total consolidated	$          (9,127)	$    (2,248)	$    (9,801)	$       (5,281)
			March 31,	September 30,
Segment Assets			2014	2013
Vessel Operations			$    17,537	$      24,031
Geophysical Services			17,932	18,005
Marine Base Services			68,741	78,186
Total segments			104,210	120,222
Corporate assets			991	6,946
Less intersegment investments			(40,530)	(46,625)
Total consolidated			$    64,671	$      80,543

NOTE_1_THE_COMPANY_AND_BASIS_O2

NOTE 1 - THE COMPANY AND BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013	Sep. 30, 2013
Note 1 - Company And Basis Of Presentation And Accounting Policies Details Narrative	'	'	'	'	'
Options outstanding	800,000	800,000	800,000	800,000	'
Non-vested restricted shares outstanding	147,939	441,862	147,939	441,862	'
Potential shares related to convertible debt	402,913,333	367,580,000	402,913,333	367,580,000	'
Deferred revenue	$0	'	$0	'	$10
Accelerated put option liability	20,688	'	20,688	'	19,649
Foreign exchange transaction losses	$6,478	$70	$6,463	$148	'

NOTE_3_NOTES_PAYABLE_Details

NOTE 3 - NOTES PAYABLE (Details) (USD $)	Mar. 31, 2014	Sep. 30, 2013
In Thousands, unless otherwise specified
Total Long-term Debt	$66,526	$63,836
Less: Current Portion	-66,526	-63,836
Long-term Debt - Net of Current Portion	0	0
Non Negotiable Promissory Note [Member]	'	'
Total Long-term Debt	10,870	10,856
Convertible Consolidated Promissory Note [Member]	'	'
Total Long-term Debt	31,233	29,593
EBRD Loan And Accrued Interest [Member]	'	'
Total Long-term Debt	$24,423	$23,387

NOTE_4_STOCK_BASED_COMPENSATIO2

NOTE 4 - STOCK BASED COMPENSATION PLANS (Details) (USD $)	6 Months Ended
	Mar. 31, 2014
Note 4 - Stock Based Compensation Plans Details	'
Non-vested, Beginning	147,939
Stock granted, Shares	0
Stock vested, Shares	0
Non-vested, Ending	147,939
Non-vested Beginning, Weighted Average Grant Date Fair Value Per Share	$0.11
Stock granted, Weighted Average Grant Date Fair Value Per Share	$0
Stock vested, Weighted Average Grant Date Fair Value Per Share	$0
Non-vested Ending, Weighted Average Grant Date Fair Value Per Share	$0.11

NOTE_4_STOCK_BASED_COMPENSATIO3

NOTE 4 - STOCK BASED COMPENSATION PLANS (Details Narrative) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014
Deficit	'
Value of the non-vested stock under the compensation plan	$4
Unrecognized stock-based compensation	$3
Weighted average remaining term	'3 months 18 days

NOTE_6_RELATED_PARTY_TRANSACTI2

NOTE 6 - RELATED PARTY TRANSACTIONS (Details) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Sep. 30, 2013
Accounts receivable from related parties	$8	$1,455
Bolz Llp [Member]	'	'
Related Party, description	'Seismic services	'
Accounts receivable from related parties	8	3,174
Moby [Member]	'	'
Related Party, description	'Marine base	'
Accounts receivable from related parties	0	1,330
Demeu Energy [Member]	'	'
Related Party, description	'Advance given for vehicles delivery	'
Accounts receivable from related parties	275	325
Caspian Geo Consulting [Member]	'	'
Related Party, description	'Advance given for equipment delivery	'
Accounts receivable from related parties	275	0
Others [Member]	'	'
Related Party, description	'Other services	'
Accounts receivable from related parties	7	125
AllowanceForDoubtfulAccounts [Member]	'	'
Accounts receivable from related parties	($557)	($3,499)

NOTE_6_RELATED_PARTY_TRANSACTI3

NOTE 6 - RELATED PARTY TRANSACTIONS (Details 1) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Sep. 30, 2013
Accounts payable to related parties	$368	$0
Long-term deferred revenue from related parties	0	2,619
Moby [Member]	'	'
Related Party, description	'Advance received for land rental	'
Accounts payable to related parties	368	0
Long-term deferred revenue from related parties	$0	$2,619

NOTE_6_RELATED_PARTY_TRANSACTI4

NOTE 6 - RELATED PARTY TRANSACTIONS (Details Narrative) (Moby [Member], USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Moby [Member]	'	'	'	'
Lease revenue recognized	$535	$165	$665	$317

NOTE_7_FAIR_VALUE_MEASUREMENTS2

NOTE 7 - FAIR VALUE MEASUREMENTS (Details) (USD $)	Mar. 31, 2014	Sep. 30, 2013
In Thousands, unless otherwise specified
Property held for sale	$114	$203
Level 1	'	'
Property held for sale	0	0
Level 2	'	'
Property held for sale	0	0
Level 3	'	'
Property held for sale	$114	$203

NOTE_7_FAIR_VALUE_MEASUREMENTS3

NOTE 7 - FAIR VALUE MEASUREMENTS (Details Narrative) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Sep. 30, 2013
Debt Disclosure [Abstract]	'	'
Accelerated put option liability fair value	$20,688	$19,649
Accrued interest rate	20.00%	'
Change in fair value	$1,039	'

NOTE_8_SEGMENT_INFORMATION_Det

NOTE 8 - SEGMENT INFORMATION (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Capital Expenditures	'	'	'	'
Total Segments Capital Expenditures	$1,042	$483	$3,001	$1,486
Corporate assets	1	0	1	0
Less intersegment investments	0	-81	0	-62
Total consolidated	1,043	402	3,002	1,424
Revenues	'	'	'	'
Total segments Revenues	4,830	9,719	17,068	17,368
Corporate revenue	0	0	0	0
Less intersegment revenues	-268	-738	-2,748	-3,337
Total consolidated	4,562	8,981	14,320	14,031
Depreciation and Amortization	'	'	'	'
Total segments Depreciation and Amortization	-1,067	-1,258	-2,277	-2,571
Corporate depreciation and amortization	0	-1	0	-1
Total consolidated	-1,067	-1,259	-2,277	-2,572
Interest expense	'	'	'	'
Total segments Interest expense	-1,442	-1,222	-2,904	-2,618
Corporate interest expense	-531	-458	-1,069	-915
Total consolidated	-1,973	-1,680	-3,973	-3,533
Income/(Loss) Before Income Tax	'	'	'	'
Total segments Income/(Loss) Before Income Tax	-10,285	-1,916	-10,014	-4,417
Corporate loss	-1,012	-828	-1,720	-1,407
Total consolidated	-11,297	-2,744	-11,734	-5,824
Benefit from (Provision for) Income Tax	'	'	'	'
Total segments Benefit from (Provision for) Income Tax	340	382	78	726
Corporate provision for income tax	0	0	0	0
Income tax (provision) benefit	340	382	78	726
Loss from discontinued operations	'	'	'	'
Total segments	0	-361	0	-640
Corporate	0	0	0	0
Total consolidated	0	-361	0	-640
Loss/(Income) attributable to Noncontrolling Interests	'	'	'	'
Total segments Loss/(Income) attributable to Noncontrolling Interests	1,830	475	1,855	457
Corporate noncontrolling interest	0	0	0	0
Total consolidated	1,830	475	1,855	457
Net Loss/(Income) attributable to Caspian Services Inc.	'	'	'	'
Total segments Net Loss/(Income) attributable to Caspian Services Inc.	-8,115	-1,420	-8,081	-3,874
Corporate loss	-1,012	-828	-1,720	-1,407
Total consolidated	-9,127	-2,248	-9,801	-5,281
Vessel Operations [Member]	'	'	'	'
Capital Expenditures	'	'	'	'
Total Segments Capital Expenditures	356	27	813	881
Revenues	'	'	'	'
Total segments Revenues	809	1,113	6,723	4,815
Depreciation and Amortization	'	'	'	'
Total segments Depreciation and Amortization	-475	-537	-996	-1,110
Interest expense	'	'	'	'
Total segments Interest expense	0	0	0	0
Income/(Loss) Before Income Tax	'	'	'	'
Total segments Income/(Loss) Before Income Tax	-1,768	-1,765	-1,206	-3,183
Benefit from (Provision for) Income Tax	'	'	'	'
Total segments Benefit from (Provision for) Income Tax	339	1,249	599	1,455
Loss from discontinued operations	'	'	'	'
Total segments	0	0	0	0
Loss/(Income) attributable to Noncontrolling Interests	'	'	'	'
Total segments Loss/(Income) attributable to Noncontrolling Interests	0	0	0	0
Net Loss/(Income) attributable to Caspian Services Inc.	'	'	'	'
Total segments Net Loss/(Income) attributable to Caspian Services Inc.	-1,429	-516	-607	-1,728
Geophysical Services [Member]	'	'	'	'
Capital Expenditures	'	'	'	'
Total Segments Capital Expenditures	686	456	2,188	547
Revenues	'	'	'	'
Total segments Revenues	3,155	8,292	7,268	9,393
Depreciation and Amortization	'	'	'	'
Total segments Depreciation and Amortization	-284	-349	-607	-731
Interest expense	'	'	'	'
Total segments Interest expense	0	-10	0	-37
Income/(Loss) Before Income Tax	'	'	'	'
Total segments Income/(Loss) Before Income Tax	174	4,133	1,733	2,916
Benefit from (Provision for) Income Tax	'	'	'	'
Total segments Benefit from (Provision for) Income Tax	1	-867	-521	-729
Loss from discontinued operations	'	'	'	'
Total segments	0	-361	0	-640
Loss/(Income) attributable to Noncontrolling Interests	'	'	'	'
Total segments Loss/(Income) attributable to Noncontrolling Interests	0	98	0	80
Net Loss/(Income) attributable to Caspian Services Inc.	'	'	'	'
Total segments Net Loss/(Income) attributable to Caspian Services Inc.	175	3,003	1,212	1,627
Marine Base Services [Member]	'	'	'	'
Capital Expenditures	'	'	'	'
Total Segments Capital Expenditures	0	0	0	58
Revenues	'	'	'	'
Total segments Revenues	866	314	3,077	3,160
Depreciation and Amortization	'	'	'	'
Total segments Depreciation and Amortization	-308	-372	-674	-730
Interest expense	'	'	'	'
Total segments Interest expense	-1,442	-1,212	-2,904	-2,581
Income/(Loss) Before Income Tax	'	'	'	'
Total segments Income/(Loss) Before Income Tax	-8,691	-4,284	-10,541	-4,150
Benefit from (Provision for) Income Tax	'	'	'	'
Total segments Benefit from (Provision for) Income Tax	0	0	0	0
Loss from discontinued operations	'	'	'	'
Total segments	0	0	0	0
Loss/(Income) attributable to Noncontrolling Interests	'	'	'	'
Total segments Loss/(Income) attributable to Noncontrolling Interests	1,830	377	1,855	377
Net Loss/(Income) attributable to Caspian Services Inc.	'	'	'	'
Total segments Net Loss/(Income) attributable to Caspian Services Inc.	($6,861)	($3,907)	($8,686)	($3,773)

NOTE_8_SEGMENT_INFORMATION_Det1

NOTE 8 - SEGMENT INFORMATION (Details 1) (USD $)	Mar. 31, 2014	Sep. 30, 2013
In Thousands, unless otherwise specified
Total segments Assets	$104,210	$120,222
Corporate assets	991	6,946
Less intersegment investments	-40,530	-46,625
Total consolidated	64,671	80,543
Vessel Operations [Member]	'	'
Total segments Assets	17,537	24,031
Geophysical Services [Member]	'	'
Total segments Assets	17,932	18,005
Marine Base Services [Member]	'	'
Total segments Assets	$68,741	$78,186