Caspian Services (CSSV) 10-K 13 Jan 15 2014 FY Annual report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
	Sep. 30, 2014	Jan. 05, 2015	Mar. 31, 2014
Document And Entity Information
Entity Registrant Name	CASPIAN SERVICES INC
Entity Central Index Key	1093430
Document Type	10-K
Document Period End Date	30-Sep-14
Amendment Flag	FALSE
Current Fiscal Year End Date	-21
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 Public Float			$1,253,326
Entity Common Stock, Shares Outstanding		52,657,574
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2014

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2014	Sep. 30, 2013
In Thousands, unless otherwise specified
Current Assets
Cash	$1,957	$3,973
Trade accounts receivable, net of allowance of $3,454 and $2,796, respectively	10,458	11,075
Trade accounts receivable from related parties, net of allowance of $440 and $3,499, respectively	0	1,455
Short-term notes to related parties	70	0
Other receivables, net of allowance of $730 and $291, respectively	558	705
Inventories	1,261	1,053
Property held for sale, net of allowance of $1,074 and $1,273, respectively	44	203
Prepaid taxes	1,228	1,329
Advances paid, net of allowance of $28 and $39, respectively	547	829
Deferred tax assets	88	235
Prepaid expenses and other current assets	329	571
Total Current Assets	16,540	21,428
Vessels, equipment and property, net	42,087	50,741
Drydocking costs, net	538	519
Long-term deferred tax assets	2,450	1,849
Goodwill	189	224
Intangible assets, net	14	29
Long-term prepaid taxes	2,873	4,735
Investments	0	13
Long-term other receivables, net of current portion	2,377	1,005
Total Assets	67,068	80,543
Current Liabilities
Accounts payable	2,319	2,409
Accounts payable to related parties	76	0
Accrued expenses	1,690	1,244
Taxes payable	527	911
Deferred revenue	0	10
Accelerated put option liability	21,649	19,649
Long-term debt - current portion	75,284	63,836
Total Current Liabilities	101,545	88,059
Long-term deferred revenue from related parties	0	2,619
Total Liabilities	101,545	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	64,832	64,827
Accumulated deficit	-66,536	-49,894
Accumulated other comprehensive loss	-20,141	-15,619
Deficit attributable to Caspian Services, Inc. Shareholders	-21,792	-633
Deficit attributable to noncontrolling interests	-12,685	-9,502
Total Deficit	-34,477	-10,135
Total Liabilities and Deficit	$67,068	$80,543

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2014	Sep. 30, 2013
In Thousands, except Share data, unless otherwise specified
ASSETS:
Allowance for trade accounts receivable	$3,454	$2,796
Allowance for trade accounts receivable from related parties	440	3,499
Allowance for other receivables	730	291
Allowance for property held for sale	1,074	1,273
Allowance for advances paid	$28	$39
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

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Revenues
Vessel revenues	$15,051	$18,234
Geophysical service revenues (which includes $558 and $0, respectively, from related parties)	13,244	13,700
Marine base service revenues (which includes $468 and $566, respectively, from related parties)	1,636	1,154
Total Revenues	29,931	33,088
Operating Expenses
Vessel operating costs	9,522	10,333
Cost of geophysical service revenues	7,669	7,889
Cost of marine base service (which includes $68 and $66, respectively, to related parties)	697	863
Depreciation and amortization	4,520	5,015
Impairment loss	2,281	1,062
General and administrative expense (which includes $0 and $198, respectively, to related parties)	8,915	11,078
Total Costs and Operating Expenses	33,604	36,240
Loss from Operations	-3,673	-3,152
Other Income (Expense)
Interest expense	-8,093	-7,985
Foreign currency transaction loss	-6,645	-660
Interest income	0	62
Loss on remeasurement of equity interests in MOBY	-722	0
Other non-operating income, net	3	1,950
Net Other Expense	-15,457	-6,633
Loss from Continuing Operations Before Income Tax	-19,130	-9,785
Benefit from income tax	370	528
Net loss from continuing operations	-18,760	-9,257
Loss from discontinued operations	0	-2,571
Net loss	-18,760	-11,828
Net loss attributable to noncontrolling interests	2,118	284
Net loss attributable to Caspian Services, Inc	-16,642	-11,544
Other Comprehensive Income (Loss)
Foreign currency translation adjustment	-5,587	-763
Comprehensive loss	-22,229	-12,307
Comprehensive income (loss) attributable to non-controlling interest	-1,065	139
Comprehensive loss attributable to Caspian Services, Inc.	($23,294)	($12,168)
Basic and Diluted Loss per Share from continuing operations	($0.32)	($0.18)
Basic and Diluted Loss per Share from discontinued operations	$0	($0.05)
Basic and Diluted Loss per Share	($0.32)	($0.23)
Weighted Average Shares Outstanding	52,657,574	52,657,574

CONSOLIDATED_STATEMENTS_OF_OPE1

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Revenues
Related Parties Geophysical Services Revenues	$558	$0
Related Parties Marine Base Services Revenue	468	566
Cost of marine base service to related parties	68	66
General and administrative expense, related parties	$0	$198

CONSOLIDATED_STATEMENTS_OF_EQU

CONSOLIDATED STATEMENTS OF EQUITY (USD $)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss	Noncontrolling Interest	Total
In Thousands, except Share data
Beginning Balance, Amount at Sep. 30, 2012	$53	$64,799	($38,350)	($14,995)	($9,079)	$2,428
Beginning Balance, Shares at Sep. 30, 2012	52,657,574
Net loss			-11,544		-284	-11,828
Currency translation adjustment				-624	-139	-763
Stock based compensation		28				28
Ending Balance, Amount at Sep. 30, 2013	53	64,827	-49,894	-15,619	-9,502	-10,135
Ending Balance, Shares at Sep. 30, 2013	52,657,574
Net loss			-16,642		-2,118	-18,760
Currency translation adjustment				-4,522	-1,065	-5,587
Stock based compensation		5				5
Ending Balance, Amount at Sep. 30, 2014	$53	$64,832	($66,536)	($20,141)	($12,685)	($34,477)
Ending Balance, Shares at Sep. 30, 2014	52,657,574

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:
Net loss	($18,760)	($11,828)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	4,520	5,015
Impairment loss	2,281	1,062
Loss on remeasurement of equity interests in MOBY	722	0
Loss from discontinued operations	0	2,571
Gain on sale of property and equipment	0	-1,070
Accrued interest on accelerated put option	2,000	1,827
Foreign currency transaction loss	6,645	660
Stock based compensation	5	28
Changes in current assets and liabilities:
Trade accounts receivable	-1,036	-4,190
Trade accounts receivable from related parties	1,239	-471
Short-term notes to related parties	-70	0
Other receivables	1,265	945
Inventories	-428	807
Inventories held for sale	126	640
Prepaid taxes	-105	776
Advances paid	212	-26
Deferred tax assets	-694	-243
Prepaid expenses and other current assets	170	246
Long-term prepaid taxes	1,121	574
Long-term other receivables, net of current portion	43	113
Accounts payable	-237	48
Accounts payable to related parties	-2,203	-25
Accrued expenses	10,240	5,296
Taxes payable	-344	-366
Deferred revenue	-8	4
Long-term deferred revenue from related parties	0	-180
Long-term deferred income tax liability	-81	-284
Net cash provided by operating activities	6,623	1,929
Cash flows from investing activities:
Cash received from sale of vessels, equipment and property	70	2,878
Payments to purchase vessels, equipment and property	-4,423	-3,381
Net cash used in investing activities	-4,353	-503
Cash flows from financing activities:
Payments on long-term debt	-700	-1,600
Net cash used in financing activities	-700	-1,600
Effect of exchange rate changes on cash	-3,586	-454
Net change in cash	-2,016	-628
Cash at beginning of period	3,973	4,601
Cash at end of period	1,957	3,973
Supplemental disclosure of cash flow information:
Cash paid for interest	$700	$1,600

NOTE_1_THE_COMPANY_AND_BASIS_O

NOTE 1 - THE COMPANY AND BASIS OF PRESENTATION	12 Months Ended
	Sep. 30, 2014
Notes to Financial Statements
NOTE 1 - THE COMPANY AND BASIS OF PRESENTATION	Principles of Consolidation – The accompanying consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“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”), Caspian Real Estate, Ltd (“CRE”) and Kyran Holdings Limited (“Kyran”); and include majority owned subsidiaries: Balykshi LLP (“Balykshi”) and  Mangistau Oblast Boat Yard LLP (“MOBY”), collectively “Caspian” or the “Company.” TatArka owns a 40% non-controlling interest in Veritas-Caspian LLP (“Veritas-Caspian”). Ownership of up to 50% noncontrolling interests are accounted for by the equity method. 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.  EBRD also 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 September 30, 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 $21,649 and $19,649 as of September 30, 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 annual report on Form 10-K, to the Company’s knowledge, EBRD has not sought to accelerate repayment of the loan or the put option.
	The Company continues to engage in discussions with EBRD regarding a possible restructuring of its financial obligations to EBRD.
	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 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, 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 is $0.12. The Investor has the right, at any time, to demand the issuance of shares in satisfaction of the Non-Negotiable Note.  In September 2014 the Company and Investor agreed to extend the maturity date of the Non-Negotiable Note from September 30, 2014 to June 30, 2015.  If the issuance of common stock has not been demanded by Investor or made at the election of the Company by the June 30, 2015 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.  In September 2014 the Company and Investor agreed to extend the maturity date of the Consolidated Note from September 30, 2014 to June 30, 2015.  The unpaid principal amount of the Consolidated Note, and any accrued but unpaid interest thereon, is due and payable on June 30, 2015.
	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 $0.10 per share.  Any conversion that would result in a change in control of the Company without the prior consent of EBRD could result in a breach of the EBRD financing agreements.
	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 $2,300 in reduction of interest due as of September 30, 2014, and an additional $300 was paid in December 2014.
	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, 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 September 30, 2014 and September 30, 2013. As of the date of this report, to the Company’s knowledge, Investor has not demanded immediate repayment of the Consolidated Note.
	Acquisition of Kyran  – On August 7, 2014 the Company and Topaz Engineering Limited (“Topaz”), the owner of Kyran, closed a Share Purchase Agreement dated November 20, 2013 (the “Purchase Agreement”), pursuant to which the Company acquired Topaz’s 100% equity interest in Kyran for $0.1.  The principal asset of Kyran is a 50% equity interest in MOBY. Since this transaction increased the Company’s interest in MOBY to 65.6% the Company began consolidating MOBY’s operations from the date of acquisition. This acquisition resulted in goodwill of $2,324 which was immediately impaired. Additionally, the Company recognized a $722 loss as a result of the remeasurement of the fair value of the Company's 15.6% equity interest in MOBY held before the acquisition. Please, refer to Note 11 for details. This transaction was undertaken in connection with the Company’s ongoing efforts to restructure its debt obligations to EBRD and Investor.
	The fair values of MOBY assets and liabilities acquired as of the acquisition date, are as follows:
		7-Aug-14
	Cash consideration	$	0.10
	Fair value of equity interest in MOBY before the business combination		(722)
		$	(722)
	Fair value of identifiable assets acquired and liabilities assumed
	Cash	$	47
	Trade accounts receivable		346
	Other receivables		20
	Prepaid taxes		97
	Advances paid		12
	Vessels, equipment and property, net		1,405
	Accounts payable		(403)
	Accounts payable to related parties		(56)
	Accrued expenses		(315)
	Taxes payable		(249)
	Long-term debt - current portion		(5,549)
	Total indentifiable net assets	$	(4,645)
	Fair value of noncontrolling interest		1,599
	Goodwill		2,324
		$	(722)
	Acquired receivables are amounts due from customers as of August 7, 2014.  The gross amount due for these receivables was $458 of which $112 is expected to be uncollectible.  The collectible receivables are expected to be collected during the fiscal 2015.
	The fair value of the noncontrolling interest at the acquisition date was ($1,599). This amount was calculated as 34.4% of MOBY’s identifiable net assets on August 7, 2014. Please, refer to Note 11 for the discussion of the valuation method and assumptions used to value MOBY’s noncontrolling interest.
	The Company recognized a loss of $722 as a result of remeasuring to fair value its 15.6% equity interest in MOBY held before the acquisition.  The loss is reported as loss on remeasurement of equity interests in MOBY in the Company’s statement of operations.
	The revenue and earnings of MOBY since the acquisition date that are included in the consolidated income statement are as follows:
		For the period August 8 - September 30, 2014
	Revenues	$	6
	Net loss	$	3,133
	MOBY was established as a joint venture between Balykshi and two non-related companies – Kyran and JSC KazMorTransFlot (“KMTF”). MOBY was formed to operate a boat repair and drydocking services yard located at the Company’s marine base. Balykshi holds a 20% equity interest in MOBY.
	In August 2008 MOBY entered into a Loan Agreement (the “MOBY Loan Agreement”) with EBRD.  Pursuant to the MOBY Loan Agreement, MOBY borrowed $10,300 from EBRD.  In connection with the loan, EBRD required the Company, Topaz and KMTF to, among other things, execute a Deed of Guarantee and Indemnity (“Guarantee”), guaranteeing the repayment of the MOBY loan.  The guarantee obligation of each party was limited to each party’s respective ownership interest in MOBY.
	Prior to closing the Purchase Agreement; (i) Topaz, through Kyran, voluntarily repaid 50% of the outstanding principal and accrued but unpaid interest of the MOBY loan; (ii) MOBY entered into a loan agreement with Kyran in the amount of the Topaz repayment, approximately $5,700; and (iii) Topaz obtained waivers from EBRD of the obligations of Topaz and Kyran under the MOBY Loan Agreement, the Guarantee and applicable security agreements.  The Company and KMTF were not released from their obligations under the Guarantee.  While the dollar amount of the Company’s obligation pursuant to the Guarantee did not increase as a result of the release of Topaz, the percentage of the MOBY loan that is guaranteed by the Company (and KMTF) under the Guarantee effectively doubled to reflect the 50% repayment by and release of Topaz as a guarantor.
	Pursuant to the Purchase Agreement, the Company agreed to issue indemnity to Topaz and its related parties against any and all past, present and future claims or court actions in relation to Seller’s good faith and legally taken actions during its participation in Kyran.
	As of September 30, 2014 the outstanding balance of the MOBY loan was $5,998 including accrued and unpaid interest. The interest rate under the MOBY loan is generally the interbank rate plus a margin of 3.6%.  The MOBY Loan Agreement provides that during any period when the loan is in default the rate of interest shall be the interbank rate plus a margin of 3.6% plus 2% per annum.  The MOBY Loan Agreement provides for 14 equal semi-annual installment payments of principal and interest on June 15 and December 15, commencing on or after the third anniversary of the MOBY Loan Agreement.
	As of September 30, 2014 and September 30, 2013 MOBY had made no semi-annual installment payments and was in violation of certain financial covenants under the MOBY Loan Agreement.  Pursuant to the MOBY Loan Agreement, if an event of default occurs and is continuing, EBRD may, at its option, by notice to MOBY, declare all or any portion of the principal and accrued interest of the loan due and payable on demand, or immediately due and payable without further notice and without presentment, demand or protest.
	To the Company’s knowledge, to date EBRD has taken no action to establish the defaults or to increase or accelerate the debt obligations of MOBY or guarantee obligations of the Company.  Should EBRD determine to take action, the Company would not have sufficient funds to repay its portion of the MOBY loan or the guarantee and would be forced to seek sources of funding to satisfy these obligations.
	Should EBRD or Investor determine to accelerate the Company’s repayment obligations to them, the Company currently has insufficient funds to repay its obligations to EBRD or 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 were unable to obtain funding to meet these obligations EBRD or Investor could seek any legal remedy 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, CRE and MOBY, foreclosure by EBRD on such assets and bank accounts.  As of September 30, 2014 the book value of collateralized assets was $32,226. The Company has also agreed to collateralize 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 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 consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.  The Company intends to continue its efforts to restructure its financial obligations to EBRD and Investor.
	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 its equity interest at 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 $21,649, although, as of the date of this annual report, EBRD has not sought to accelerate the put option.
	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 consists of operating a marine base with boat repair and drydocking services yard located at the Port of Bautino on the North Caspian Sea.
	Discontinued Operations – In August 2013 the Company discontinued operations in Kazmorgeophisica CJSC (“KMG”). Upon determining to discontinue KMG, all prior periods presented have been restated to separately account for the discontinued operations.  All assets of KMG that were considered to be useful in ongoing operations were transferred to TatArka including its 40% non-controlling participation interest in Veritas-Caspian.
	Equity method investments – During 2005 the Company and an unrelated company formed a joint venture (Veritas-Caspian) to gather and market seismic data from unlicensed blocks of the Kazakhstan sector of the Caspian Sea.  The Kazakhstan Government owns the data gathered; however, Veritas-Caspian has the exclusive right to market and sell the data to prospective bidders on tendered Kazakhstan oil blocks.
	Initially, the Company obtained its interest in Veritas-Caspian through KMG participation for a capital contribution of $0.4 and accounted for the investment under the equity method of accounting.  Later, after the Company discontinued KMG operations this investment was transferred to TatArka.
	At September 30, 2014 the Company’s investment in Veritas-Caspian was zero due to Veritas-Caspian’s accumulated losses recognized. If Veritas-Caspian has income in the future, the Company will resume applying the equity method after its share of that income equals the share of net losses not recognized during the period the equity method was suspended.
	Recent Accounting Pronouncements –
	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.
	In May 2014 the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers.  The objective of this update is to provide a robust framework for addressing revenue recognition issues and, upon its effective date, replaces almost all existing revenue recognition guidance.  This update is effective in annual reporting periods beginning after December 15, 2016 and the interim periods within that year.  The Company is evaluating the impact of this update on the Company’s financial statements.
	In June 2014 FASB issued Accounting Standards Update No. 2014-12 "Compensation - Stock Compensation (Topic 718) – Accounting for Share Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period."  ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition.  ASU 2014-12 is effective for interim and annual periods beginning after December 15, 2015.  The amendments can be applied prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented and to all new or modified awards thereafter. Early adoption is permitted.  The adoption of this standard is not expected to have a material effect to the Company's operating results or financial condition.
	In August 2014 the FASB issued Accounting Standards Update No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entities Ability to Continue as a Going Concern (ASU 2014-15). The guidance in ASU 2014-15 sets forth management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern as well as required disclosures. ASU 2014-15 indicates that, when preparing financial statements for interim and annual financial statements, management should evaluate whether conditions or events, in the aggregate, raise substantial doubt about the entity's ability to continue as a going concern for one year from the date the financial statements are issued or are available to be issued. This evaluation should include consideration of conditions and events that are either known or are reasonably knowable at the date the financial statements are issued or are available to be issued, as well as whether it is probable that management's plans to address the substantial doubt will be implemented and, if so, whether it is probable that the plans will alleviate the substantial doubt. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods and annual periods thereafter. Early application is permitted. The adoption of this guidance is not expected to have a material effect on the Company’s operating results or financial condition.
	The Company has considered all recent accounting pronouncements issued or proposed by the FASB and other standards-setting bodies since the last audit of its financial statements. The Company does not believe that these pronouncements will have a material effect on the Company's financial statements.
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.
Fair Value of Financial Instruments – The carrying amounts reported in the accompanying 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.
Cash – The Company considers all highly-liquid investments purchased with an original maturity of three months or less to be cash equivalents.
Cash balances in Balykshi and CRE, have been designated under our loan agreement with EBRD and may not be used for any purpose other than construction and operations of the marine base.  At September 30, 2014 and 2013 the total cash balance of Balykshi and CRE was $11 and $101, respectively.
Cash deposit in Kazakhstan bank accounts was $1,857 as of September 30, 2014 and these accounts are not insured by the government.
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.
Inventories – Inventory consists of fuel, spare parts and supplies related to geophysical and marine base operations. Inventories are stated at the lower of cost or market, cost being determined by an average cost method, which approximates the first-in, first-out method. Property held for sale represents items and materials, which are expected to be sold within the next fiscal year. As of September 30, 2014 and 2013 an allowance of $1,074 and $1,273, respectively, was recognized.
Vessels, Equipment and Property – Vessels, equipment and property are stated at cost less accumulated depreciation. At the time property is disposed of or traded in, the assets and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is charged to operations.  Major renewals and betterments that extend the life of the property and equipment are capitalized. Maintenance and repairs are expensed as incurred except for marine vessel drydocking expenditures, which are capitalized and amortized.
Depreciation of property and equipment is calculated using the straight-line method and resulted in depreciation expense for the years ended September 30, 2014 and 2013 of $4,100 and $4,826, respectively.
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.
Amortization of drydocking costs is calculated by using the straight-line method and resulted in amortization expense for the years ended September 30, 2014 and 2013 of $397 and $189, respectively. Accumulated amortization of the drydocking costs was $481 and $102 as of September 30, 2014 and 2013, respectively.
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.  At September 30, 2013 the Company impaired the vessels held for disposal. At September 30, 2014 the Company reviewed its long-lived assets and determined the MOBY assets were impaired. See Note 11 for details.
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 September 30, 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.
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, Balykshi, Kyran and MOBY; 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 fiscal year ended September 30, 2014, the Company recorded foreign exchange transaction losses of $6,645 mostly as a result of the remeasurement of the Balykshi EBRD loan which is denominated in U.S. Dollars.
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 basis and attributable to operating loss carry forwards.  Differences generally result from the calculation of income under US GAAP 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. At September 30, 2014 and 2013 no interest or penalties have been accrued as a result of any tax positions taken.  In the event interest or penalties are assessed, the Company 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.
(b) Undistributed earnings of a domestic subsidiary or a domestic corporate joint venture that is essentially permanent in duration.
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.
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.
At September 30, 2014 the Company had 800,000 options outstanding and 419,328,333 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.
At September 30, 2013 the Company had 800,000 options outstanding, 147,939 non-vested restricted shares outstanding and 386,396,667 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.
Stock-Based Compensation – The Company recognizes the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. Fair value of the award is calculated based on closing stock price at the grant date. Restricted stock compensation expense is recognized over the period during which an employee is required to provide service in exchange for the award (the vesting period).
Concentration of Revenue – During fiscal 2014 vessel revenue from four customers that together  represented approximately 81% of total vessel revenue as follows, Customer A – 29%; Customer B – 23%; Customer C – 18%; and Customer D – 11%.
During fiscal 2014 geophysical service revenue from six customers together  represented approximately 79% of total geophysical service revenue as follows, Customer A – 18%; Customer B – 16%; Customer C – 12%; Customer D – 11%; Customer E – 11% and Customer F – 11%.
During fiscal 2014 marine base revenue from two customers represented 78% of total marine base revenue as follows, Customer A – 49% and Customer B – 29%.

NOTE_2_ATASH_MARINE_BASE

NOTE 2 - ATASH MARINE BASE	12 Months Ended
	Sep. 30, 2014
Notes to Financial Statements
NOTE 2 - ATASH MARINE BASE	Additional dredging work at the marine base is still required. Currently, Balykshi has insufficient funds to complete the work. 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, dredging 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 $3,800 of the agreed upon scheduled work, including dredging, which could result in the cancellation of tax preferences granted to Balykshi by the Investment Committee.
	During fiscal 2014 and 2013 the Company determined it necessary to perform an impairment analysis on the marine base since the development of Kashagan field, phase 2 has been postponed until 2019 and oil and gas exploration and development activities in the Caspian Sea region have been substantially reduced or delayed.  As a result, the marine base is currently highly underutilized.
	As a result of the impairment analysis, the Company concluded that no impairment was necessary at September 30, 2014 and 2013, respectively.  The Company performed this analysis by doing a discounted cash flow projection for the base over a 25 year period using a probability weighted average cash flows for different scenarios assuming base utilization starting at different periods.

NOTE_3_TRADE_AND_OTHER_ACCOUNT

NOTE 3 - TRADE AND OTHER ACCOUNTS RECEIVABLE	12 Months Ended
	Sep. 30, 2014
Receivables [Abstract]
NOTE 3 - TRADE AND OTHER ACCOUNTS RECEIVABLE	Trade Accounts Receivable – Net receivables from vessel charter revenues were approximately $4,142 and $6,682 at September 30, 2014 and 2013, respectively.  The Company has reviewed the accounts receivable as of September 30, 2014 and 2013 on a case-by-case basis.  The Company provided an allowance for doubtful accounts of $2,254 and $1,302 at September 30, 2014 and September 30, 2013, respectively, based on existing economic conditions and management’s assessment of the collectability of the receivables.
	Accounts receivable from geophysical services arise principally from contracts to gather seismic data for further geophysical processing and analysis.  The receivables are due 30 days from date of invoice.  At September 30, 2014 and 2013 net receivables related to geophysical services totaled $6,090 and $4,311, respectively. The Company has reviewed the accounts receivable as of September 30, 2014 and 2013 on a case-by-case basis. The Company provided an allowance for doubtful accounts of $1,200 and $1,494 at September 30, 2014 and 2013, respectively, based on existing economic conditions and management’s assessment of the collectability of the receivables.
	At September 30, 2014 and 2013 receivables related to marine base operations totaled $226 and $82, respectively.  The Company determined that no allowance for doubtful accounts for these receivables was necessary at September 30, 2014 and 2013.
	Other Receivables – The Company’s other receivables consisted primarily of the following: (1) loans and advances to non-executive employees which bear no interest and have terms ranging from less than one year to five years, and (2) refunds of inventory advances. These amounts are currently due and expected to be repaid in the near-term.

NOTE_4_VESSELS_EQUIPMENT_AND_P

NOTE 4 - VESSELS, EQUIPMENT AND PROPERTY	12 Months Ended
	Sep. 30, 2014
Property, Plant and Equipment [Abstract]
NOTE 4 - VESSELS, EQUIPMENT AND PROPERTY	Vessels, equipment and property consisted of the following:
	As of September 30,	2014		2013		Depreciable
						Life in Years
	Land	$	7,813	$	9,250	N/A
	Buildings and constructions		31,036		36,285	10-14
	Marine vessels		13,523		15,883	10
	Machinery and equipment		18,020		18,574	2-15
	Field camp		-		-	5-14
	Vehicles		2,599		2,846	3-12
	Office equipment		289		329	2-10
	Dwelling units		1,225		2,210	3-7
	Other		649		831	3-7
			75,154		86,208
	Accumulated depreciation		(33,067)		(35,467)
	Vessels, Equipment and Property, net	$	42,087	$	50,741

NOTE_5_INTANGIBLE_ASSETS_AND_G

NOTE 5 - INTANGIBLE ASSETS AND GOODWILL	12 Months Ended
	Sep. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
NOTE 5 - INTANGIBLE ASSETS AND GOODWILL	Intangible Assets – The following table summarizes the gross carrying amounts and the related accumulated amortization of intangible assets except goodwill as of September 30:
			2014					2013
		Estimated	Gross carrying			Accumulated		Gross carrying		Accumulated
		useful life	amount			amortization		amount		amortization
	Acquired software	7 years	$	316		$	302	$	368	$	339
	Total		$	316		$	302	$	368	$	339
	Total amortization expense related to intangible assets was approximately $23 and $40 for the years ended September 30, 2014 and 2013, respectively.  The estimated amortization expense for acquired software is as follows for the periods indicated:
		Years Ending September 30,
		2015	2016	2017	thereafter
	Amortization expense	$         14	$           -	$             -	$        -
	Goodwill – In accordance with US GAAP the Company does not amortize goodwill.  These principles require the Company to periodically perform tests for goodwill impairment, at least annually, or sooner if evidence of possible impairment arises.  At September 30, 2014 all goodwill was a result of the TatArka acquisition in May 2004 and the MOBY acquisition in August 2014.
	Changes in the carrying amount of goodwill were as follows:
		For The Year Ended September 30,
		2014			2013
	Balance - beginning of year	$	224		$	229
	Goodwill from MOBY acquisition		2,324			-
	Impairment of goodwill from MOBY acquisition	$	(2,281)			-
	Foreign currency translation adjustment		(78)			(5)
	Balance - end of year	$	189		$	224

NOTE_6_NOTES_PAYABLE

NOTE 6 - NOTES PAYABLE	12 Months Ended
	Sep. 30, 2014
Notes to Financial Statements
NOTE 6 - NOTES PAYABLE		September 30,		September 30,
		2014		2013
	Secured non-negotiable promissory note payable to Investor; interest at 0.26%	$	10,885	$	10,856
	due June 30, 2015
	Secured convertible consolidated promissory note payable to Investor; interest at 12%		32,862		29,593
	(default interest at 13%) due June 30, 2015
	Balykshi - EBRD loan and accrued interest at 7% plus the interbank rate due May 2015
	(default interest at 9% plus the interbank rate); secured by property and bank accounts		25,539		23,387
	MOBY - EBRD loan and accrued interest 3.6% plus the interbank rate due June 2018
	(default interest at 5.6% plus the interbank rate)		5,998		-
	Total Long-term Debt		75,284		63,836
	Less: Current Portion		(75,284)		(63,836)
	Long-term Debt - Net of Current Portion	$	-	$	-
	Notes payable consist of the following:
	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 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 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 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 Investor’s Notes with non-marine base related assets.
	Non-Negotiable Promissory Note
	Pursuant to the terms of the Non-Negotiable Note, 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 is $0.12. 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 Investor complete renegotiation of the terms of the financing between the Company and EBRD; or (ii) the date when the Company and Investor terminate restructuring negotiations with EBRD.  The Non-Negotiable Note initially had a maturity date of September 30, 2014.  On September 24, 2014 the Company and Investor entered into a first amendment to this Note, which prolonged the maturity date to June 30, 2015 (Extended Maturity Date).  If the issuance of common stock had not been demanded by Investor or made at the election of the Company by the Extended 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 Extended 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 Investor in satisfaction of accrued interest.
	As the Non-Negotiable Note matures in less than twelve months, it 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, was initially due and payable on September 30, 2014. On September 24, 2014 a first amendment to this Note was entered into between the Company and Investor, which extended the maturity date to June 30, 2015. 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 $700 was paid during the fiscal 2014 and $300 was paid in December 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, 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 September 30, 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, 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 $0.10 per share. However any conversion that would result in a change in control of the Company without the prior consent of EBRD could result in a breach of the EBRD financing agreements.
	Registration Rights Agreement
	In connection with restructuring the Facility agreements, the Company and Investor agreed to enter into a Registration Rights Agreement granting Investor the right to require the Company to register all or any part of the shares held by 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.
	EBRD Loan to Balykshi
	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 have 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.
	EBRD Loan to MOBY
	As of September 30, 2014 the outstanding balance of the MOBY loan was $5,998 including accrued and unpaid interest. The interest rate under the MOBY loan is generally the interbank rate plus a margin of 3.6%.  The MOBY Loan Agreement provides that during any period when the loan is in default the rate of interest shall be the interbank rate plus a margin of 3.6% plus 2% per annum.  The MOBY Loan Agreement provides for 14 equal semi-annual installment payments of principal and interest on June 15 and December 15, commencing after August 2011 (the third anniversary of the MOBY Loan Agreement.)
	As of September 30, 2014 and September 30, 2013 MOBY had made no semi-annual installment payments and was in violation of certain financial covenants under the MOBY Loan Agreement.  Pursuant to the MOBY Loan Agreement, if an event of default occurs and is continuing, EBRD may, at its option, by notice to MOBY, declare all or any portion of the principal and accrued interest of the loan due and payable on demand, or immediately due and payable without further notice and without presentment, demand or protest.
	To date EBRD has taken no action to establish the defaults or to increase or accelerate the debt obligations of MOBY or the guarantee obligations of the Company under the Guarantee.  Should EBRD determine to take action, MOBY would not have sufficient funds to repay its portion of the MOBY Loan nor would the Company have sufficient funds to pay it obligations under the Guarantee.
	The Company is engaged in ongoing discussions with EBRD about restructuring of the terms of its financial obligations to EBRD, but there is no guarantee the Company will be successful in doing so.

NOTE_7_STOCKHOLDERS_EQUITY

NOTE 7 - STOCKHOLDERS' EQUITY	12 Months Ended
	Sep. 30, 2013
Notes to Financial Statements
NOTE 7 - STOCKHOLDERS' EQUITY	Stock-based Compensation Plan – Compensation expense charged against income for stock-based awards during the fiscal years ended September 30, 2014 and 2013 was $5 and $28, respectively, and is included in general and administrative expense in the accompanying financial statements.
	A summary of the non-vested stock under the Compensation Plan at September 30, 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	(147,939)	0.11
	Non-vested at September 30, 2014	-	$      -
	A summary of the non-vested stock under the Compensation Plan at September 30, 2013 follows:
		Non-Vested	Weighted Average Grant
		Shares	Date Fair Value Per Share
	Non-vested at September 30, 2012	441,862	$0.21
	Stock granted	-	-
	Stock vested	(293,923)	0.23
	Non-vested at September 30, 2013	147,939	$0.11
	The employment agreement of Alexey Kotov, our Chief Executive Officer, provides for an annual restricted stock grant equal to 0.85% of the Company’s  total shares issued and outstanding on the anniversary date of his employment agreement (August 2).  He is entitled to this annual grant for the duration of the term of his employment agreement.  The grants vest equally over a period of three years, except upon the occurrence of certain events set forth in his employment agreement, such as a change of control, which would result in immediate vesting.  Pursuant to the terms of his employment agreement, Mr. Kotov became entitled to receive a restricted stock grant in the amount of 451,394 and 447,589 shares on August 2, 2013 and 2014, respectively. These grants have not been awarded.  During the fourth fiscal quarter 2013 and 2014, respectively, Mr. Kotov agreed to release the Company from its obligations to issue the outstanding grants.
	Stock Options – At September 30, 2014 the Company had 800,000 options outstanding that were fully vested. These options expire in August 2015.
	Stock option activity for the years ended September 30, 2014 and 2013 is as follows:
		2014				2013
				Weighted-Average			Weighted-Average
		Options		Exercise Price Per Share		Options	Exercise Price Per Share
	Outstanding at beginning of the year	800,000		$	3.00	800,000	$	3.00
	Granted	-			-	-		-
	Forfeited	-			-	-		-
	Expired	-			-	-		-
	Outstanding at end of the year	800,000		$	3.00	800,000	$	3.00
	Exercisable at end of the year	800,000		$	3.00	800,000	$	3.00
	The weighted-average remaining contractual life of the 800,000 stock options outstanding and exercisable at September 30, 2014 was 1 year.
	At September 30, 2014 there was no intrinsic value for the options outstanding based on the Company’s share price being less than $3 per share.

NOTE_8_INCOME_TAXES

NOTE 8 - INCOME TAXES	12 Months Ended
	Sep. 30, 2014
Income Tax Disclosure [Abstract]
NOTE 8- INCOME TAXES	Kazakh tax legislation and practice is in a state of continuous development and therefore is subject to varying interpretations and frequent changes, which may be retroactive. Further, the interpretation of tax legislation by tax authorities as applied to the transactions and activities of the Company may not coincide with that of management. As a result, tax authorities may challenge transactions and the Company may be assessed additional taxes, penalties and interest. Tax periods remain open to review by the tax authorities for five years.
	The principle of group consolidation for tax purposes does not exist in Kazakhstan. This means that the Company pays tax on all profits realized by its subsidiaries, but cannot offset the losses of other subsidiaries. These losses can only be carried forward in the same company. Tax deductions in the United States consist principally of general and administrative expenses and interest expense.
	Management believes it has paid or accrued for all taxes that are applicable. Where practice concerning the provision of taxes is unclear, management has accrued tax liabilities based on its best estimate.
	Earnings and (losses) before income taxes, discontinued operations and noncontrolling interests derived from United States and international operations are as follows:
		For the Years Ended September 30,
		2014		2013
	United States	$	(3,989)	$	(2,460)
	Kazakhstan		(15,141)		(7,325)
		$	(19,130)	$	(9,785)
	Income (provision) benefit consists of the following:
		For the Years Ended September 30,
		2014		2013
	Current U.S. income tax	$	-	$	-
	Current foreign income tax		(531)		-
	Deferred U.S. income tax		1,186		1,480
	Deferred foreign income tax		3,216		1,180
	Provision for valuation allowance		(3,501)		(2,132)
	Income tax benefit	$	370	$	528
	Deferred tax assets and liabilities are as follows:
						As of September 30,
		US		Foreign		2014		2013
	Current deferred tax assets/(liabilities)
	Provision for doubtful debts	$	-	$	1,145	$	1,145	$	702
	Inventory allowance		-		-		-		255
	Vacation accrual		-		98		98		54
	Tax loss carry forwards		-		-		-		-
	Valuation allowance		-		(1,155)		(1,155)		(776)
	Total current deferred tax asset	$	-	$	88	$	88	$	235
	Long-term deferred tax assets/(liabilities)
	Net operating loss carry forwards	$	7,461	$	10,220	$	17,681	$	14,518
	Capital loss carryforwards		779		-		779		779
	Property and equipment		-		(160)		(160)		(285)
	Valuation allowance		(8,240)		(7,610)		(15,850)		(13,163)
	Total net long-term deferred tax asset/(liability)		-		2,450		2,450		1,849
	Net deferred tax asset	$	-	$	2,538	$	2,538	$	2,084
	The following is a reconciliation of the amount of tax that would result from applying the U.S. federal rate to pretax income with the provision for (benefit from) income taxes:
		For the Years Ended September 30,
		2014		2013
	Tax at federal statutory rate (37.3%)	$	7,135	$	3,652
	Non-deductible expenses		(605)		(390)
	Loss not subject to taxation		547		(41)
	Effect of lower foreign tax rates		(2,260)		(1,053)
	Intercompany adjustments		78		(57)
	Valuation allowance		(3,501)		(1,579)
	Other		(1,024)		(4)
	Income tax benefit	$	370	$	528
	As of September 30, 2014 the Company has loss carry forwards of approximately $23,802 and $49,782 in the United States and Kazakhstan, respectively. Tax loss carry forwards available in the United States and Kazakhstan begin to expire in 2024.
	The Company accounts for uncertain tax positions in accordance with US GAAP.  The Company has analyzed filing positions in all of the federal, state and international jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions.  The periods subject to examination for the Company’s federal, state and international returns are the fiscal 2011 through 2014 tax years.

NOTE_9_COMMITMENTS_AND_CONTING

NOTE 9 - COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Sep. 30, 2014
Notes to Financial Statements
NOTE 9 - 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. 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.
	Operating Leases – The Company leases equipment and vehicles. Rent expense for the years ended September 30, 2014 and 2013 was $515 and $197, respectively. Most of the equipment lease agreements expire December 31, 2014 and the vehicle lease agreement expires in April 2015. According to contract terms, the lease agreements can be renewed by signing an additional agreement.
	The Company maintains executive offices in Salt Lake City, Utah, and Almaty, Kazakhstan and administrative offices in Aktau, Kazakhstan. The Company also leases apartments in Aktau for use by employees. Rent expense for the years ended September 30, 2014 and 2013 was $244 and $254, respectively. The U.S. office lease expires at the end of March 2015.  This lease agreement can be extended by agreement of the parties.  The Aktau office lease agreement expires in October 2017.
	The future minimum rental payments required under these operating leases for 2015 and 2016 are $229 and $113, respectively.  Thereafter the payment is $115.
	Some of the vessels in the Company’s fleet were leased from third parties. Rent expense for the years ended September 30, 2014 and 2013 was $1,840 and $1,587, respectively. The future minimum rental payments required under these operating leases are estimated to be $1,115 in 2015, $1,010 in 2016 and $6,147 thereafter.
	During 2014 vessels were leased from two companies: Veritas Marine and Actamarine. The term of the Veritas lease agreement expires on December 31, 2014.  The Actamarine lease term expires on March 2, 2023.  The terms and conditions of these lease agreement can be amended by agreement of the parties.

NOTE_10_RELATED_PARTY_TRANSACT

NOTE 10 - RELATED PARTY TRANSACTIONS	12 Months Ended
	Sep. 30, 2014
Notes to Financial Statements
NOTE 10 - RELATED PARTY TRANSACTIONS	Revenues and expenses from transactions with related parties for the fiscal years ended September 30, 2014 and 2013 consisted of the following:
			For the year ended September 30,
	Related Party's Name	Description	2014		2013
	MOBY*	Marine base revenue	$	468	$	566
	Bolz	Seismic services revenue		558		-
	Gis Caspiy	Other services		-		(198)
	Other expenses, net	Other services		(68)		(66)
	TOTAL		$	958	$	302
	*Marine base service revenue recognized from MOBY for the period from October 1, 2013 to August 7, 2014 (acquisition date) is presented.
	Accounts receivable from related parties as of September 30, 2014 and 2013 consisted of the following:
	Related Party's Name	Description	30-Sep-14		30-Sep-13
	Bolz LLP	Seismic services	$	-	$	3,174
	MOBY	Marine base		-		1,330
	Demeu Energy	Advance given for vehicles delivery		275		325
	Caspian Geo Consulting	Advance given for equipment delivery		165		-
	Others	Other services		-		125
		Allowance for doubtful accounts		(440)		(3,499)
	TOTAL		$	-	$	1,455
	Accounts payable to related parties as of September 30, 2014 and 2013 consisted of the following:
	Related Party's Name	Description	30-Sep-14		30-Sep-13
	Sayat Media	Other services	$	13	$	-
	Others	Others		63		-
	TOTAL		$	76	$	-
	Long-term deferred revenue from related parties as of September 30, 2014 and 2014 consisted of the following:
	Related Party's Name	Description	30-Sep-14		30-Sep-13
	MOBY	Advance received for land rental	$	-	$	2,619
	TOTAL		$	-	$	2,619
	Short-term notes to related parties as of September 30, 2014 and 2013 consisted of the following:
	Related Party's Name	Description	30-Sep-14		30-Sep-13
	Sayat Media	Notes Receivable	$	70	$	-
	TOTAL		$	70	$	-
	Sayat Media – On September 9, 2014 Balykshi entered into loan agreement with Sayat Media (a company related through Balykshi’s management). Pursuant to the loan agreement Balykshi provided a loan to Sayat Media in the amount of $70. The note receivable bear interest at 5.5% per annum and matures in one year. This loan was fully repaid on November 10, 2014.

NOTE_11_FAIR_VALUE_MEASUREMENT

NOTE 11 - FAIR VALUE MEASUREMENTS	12 Months Ended
	Sep. 30, 2014
Notes to Financial Statements
NOTE 11 - 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 and for acquisitions.  Fair value is also used when evaluating impairment on certain assets, including goodwill, intangibles, and long-lived assets.
	Recurring basis:
	At September 30, 2014 the Company had two liabilities 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 $2,000 change during the year ended September 30, 2014 was for the 20% rate of return and it was charged to interest expense.
	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.
	There were no changes in the valuation techniques during the current year.
					Fair Value Measurements at Reporting Date Using
	Description	30-Sep-14			Level 1		Level 2		Level 3
	Property held for sale	$	44		$	-	$	-	$	44
	Put option liability		21,649			-		-		21,649
	Total	$	21,693		$	-	$	-	$	21,693
					Fair Value Measurements at Reporting Date Using
	Description	30-Sep-13			Level 1		Level 2		Level 3
	Property held for sale	$	203		$	-	$	-	$	203
	Put option liability		19,649			-		-		19,649
	Total	$	19,852		$	-	$	-	$	19,852
	Nonrecurring basis:
	Since the acquisition of Kyran increased the Company’s interest in MOBY to 65.6% the Company began consolidating MOBY’s operations from the acquisition date (August 7, 2014.) US GAAP requires that the Company determines the fair value of the MOBY at the acquisition date.  See Note 1 for details of the fair value of the MOBY assets acquired and liabilities assumed in this acquisition.
	The Company engaged a licensed specialist to perform a valuation of MOBY’s vessels, equipment and property as of August 7, 2014.  Based on the valuation a fair value of MOBY was determined by the Company. The market approach was used to calculate the fair value of MOBY’s vessels, equipment and property with the comparable equipment used as an input.
	The Company valued MOBY’s accounts receivable at expected collections as explained in Note 1.  The Company valued the other current assets acquired and liabilities assumed at book value which approximates their fair value due to their short-term nature.
	The following table describes the valuation techniques used to calculate fair values for assets in Level 3:
		Quantitative Information about Level 3 Fair Value Measurements
		Fair Value at August 7, 2014	Valuation Techniques	Unobservable Input	Range
	Vessels, equipment and property	$   1,405	Market approach	Adjustment for Bargaining	(30%) - 0%
			(selling price of similar items)	Adjustment for model year	(43%) - 53%
				Adjustment for condition	(20%) - 0%
				Adjustment for shipping	0% - 10%
				Adjustment for country of origin	(20%) - 5%
				Correction of risk of non-receipt of income	(20%) - 0%
	The significant unobservable inputs used in the fair value measurement of MOBY’s vessels, equipment and property are the adjustments for bargaining in case of the sale of used equipment, adjustments for the model year of similar equipment, adjustments for the condition of similar equipment technical condition, adjustment for possible shipping costs, adjustment for the origin country of similar assets and correction of the risk of non-receipt of income. Significant increases (decreases) in any of those inputs in isolation would result in a significantly lower (higher) fair value measurement.

NOTE_12_SEGMENT_INFORMATION

NOTE 12 - SEGMENT INFORMATION	12 Months Ended
	Sep. 30, 2014
Notes to Financial Statements
NOTE 12 - SEGMENT INFORMATION	US GAAP requires 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 Years
		Ended September 30,
		2014		2013
	Capital Expenditures
	Vessel operations	$	824	$	1,430
	Geophysical services		3,290		2,570
	Marine base services		309		57
	Total segments		4,423		4,057
	Corporate assets		-		-
	Less intersegment investments		-		(676)
	Total consolidated	$	4,423	$	3,381
		For the Years
		Ended September 30,
		2014		2013
	Revenues
	Vessel  operations	$	16,840	$	20,101
	Geophysical services		13,244		13,644
	Marine base services		6,888		9,062
	Total segments		36,972		42,807
	Corporate revenue		-		-
	Less intersegment revenues		(7,041)		(9,719)
	Total consolidated	$	29,931	$	33,088
	Depreciation and Amortization
	Vessel operations	$	(1,910)	$	(2,178)
	Geophysical services		(1,248)		(1,378)
	Marine base services		(1,361)		(1,458)
	Total segments		(4,519)		(5,014)
	Corporate depreciation and amortization		(1)		(1)
	Total consolidated	$	(4,520)	$	(5,015)
	Interest Expense
	Vessel operations	$	-	$	-
	Geophysical services		-		-
	Marine base services		(5,910)		(5,823)
	Total segments		(5,910)		(5,823)
	Corporate interest expense		(2,183)		(2,162)
	Total consolidated	$	(8,093)	$	(7,985)
	Income/(Loss) Before Income Tax
	Vessel operations	$	(200)	$	(3,102)
	Geophysical services		2,434		1,882
	Marine base services		(18,341)		(5,337)
	Total segments		(16,107)		(6,557)
	Corporate loss		(3,023)		(3,228)
	Total consolidated	$	(19,130)	$	(9,785)
		For the Years
		Ended September 30,
		2014		2013
	Benefit from (Provision for) Income Tax
	Vessel operations	$	1,137	$	1,080
	Geophysical services		(765)		(552)
	Marine base services		-		-
	Total segments		372		528
	Corporate provision for income tax		(2)		-
	Total consolidated	$	370	$	528
	Loss from Discontinued Operations
	Vessel operations	$	-	$	-
	Geophysical services		-		(1,063)
	Marine base services		-		-
	Total segments		-		(1,063)
	Corporate		-		(1,508)
	Total consolidated	$	-	$	(2,571)
	Loss/(Income) Attributable to Noncontrolling Interests
Vessel operations	$	-	$	-
Geophysical services		-		-
Marine base services		2,118		284
Total segments		2,118		284
Corporate noncontrolling interest		-		-
Total consolidated	$	2,118	$	284
Net (Loss)/Income Attributable to Caspian Services, Inc.
Vessel operations	$	937	$	(2,022)
Geophysical services		1,669		267
Marine base services		(16,223)		(5,053)
Total segments		(13,617)		(6,808)
Corporate loss		(3,025)		(4,736)
Total consolidated	$	(16,642)	$	(11,544)
	September 30,
Segment Assets	2014		2013
Vessel operations	$	15,219	$	24,031
Geophysical services		18,663		18,005
Marine base services		73,001		78,186
Total segments		106,883		120,222
Corporate assets		766		6,946
Less intersegment investments		(40,581)		(46,625)
Total consolidated	$	67,068	$	80,543

NOTE_13_SUBSEQUENT_EVENTS

NOTE 13 - SUBSEQUENT EVENTS	12 Months Ended
	Sep. 30, 2014
Notes to Financial Statements
NOTE 13 - SUBSEQUENT EVENTS	In December 2014 we paid $300 to Investor, which was credited to reduce loan interest due.

NOTE_1_THE_COMPANY_AND_BASIS_O1

NOTE 1 - THE COMPANY AND BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Policies)	12 Months Ended
	Sep. 30, 2014
Note 1 - Company And Basis Of Presentation And Accounting Policies Policies
Principles of Consolidation	Principles of Consolidation – The accompanying consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“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”), Caspian Real Estate, Ltd (“CRE”) and Kyran Holdings Limited (“Kyran”); and include majority owned subsidiaries: Balykshi LLP (“Balykshi”) and  Mangistau Oblast Boat Yard LLP (“MOBY”), collectively “Caspian” or the “Company.” TatArka owns a 40% non-controlling interest in Veritas-Caspian LLP (“Veritas-Caspian”). Ownership of up to 50% noncontrolling interests are accounted for by the equity method. 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.  EBRD also 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 September 30, 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 $21,649 and $19,649 as of September 30, 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 annual report on Form 10-K, to the Company’s knowledge, EBRD has not sought to accelerate repayment of the loan or the put option.
	The Company continues to engage in discussions with EBRD regarding a possible restructuring of its financial obligations to EBRD.
	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 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, 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 is $0.12. The Investor has the right, at any time, to demand the issuance of shares in satisfaction of the Non-Negotiable Note.  In September 2014 the Company and Investor agreed to extend the maturity date of the Non-Negotiable Note from September 30, 2014 to June 30, 2015.  If the issuance of common stock has not been demanded by Investor or made at the election of the Company by the June 30, 2015 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.  In September 2014 the Company and Investor agreed to extend the maturity date of the Consolidated Note from September 30, 2014 to June 30, 2015.  The unpaid principal amount of the Consolidated Note, and any accrued but unpaid interest thereon, is due and payable on June 30, 2015.
	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 $0.10 per share.  Any conversion that would result in a change in control of the Company without the prior consent of EBRD could result in a breach of the EBRD financing agreements.
	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 $2,300 in reduction of interest due as of September 30, 2014, and an additional $300 was paid in December 2014.
	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, 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 September 30, 2014 and September 30, 2013. As of the date of this report, to the Company’s knowledge, Investor has not demanded immediate repayment of the Consolidated Note.
Acquisition	Acquisition of Kyran  – On August 7, 2014 the Company and Topaz Engineering Limited (“Topaz”), the owner of Kyran, closed a Share Purchase Agreement dated November 20, 2013 (the “Purchase Agreement”), pursuant to which the Company acquired Topaz’s 100% equity interest in Kyran for $0.1.  The principal asset of Kyran is a 50% equity interest in MOBY. Since this transaction increased the Company’s interest in MOBY to 65.6% the Company began consolidating MOBY’s operations from the date of acquisition. This acquisition resulted in goodwill of $2,324 which was immediately impaired. Additionally, the Company recognized a $722 loss as a result of the remeasurement of the fair value of the Company's 15.6% equity interest in MOBY held before the acquisition. Please, refer to Note 11 for details. This transaction was undertaken in connection with the Company’s ongoing efforts to restructure its debt obligations to EBRD and Investor.
	The fair values of MOBY assets and liabilities acquired as of the acquisition date, are as follows:
		7-Aug-14
	Cash consideration	$	0.10
	Fair value of equity interest in MOBY before the business combination		(722)
		$	(722)
	Fair value of identifiable assets acquired and liabilities assumed
	Cash	$	47
	Trade accounts receivable		346
	Other receivables		20
	Prepaid taxes		97
	Advances paid		12
	Vessels, equipment and property, net		1,405
	Accounts payable		(403)
	Accounts payable to related parties		(56)
	Accrued expenses		(315)
	Taxes payable		(249)
	Long-term debt - current portion		(5,549)
	Total indentifiable net assets	$	(4,645)
	Fair value of noncontrolling interest		1,599
	Goodwill		2,324
		$	(722)
	Acquired receivables are amounts due from customers as of August 7, 2014.  The gross amount due for these receivables was $458 of which $112 is expected to be uncollectible.  The collectible receivables are expected to be collected during the fiscal 2015.
	The fair value of the noncontrolling interest at the acquisition date was ($1,599). This amount was calculated as 34.4% of MOBY’s identifiable net assets on August 7, 2014. Please, refer to Note 11 for the discussion of the valuation method and assumptions used to value MOBY’s noncontrolling interest.
	The Company recognized a loss of $722 as a result of remeasuring to fair value its 15.6% equity interest in MOBY held before the acquisition.  The loss is reported as loss on remeasurement of equity interests in MOBY in the Company’s statement of operations.
	The revenue and earnings of MOBY since the acquisition date that are included in the consolidated income statement are as follows:
		For the period August 8 - September 30, 2014
	Revenues	$	6
	Net loss	$	3,133
	MOBY was established as a joint venture between Balykshi and two non-related companies – Kyran and JSC KazMorTransFlot (“KMTF”). MOBY was formed to operate a boat repair and drydocking services yard located at the Company’s marine base. Balykshi holds a 20% equity interest in MOBY.
	In August 2008 MOBY entered into a Loan Agreement (the “MOBY Loan Agreement”) with EBRD.  Pursuant to the MOBY Loan Agreement, MOBY borrowed $10,300 from EBRD.  In connection with the loan, EBRD required the Company, Topaz and KMTF to, among other things, execute a Deed of Guarantee and Indemnity (“Guarantee”), guaranteeing the repayment of the MOBY loan.  The guarantee obligation of each party was limited to each party’s respective ownership interest in MOBY.
	Prior to closing the Purchase Agreement; (i) Topaz, through Kyran, voluntarily repaid 50% of the outstanding principal and accrued but unpaid interest of the MOBY loan; (ii) MOBY entered into a loan agreement with Kyran in the amount of the Topaz repayment, approximately $5,700; and (iii) Topaz obtained waivers from EBRD of the obligations of Topaz and Kyran under the MOBY Loan Agreement, the Guarantee and applicable security agreements.  The Company and KMTF were not released from their obligations under the Guarantee.  While the dollar amount of the Company’s obligation pursuant to the Guarantee did not increase as a result of the release of Topaz, the percentage of the MOBY loan that is guaranteed by the Company (and KMTF) under the Guarantee effectively doubled to reflect the 50% repayment by and release of Topaz as a guarantor.
	Pursuant to the Purchase Agreement, the Company agreed to issue indemnity to Topaz and its related parties against any and all past, present and future claims or court actions in relation to Seller’s good faith and legally taken actions during its participation in Kyran.
	As of September 30, 2014 the outstanding balance of the MOBY loan was $5,998 including accrued and unpaid interest. The interest rate under the MOBY loan is generally the interbank rate plus a margin of 3.6%.  The MOBY Loan Agreement provides that during any period when the loan is in default the rate of interest shall be the interbank rate plus a margin of 3.6% plus 2% per annum.  The MOBY Loan Agreement provides for 14 equal semi-annual installment payments of principal and interest on June 15 and December 15, commencing on or after the third anniversary of the MOBY Loan Agreement.
	As of September 30, 2014 and September 30, 2013 MOBY had made no semi-annual installment payments and was in violation of certain financial covenants under the MOBY Loan Agreement.  Pursuant to the MOBY Loan Agreement, if an event of default occurs and is continuing, EBRD may, at its option, by notice to MOBY, declare all or any portion of the principal and accrued interest of the loan due and payable on demand, or immediately due and payable without further notice and without presentment, demand or protest.
	To the Company’s knowledge, to date EBRD has taken no action to establish the defaults or to increase or accelerate the debt obligations of MOBY or guarantee obligations of the Company.  Should EBRD determine to take action, the Company would not have sufficient funds to repay its portion of the MOBY loan or the guarantee and would be forced to seek sources of funding to satisfy these obligations.
	Should EBRD or Investor determine to accelerate the Company’s repayment obligations to them, the Company currently has insufficient funds to repay its obligations to EBRD or 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 were unable to obtain funding to meet these obligations EBRD or Investor could seek any legal remedy 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, CRE and MOBY, foreclosure by EBRD on such assets and bank accounts.  As of September 30, 2014 the book value of collateralized assets was $32,226. The Company has also agreed to collateralize 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 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 consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.  The Company intends to continue its efforts to restructure its financial obligations to EBRD and Investor.
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 its equity interest at 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 $21,649, although, as of the date of this annual report, EBRD has not sought to accelerate the put option.
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 consists of operating a marine base with boat repair and drydocking services yard located at the Port of Bautino on the North Caspian Sea.
Discontinued Operations	Discontinued Operations – In August 2013 the Company discontinued operations in Kazmorgeophisica CJSC (“KMG”). Upon determining to discontinue KMG, all prior periods presented have been restated to separately account for the discontinued operations.  All assets of KMG that were considered to be useful in ongoing operations were transferred to TatArka including its 40% non-controlling participation interest in Veritas-Caspian.
Equity method investments	Equity method investments – During 2005 the Company and an unrelated company formed a joint venture (Veritas-Caspian) to gather and market seismic data from unlicensed blocks of the Kazakhstan sector of the Caspian Sea.  The Kazakhstan Government owns the data gathered; however, Veritas-Caspian has the exclusive right to market and sell the data to prospective bidders on tendered Kazakhstan oil blocks.
	Initially, the Company obtained its interest in Veritas-Caspian through KMG participation for a capital contribution of $0.4 and accounted for the investment under the equity method of accounting.  Later, after the Company discontinued KMG operations this investment was transferred to TatArka.
	At September 30, 2014 the Company’s investment in Veritas-Caspian was zero due to Veritas-Caspian’s accumulated losses recognized. If Veritas-Caspian has income in the future, the Company will resume applying the equity method after its share of that income equals the share of net losses not recognized during the period the equity method was suspended.
Recent Accounting Pronouncements	Recent Accounting Pronouncements –
	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.
	In May 2014 the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers.  The objective of this update is to provide a robust framework for addressing revenue recognition issues and, upon its effective date, replaces almost all existing revenue recognition guidance.  This update is effective in annual reporting periods beginning after December 15, 2016 and the interim periods within that year.  The Company is evaluating the impact of this update on the Company’s financial statements.
	In June 2014 FASB issued Accounting Standards Update No. 2014-12 "Compensation - Stock Compensation (Topic 718) – Accounting for Share Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period."  ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition.  ASU 2014-12 is effective for interim and annual periods beginning after December 15, 2015.  The amendments can be applied prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented and to all new or modified awards thereafter. Early adoption is permitted.  The adoption of this standard is not expected to have a material effect to the Company's operating results or financial condition.
	In August 2014 the FASB issued Accounting Standards Update No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entities Ability to Continue as a Going Concern (ASU 2014-15). The guidance in ASU 2014-15 sets forth management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern as well as required disclosures. ASU 2014-15 indicates that, when preparing financial statements for interim and annual financial statements, management should evaluate whether conditions or events, in the aggregate, raise substantial doubt about the entity's ability to continue as a going concern for one year from the date the financial statements are issued or are available to be issued. This evaluation should include consideration of conditions and events that are either known or are reasonably knowable at the date the financial statements are issued or are available to be issued, as well as whether it is probable that management's plans to address the substantial doubt will be implemented and, if so, whether it is probable that the plans will alleviate the substantial doubt. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods and annual periods thereafter. Early application is permitted. The adoption of this guidance is not expected to have a material effect on the Company’s operating results or financial condition.
	The Company has considered all recent accounting pronouncements issued or proposed by the FASB and other standards-setting bodies since the last audit of its financial statements. The Company does not believe that these pronouncements will have a material effect on the Company's financial statements.
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.
Fair Value of Financial Instruments	Fair Value of Financial Instruments – The carrying amounts reported in the accompanying 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.
Cash	Cash – The Company considers all highly-liquid investments purchased with an original maturity of three months or less to be cash equivalents.
	Cash balances in Balykshi and CRE, have been designated under our loan agreement with EBRD and may not be used for any purpose other than construction and operations of the marine base.  At September 30, 2014 and 2013 the total cash balance of Balykshi and CRE was $11 and $101, respectively.
	Cash deposit in Kazakhstan bank accounts was $1,857 as of September 30, 2014 and these accounts are not insured by the government.
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.
Inventories	Inventories – Inventory consists of fuel, spare parts and supplies related to geophysical and marine base operations. Inventories are stated at the lower of cost or market, cost being determined by an average cost method, which approximates the first-in, first-out method. Property held for sale represents items and materials, which are expected to be sold within the next fiscal year. As of September 30, 2014 and 2013 an allowance of $1,074 and $1,273, respectively, was recognized.
Vessels, Equipment and Property	Vessels, Equipment and Property – Vessels, equipment and property are stated at cost less accumulated depreciation. At the time property is disposed of or traded in, the assets and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is charged to operations.  Major renewals and betterments that extend the life of the property and equipment are capitalized. Maintenance and repairs are expensed as incurred except for marine vessel drydocking expenditures, which are capitalized and amortized.
	Depreciation of property and equipment is calculated using the straight-line method and resulted in depreciation expense for the years ended September 30, 2014 and 2013 of $4,100 and $4,826, respectively.
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.
	Amortization of drydocking costs is calculated by using the straight-line method and resulted in amortization expense for the years ended September 30, 2014 and 2013 of $397 and $189, respectively. Accumulated amortization of the drydocking costs was $481 and $102 as of September 30, 2014 and 2013, respectively.
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.  At September 30, 2013 the Company impaired the vessels held for disposal. At September 30, 2014 the Company reviewed its long-lived assets and determined the MOBY assets were impaired. See Note 11 for details.
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 September 30, 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.
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, Balykshi, Kyran and MOBY; 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 fiscal year ended September 30, 2014, the Company recorded foreign exchange transaction losses of $6,645 mostly as a result of the remeasurement of the Balykshi EBRD loan which is denominated in U.S. Dollars.
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 basis and attributable to operating loss carry forwards.  Differences generally result from the calculation of income under US GAAP 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. At September 30, 2014 and 2013 no interest or penalties have been accrued as a result of any tax positions taken.  In the event interest or penalties are assessed, the Company 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.
	(b) Undistributed earnings of a domestic subsidiary or a domestic corporate joint venture that is essentially permanent in duration.
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.
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.
	At September 30, 2014 the Company had 800,000 options outstanding and 419,328,333 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.
	At September 30, 2013 the Company had 800,000 options outstanding, 147,939 non-vested restricted shares outstanding and 386,396,667 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.
Stock-Based Compensation	Stock-Based Compensation – The Company recognizes the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. Fair value of the award is calculated based on closing stock price at the grant date. Restricted stock compensation expense is recognized over the period during which an employee is required to provide service in exchange for the award (the vesting period).
Concentration of Revenue	Concentration of Revenue – During fiscal 2014 vessel revenue from four customers that together  represented approximately 81% of total vessel revenue as follows, Customer A – 29%; Customer B – 23%; Customer C – 18%; and Customer D – 11%.
	During fiscal 2014 geophysical service revenue from six customers together  represented approximately 79% of total geophysical service revenue as follows, Customer A – 18%; Customer B – 16%; Customer C – 12%; Customer D – 11%; Customer E – 11% and Customer F – 11%.
	During fiscal 2014 marine base revenue from two customers represented 78% of total marine base revenue as follows, Customer A – 49% and Customer B – 29%.

1_THE_COMPANY_BASIS_OF_PRESENT

1. THE COMPANY, BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Tables)	12 Months Ended
	Sep. 30, 2014
Company Basis Of Presentation And Accounting Policies Tables
Schedule assets and liabilities for Acquisition of Kyran		7-Aug-14
	Cash consideration	$	0.10
	Fair value of equity interest in MOBY before the business combination		(722)
		$	(722)
	Fair value of identifiable assets acquired and liabilities assumed
	Cash	$	47
	Trade accounts receivable		346
	Other receivables		20
	Prepaid taxes		97
	Advances paid		12
	Vessels, equipment and property, net		1,405
	Accounts payable		(403)
	Accounts payable to related parties		(56)
	Accrued expenses		(315)
	Taxes payable		(249)
	Long-term debt - current portion		(5,549)
	Total indentifiable net assets	$	(4,645)
	Fair value of noncontrolling interest		1,599
	Goodwill		2,324
		$	(722)
Schedule of revenue and earnings of MOBY since the acquisition date		For the period August 8 - September 30, 2014
	Revenues	$	6
	Net loss	$	3,133

NOTE_4_VESSELS_EQUIPMENT_AND_P1

NOTE 4 - VESSELS, EQUIPMENT AND PROPERTY (Tables)	12 Months Ended
	Sep. 30, 2014
Property, Plant and Equipment [Abstract]
Summary of vessels, equipment and property	As of September 30,	2014		2013		Depreciable
						Life in Years
	Land	$	7,813	$	9,250	N/A
	Buildings and constructions		31,036		36,285	10-14
	Marine vessels		13,523		15,883	10
	Machinery and equipment		18,020		18,574	2-15
	Field camp		-		-	5-14
	Vehicles		2,599		2,846	3-12
	Office equipment		289		329	2-10
	Dwelling units		1,225		2,210	3-7
	Other		649		831	3-7
			75,154		86,208
	Accumulated depreciation		(33,067)		(35,467)
	Vessels, Equipment and Property, net	$	42,087	$	50,741

NOTE_5_INTANGIBLE_ASSETS_AND_G1

NOTE 5 - INTANGIBLE ASSETS AND GOODWILL (Tables)	12 Months Ended
	Sep. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of intangible assets			2014					2013
		Estimated	Gross carrying			Accumulated		Gross carrying		Accumulated
		useful life	amount			amortization		amount		amortization
	Acquired software	7 years	$	316		$	302	$	368	$	339
	Total		$	316		$	302	$	368	$	339
Summary of amortization expense		Years Ending September 30,
		2015	2016	2017	thereafter
	Amortization expense	$         14	$           -	$             -	$        -
Changes in the carrying amount of goodwill		For The Year Ended September 30,
		2014			2013
	Balance - beginning of year	$	224		$	229
	Goodwill from MOBY acquisition		2,324			-
	Impairment of goodwill from MOBY acquisition	$	(2,281)			-
	Foreign currency translation adjustment		(78)			(5)
	Balance - end of year	$	189		$	224

NOTE_6_NOTES_PAYABLE_Tables

NOTE 6 - NOTES PAYABLE (Tables)	12 Months Ended
	Sep. 30, 2014
Note 6 - Notes Payable Tables
NOTES PAYABLE		September 30,		September 30,
		2014		2013
	Secured non-negotiable promissory note payable to Investor; interest at 0.26%	$	10,885	$	10,856
	due June 30, 2015
	Secured convertible consolidated promissory note payable to Investor; interest at 12%		32,862		29,593
	(default interest at 13%) due June 30, 2015
	Balykshi - EBRD loan and accrued interest at 7% plus the interbank rate due May 2015
	(default interest at 9% plus the interbank rate); secured by property and bank accounts		25,539		23,387
	MOBY - EBRD loan and accrued interest 3.6% plus the interbank rate due June 2018
	(default interest at 5.6% plus the interbank rate)		5,998		-
	Total Long-term Debt		75,284		63,836
	Less: Current Portion		(75,284)		(63,836)
	Long-term Debt - Net of Current Portion	$	-	$	-

NOTE_7_STOCKHOLDERS_EQUITY_Tab

NOTE 7 - STOCKHOLDERS' EQUITY (Tables)	12 Months Ended
	Sep. 30, 2014
Deficit
A summary of the non-vested stock under the Company's compensation plan	A summary of the non-vested stock under the Compensation Plan at September 30, 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	(147,939)	0.11
	Non-vested at September 30, 2014	-	$      -
	A summary of the non-vested stock under the Compensation Plan at September 30, 2013 follows:
		Non-Vested	Weighted Average Grant
		Shares	Date Fair Value Per Share
	Non-vested at September 30, 2012	441,862	$0.21
	Stock granted	-	-
	Stock vested	(293,923)	0.23
	Non-vested at September 30, 2013	147,939	$0.11
Stock option activity	Stock option activity for the years ended September 30, 2014 and 2013 is as follows:
		2014				2013
				Weighted-Average			Weighted-Average
		Options		Exercise Price Per Share		Options	Exercise Price Per Share
	Outstanding at beginning of the year	800,000		$	3.00	800,000	$	3.00
	Granted	-			-	-		-
	Forfeited	-			-	-		-
	Expired	-			-	-		-
	Outstanding at end of the year	800,000		$	3.00	800,000	$	3.00
	Exercisable at end of the year	800,000		$	3.00	800,000	$	3.00

NOTE_8_INCOME_TAXES_Tables

NOTE 8 - INCOME TAXES (Tables)	12 Months Ended
	Sep. 30, 2014
Income Tax Disclosure [Abstract]
Schedule of Income before Income Tax, Domestic and Foreign		For the Years Ended September 30,
		2014		2013
	United States	$	(3,989)	$	(2,460)
	Kazakhstan		(15,141)		(7,325)
		$	(19,130)	$	(9,785)
Schedule of Components of Income Tax Expense (Benefit)		For the Years Ended September 30,
		2014		2013
	Current U.S. income tax	$	-	$	-
	Current foreign income tax		(531)		-
	Deferred U.S. income tax		1,186		1,480
	Deferred foreign income tax		3,216		1,180
	Provision for valuation allowance		(3,501)		(2,132)
	Income tax benefit	$	370	$	528
Schedule of Deferred Tax Assets and Liabilities						As of September 30,
		US		Foreign		2014		2013
	Current deferred tax assets/(liabilities)
	Provision for doubtful debts	$	-	$	1,145	$	1,145	$	702
	Inventory allowance		-		-		-		255
	Vacation accrual		-		98		98		54
	Tax loss carry forwards		-		-		-		-
	Valuation allowance		-		(1,155)		(1,155)		(776)
	Total current deferred tax asset	$	-	$	88	$	88	$	235
	Long-term deferred tax assets/(liabilities)
	Net operating loss carry forwards	$	7,461	$	10,220	$	17,681	$	14,518
	Capital loss carryforwards		779		-		779		779
	Property and equipment		-		(160)		(160)		(285)
	Valuation allowance		(8,240)		(7,610)		(15,850)		(13,163)
	Total net long-term deferred tax asset/(liability)		-		2,450		2,450		1,849
	Net deferred tax asset	$	-	$	2,538	$	2,538	$	2,084
Schedule of Effective Income Tax Rate Reconciliation		For the Years Ended September 30,
		2014		2013
	Tax at federal statutory rate (37.3%)	$	7,135	$	3,652
	Non-deductible expenses		(605)		(390)
	Loss not subject to taxation		547		(41)
	Effect of lower foreign tax rates		(2,260)		(1,053)
	Intercompany adjustments		78		(57)
	Valuation allowance		(3,501)		(1,579)
	Other		(1,024)		(4)
	Income tax benefit	$	370	$	528

NOTE_10_RELATED_PARTY_TRANSACT1

NOTE 10 - RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Sep. 30, 2014
Note 10 - Related Party Transactions Tables
Revenues and expenses from transactions with related parties			For the year ended September 30,
	Related Party's Name	Description	2014		2013
	MOBY*	Marine base revenue	$	468	$	566
	Bolz	Seismic services revenue		558		-
	Gis Caspiy	Other services		-		(198)
	Other expenses, net	Other services		(68)		(66)
	TOTAL		$	958	$	302
Accounts receivable from related parties	Accounts receivable from related parties as of September 30, 2014 and 2013 consisted of the following:
	Related Party's Name	Description	30-Sep-14		30-Sep-13
	Bolz LLP	Seismic services	$	-	$	3,174
	MOBY	Marine base		-		1,330
	Demeu Energy	Advance given for vehicles delivery		275		325
	Caspian Geo Consulting	Advance given for equipment delivery		165		-
	Others	Other services		-		125
		Allowance for doubtful accounts		(440)		(3,499)
	TOTAL		$	-	$	1,455
Accounts payable to related parties	Accounts payable to related parties as of September 30, 2014 and 2013 consisted of the following:
	Related Party's Name	Description	30-Sep-14		30-Sep-13
	Sayat Media	Other services	$	13	$	-
	Others	Others		63		-
	TOTAL		$	76	$	-
Long-term deferred revenue from related parties	Long-term deferred revenue from related parties as of September 30, 2014 and 2014 consisted of the following:
	Related Party's Name	Description	30-Sep-14		30-Sep-13
	MOBY	Advance received for land rental	$	-	$	2,619
	TOTAL		$	-	$	2,619
Short-term notes to related parties	Related Party's Name	Description	30-Sep-14		30-Sep-13
	Sayat Media	Notes Receivable	$	70	$	-
	TOTAL		$	70	$	-

NOTE_11_FAIR_VALUE_MEASUREMENT1

NOTE 11 - FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Sep. 30, 2014
Note 11 - Fair Value Measurements Tables
Schedule of fair value measurements	Recurring basis:
					Fair Value Measurements at Reporting Date Using
	Description	30-Sep-14			Level 1		Level 2		Level 3
	Property held for sale	$	44		$	-	$	-	$	44
	Put option liability		21,649			-		-		21,649
	Total	$	21,693		$	-	$	-	$	21,693
					Fair Value Measurements at Reporting Date Using
	Description	30-Sep-13			Level 1		Level 2		Level 3
	Property held for sale	$	203		$	-	$	-	$	203
	Put option liability		19,649			-		-		19,649
	Total	$	19,852		$	-	$	-	$	19,852
	Nonrecurring basis:
		Quantitative Information about Level 3 Fair Value Measurements
		Fair Value at August 7, 2014	Valuation Techniques	Unobservable Input	Range
	Vessels, equipment and property	$   1,405	Market approach	Adjustment for Bargaining	(30%) - 0%
			(selling price of similar items)	Adjustment for model year	(43%) - 53%
				Adjustment for condition	(20%) - 0%
				Adjustment for shipping	0% - 10%
				Adjustment for country of origin	(20%) - 5%
				Correction of risk of non-receipt of income	(20%) - 0%

NOTE_12_SEGMENT_INFORMATION_Ta

NOTE 12 - SEGMENT INFORMATION (Tables)	12 Months Ended
	Sep. 30, 2014
Note 12 - 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 Years
		Ended September 30,
		2014		2013
	Capital Expenditures
	Vessel operations	$	824	$	1,430
	Geophysical services		3,290		2,570
	Marine base services		309		57
	Total segments		4,423		4,057
	Corporate assets		-		-
	Less intersegment investments		-		(676)
	Total consolidated	$	4,423	$	3,381
		For the Years
		Ended September 30,
		2014		2013
	Revenues
	Vessel  operations	$	16,840	$	20,101
	Geophysical services		13,244		13,644
	Marine base services		6,888		9,062
	Total segments		36,972		42,807
	Corporate revenue		-		-
	Less intersegment revenues		(7,041)		(9,719)
	Total consolidated	$	29,931	$	33,088
	Depreciation and Amortization
	Vessel operations	$	(1,910)	$	(2,178)
	Geophysical services		(1,248)		(1,378)
	Marine base services		(1,361)		(1,458)
	Total segments		(4,519)		(5,014)
	Corporate depreciation and amortization		(1)		(1)
	Total consolidated	$	(4,520)	$	(5,015)
	Interest Expense
	Vessel operations	$	-	$	-
	Geophysical services		-		-
	Marine base services		(5,910)		(5,823)
	Total segments		(5,910)		(5,823)
	Corporate interest expense		(2,183)		(2,162)
	Total consolidated	$	(8,093)	$	(7,985)
	Income/(Loss) Before Income Tax
	Vessel operations	$	(200)	$	(3,102)
	Geophysical services		2,434		1,882
	Marine base services		(18,341)		(5,337)
	Total segments		(16,107)		(6,557)
	Corporate loss		(3,023)		(3,228)
	Total consolidated	$	(19,130)	$	(9,785)
		For the Years
		Ended September 30,
		2014		2013
	Benefit from (Provision for) Income Tax
	Vessel operations	$	1,137	$	1,080
	Geophysical services		(765)		(552)
	Marine base services		-		-
	Total segments		372		528
	Corporate provision for income tax		(2)		-
	Total consolidated	$	370	$	528
	Loss from Discontinued Operations
	Vessel operations	$	-	$	-
	Geophysical services		-		(1,063)
	Marine base services		-		-
	Total segments		-		(1,063)
	Corporate		-		(1,508)
	Total consolidated	$	-	$	(2,571)
	Loss/(Income) Attributable to Noncontrolling Interests
	Vessel operations	$	-	$	-
	Geophysical services		-		-
Marine base services		2,118		284
Total segments		2,118		284
Corporate noncontrolling interest		-		-
Total consolidated	$	2,118	$	284
Net (Loss)/Income Attributable to Caspian Services, Inc.
Vessel operations	$	937	$	(2,022)
Geophysical services		1,669		267
Marine base services		(16,223)		(5,053)
Total segments		(13,617)		(6,808)
Corporate loss		(3,025)		(4,736)
Total consolidated	$	(16,642)	$	(11,544)
	September 30,
Segment Assets	2014		2013
Vessel operations	$	15,219	$	24,031
Geophysical services		18,663		18,005
Marine base services		73,001		78,186
Total segments		106,883		120,222
Corporate assets		766		6,946
Less intersegment investments		(40,581)		(46,625)
Total consolidated	$	67,068	$	80,543

1_THE_COMPANY_BASIS_OF_PRESENT1

1. THE COMPANY, BASIS OF PRESENTATION AND ACCOUNTING POLICIES - Schedule Acquisition of Kyran (Details) (MOBY, USD $)	0 Months Ended
	Aug. 07, 2014
MOBY
Cash consideration	$100
Fair value of equity interest in MOBY before the business combination	-722,000
Total	-722,000
Fair value of identifiable assets acquired and liabilities assumed
Cash	47,000
Trade accounts receivable	346,000
Other receivables	20,000
Prepaid taxes	97,000
Advances paid	12,000
Vessels, equipment and property, net	1,405,000
Accounts payable	-403,000
Accounts payable to related parties	-56,000
Accrued expenses	-315,000
Taxes payable	-249,000
Long-term debt - current portion	-5,549,000
Total indentifiable net assets	-4,645,000
Fair value of noncontrolling interest	1,599,000
Goodwill	2,324,000
Total	($722,000)

1_THE_COMPANY_BASIS_OF_PRESENT2

1. THE COMPANY, BASIS OF PRESENTATION AND ACCOUNTING POLICIES - Schedule of Revenue of MOBY and Consolidated Entity (Details) (USD $)	12 Months Ended		2 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014
Revenues	$29,931	$33,088
Net loss	-18,760	-11,828
MOBY
Revenues			6
Net loss			$3,133

NOTE_4_VESSELS_EQUIPMENT_AND_P2

NOTE 4 - VESSELS, EQUIPMENT AND PROPERTY (Details) (USD $)	Sep. 30, 2014	Sep. 30, 2013
In Thousands, unless otherwise specified
Property, Plant and Equipment [Abstract]
Land	$7,813	$9,250
Buildings and construction	31,036	36,285
Marine vessels	13,523	15,883
Machinery and equipment	18,020	18,574
Field camp	0	0
Vehicles	2,599	2,846
Office equipment	289	329
Dwelling units	1,225	2,210
Other	649	831
Vessels, Equipment and Property, gross	75,154	86,208
Accumulated depreciation	-33,067	-35,467
Vessels, Equipment and Property, net	$42,087	$50,741

NOTE_5_INTANGIBLE_ASSETS_AND_G2

NOTE 5 - INTANGIBLE ASSETS AND GOODWILL (Details) (USD $)	Sep. 30, 2014	Sep. 30, 2013
In Thousands, unless otherwise specified
Gross Carrying Amount
Acquired software	$316	$368
Total	316	368
Accumulated Amortization
Acquired software	302	339
Total	$302	$339

NOTE_5_INTANGIBLE_ASSETS_AND_G3

NOTE 5 - INTANGIBLE ASSETS AND GOODWILL (Details 1) (USD $)	Sep. 30, 2014
In Thousands, unless otherwise specified
Note 5 - Intangible Assets And Goodwill Details 1
2015	$14
2016	0
2017	0
Thereafter	$0

NOTE_5_INTANGIBLE_ASSETS_AND_G4

NOTE 5 - INTANGIBLE ASSETS AND GOODWILL (Details 2) (Amortization Expense, USD $) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Note 5 - Intangible Assets And Goodwill Details 2 Amortization Expense Usd
Balance - beginning of year	$224	$229
Goodwill from MOBY acquisition	2,324	0
Impairment of goodwill from MOBY acquisition	-2,281	0
Foreign currency translation adjustment	-78	-5
Balance - end of year	$189	$224

NOTE_6_NOTES_PAYABLE_Details

NOTE 6 - NOTES PAYABLE (Details) (USD $)	Sep. 30, 2014	Sep. 30, 2013
In Thousands, unless otherwise specified
Total Long-term Debt	$75,284	$63,836
Less: Current Portion	-75,284	-63,836
Long-term Debt - Net of Current Portion	0	0
Non Negotiable Promissory Note [Member]
Total Long-term Debt	10,885	10,856
Convertible Consolidated Promissory Note [Member]
Total Long-term Debt	32,862	29,593
Balykshi-EBRD Loan and Accrued Interest [Member]
Total Long-term Debt	25,539	23,387
MOBY - EBRD Loan And Accrued Interest [Member]
Total Long-term Debt	$5,998	$0

NOTE_7_STOCKHOLDERS_EQUITY_Det

NOTE 7 - STOCKHOLDERS' EQUITY (Details) (USD $)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Note 7 - Stockholders Equity Details
Non-vested, Beginning	147,939	441,862
Stock granted, Shares	0	0
Stock vested, Shares	-147,939	-293,923
Non-vested, Ending	0	147,939
Non-vested Beginning, Weighted Average Grant Date Fair Value Per Share	$0.11	$0.21
Stock granted, Weighted Average Grant Date Fair Value Per Share	$0	$0
Stock vested, Weighted Average Grant Date Fair Value Per Share	$0.11	$0.23
Non-vested Ending, Weighted Average Grant Date Fair Value Per Share	$0	$0.11

NOTE_7_STOCKHOLDERS_EQUITY_Det1

NOTE 7 - STOCKHOLDERS' EQUITY (Details 1) (USD $)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Note 7 - Stockholders Equity Details 1
Number of Options Outstanding, Beginning	800,000	800,000
Number of Options Granted	0	0
Number of Options Exercised	0	0
Number of Options Forfeited	0	0
Number of Options Outstanding, Ending	800,000	800,000
Number of Options Exercisable	800,000	800,000
Weighted Average Exercise Price Outstanding, Beginning	$3	$3
Weighted Average Exercise Price Granted	$0	$0
Weighted Average Exercise Price Exercised	$0	$0
Weighted Average Exercise Price Forfeited	$0	$0
Weighted Average Exercise Price Outstanding, Ending	$3	$3
Weighted Average Exercise Price Exercisable	$3	$3

NOTE_8_INCOME_TAXES_Details

NOTE 8 - INCOME TAXES (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Income Tax Disclosure [Abstract]
United States	($3,989)	($2,460)
Kazakhstan	-15,141	-7,325
Income (Loss) from Continuing Operations	($19,130)	($9,785)

NOTE_8_INCOME_TAXES_Details_1

NOTE 8 - INCOME TAXES (Details 1) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Income Tax Disclosure [Abstract]
Current U.S. income tax	$0	$0
Current Foreign Income Tax	-531	0
Deferred U.S. income tax	1,186	1,480
Deferred Foreign Income Tax	3,216	1,180
Provision for Valuation Allowance	-3,501	-2,132
Income taxB benefit	$370	$528

NOTE_8_INCOME_TAXES_Details_2

NOTE 8 - INCOME TAXES (Details 2) (USD $)	Sep. 30, 2014	Sep. 30, 2013
In Thousands, unless otherwise specified
Current deferred tax assets/(liabilities)
Provision for doubtful debts	$1,145	$702
Inventory Allowance	0	255
Vacation Accrual	98	54
Tax loss carry forwards	0	0
Valuation Allowance	-1,155	-776
Total current deferred tax asset	88	235
Long-term deferred tax assets/(liabilities)
Net Operating Loss carry forwards	17,681	14,518
Capital Loss Carryforwards	779	779
Property and equipment	-160	-285
Valuation allowance	-15,850	-13,163
Total net long-term deferred tax asset/(liability)	2,450	1,849
Net deferred tax asset	2,538	2,084
US
Current deferred tax assets/(liabilities)
Provision for doubtful debts	0
Inventory Allowance	0
Vacation Accrual	0
Tax loss carry forwards	0
Valuation Allowance	0
Total current deferred tax asset	0
Long-term deferred tax assets/(liabilities)
Net Operating Loss carry forwards	7,461
Capital Loss Carryforwards	779
Property and equipment	0
Valuation allowance	-8,240
Total net long-term deferred tax asset/(liability)	0
Net deferred tax asset	0
Foreign
Current deferred tax assets/(liabilities)
Provision for doubtful debts	1,145
Inventory Allowance	0
Vacation Accrual	98
Tax loss carry forwards	0
Valuation Allowance	-1,155
Total current deferred tax asset	88
Long-term deferred tax assets/(liabilities)
Net Operating Loss carry forwards	10,220
Capital Loss Carryforwards	0
Property and equipment	-160
Valuation allowance	-7,610
Total net long-term deferred tax asset/(liability)	2,450
Net deferred tax asset	$2,538

NOTE_8_INCOME_TAXES_Details_3

NOTE 8 - INCOME TAXES (Details 3) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Income Tax Disclosure [Abstract]
Tax at federal statutory rate (37.3%)	$7,135	$3,652
Non-deductible expenses	-605	-390
Loss not subject to taxation	547	-41
Effect of lower foreign tax rates	-2,260	-1,053
Intercompany adjustments	78	-57
Valuation Allowance	-3,501	-1,579
Other	-1,024	-4
Income taxB benefit	$370	$528

NOTE_8_INCOME_TAXES_Details_Na

NOTE 8 - INCOME TAXES (Details Narrative) (USD $)	Sep. 30, 2014
In Thousands, unless otherwise specified
US
Losses carry forwards	$23,802
Foreign
Losses carry forwards	$49,782

9_COMMITMENTS_AND_CONTINGENCIE

9. COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Offices and Employee Apartment Lease
Rent expense	$244	$254
Future minimum rental payments
2015	229
2016	113
Thereafter	115
Equipment and Vehicles
Rent expense	515	197
Vessels in Fleet
Rent expense	1,840	1,587
Future minimum rental payments
2015	1,115
2016	1,010
Thereafter	$6,147

NOTE_10_RELATED_PARTY_TRANSACT2

NOTE 10 - RELATED PARTY TRANSACTIONS - Revenues and expenses from transactions with related parties (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Revenues	$958	$302
Moby [Member]
Revenues	468	566
Bolz
Revenues	558	0
Gis Caspiy
Expenses	0	-198
Other expenses, net
Expenses	($68)	($66)

NOTE_10_RELATED_PARTY_TRANSACT3

NOTE 10 - RELATED PARTY TRANSACTIONS (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Accounts receivable from related parties	$0	$1,455
Bolz Llp [Member]
Related Party, description	Seismic services
Accounts receivable from related parties	0	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	165	0
Others [Member]
Related Party, description	Other services
Accounts receivable from related parties	0	125
AllowanceForDoubtfulAccounts [Member]
Accounts receivable from related parties	($440)	($3,499)

NOTE_10_RELATED_PARTY_TRANSACT4

NOTE 10 - RELATED PARTY TRANSACTIONS (Details 1) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Accounts payable to related parties	$76	$0
Others [Member]
Related Party, description	Others
Accounts payable to related parties	63	0
Sayat Media
Related Party, description	Other services
Accounts payable to related parties	$13	$0

Recovered_Sheet1

Note 10 - RELATED PARTY TRANSACTIONS (Details 2) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Long-term deferred revenue from related parties	$0	$2,619
Moby [Member]
Related Party, description	Advance received for land rental
Long-term deferred revenue from related parties	$0	$2,619

10_RELATED_PARTY_TRANSACTIONS_

10. RELATED PARTY TRANSACTIONS (Details 3) (USD $)	Sep. 30, 2014	Sep. 30, 2013
In Thousands, unless otherwise specified
Notes Receivable	$70	$0
Sayat Media
Notes Receivable	$70	$0

NOTE_11_FAIR_VALUE_MEASUREMENT2

NOTE 11 - FAIR VALUE MEASUREMENTS (Details) (USD $)	Sep. 30, 2014	Sep. 30, 2013
In Thousands, unless otherwise specified
Property held for sale	$44	$203
Put option liability	21,649	19,649
Assets, fair value	21,693	19,852
Level 1
Property held for sale	0	0
Put option liability	0	0
Assets, fair value	0	0
Level 2
Property held for sale	0	0
Put option liability	0	0
Assets, fair value	0	0
Level 3
Property held for sale	44	203
Put option liability	21,649	19,649
Assets, fair value	$21,693	$19,852

11_FAIR_VALUE_MEASUREMENTS_Det

11. FAIR VALUE MEASUREMENTS (Details 1) (Level Three, USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014
Level Three
Fair value, Vessels, equipment and property	$1,405
Valuation techniques	Market approach: Adjustment for Bargaining (Range: (30%) - 0%); (selling price of similar items): Adjustment for model year (Range:(43%) - 53%), Adjustment for condition (Range: (20%) - 0%), Adjustment for shipping (Range: 0% - 10%), Adjustment for country of origin (Range: (20%) - 5%), Correction of risk of non-receipt of income ((20%) - 0%)

NOTE_12_SEGMENT_INFORMATION_De

NOTE 12 - SEGMENT INFORMATION (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Capital Expenditures
Total Segments Capital Expenditures	$4,423	$4,057
Corporate assets	0	0
Less intersegment investments	0	-676
Total consolidated	4,423	3,381
Revenues
Total segments Revenues	36,972	42,807
Corporate revenue	0	0
Less intersegment revenues	-7,041	-9,719
Total consolidated	29,931	33,088
Depreciation and Amortization
Total segments Depreciation and Amortization	-4,519	-5,014
Corporate depreciation and amortization	-1	-1
Total consolidated	-4,520	-5,015
Interest expense
Total segments Interest expense	-5,910	-5,823
Corporate interest expense	-2,183	-2,162
Total consolidated	-8,093	-7,985
Income/(Loss) Before Income Tax
Total segments Income/(Loss) Before Income Tax	-16,107	-6,557
Corporate loss	-3,023	-3,228
Total consolidated	-19,130	-9,785
Benefit from (Provision for) Income Tax
Total segments Benefit from (Provision for) Income Tax	372	528
Corporate provision for income tax	-2	0
Income taxB benefit	370	528
Loss from discontinued operations
Total segments loss from discontinued operations	0	-1,063
Corporate	0	-1,508
Total consolidated	0	-2,571
Loss/(Income) attributable to Noncontrolling Interests
Total segments Loss/(Income) attributable to Noncontrolling Interests	2,118	284
Corporate noncontrolling interest	0	0
Total consolidated	2,118	284
Net (Loss)/Income attributable to Caspian Services Inc.
Total segments Net (Loss)/Income attributable to Caspian Services Inc.	-13,617	-6,808
Corporate loss	-3,025	-4,736
Total consolidated	-16,642	-11,544
Vessel Operations [Member]
Capital Expenditures
Total Segments Capital Expenditures	824	1,430
Revenues
Total segments Revenues	16,840	20,101
Depreciation and Amortization
Total segments Depreciation and Amortization	-1,910	-2,178
Interest expense
Total segments Interest expense	0	0
Income/(Loss) Before Income Tax
Total segments Income/(Loss) Before Income Tax	-200	-3,102
Benefit from (Provision for) Income Tax
Total segments Benefit from (Provision for) Income Tax	1,137	1,080
Loss from discontinued operations
Total segments loss from discontinued operations	0	0
Loss/(Income) attributable to Noncontrolling Interests
Total segments Loss/(Income) attributable to Noncontrolling Interests	0	0
Net (Loss)/Income attributable to Caspian Services Inc.
Total segments Net (Loss)/Income attributable to Caspian Services Inc.	937	-2,022
Geophysical Services [Member]
Capital Expenditures
Total Segments Capital Expenditures	3,290	2,570
Revenues
Total segments Revenues	13,244	13,644
Depreciation and Amortization
Total segments Depreciation and Amortization	-1,248	-1,378
Interest expense
Total segments Interest expense	0	0
Income/(Loss) Before Income Tax
Total segments Income/(Loss) Before Income Tax	2,434	1,882
Benefit from (Provision for) Income Tax
Total segments Benefit from (Provision for) Income Tax	-765	-552
Loss from discontinued operations
Total segments loss from discontinued operations	0	-1,063
Loss/(Income) attributable to Noncontrolling Interests
Total segments Loss/(Income) attributable to Noncontrolling Interests	0	0
Net (Loss)/Income attributable to Caspian Services Inc.
Total segments Net (Loss)/Income attributable to Caspian Services Inc.	1,669	267
Marine Base Services [Member]
Capital Expenditures
Total Segments Capital Expenditures	309	57
Revenues
Total segments Revenues	6,888	9,062
Depreciation and Amortization
Total segments Depreciation and Amortization	-1,361	-1,458
Interest expense
Total segments Interest expense	-5,910	-5,823
Income/(Loss) Before Income Tax
Total segments Income/(Loss) Before Income Tax	-18,341	-5,337
Loss from discontinued operations
Total segments loss from discontinued operations	0	0
Loss/(Income) attributable to Noncontrolling Interests
Total segments Loss/(Income) attributable to Noncontrolling Interests	2,118	284
Net (Loss)/Income attributable to Caspian Services Inc.
Total segments Net (Loss)/Income attributable to Caspian Services Inc.	($16,223)	($5,053)

NOTE_12_SEGMENT_INFORMATION_De1

NOTE 12 - SEGMENT INFORMATION (Details 1) (USD $)	Sep. 30, 2014	Sep. 30, 2013
In Thousands, unless otherwise specified
Total segments Assets	$106,883	$120,222
Corporate assets	766	6,946
Less intersegment investments	-40,581	-46,625
Total consolidated	67,068	80,543
Vessel Operations [Member]
Total segments Assets	15,219	24,031
Geophysical Services [Member]
Total segments Assets	18,663	18,005
Marine Base Services [Member]
Total segments Assets	$73,001	$78,186