Caspian Services (CSSV) 10-K 13 Jan 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Sep. 30, 2015USD ($)shares
Document And Entity Information
Entity Registrant Name	CASPIAN SERVICES INC
Entity Central Index Key	1,093,430
Document Type	10-K
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float | $	$ 771,277
Entity Common Stock, Shares Outstanding | shares	52,657,574
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Sep. 30, 2014
Current Assets
Cash	$ 1,372	$ 1,957
Trade accounts receivable, net of allowance of $3,510 and $3,454, respectively	5,480	10,458
Trade accounts receivable from related parties, net of allowance of $296 and $440, respectively	211	0
Short-term notes to related parties	2,195	70
Other receivables, net of allowance of $490 and $730, respectively	339	558
Inventories	906	1,261
Property held for sale, net of allowance of $722 and $1,074, respectively	30	44
Prepaid taxes	6	1,228
Advances paid, net of allowance of $19 and $28, respectively	193	547
Deferred tax assets	552	88
Prepaid expenses and other current assets	170	329
Total Current Assets	11,454	16,540
Vessels, equipment and property, net	26,716	42,087
Drydocking costs, net	124	538
Long-term deferred tax assets	2,478	2,450
Goodwill	127	189
Intangible assets, net	38	14
Long-term prepaid taxes	1,630	2,873
Long-term other receivables, net of current portion	525	2,377
Total Assets	43,092	67,068
Current Liabilities
Accounts payable	2,240	2,319
Accounts payable to related parties	59	76
Accrued expenses	1,309	1,690
Taxes payable	303	527
Deferred revenue	336	0
Accelerated put option liability	23,644	21,649
Long-term debt - current portion	81,972	75,284
Total Current Liabilities	109,863	101,545
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	64,832
Accumulated deficit	(94,501)	(66,536)
Accumulated other comprehensive loss	(20,815)	(20,141)
Deficit attributable to Caspian Services, Inc. Shareholders	(50,431)	(21,792)
Deficit attributable to noncontrolling interests	(16,340)	(12,685)
Total Deficit	(66,771)	(34,477)
Total Liabilities and Deficit	$ 43,092	$ 67,068

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Sep. 30, 2014
ASSETS:
Allowance for trade accounts receivable	$ 3,510	$ 3,454
Allowance for trade accounts receivable from related parties	296	440
Allowance for other receivables	490	730
Allowance for property held for sale	722	1,074
Allowance for advances paid	$ 19	$ 28
EQUITY
Common stock, par value	$ 0.001	$ .001
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 OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Revenues
Vessel revenues	$ 12,061	$ 15,051
Geophysical service revenues (which includes $1,741 and $558, respectively, from related parties)	3,146	13,244
Marine base service revenues (which includes $383 and $468, respectively, from related parties)	1,238	1,636
Total Revenues	16,445	29,931
Operating Expenses
Vessel operating costs	6,574	9,522
Cost of geophysical service revenues	3,191	7,669
Cost of marine base service (which includes $47 and $68, respectively, to related parties)	768	697
Depreciation and amortization	4,849	4,520
Impairment loss	0	2,281
General and administrative expense	7,740	8,897
Total Costs and Operating Expenses	23,122	33,586
Loss from Operations	(6,677)	(3,655)
Other Income (Expense)
Interest expense	(9,150)	(8,093)
Foreign currency transaction loss	(19,200)	(6,645)
Loss on remeasurement of equity interests in MOBY	0	(722)
Other non-operating income, net	416	29
Net Other Expense	(27,934)	(15,431)
Loss from Continuing Operations Before Income Tax	(34,611)	(19,086)
Benefit from income tax	1,046	368
Net loss from continuing operations	(33,565)	(18,718)
(Loss) income from discontinued operations	391	(42)
Net loss	(33,174)	(18,760)
Net loss attributable to noncontrolling interests	5,209	2,118
Net loss attributable to Caspian Services, Inc	(27,965)	(16,642)
Other Comprehensive Income (Loss)
Foreign currency translation adjustment	880	(5,587)
Comprehensive loss	(27,085)	(22,229)
Comprehensive income (loss) attributable to non-controlling interest	(1,554)	1,065
Comprehensive loss attributable to Caspian Services, Inc.	$ (28,639)	$ (21,164)
Basic and Diluted Loss per Share from continuing operations	$ (.53)	$ (0.32)
Basic and Diluted Loss per Share from discontinued operations	0	0
Basic and Diluted Loss per Share	$ (.53)	$ (0.32)
Weighted Average Shares Outstanding	52,657,574	52,657,574

CONSOLIDATED STATEMENTS OF OPE5

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Revenues
Related Parties Geophysical Services Revenues	$ 1,741	$ 558
Related Parties Marine Base Services Revenue	383	468
Cost of marine base service to related parties	$ 47	$ 68

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss	Noncontrolling Interest	Total
Beginning Balance, Shares at Sep. 30, 2013	52,657,574
Beginning Balance, Amount at Sep. 30, 2013	$ 53	$ 64,827	$ (49,894)	$ (15,619)	$ (9,502)	$ (10,135)
Net loss			(16,642)		(2,118)	(18,760)
Currency translation adjustment				(4,522)	(1,065)	(5,587)
Stock based compensation		5				5
Ending Balance, Shares at Sep. 30, 2014	52,657,574
Ending Balance, Amount at Sep. 30, 2014	$ 53	64,832	(66,536)	(20,141)	(12,685)	(34,477)
Net loss			(27,965)		(5,209)	(33,174)
Currency translation adjustment				(674)	1,554	880
Ending Balance, Shares at Sep. 30, 2015	52,657,574
Ending Balance, Amount at Sep. 30, 2015	$ 53	$ 64,832	$ (94,501)	$ (20,815)	$ (16,340)	$ (66,771)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net loss	$ (33,174)	$ (18,760)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	4,849	4,520
Impairment loss	0	2,281
Loss on remeasurement of equity interests in MOBY	0	722
Gain from discontinued operations	(391)	0
Gain on sale of property and equipment	(150)	0
Accrued interest on accelerated put option	1,995	2,000
Foreign currency transaction loss	19,200	6,645
Stock based compensation	0	5
Changes in current assets and liabilities:
Trade accounts receivable	1,864	(1,036)
Trade accounts receivable from related parties	(277)	1,239
Other receivables	(446)	1,265
Inventories	(145)	(428)
Inventories held for sale	0	126
Prepaid taxes	976	(105)
Advances paid	275	212
Deferred tax assets	(1,917)	(694)
Prepaid expenses and other current assets	101	170
Long-term prepaid taxes	786	1,121
Long-term other receivables, net of current portion	69	43
Accounts payable	403	(237)
Accounts payable to related parties	0	(2,203)
Accrued expenses	7,406	10,240
Taxes payable	(62)	(344)
Deferred revenue	398	(8)
Long-term deferred income tax liability	(80)	(81)
Net cash provided by operating activities	1,680	6,693
Cash flows from investing activities:
Cash received from sale of vessels, equipment and property	150	70
Short-term notes to related parties	(2,579)	(70)
Payments to purchase vessels, equipment and property	(186)	(4,423)
Net cash used in investing activities	(2,615)	(4,423)
Cash flows from financing activities:
Payments on long-term debt	(450)	(700)
Net cash used in financing activities	(450)	(700)
Effect of exchange rate changes on cash	800	(3,586)
Net change in cash	(585)	(2,016)
Cash at beginning of period	1,957	3,973
Cash at end of period	1,372	1,957
Supplemental disclosure of cash flow information:
Cash paid for interest	450	700
Non-cash capital expenditures	$ 1,206	$ 0

NOTE 1 - THE COMPANY, BASIS OF

NOTE 1 - THE COMPANY, BASIS OF PRESENTATION AND ACCOUNTING POLICIES	12 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
NOTE 1 - THE COMPANY, BASIS OF PRESENTATION AND ACCOUNTING POLICIES	Principles of Consolidation Business Condition 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. The Balykshi Loan matured in May 2015. Under the terms of the Balykshi Loan Agreement, as amended, Balykshi was 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. As the Balykshi Loan has matured, the principal and accrued interest is due and payable. The Company has included the Balykshi Loan and all accrued interest as a current liability at September 30, 2015 and 2014. The failure to pay the principal or interest on the Balykshi Loan may constitute an event of default under the Put Option Agreement which could trigger the acceleration clause contained in the Put Option Agreement. The acceleration clause 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 $23,644 and $21,649 as of and September 30, 2015 and 2014, respectively. This balance includes the 20% rate of return on the $10,000 investment and is classified as a current liability. As of the date of this report, to the Company’s knowledge, EBRD has not sought to exercise the put option acceleration clause. 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 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 Non-Negotiable 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 June 2015 the Company and Investor agreed to extend the maturity date of the Non-Negotiable Note from June 30, 2015 to June 30, 2016. If the issuance of common stock has not been demanded by Investor or made at the election of the Company by the June 30, 2016 maturity date, the Company is required to 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 June 2015 the Company and Investor agreed to extend the maturity date of the Consolidated Note from June 30, 2015 to June 30, 2016. 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 payments to Investor totaling $2,850 in reduction of Non-Negotiable Note balance due as of the date of this report. The failure to pay interest on the Consolidated Note when due, may be deemed 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, 2015 and 2014. As of the date of this report, to the Company’s knowledge, Investor has not demanded immediate repayment of the Consolidated Note. In August 2008 MOBY entered into a loan agreement (the “MOBY Loan”) with EBRD. In connection with the MOBY Loan, EBRD required the Company and others 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 is limited to each party’s respective ownership interest in MOBY. The outstanding balance of the MOBY Loan was $6,314 and $5,998 as of September 30, 2015 and 2014, respectively, 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 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 provides for 14 equal semi-annual installment payments of principal and interest on June 15 and December 15, commencing on or after August 2011. As of September 30, 2015 and 2014 MOBY had made no semi-annual installment payments and was in violation of certain financial covenants under the MOBY Loan. Pursuant to the MOBY Loan, 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 MOBY 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 the Guarantee obligation of the Company. Should EBRD determine to take action, MOBY would not have sufficient funds to repay the MOBY Loan, nor would the Company have sufficient funds to repay its portion of the MOBY Loan or the Guarantee. Should EBRD or Investor determine to seek to collect or accelerate the Company’s financial 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 anticipated operating results, current world oil prices, the difficult credit and equity markets and the Company’s current financial condition, the Company believes it would be extremely 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 Balykshi 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, in addition to pursuing other Company assets. As of September 30, 2015 the book value of collateralized assets was approximately $20,861. 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. Acquisition of Kyran The fair values of MOBY assets and liabilities acquired as of the acquisition date, are as follows: August 7, 2014 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 identifiable 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 was expected to be uncollectible. 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 during the fiscal 2014. 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 for fiscal 2014 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 Accelerated Put Option Liability Nature of Operations Vessel Operations Geophysical Services Marine Base Services – Discontinued Operations Equity method investments - 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, 2015 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, 2017 and the interim periods within that year. The Company is evaluating the impact of this update on its 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. In January 2015 the FASB issued ASU 2015-01, “Income Statement — Extraordinary and Unusual Items (Subtopic 225-20)”. This update eliminates from GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement—Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. Paragraph 225-20-45-2 contains the following criteria that must both be met for extraordinary classification, (1) unusual nature - the underlying event or transaction should possess a high degree of abnormality and be of a type clearly unrelated to, or only incidentally related to, the ordinary and typical activities of the entity, taking into account the environment in which the entity operates; and (2) infrequency of occurrence - the underlying event or transaction should be of a type that would not reasonably be expected to recur in the foreseeable future, taking into account the environment in which the entity operates. The amendments in ASU 2015-01 are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The adoption of this ASU is not expected to have a material impact on the Company’s financial statements. In February 2015 the FASB issued Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which changes the analysis to be performed in determining whether certain types of legal entities should be consolidated. Under the revised guidance, all legal entities are subject to reevaluation under the revised consolidation model, unless a scope exception applies. Though the revised guidance mostly affects asset managers, all reporting entities involved with limited partnerships or similar entities are required to reevaluate such entities for consolidation. The guidance is effective for public business entities for fiscal years and for interim periods within those fiscal years beginning after December 15, 2015. The Company is evaluating the impact of this update on its financial statements. In April 2015 the FASB issued Accounting Standards Update No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, as part of its simplification initiative to reduce the cost and complexity in accounting standards. The ASU requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related liability. The treatment is consistent with the current presentation of debt discounts or premiums. For public business entities, the guidance is effective for financial statements covering fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The amended guidance must be applied on a retrospective basis and will not materially affect the Company’s operating results or financial position. In May 2015 the FASB issued ASU 2015-08, Business Combinations – Pushdown Accounting – Amendment to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115. This update was issued to amend various SEC paragraphs pursuant to the issuance of Staff Accounting Bulletin No. 115. This ASU is not expected to have a significant impact on the Company’s financial statements. In August 2015 the FASB issued ASU 2015-14, Revenue from Contracts with Customers In August 2015 the FASB issued ASU 2015-15, Interest – Imputation of Interest (Subtopic 835-30): Presentation And Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805). The amendments in this update require that an acquirer recognizes adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in this update require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this update require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. This ASU is not expected to have a significant impact on the Company’s financial statements. 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 Fair Value of Financial Instruments – Cash 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, 2015 and 2014 the total cash balance of Balykshi and CRE was $37 and $11, respectively. Cash deposit in Kazakhstan bank accounts was $1,242 as of September 30, 2015 and these accounts are not insured by the government. Receivables Inventories Vessels, Equipment and Property Depreciation of property and equipment is calculated using the straight-line method and resulted in depreciation expense for the years ended September 30, 2015 and 2014 of $4,376 and $4,100, respectively. Drydocking Costs Amortization of drydocking costs is calculated by using the straight-line method and resulted in amortization expense for the years ended September 30, 2015 and 2014 of $458 and $397, respectively. Accumulated amortization of the drydocking costs was $475 and $481 as of September 30, 2015 and 2014, respectively. Impairment of Long-Lived Assets and Long-Lived Assets for Disposal Revenue Recognition 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, 2015 and September 30, 2014 the Company had $336 and $0, 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 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 August 2015 the Kazakh government changed its currency policy to make the KZT free floating. As a result, in August 2015 the KZT was devalued by 44%. As a result of the devaluation, during the fiscal year ended September 30, 2015, the Company recorded foreign exchange transaction losses of $19,200 mostly as a result of the remeasurement of the Balykshi Loan and MOBY Loan which are denominated in U.S. Dollars. 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 Loan which is denominated in U.S. Dollars. Income Taxes 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, 2015 and 2014 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 Correction to Previously Issued Financial Statements For the Year Ended September 30, 2014 Previously Reported Revised Difference Comprehensive (income) loss attributable to non-controlling interests $ (1,065) $ 1,065 $ 2,130 Comprehensive Loss Attributable to Caspian Services, Inc. $ 23,294 $ 21,164 $ 2,130 Basic and Diluted Loss Per Share At September 30, 2015 the Company had 458,711,667 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. 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. Concentration of Revenue – During fiscal 2015 geophysical service revenue from two customers represented approximately 91% of total geophysical service revenue as follows, Customer A – 55% and Customer B – 36%. During fiscal 2015 marine base revenue from three customers represented 72% of total marine base revenue as follows, Customer A – 30 %; Customer B – 28% and Customer C – 14%.

NOTE 2 - ATASH MARINE BASE

NOTE 2 - ATASH MARINE BASE	12 Months Ended
	Sep. 30, 2015
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. During fiscal 2015 and 2014 the Company determined it necessary to perform an impairment analysis on the marine base since the development of the second phase of the Kashagan field has been postponed 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, 2015 and 2014, 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 ACCOUN

NOTE 3 - TRADE AND OTHER ACCOUNTS RECEIVABLE	12 Months Ended
	Sep. 30, 2015
Receivables [Abstract]
NOTE 3 - TRADE AND OTHER ACCOUNTS RECEIVABLE	Trade Accounts Receivable 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, 2015 and 2014 net receivables related to geophysical services totaled $2,691 and $6,090, respectively. The Company has reviewed the accounts receivable as of September 30, 2015 and 2014 on a case-by-case basis. The Company provided an allowance for doubtful accounts of $1,124 and $1,200 at September 30, 2015 and 2014, respectively, based on existing economic conditions and management’s assessment of the collectability of the receivables. At September 30, 2015 and 2014 receivables related to marine base operations totaled $47 and $226, respectively. The Company determined that no allowance for doubtful accounts for these receivables was necessary at September 30, 2015 and 2014. Other Receivables –

NOTE 4 - VESSELS, EQUIPMENT AND

NOTE 4 - VESSELS, EQUIPMENT AND PROPERTY	12 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
NOTE 4 - VESSELS, EQUIPMENT AND PROPERTY	Vessels, equipment and property consisted of the following: as of September 30, 2015 2015 Depreciable Life in Years Land $ 5,241 $ 7,813 N/A Buildings and constructions 21,089 31,036 10-14 Marine vessels 8,493 13,523 10 Machinery and equipment 11,941 18,020 2-15 Vehicles 1,519 2,599 3-12 Office equipment 1,078 289 2-10 Dwelling units 821 1,225 3-7 Other 183 649 3-7 50,365 75,154 Accumulated depreciation (23,649) (33,067) Vessels, Equipment and Property, net $ 26,716 $ 42,087

NOTE 5 - INTANGIBLE ASSETS AND

NOTE 5 - INTANGIBLE ASSETS AND GOODWILL	12 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
NOTE 5 - INTANGIBLE ASSETS AND GOODWILL	Intangible Assets 2015 2014 Estimated useful life Gross amount Accumulated amortization Gross amount Accumulated amortization Acquired software 7 years $ 249 $ 211 $ 316 $ 302 Total $ 249 $ 211 $ 316 $ 302 Total amortization expense related to intangible assets was approximately $15 and $23 for the years ended September 30, 2015 and 2014, respectively. The estimated amortization expense for acquired software is as follows for the periods indicated: Years Ending September 30, 2016 2017 2018 thereafter Amortization expense $ 15 $ 15 $ 8 $ - Goodwill Changes in the carrying amount of goodwill were as follows: For The Year Ended September 30, 2015 2014 Balance - beginning of year $ 189 $ 224 Goodwill from MOBY acquisition - 2,324 Impairment of Goodwill from MOBY acquisition - (2,281) Foreign currency translation adjustment (62) (78) Balance - end of year $ 127 $ 189

NOTE 6 - NOTES PAYABLE

NOTE 6 - NOTES PAYABLE	12 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
NOTE 6 - NOTES PAYABLE	September 30, September 30, 2015 2014 Secured non-negotiable promissory note payable to Investor; interest at 0.26% $ 10,913 $ 10,885 due June 30, 2016 Secured convertible consolidated promissory note payable to Investor; interest at 12% 36,777 32,862 (default interest at 13%) due June 30, 2016 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 27,968 25,539 MOBY- EBRD loan and accrued interest at 3.6% plus the interbank rate due June 2018 (default interest at 5.6% plus the interbank rate ) 6,314 5,998 Total Long-term Debt 81,972 75,284 Less: Current Portion (81,972) (75,284) Long-term Debt - Net of Current Portion $ - $ - Notes Payable to Investor 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. In September 2014 this maturity date was extended to June 30, 2015. On June 30, 2015 the Company and Investor entered into a second amendment to this Note, which extended the maturity date to June 30, 2016 (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 is required to 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 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. In September 2014 a first amendment to this Note was entered into between the Company and Investor, which extended the maturity date to June 30, 2015. On June 30, 2015 a second amendment to this Note was entered into between the Company and Investor which extends the maturity date to June 30, 2016. As of the date of this report, none of the semi-annual interest payments have been made on the date they were due. The failure to pay interest on the Consolidated Note may be deemed 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, 2015 and 2014. During fiscal 2013 the Company paid $1,600 to Investor, which was credited as a reduction of balance due under the Consolidated Note. During fiscal 2014 Investor was paid $700. During fiscal 2015 Investor was paid $300 in December 2014 and $150 in June 2015. Subsequent to the end of fiscal 2015, in December 2015, Investor was paid $100. The Consolidated Note is superior in rank to all future unsecured indebtedness of the Company and its subsidiaries, except for the EBRD Indebtedness. 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 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. Loans Payable to EBRD Balykshi Loan The Balykshi Loan matured in May 2015. Under the terms of the Balykhsi Loan Agreement, as amended, Balykshi was 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. As the Balykshi Loan has matured, the principal and accrued interest is currently due and payable. The Balykshi Loan Agreement provides that if the Balykshi fails to pay when due any amount payable by it under the Loan, the overdue amount shall bear interest at a rate that is 2% higher than the non-default rate of interest. As the Balykshi Loan is secured, in the event of a failure to repay the loan, EBRD has the right to foreclose on the assets and bank accounts of Balykshi and CRE, including the marine base, and to pursue the other assets of the Company. MOBY Loan As of September 30, 2015 the outstanding balance of the MOBY Loan was $6,314, 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 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 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.) As of September 30, 2015 and 2014 MOBY had made no semi-annual installment payments and was in violation of certain financial covenants under the MOBY Loan. 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, to the Company’s knowledge, 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 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, 2014
Notes to Financial Statements
NOTE 7 - STOCKHOLDERS' EQUITY	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 447,589 and 451,394 shares on August 2, 2014 and 2015, respectively. These grants have not been awarded. During the fourth fiscal quarter 2014 and 2015, respectively, Mr. Kotov agreed to release the Company from its obligations to issue the outstanding grants. Stock Options Stock option activity for the years ended September 30, 2015 and 2014 is as follows: 2015 2014 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 (800,000) $ - - - Outstanding at end of the year - $ - 800,000 $ 3.00 Exercisable at end of the year - $ - 800,000 $ 3.00

NOTE 8 - INCOME TAXES

NOTE 8 - INCOME TAXES	12 Months Ended
	Sep. 30, 2015
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, 2015 2014 United States $ (832) $ (3,989) Kazakhstan (33,779) (15,097) $ (34,611) $ (19,086) Income (provision) benefit consists of the following: For the Years Ended September 30, 2015 2014 Current U.S. income tax $ - $ - Current Foreign Income Tax 604 (531) Deferred U.S. income tax 9 1,186 Deferred Foreign Income Tax 4,022 3,216 Provision for Valuation Allowance (3,589) (3,503) Income tax benefit $ 1,046 $ 368 As of September 30, US Foreign 2015 2014 Current deferred tax assets/(liabilities) Provision for doubtful debts $ - $ 1,075 $ 1,075 $ 1,145 Inventory Allowance - - - Vacation Accrual - 23 23 98 Tax loss carry forwards - - - - Valuation Allowance - (546) (546) (1,155) Total current deferred tax asset $ - $ 552 $ 552 $ 88 Long-term deferred tax assets/(liabilities) Net Operating Loss carry forwards $ 6,584 $ 12,279 $ 18,863 $ 17,681 Capital Loss Carryforwards 779 - 779 779 Property and equipment - 48 48 (160) Valuation allowance (7,363) (9,849) (17,212) (15,850) Total net long-term deferred tax asset/(liability) - 2,478 2,478 2,450 Net deferred tax asset $ - $ 3,030 $ 3,030 $ 2,538 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, 2015 2014 Tax at federal statutory rate (37.3%) 10,497 7,135 Non-deductible expenses (38) (605) Loss not subject to taxation (62) 547 Effect of lower foreign tax rates (4,505) (2,260) Intercompany adjustments - 78 Valuation Allowance (3,589) (3,503) Other (1,257) (1,024) Income tax benefit 1,046 368 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 2012 through 2015 tax years.

NOTE 9 - COMMITMENTS AND CONTIN

NOTE 9 - COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
NOTE 9 - COMMITMENTS AND CONTINGENCIES	Economic Environment 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 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, 2015 and 2014 was $237 and $244, respectively. The U.S. office lease expires at the end of March 2016. 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 2016 and 2017 are $129 and $78, respectively. Some of the vessels in the Company’s fleet were leased from third parties. Rent expense for the years ended September 30, 2015 and 2014 was $1,873 and $1,840, respectively. The future minimum rental payments required under these operating leases are estimated to be $1,207 in 2016, $890 in 2017, $890 in 2018, $890 in 2019 and $2,772 thereafter. During 2015 vessels were leased from two companies: Veritas Marine and Actamarine. The term of the Veritas lease agreement expired on December 31, 2014. The Actamarine lease term expires on March 2, 2023. The terms and conditions of the Actamarine lease agreement can be amended by agreement of the parties.

NOTE 10 - RELATED PARTY TRANSAC

NOTE 10 - RELATED PARTY TRANSACTIONS	12 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
NOTE 10 - RELATED PARTY TRANSACTIONS	Revenues and expenses from transactions with related parties for the fiscal years ended September 30, 2015 and 2014 consisted of the following: For the period ended September 30, Related Party's Name Relationship Description 2015 2014 Sequa Petroleum Common Control Seismic services revenue 1,741 - Moby Joint-venture Marine base revenue* - 468 Bolz Common Control Seismic services revenue - 558 Sayat Media Key management personnel Revenue from agent for marine base services 374 - Other revenue/ (expenses) Other services (38) (68) TOTAL $ 2,077 $ 958 *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, 2015 and 2014 consisted of the following: Related Party's Name Description September 30, 2015 September 30, 2014 Sequa Petroleum Seismic services $ 33 $ - Demeu Energy Advance given for vehicles delivery 185 275 Sayat Media Receivable from agent for marine base services 104 - Caspian Geo Consulting Advance given for equipment delivery 185 165 Allowance for doubtful accounts (296) (440) TOTAL $ 211 $ - Accounts payable to related parties as of September 30, 2015 and 2014 consisted of the following: Related Party's Name Description September 30, 2015 September 30, 2014 Sayat Media Other services $ 10 $ 13 Others Others 49 63 TOTAL $ 59 $ 76 Short-term notes from related parties as of September 30, 2015 and 2014 consisted of the following: Related Party's Name Description September 30, 2015 September 30, 2014 Caspian Geo Consulting Notes Receivable $ 2,195 $ - Sayat Media Notes Receivable - 70 TOTAL $ 2,195 $ 70 Caspian Geo-Consulting Services LLP (“Caspian Geo”) Sayat Media

NOTE 11 - FAIR VALUE MEASUREMEN

NOTE 11 - FAIR VALUE MEASUREMENTS	12 Months Ended
	Sep. 30, 2015
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, 2015 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 $1,995 change during the year ended September 30, 2015 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 September 30, 2015 Level 1 Level 2 Level 3 Property held for sale $ 30 $ - $ - $ 30 Put option liability 23,644 - - 23,644 Total $ 23,674 $ - $ - $ 23,674 Fair Value Measurements at Reporting Date Using Description September 30, 2014 Level 1 Level 2 Level 3 Property held for sale $ 44 $ - $ - $ 44 Put option liability 21,649 - - 21,649 Total $ 21,693 $ - $ - $ 21,693 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 determine the fair value of 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 (selling price of similar items) Adjustment for Bargaining (30%) - 0% 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, 2015
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. It also requires 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 Year Ended September 30, 2015 2014 Capital Expenditures Vessel Operations $ 306 $ 824 Geophysical Services 1,206 3,290 Marine Base Services 4 309 Total segments 1,516 4,423 Corporate assets - - Less intersegment investments (124) - Total consolidated $ 1,392 $ 4,423 For the Year Ended September 30, 2015 2014 Revenues Vessel Operations $ 13,477 $ 16,840 Geophysical Services 3,146 13,244 Marine Base Services 8,175 6,888 Total segments 24,798 36,972 Corporate revenue - - Less intersegment revenues (8,353) (7,041) Total consolidated $ 16,445 $ 29,931 Depreciation and Amortization Vessel Operations $ (1,637) $ (1,910) Geophysical Services (1,530) (1,248) Marine Base Services (1,681) (1,361) Total segments (4,848) (4,519) Corporate depreciation and amortization (1) (1) Total consolidated $ (4,849) $ (4,520) Interest expense Vessel Operations $ - $ - Geophysical Services - - Marine Base Services (6,762) (5,910) Total segments (6,762) (5,910) Corporate interest expense (2,388) (2,183) Total consolidated $ (9,150) $ (8,093) Income/(Loss) Before Income Tax Vessel Operations $ 2,326 $ (200) Geophysical Services (3,985) 2,434 Marine Base Services (30,082) (18,341) Total segments (31,741) (16,107) Corporate loss (2,870) (2,979) Total consolidated $ (34,611) $ (19,086) For the Year Ended September 30, 2015 2014 Benefit from (Provision for) Income Tax Vessel Operations $ 424 $ 1,137 Geophysical Services 624 (765) Marine Base Services - - Total segments 1,048 372 Corporate provision for income tax (2) (4) Total consolidated $ 1,046 $ 368 Loss/ (Income) from discontinued operations Vessel Operations $ - $ - Geophysical Services - - Marine Base Services - - Total segments - - Corporate 391 (42) Total consolidated $ 391 $ (42) Loss/ (Income) attributable to Noncontrolling Interests Vessel Operations $ - $ - Geophysical Services - - Marine Base Services 5,209 2,118 Total segments 5,209 2,118 Corporate noncontrolling interest - - Total consolidated $ 5,209 $ 2,118 Net (Loss)/ Income attributable to Caspian Services Inc. Vessel Operations $ 2,750 $ 937 Geophysical Services (3,361) 1,669 Marine Base Services (24,873) (16,223) Total segments (25,484) (13,617) Corporate loss (2,481) (3,025) Total consolidated $ (27,965) $ (16,642) September 30, September 30, 2015 2014 Segment Assets Vessel Operations $ 16,430 $ 15,219 Geophysical Services 10,611 18,663 Marine Base Services 55,726 73,001 Total segments 82,767 106,883 Corporate assets 673 766 Less intersegment investments (40,348) (40,581) Total consolidated $ 43,092 $ 67,068

NOTE 13 - SUBSEQUENT EVENTS

NOTE 13 - SUBSEQUENT EVENTS	12 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
NOTE 13 - SUBSEQUENT EVENTS	In December 2015 we paid $100 to Investor, which was credited to reduce Non-Negotiable Note balance due. On January 11, 2016, the Company entered into a Master Financial Assistance Repayment Agreement with Caspian Geo, (the “Repayment Agreement”). Pursuant to the Repayment Agreement, the Company and Caspian Geo have agreed to consolidate the previously provided financial assistance into a single US dollar denominated outstanding amount of $2,195 (US dollars). Caspian Geo will make minimum monthly payments of KZT 50,000 from January 2016 through November 2016 and by no later than December 30, 2016, will pay the remaining unpaid balance of the outstanding amount. In addition to repayment of the previously provided financial assistance, the Company holds a participation interest right pursuant to which, the Company will receive 20% of the total amount received by Caspian Geo from the sale of gold ore from the Deposit (the “Participation Interest”) from the date of the Repayment Agreement until seven years from the date of commencement of production following a commercial discovery at the Deposit. In the event our Participation Interest has not been converted or exchanged, following repayment in full of the $2,195, Caspian Geo has the right until January 9, 2018 to retire the Participation Interest in exchange for a lump sum payment of $1,825. The Company also has the right, at any time prior to retirement of the Participation Interest, to convert its Participation Interest into a 12.5% equity interest in the entity holding the Subsoil Use Contract should it become a public company or, in the event of a sale of the Subsoil Use Contract, to exchange the Participation Interest for 12.5% of the proceeds received by Caspian Geo in connection with such sale.

NOTE 1 - THE COMPANY AND BASIS

NOTE 1 - THE COMPANY AND BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Policies)	12 Months Ended
	Sep. 30, 2015
Note 1 - Company And Basis Of Presentation And Accounting Policies Policies
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 (the “Balykshi Loan”). 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. The Balykshi Loan matured in May 2015. Under the terms of the Balykshi Loan Agreement, as amended, Balykshi was 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. As the Balykshi Loan has matured, the principal and accrued interest is due and payable. The Company has included the Balykshi Loan and all accrued interest as a current liability at September 30, 2015 and 2014. The failure to pay the principal or interest on the Balykshi Loan may constitute an event of default under the Put Option Agreement which could trigger the acceleration clause contained in the Put Option Agreement. The acceleration clause 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 $23,644 and $21,649 as of and September 30, 2015 and 2014, respectively. This balance includes the 20% rate of return on the $10,000 investment and is classified as a current liability. As of the date of this report, to the Company’s knowledge, EBRD has not sought to exercise the put option acceleration clause. 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 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 Non-Negotiable 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 June 2015 the Company and Investor agreed to extend the maturity date of the Non-Negotiable Note from June 30, 2015 to June 30, 2016. If the issuance of common stock has not been demanded by Investor or made at the election of the Company by the June 30, 2016 maturity date, the Company is required to 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 June 2015 the Company and Investor agreed to extend the maturity date of the Consolidated Note from June 30, 2015 to June 30, 2016. 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 payments to Investor totaling $2,850 in reduction of Non-Negotiable Note balance due as of the date of this report. The failure to pay interest on the Consolidated Note when due, may be deemed 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, 2015 and 2014. As of the date of this report, to the Company’s knowledge, Investor has not demanded immediate repayment of the Consolidated Note. In August 2008 MOBY entered into a loan agreement (the “MOBY Loan”) with EBRD. In connection with the MOBY Loan, EBRD required the Company and others 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 is limited to each party’s respective ownership interest in MOBY. The outstanding balance of the MOBY Loan was $6,314 and $5,998 as of September 30, 2015 and 2014, respectively, 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 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 provides for 14 equal semi-annual installment payments of principal and interest on June 15 and December 15, commencing on or after August 2011. As of September 30, 2015 and 2014 MOBY had made no semi-annual installment payments and was in violation of certain financial covenants under the MOBY Loan. Pursuant to the MOBY Loan, 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 MOBY 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 the Guarantee obligation of the Company. Should EBRD determine to take action, MOBY would not have sufficient funds to repay the MOBY Loan, nor would the Company have sufficient funds to repay its portion of the MOBY Loan or the Guarantee. Should EBRD or Investor determine to seek to collect or accelerate the Company’s financial 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 anticipated operating results, current world oil prices, the difficult credit and equity markets and the Company’s current financial condition, the Company believes it would be extremely 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 Balykshi 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, in addition to pursuing other Company assets. As of September 30, 2015 the book value of collateralized assets was approximately $20,861. 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.
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 was 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 in fiscal 2014. 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 during fiscal 2014. 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: August 7, 2014 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 identifiable 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 was expected to be uncollectible. 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 during the fiscal 2014. 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 for fiscal 2014 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
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 Balykshi Loan Agreement may have occurred and that such could trigger EBRD’s accelerated put right, we have reflected an accelerated put option liability of $23,644, 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 Geophysical Services Marine Base Services –
Discontinued Operations	During fiscal 2015 the Company discontinued operations in the Kazakhstan subsidiary of CSI Inc., CSI LLP (“CSI KZ”). Upon determining to discontinue CSI KZ, all prior periods presented have been restated to separately account for the discontinued operations. The entire (loss) income from discontinued operations is attributable to the Company.
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, 2015 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, 2017 and the interim periods within that year. The Company is evaluating the impact of this update on its 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. In January 2015 the FASB issued ASU 2015-01, “Income Statement — Extraordinary and Unusual Items (Subtopic 225-20)”. This update eliminates from GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement—Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. Paragraph 225-20-45-2 contains the following criteria that must both be met for extraordinary classification, (1) unusual nature - the underlying event or transaction should possess a high degree of abnormality and be of a type clearly unrelated to, or only incidentally related to, the ordinary and typical activities of the entity, taking into account the environment in which the entity operates; and (2) infrequency of occurrence - the underlying event or transaction should be of a type that would not reasonably be expected to recur in the foreseeable future, taking into account the environment in which the entity operates. The amendments in ASU 2015-01 are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The adoption of this ASU is not expected to have a material impact on the Company’s financial statements. In February 2015 the FASB issued Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which changes the analysis to be performed in determining whether certain types of legal entities should be consolidated. Under the revised guidance, all legal entities are subject to reevaluation under the revised consolidation model, unless a scope exception applies. Though the revised guidance mostly affects asset managers, all reporting entities involved with limited partnerships or similar entities are required to reevaluate such entities for consolidation. The guidance is effective for public business entities for fiscal years and for interim periods within those fiscal years beginning after December 15, 2015. The Company is evaluating the impact of this update on its financial statements. In April 2015 the FASB issued Accounting Standards Update No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, as part of its simplification initiative to reduce the cost and complexity in accounting standards. The ASU requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related liability. The treatment is consistent with the current presentation of debt discounts or premiums. For public business entities, the guidance is effective for financial statements covering fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The amended guidance must be applied on a retrospective basis and will not materially affect the Company’s operating results or financial position. In May 2015 the FASB issued ASU 2015-08, Business Combinations – Pushdown Accounting – Amendment to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115. This update was issued to amend various SEC paragraphs pursuant to the issuance of Staff Accounting Bulletin No. 115. This ASU is not expected to have a significant impact on the Company’s financial statements. In August 2015 the FASB issued ASU 2015-14, Revenue from Contracts with Customers In August 2015 the FASB issued ASU 2015-15, Interest – Imputation of Interest (Subtopic 835-30): Presentation And Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805). The amendments in this update require that an acquirer recognizes adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in this update require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this update require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. This ASU is not expected to have a significant impact on the Company’s financial statements. 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, 2015 and 2014 the total cash balance of Balykshi and CRE was $37 and $11, respectively. Cash deposit in Kazakhstan bank accounts was $1,242 as of September 30, 2015 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, 2015 and 2014 an allowance of $722 and $1,074, 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, 2015 and 2014 of $4,376 and $4,100, respectively.
Dry-docking 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, 2015 and 2014 of $458 and $397, respectively. Accumulated amortization of the drydocking costs was $475 and $481 as of September 30, 2015 and 2014, 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.
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, 2015 and September 30, 2014 the Company had $336 and $0, 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 August 2015 the Kazakh government changed its currency policy to make the KZT free floating. As a result, in August 2015 the KZT was devalued by 44%. As a result of the devaluation, during the fiscal year ended September 30, 2015, the Company recorded foreign exchange transaction losses of $19,200 mostly as a result of the remeasurement of the Balykshi Loan and MOBY Loan which are denominated in U.S. Dollars. 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 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, 2015 and 2014 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.
Correction to Previously Issued Financial Statements	In the current period, the Company identified a mathematical error in the calculation of Comprehensive Loss Attributable to Caspian Services, Inc., for the year ending September 30, 2014. This mathematical error was the result of the Company reflecting a Comprehensive Income Attributable to Non-controlling Interests of $1,065, when in fact, it realized Comprehensive Loss Attributable to Non-controlling Interests of $1,065. This resulted in the Company overstating the Comprehensive Loss Attributable to Caspian Service, Inc. by $2,130. This overstatement had no impact on Basic and Diluted Loss per Share from Continuing Operations or on Basic and Diluted Loss per Share. The Company has assessed the impact of the mathematical error on the period impacted under the guidance of Accounting Standards Codification Topic 250-10, Accounting Changes and Error Corrections, related to SEC Staff Accounting Bulletin (“SAB”) No.99, Materiality, and has determined that the impact of the error was not material to the previously issued audited consolidated financial statements. The Company has elected to revise its previously issued audited consolidated financial statements to facilitate comparisons across periods. The Company has corrected Comprehensive (Income) Loss Attributable to Non-controlling Interests and Comprehensive Loss Attributable to Caspian Services, Inc. for the year ending September 30, 2014, as follows: For the Year Ended September 30, 2014 Previously Reported Revised Difference Comprehensive (income) loss attributable to non-controlling interests $ (1,065) $ 1,065 $ 2,130 Comprehensive Loss Attributable to Caspian Services, Inc. $ 23,294 $ 21,164 $ 2,130
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, 2015 the Company had 458,711,667 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. 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.
Concentration of Revenue	During fiscal 2015 vessel revenue from five customers represented approximately 67% of total vessel revenue as follows, Customer A – 21%; Customer B – 15%; Customer C – 12%; Customer D – 10% and Customer E – 9%. During fiscal 2015 geophysical service revenue from two customers represented approximately 91% of total geophysical service revenue as follows, Customer A – 55% and Customer B – 36%. During fiscal 2015 marine base revenue from three customers represented 72% of total marine base revenue as follows, Customer A – 30 %; Customer B – 28% and Customer C – 14%.

1. THE COMPANY, BASIS OF PRESEN

1. THE COMPANY, BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Tables)	12 Months Ended
	Sep. 30, 2015
Company Basis Of Presentation And Accounting Policies Tables
Schedule assets and liabilities for Acquisition of MOBY	August 7, 2014 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 identifiable 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
Correction to Previously Issued Financial Statements	For the Year Ended September 30, 2014 Previously Reported Revised Difference Comprehensive (income) loss attributable to non-controlling interests $ (1,065) $ 1,065 $ 2,130 Comprehensive Loss Attributable to Caspian Services, Inc. $ 23,294 $ 21,164 $ 2,130

NOTE 4 - VESSELS, EQUIPMENT A23

NOTE 4 - VESSELS, EQUIPMENT AND PROPERTY (Tables)	12 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Summary of vessels, equipment and property	as of September 30, 2015 2015 Depreciable Life in Years Land $ 5,241 $ 7,813 N/A Buildings and constructions 21,089 31,036 10-14 Marine vessels 8,493 13,523 10 Machinery and equipment 11,941 18,020 2-15 Vehicles 1,519 2,599 3-12 Office equipment 1,078 289 2-10 Dwelling units 821 1,225 3-7 Other 183 649 3-7 50,365 75,154 Accumulated depreciation (23,649) (33,067) Vessels, Equipment and Property, net $ 26,716 $ 42,087

NOTE 5 - INTANGIBLE ASSETS AN24

NOTE 5 - INTANGIBLE ASSETS AND GOODWILL (Tables)	12 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of intangible assets	2015 2014 Estimated useful life Gross amount Accumulated amortization Gross amount Accumulated amortization Acquired software 7 years $ 249 $ 211 $ 316 $ 302 Total $ 249 $ 211 $ 316 $ 302
Summary of amortization expense	Years Ending September 30, 2016 2017 2018 thereafter Amortization expense $ 15 $ 15 $ 8 $ -
Changes in the carrying amount of goodwill	For The Year Ended September 30, 2015 2014 Balance - beginning of year $ 189 $ 224 Goodwill from MOBY acquisition - 2,324 Impairment of Goodwill from MOBY acquisition - (2,281) Foreign currency translation adjustment (62) (78) Balance - end of year $ 127 $ 189

NOTE 6 - NOTES PAYABLE (Tables)

NOTE 6 - NOTES PAYABLE (Tables)	12 Months Ended
	Sep. 30, 2015
Note 6 - Notes Payable Tables
NOTES PAYABLE	September 30, September 30, 2015 2014 Secured non-negotiable promissory note payable to Investor; interest at 0.26% $ 10,913 $ 10,885 due June 30, 2016 Secured convertible consolidated promissory note payable to Investor; interest at 12% 36,777 32,862 (default interest at 13%) due June 30, 2016 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 27,968 25,539 MOBY- EBRD loan and accrued interest at 3.6% plus the interbank rate due June 2018 (default interest at 5.6% plus the interbank rate ) 6,314 5,998 Total Long-term Debt 81,972 75,284 Less: Current Portion (81,972) (75,284) Long-term Debt - Net of Current Portion $ - $ -

NOTE 7 - STOCKHOLDERS' EQUITY (

NOTE 7 - STOCKHOLDERS' EQUITY (Tables)	12 Months Ended
	Sep. 30, 2015
Deficit
Stock option activity	2015 2014 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 (800,000) $ - - - Outstanding at end of the year - $ - 800,000 $ 3.00 Exercisable at end of the year - $ - 800,000 $ 3.00

NOTE 8 - INCOME TAXES (Tables)

NOTE 8 - INCOME TAXES (Tables)	12 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Schedule of Income before Income Tax, Domestic and Foreign	For the Years Ended September 30, 2015 2014 United States $ (832) $ (3,989) Kazakhstan (33,779) (15,097) $ (34,611) $ (19,086)
Schedule of Components of Income Tax Expense (Benefit)	For the Years Ended September 30, 2015 2014 Current U.S. income tax $ - $ - Current Foreign Income Tax 604 (531) Deferred U.S. income tax 9 1,186 Deferred Foreign Income Tax 4,022 3,216 Provision for Valuation Allowance (3,589) (3,503) Income tax benefit $ 1,046 $ 368
Schedule of Deferred Tax Assets and Liabilities	As of September 30, US Foreign 2015 2014 Current deferred tax assets/(liabilities) Provision for doubtful debts $ - $ 1,075 $ 1,075 $ 1,145 Inventory Allowance - - - Vacation Accrual - 23 23 98 Tax loss carry forwards - - - - Valuation Allowance - (546) (546) (1,155) Total current deferred tax asset $ - $ 552 $ 552 $ 88 Long-term deferred tax assets/(liabilities) Net Operating Loss carry forwards $ 6,584 $ 12,279 $ 18,863 $ 17,681 Capital Loss Carryforwards 779 - 779 779 Property and equipment - 48 48 (160) Valuation allowance (7,363) (9,849) (17,212) (15,850) Total net long-term deferred tax asset/(liability) - 2,478 2,478 2,450 Net deferred tax asset $ - $ 3,030 $ 3,030 $ 2,538
Schedule of Effective Income Tax Rate Reconciliation	For the Years Ended September 30, 2015 2014 Tax at federal statutory rate (37.3%) 10,497 7,135 Non-deductible expenses (38) (605) Loss not subject to taxation (62) 547 Effect of lower foreign tax rates (4,505) (2,260) Intercompany adjustments - 78 Valuation Allowance (3,589) (3,503) Other (1,257) (1,024) Income tax benefit 1,046 368

NOTE 10 - RELATED PARTY TRANS28

NOTE 10 - RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Sep. 30, 2015
Note 10 - Related Party Transactions Tables
Revenues and expenses from transactions with related parties	For the period ended September 30, Related Party's Name Relationship Description 2015 2014 Sequa Petroleum Common Control Seismic services revenue 1,741 - Moby Joint-venture Marine base revenue* - 468 Bolz Common Control Seismic services revenue - 558 Sayat Media Key management personnel Revenue from agent for marine base services 374 - Other revenue/ (expenses) Other services (38) (68) TOTAL $ 2,077 $ 958
Accounts receivable from related parties	Related Party's Name Description September 30, 2015 September 30, 2014 Sequa Petroleum Seismic services $ 33 $ - Demeu Energy Advance given for vehicles delivery 185 275 Sayat Media Receivable from agent for marine base services 104 - Caspian Geo Consulting Advance given for equipment delivery 185 165 Allowance for doubtful accounts (296) (440) TOTAL $ 211 $ -
Accounts payable to related parties	Related Party's Name Description September 30, 2015 September 30, 2014 Sayat Media Other services $ 10 $ 13 Others Others 49 63 TOTAL $ 59 $ 76
Short-term notes from related parties	Related Party's Name Description September 30, 2015 September 30, 2014 Caspian Geo Consulting Notes Receivable $ 2,195 $ - Sayat Media Notes Receivable - 70 TOTAL $ 2,195 $ 70

NOTE 11 - FAIR VALUE MEASUREM29

NOTE 11 - FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Sep. 30, 2015
Note 11 - Fair Value Measurements Tables
Schedule of fair value measurements	Fair Value Measurements at Reporting Date Using Description September 30, 2015 Level 1 Level 2 Level 3 Property held for sale $ 30 $ - $ - $ 30 Put option liability 23,644 - - 23,644 Total $ 23,674 $ - $ - $ 23,674 Fair Value Measurements at Reporting Date Using Description September 30, 2014 Level 1 Level 2 Level 3 Property held for sale $ 44 $ - $ - $ 44 Put option liability 21,649 - - 21,649 Total $ 21,693 $ - $ - $ 21,693
Valuation technique used to calculate fair values 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 (selling price of similar items) Adjustment for Bargaining (30%) - 0% 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 (

NOTE 12 - SEGMENT INFORMATION (Tables)	12 Months Ended
	Sep. 30, 2015
Note 12 - Segment Information Tables
Operations and assets of reportable business segments schedule	For the Year Ended September 30, 2015 2014 Capital Expenditures Vessel Operations $ 306 $ 824 Geophysical Services 1,206 3,290 Marine Base Services 4 309 Total segments 1,516 4,423 Corporate assets - - Less intersegment investments (124) - Total consolidated $ 1,392 $ 4,423 For the Year Ended September 30, 2015 2014 Revenues Vessel Operations $ 13,477 $ 16,840 Geophysical Services 3,146 13,244 Marine Base Services 8,175 6,888 Total segments 24,798 36,972 Corporate revenue - - Less intersegment revenues (8,353) (7,041) Total consolidated $ 16,445 $ 29,931 Depreciation and Amortization Vessel Operations $ (1,637) $ (1,910) Geophysical Services (1,530) (1,248) Marine Base Services (1,681) (1,361) Total segments (4,848) (4,519) Corporate depreciation and amortization (1) (1) Total consolidated $ (4,849) $ (4,520) Interest expense Vessel Operations $ - $ - Geophysical Services - - Marine Base Services (6,762) (5,910) Total segments (6,762) (5,910) Corporate interest expense (2,388) (2,183) Total consolidated $ (9,150) $ (8,093) Income/(Loss) Before Income Tax Vessel Operations $ 2,326 $ (200) Geophysical Services (3,985) 2,434 Marine Base Services (30,082) (18,341) Total segments (31,741) (16,107) Corporate loss (2,870) (2,979) Total consolidated $ (34,611) $ (19,086) For the Year Ended September 30, 2015 2014 Benefit from (Provision for) Income Tax Vessel Operations $ 424 $ 1,137 Geophysical Services 624 (765) Marine Base Services - - Total segments 1,048 372 Corporate provision for income tax (2) (4) Total consolidated $ 1,046 $ 368 Loss/ (Income) from discontinued operations Vessel Operations $ - $ - Geophysical Services - - Marine Base Services - - Total segments - - Corporate 391 (42) Total consolidated $ 391 $ (42) Loss/ (Income) attributable to Noncontrolling Interests Vessel Operations $ - $ - Geophysical Services - - Marine Base Services 5,209 2,118 Total segments 5,209 2,118 Corporate noncontrolling interest - - Total consolidated $ 5,209 $ 2,118 Net (Loss)/ Income attributable to Caspian Services Inc. Vessel Operations $ 2,750 $ 937 Geophysical Services (3,361) 1,669 Marine Base Services (24,873) (16,223) Total segments (25,484) (13,617) Corporate loss (2,481) (3,025) Total consolidated $ (27,965) $ (16,642) September 30, September 30, 2015 2014 Segment Assets Vessel Operations $ 16,430 $ 15,219 Geophysical Services 10,611 18,663 Marine Base Services 55,726 73,001 Total segments 82,767 106,883 Corporate assets 673 766 Less intersegment investments (40,348) (40,581) Total consolidated $ 43,092 $ 67,068

1. THE COMPANY, BASIS OF PRES31

1. THE COMPANY, BASIS OF PRESENTATION AND ACCOUNTING POLICIES - Schedule Acquisition of Moby (Details) - MOBY	Aug. 07, 2014USD ($)
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 identifiable 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 PRES32

1. THE COMPANY, BASIS OF PRESENTATION AND ACCOUNTING POLICIES - Schedule of Revenue of MOBY and Consolidated Entity (Details) - USD ($) $ in Thousands	2 Months Ended	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues		$ 16,445	$ 29,931
Net loss		$ (33,174)	$ (18,760)
MOBY
Revenues	$ 6
Net loss	$ (3,133)

NOTE 1. THE COMPANY, BASIS OF P

NOTE 1. THE COMPANY, BASIS OF PRESENTATION AND ACCOUNTING POLICIES - Correction to previous financial statements (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Comprehensive (income) loss attributable to non-controlling interest	$ (1,554)	$ 1,065
Comprehensive loss attributable to Caspian Services, Inc.	$ (28,639)	(21,164)
Previously Reported
Comprehensive (income) loss attributable to non-controlling interest		(1,065)
Comprehensive loss attributable to Caspian Services, Inc.		23,294
Revised
Comprehensive (income) loss attributable to non-controlling interest		1,065
Comprehensive loss attributable to Caspian Services, Inc.		21,164
Difference
Comprehensive (income) loss attributable to non-controlling interest		2,130
Comprehensive loss attributable to Caspian Services, Inc.		$ 2,130

NOTE 4 - VESSELS, EQUIPMENT A34

NOTE 4 - VESSELS, EQUIPMENT AND PROPERTY (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Sep. 30, 2014
Property, Plant and Equipment [Abstract]
Land	$ 5,241	$ 7,813
Buildings and construction	21,089	31,036
Marine vessels	8,493	13,523
Machinery and equipment	11,941	18,020
Vehicles	1,519	2,599
Office equipment	1,078	289
Dwelling units	821	1,225
Other	183	649
Vessels, Equipment and Property, gross	50,365	75,154
Accumulated depreciation	(23,649)	(33,067)
Vessels, Equipment and Property, net	$ 26,716	$ 42,087

NOTE 5 - INTANGIBLE ASSETS AN35

NOTE 5 - INTANGIBLE ASSETS AND GOODWILL (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Sep. 30, 2014
Gross Carrying Amount
Acquired software	$ 249	$ 316
Total	249	316
Accumulated Amortization
Acquired software	211	302
Total	$ 211	$ 302

NOTE 5 - INTANGIBLE ASSETS AN36

NOTE 5 - INTANGIBLE ASSETS AND GOODWILL (Details 1) $ in Thousands	Sep. 30, 2015USD ($)
Note 5 - Intangible Assets And Goodwill Details 1
2,016	$ 15
2,017	15
2,018	8
Thereafter	$ 0

NOTE 5 - INTANGIBLE ASSETS AN37

NOTE 5 - INTANGIBLE ASSETS AND GOODWILL (Details 2) (Amortization Expense, USD $) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Note 5 - Intangible Assets And Goodwill Details 2 Amortization Expense Usd
Balance - beginning of year	$ 189	$ 224
Goodwill from MOBY acquisition	0	2,324
Impairment of goodwill from MOBY acquisition	0	(2,281)
Foreign currency translation adjustment	(62)	(78)
Balance - end of year	$ 127	$ 189

NOTE 6 - NOTES PAYABLE (Details

NOTE 6 - NOTES PAYABLE (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Sep. 30, 2014
Total Long-term Debt	$ 81,972	$ 75,284
Less: Current Portion	(81,972)	(75,284)
Long-term Debt - Net of Current Portion	0	0
Non Negotiable Promissory Note [Member]
Total Long-term Debt	10,913	10,885
Convertible Consolidated Promissory Note [Member]
Total Long-term Debt	36,777	32,862
Balykshi-EBRD Loan and Accrued Interest [Member]
Total Long-term Debt	27,968	25,539
MOBY - EBRD Loan And Accrued Interest [Member]
Total Long-term Debt	$ 6,314	$ 5,998

NOTE 7 - STOCKHOLDERS' EQUITY39

NOTE 7 - STOCKHOLDERS' EQUITY (Details 1) - $ / shares	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Note 7 - Stockholders Equity Details 1
Number of Options Outstanding, Beginning	800,000	800,000
Number of Options Granted	0	0
Number of Options Forfeited	0	0
Number of Options Expired	(800,000)	0
Number of Options Outstanding, Ending	0	800,000
Number of Options Exercisable	0	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	0	3
Weighted Average Exercise Price Exercisable	$ 0	$ 3

NOTE 8 - INCOME TAXES (Details)

NOTE 8 - INCOME TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure [Abstract]
United States	$ (832)	$ (3,989)
Kazakhstan	(33,779)	(15,097)
Income (Loss) from Continuing Operations	$ (34,611)	$ (19,086)

NOTE 8 - INCOME TAXES (Details

NOTE 8 - INCOME TAXES (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure [Abstract]
Current U.S. income tax	$ 0	$ 0
Current Foreign Income Tax	604	(531)
Deferred U.S. income tax	9	1,186
Deferred Foreign Income Tax	4,022	3,216
Provision for Valuation Allowance	(3,589)	(3,503)
Income tax benefit	$ 1,046	$ 368

NOTE 8 - INCOME TAXES (Detail42

NOTE 8 - INCOME TAXES (Details 2) - USD ($) $ in Thousands	Sep. 30, 2015	Sep. 30, 2014
Current deferred tax assets/(liabilities)
Provision for doubtful debts	$ 1,075	$ 1,145
Inventory Allowance	0	0
Vacation Accrual	23	98
Tax loss carry forwards	0	0
Valuation Allowance	(546)	(1,155)
Total current deferred tax asset	552	88
Long-term deferred tax assets/(liabilities)
Net Operating Loss carry forwards	18,863	17,681
Capital Loss Carryforwards	779	779
Property and equipment	48	(160)
Valuation allowance	(17,212)	(15,850)
Total net long-term deferred tax asset/(liability)	2,478	2,450
Net deferred tax asset	3,030	$ 2,538
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	6,584
Capital Loss Carryforwards	779
Property and equipment	0
Valuation allowance	(7,363)
Total net long-term deferred tax asset/(liability)	0
Net deferred tax asset	0
Foreign
Current deferred tax assets/(liabilities)
Provision for doubtful debts	1,075
Inventory Allowance	0
Vacation Accrual	23
Tax loss carry forwards	0
Valuation Allowance	(546)
Total current deferred tax asset	552
Long-term deferred tax assets/(liabilities)
Net Operating Loss carry forwards	12,279
Capital Loss Carryforwards	0
Property and equipment	48
Valuation allowance	(9,849)
Total net long-term deferred tax asset/(liability)	2,478
Net deferred tax asset	$ 3,030

NOTE 8 - INCOME TAXES (Detail43

NOTE 8 - INCOME TAXES (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure [Abstract]
Tax at federal statutory rate (37.3%)	$ 10,497	$ 7,135
Non-deductible expenses	(38)	(605)
Loss not subject to taxation	(62)	547
Effect of lower foreign tax rates	(4,505)	(2,260)
Intercompany adjustments	0	78
Valuation Allowance	(3,589)	(3,503)
Other	(1,257)	(1,024)
Income tax benefit	$ 1,046	$ 368

NOTE 8 - INCOME TAXES (Detail44

NOTE 8 - INCOME TAXES (Details Narrative) $ in Thousands	Sep. 30, 2015USD ($)
US
Losses carry forwards	$ 25,725
Foreign
Losses carry forwards	$ 51,286

NOTE 9. COMMITMENTS AND CONTING

NOTE 9. COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Offices and Employee Apartment Lease
Rent expense	$ 237	$ 244
Future minimum rental payments
2,016	129
2,017	78
Equipment and Vehicles
Rent expense	100	515
Vessels in Fleet
Rent expense	1,873	$ 1,840
Future minimum rental payments
2,016	1,207
2,017	890
2,018	890
2,019	890
Thereafter	$ 2,772

NOTE 10 - RELATED PARTY TRANS46

NOTE 10 - RELATED PARTY TRANSACTIONS - Revenues and expenses from transactions with related parties (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Revenues	$ 2,077	$ 958
Sequa Petroleum
Revenues	1,741	0
Moby [Member]
Revenues	0	468
Bolz
Revenues	0	558
Sayat Media
Revenues	374	0
Other expenses, net
Expenses	$ (38)	$ (68)

NOTE 10 - RELATED PARTY TRANS47

NOTE 10 - RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Accounts receivable from related parties	$ 211	$ 0
Sequa Petroleum
Related Party, description	Seismic services
Accounts receivable from related parties	$ 33	0
Demeu Energy [Member]
Related Party, description	Advance given for vehicles delivery
Accounts receivable from related parties	$ 185	275
Sayat Media
Related Party, description	Receivable from agent for marine base services
Accounts receivable from related parties	$ 104	0
Caspian Geo Consulting [Member]
Related Party, description	Advance given for equipment delivery
Accounts receivable from related parties	$ 185	165
AllowanceForDoubtfulAccounts [Member]
Accounts receivable from related parties	$ (296)	$ (440)

NOTE 10 - RELATED PARTY TRANS48

NOTE 10 - RELATED PARTY TRANSACTIONS (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Accounts payable to related parties	$ 59	$ 76
Sayat Media
Related Party, description	Other services
Accounts payable to related parties	$ 10	13
Others [Member]
Related Party, description	Others
Accounts payable to related parties	$ 49	$ 63

10. RELATED PARTY TRANSACTIONS

10. RELATED PARTY TRANSACTIONS (Details 2) - USD ($) $ in Thousands	Sep. 30, 2015	Sep. 30, 2014
Notes Receivable	$ 2,195	$ 70
Sayat Media
Notes Receivable	0	70
Caspian Geo Consulting [Member]
Notes Receivable	$ 2,195	$ 0

NOTE 11 - FAIR VALUE MEASUREM50

NOTE 11 - FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Sep. 30, 2014
Property held for sale	$ 30	$ 44
Put option liability	23,644	21,649
Assets, fair value	23,674	21,693
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	30	44
Put option liability	23,644	21,649
Assets, fair value	$ 23,674	$ 21,693

11. FAIR VALUE MEASUREMENTS (De

11. FAIR VALUE MEASUREMENTS (Details 1) - Level Three $ in Thousands	12 Months Ended
	Sep. 30, 2015USD ($)
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 INFORMATION52

NOTE 12 - SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Capital Expenditures
Total Segments Capital Expenditures	$ 1,516	$ 4,423
Corporate assets	0	0
Less intersegment investments	(124)	0
Total consolidated	1,392	4,423
Revenues
Total segments Revenues	24,798	36,972
Corporate revenue	0	0
Less intersegment revenues	(8,353)	(7,041)
Total consolidated	16,445	29,931
Depreciation and Amortization
Total segments Depreciation and Amortization	(4,848)	(4,519)
Corporate depreciation and amortization	(1)	(1)
Total consolidated	(4,849)	(4,520)
Interest expense
Total segments Interest expense	(6,762)	(5,910)
Corporate interest expense	(2,388)	(2,183)
Total consolidated	(9,150)	(8,093)
Income/(Loss) Before Income Tax
Total segments Income/(Loss) Before Income Tax	(31,741)	(16,107)
Corporate loss	(2,870)	(2,979)
Total consolidated	(34,611)	(19,086)
Benefit from (Provision for) Income Tax
Total segments Benefit from (Provision for) Income Tax	1,048	372
Corporate provision for income tax	(2)	(4)
Income tax benefit	1,046	368
Loss/(Income) from discontinued operations
Total segments loss from discontinued operations	0	0
Corporate	391	(42)
Total consolidated	391	(42)
Loss/(Income) attributable to Noncontrolling Interests
Total segments Loss/(Income) attributable to Noncontrolling Interests	5,209	2,118
Corporate noncontrolling interest	0	0
Total consolidated	5,209	2,118
Net (Loss)/Income attributable to Caspian Services Inc.
Total segments Net (Loss)/Income attributable to Caspian Services Inc.	(25,484)	(13,617)
Corporate loss	(2,481)	(3,025)
Total consolidated	(27,965)	(16,642)
Vessel Operations [Member]
Capital Expenditures
Total Segments Capital Expenditures	306	824
Revenues
Total segments Revenues	13,477	16,840
Depreciation and Amortization
Total segments Depreciation and Amortization	(1,637)	(1,910)
Interest expense
Total segments Interest expense	0	0
Income/(Loss) Before Income Tax
Total segments Income/(Loss) Before Income Tax	2,326	(200)
Benefit from (Provision for) Income Tax
Total segments Benefit from (Provision for) Income Tax	424	1,137
Loss/(Income) 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.	2,750	937
Geophysical Services [Member]
Capital Expenditures
Total Segments Capital Expenditures	1,206	3,290
Revenues
Total segments Revenues	3,146	13,244
Depreciation and Amortization
Total segments Depreciation and Amortization	(1,530)	(1,248)
Interest expense
Total segments Interest expense	0	0
Income/(Loss) Before Income Tax
Total segments Income/(Loss) Before Income Tax	(3,985)	2,434
Benefit from (Provision for) Income Tax
Total segments Benefit from (Provision for) Income Tax	624	(765)
Loss/(Income) 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.	(3,361)	1,669
Marine Base Services [Member]
Capital Expenditures
Total Segments Capital Expenditures	4	309
Revenues
Total segments Revenues	8,175	6,888
Depreciation and Amortization
Total segments Depreciation and Amortization	(1,681)	(1,361)
Interest expense
Total segments Interest expense	(6,762)	(5,910)
Income/(Loss) Before Income Tax
Total segments Income/(Loss) Before Income Tax	(30,082)	(18,341)
Benefit from (Provision for) Income Tax
Total segments Benefit from (Provision for) Income Tax	0	0
Loss/(Income) 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	5,209	2,118
Net (Loss)/Income attributable to Caspian Services Inc.
Total segments Net (Loss)/Income attributable to Caspian Services Inc.	$ (24,873)	$ (16,223)

NOTE 12 - SEGMENT INFORMATION53

NOTE 12 - SEGMENT INFORMATION (Details 1) - USD ($) $ in Thousands	Sep. 30, 2015	Sep. 30, 2014
Total segments Assets	$ 82,767	$ 106,883
Corporate assets	673	766
Less intersegment investments	(40,348)	(40,581)
Total consolidated	43,092	67,068
Vessel Operations [Member]
Total segments Assets	16,430	15,219
Geophysical Services [Member]
Total segments Assets	10,611	18,663
Marine Base Services [Member]
Total segments Assets	$ 55,726	$ 73,001