Caspian Services (CSSV) 10-Q 22 Feb 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Dec. 31, 2015shares
Document And Entity Information
Entity Registrant Name	CASPIAN SERVICES INC
Entity Central Index Key	1,093,430
Document Type	10-Q
Document Period End Date	Dec. 31, 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 Common Stock, Shares Outstanding	52,657,574
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,016

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Current Assets
Cash	$ 449	$ 1,372
Trade accounts receivable, net of allowance of $1,203 and $3,510, respectively	4,666	5,480
Trade accounts receivable from related parties, net of allowance of $147 and $296, respectively	219	211
Short-term notes from related parties	1,601	2,195
Other receivables, net of allowance of $463 and $490, respectively	139	339
Inventories	705	906
Property held for sale, net of allowance of $575 and $722, respectively	24	30
Prepaid taxes	28	6
Advances paid, net of allowance of $16 and $19, respectively	339	193
Deferred tax assets	338	552
Prepaid expenses and other current assets	136	170
Total Current Assets	8,644	11,454
Vessels, equipment and property, net	20,669	26,716
Drydocking costs, net	876	124
Long-term deferred tax assets	1,974	2,478
Goodwill	101	127
Intangible assets, net	29	38
Long-term prepaid taxes	1,227	1,630
Long-term other receivables, net of current portion	239	525
Total Assets	33,759	43,092
Current Liabilities
Accounts payable	2,098	2,240
Accounts payable to related parties	47	59
Accrued expenses	1,083	1,309
Taxes payable	221	303
Deferred revenue	195	336
Accelerated put option liability	24,143	23,644
Long-term debt - current portion	83,832	81,972
Total Current Liabilities	111,619	109,863
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	(107,876)	(94,501)
Accumulated other comprehensive loss	(15,104)	(20,815)
Deficit attributable to Caspian Services, Inc. Shareholders	(58,095)	(50,431)
Deficit attributable to noncontrolling interests	(19,765)	(16,340)
Total Deficit	(77,860)	(66,771)
Total Liabilities and Deficit	$ 33,759	$ 43,092

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
ASSETS:
Allowance for trade accounts receivable	$ 1,203	$ 3,510
Allowance for trade accounts receivable from related parties	147	296
Allowance for other receivables	463	490
Allowance for property held for sale	575	722
Allowance for advances paid	$ 16	$ 19
EQUITY
Common stock, par value	$ 0.001	$ 0.001
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

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenues
Vessel revenues	$ 3,443	$ 4,762
Geophysical service revenues	0	1,002
Marine base service revenues (which includes $64 and $10, respectively, from related parties)	212	333
Total Revenues	3,655	6,097
Operating Expenses
Vessel operating costs	1,562	2,499
Cost of geophysical service revenues	241	932
Cost of marine base service (which includes $10 and $15, respectively, to related parties)	115	171
Depreciation and amortization	763	1,219
General and administrative expense	1,904	1,887
Total Costs and Operating Expenses	4,585	6,708
Loss from Operations	(930)	(611)
Other Income (Expense)
Interest expense	(2,675)	(2,238)
Foreign currency transaction loss	(13,142)	(90)
Other non-operating income (loss), net	(29)	67
Net Other Expense	(15,846)	(2,261)
Loss from Continuing Operations Before Income Tax	(16,776)	(2,872)
Benefit from (provision for) income tax	(33)	23
Net Loss from Continuing Operations	(16,809)	(2,849)
Loss from discontinued operations	0	(14)
Net Loss	(16,809)	(2,863)
Net loss attributable to noncontrolling interests	3,434	519
Net loss attributable to Caspian Services, Inc	(13,375)	(2,344)
Other Comprehensive Income (Loss)
Foreign currency translation adjustment	5,720	12
Comprehensive loss	(7,655)	(2,332)
Comprehensive gain attributable to non-controlling interest	(9)	0
Comprehensive loss attributable to Caspian Services, Inc	$ (7,664)	$ (2,332)
Basic and Diluted Loss per Share from continuing operations	$ (0.25)	$ (0.04)
Basic and Diluted Loss per Share from discontinued operations	0	0
Basic and Diluted Loss per Share	$ (0.25)	$ (0.04)
Weighted Average Shares Outstanding	52,657,574	52,657,574

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenues
Related Parties Marine Base Services Revenues	$ 64	$ 10
Related parties Cost of marine base service	$ 10	$ 15

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net loss	$ (16,809)	$ (2,863)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	763	1,219
Accrued interest on accelerated put option	499	470
Foreign currency transaction loss	13,142	90
Changes in current assets and liabilities:
Trade accounts receivable	(301)	2,095
Trade accounts receivable from related parties	37	(82)
Other receivables	468	279
Inventories	19	(116)
Prepaid taxes	(27)	(224)
Advances paid	(186)	163
Deferred tax assets	455	(2)
Prepaid expenses and other current assets	21	80
Long-term prepaid taxes	163	23
Long-term other receivables, net of current portion	85	(127)
Accounts payable	86	(163)
Accounts payable to related parties	0	50
Accrued expenses	1,984	1,830
Taxes payable	(23)	243
Deferred revenue	(81)	0
Long-term deferred income tax liability	(13)	(21)
Net cash provided by operating activities	282	2,944
Cash flows from investing activities:
Short-term notes from related parties	166	(1,103)
Payments to purchase vessels, equipment and property	(885)	(15)
Net cash used in investing activities	(719)	(1,118)
Cash flows from financing activities:
Payments on long-term debt	(100)	(300)
Net cash used in financing activities	(100)	(300)
Effect of exchange rate changes on cash	(386)	19
Net change in cash	(923)	1,545
Cash at beginning of period	1,372	1,957
Cash at end of period	449	3,502
Supplemental disclosure of cash flow information:
Cash paid for interest	100	300
Non-cash capital expenditures	$ 0	$ 1,707

NOTE 1 - THE COMPANY AND BASIS

NOTE 1 - THE COMPANY AND BASIS OF PRESENTATION	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
NOTE 1 - THE COMPANY AND BASIS OF PRESENTATION	Interim Financial Information – 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. As of the date of this report, none of the required repayment installments have been made and the principal and accrued interest is due and payable in full. The Company has included the Balykshi Loan and all accrued interest as a current liability at December 31, 2015 and September 30, 2015. 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 would be obligated to repay the initial investment plus a 20% annual rate of return. The balance of the accelerated put option liability was $24,143 and $23,644 as of December 31, 2015 and September 30, 2015, 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. 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, 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 repayment 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. The maturity date of the Non-Negotiable Note is 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. The maturity date of the Consolidated Note is 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 repayments required under the Consolidated Note have been made when due. The Company has, however, made partial payments to Investor totaling $2,850 in reduction of Consolidated Note balance due as of the date of this report. The failure to make the semi-annual repayments 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 December 31, 2015 and September 30, 2015. 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 with EBRD (the “MOBY Loan”). 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 $6,402 and $6,314 as of December 31, 2015 and September 30, 2015, 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 from August 2011. As of December 31, 2015 and September 30, 2015, 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 a default 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 the MOBY Loan or its portion of the Guarantee. Should EBRD or Investor determine 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 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 December 31, 2015, the book value of collateralized assets was approximately $16,569. 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, and (iv) a return to higher world oil prices. Uncertainty as to the outcome of these factors raises substantial doubt about the Company’s ability to continue as a going concern. The accompanying condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. The Company intends to continue its efforts to restructure its financial obligations to EBRD and Investor. Nature of Operations – Vessel Operations Geophysical Services Marine Base Services – Discontinued Operations Correction to Previously Issued Financial Statements For The Three Months Ended December 31, 2014 Previously reported Revised Difference Basic and Diluted Loss per Share $ (0.05) $ (0.04) $ (0.01) Basic and Diluted Loss Per Share For the three months ended December 31, 2015, the Company had 469,710,000 potential shares related to convertible debt that were not included in the computation of diluted loss per common share because they would be anti-dilutive. For the three months ended December 31, 2014, the Company had 800,000 options outstanding and 427,056,667 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. Fair Value of Financial Instruments – Accelerated Put Option Liability 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 December 31, 2015 and September 30, 2015, the Company had $195 and $336, respectively, of deferred revenue related to these prepaid services. Marine base service revenue is recognized when services are rendered, accepted by the customer and collectability is reasonably assured. Receivables Impairment of Long-Lived Assets and Long-Lived Assets for Disposal – 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 December 31, 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; or (b) Undistributed earnings of a domestic subsidiary or a domestic corporate joint venture that is essentially permanent in duration. Drydocking Costs 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. 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. The translation of KZT denominated assets and liabilities into USD for the purpose of these condensed 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 National Bank of the Republic of Kazakhstan elected to change its currency policy to make the KZT free floating, which has caused the KZT to fall sharply against the USD. As a result of this devaluation, during the first fiscal quarter 2016, the Company recorded a foreign exchange transaction loss of $13,142 mostly as a result of the remeasurement of the Balykshi Loan and MOBY Loan which are denominated in U.S. Dollars. No such events occurred during the first fiscal quarter 2015. Use of Estimates Comprehensive Loss Concentration of Revenue – During the three months ended December 31, 2015, we realized no revenue from geophysical services. During the three months ended December 31, 2015, marine base revenue from four customers represented 82% of total marine base revenue as follows, Customer A – 30%; Customer B – 18%; Customer C – 17%; and Customer D – 17%. Reclassifaction Recent Accounting Pronouncements 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 Accounting Standards Update No. 2015- 11, Inventory (Topic 330): Simplifying the Measurement of Inventory, which requires entities who value inventory using the first-in, first-out or average cost method to measure inventory at the lower of cost and net realizable value. For public business entities, the amended guidance is effective for fiscal years beginning after December 15, 2016, and for interim periods within those years. The amended guidance must be applied on a prospective basis. The Company is evaluating the impact of this update on its financial statements. 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 (Topic 606). The amendments in this update defer the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. All other entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. The Company is evaluating the effect of adopting this new ASU. 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. This ASU adds SEC paragraphs pursuant to the SEC Staff Announcement at the June 18, 2015, Emerging Issues Task Force meeting about the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. This ASU is not expected to have a significant impact on the Company’s financial statements. 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. Subsequent Events

NOTE 2 - ATASH MARINE BASE

NOTE 2 - ATASH MARINE BASE	3 Months Ended
	Dec. 31, 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. The failure by Balykshi or the Company to provide financing for, or to complete, dredging could constitute a default under the EBRD financing agreements.

NOTE 3 - NOTES PAYABLE

NOTE 3 - NOTES PAYABLE	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
NOTE 3 - NOTES PAYABLE	Notes payable consist of the following: December 31, September 30, 2015 2015 Secured non-negotiable promissory note payable to Investor; interest at 0.26% $ 10,920 $ 10,913 due June 30, 2016 Secured convertible consolidated promissory note payable to Investor; interest at 12% 37,871 36,777 (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 28,639 27,968 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 ) 6,402 6,314 Total Long-term Debt 83,832 81,972 Less: Current Portion (83,832) (81,972) 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 matures on June 30, 2016 (the Maturity Date). If the issuance of common stock had not been demanded by Investor or made at the election of the Company by the 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 Maturity Date. The Company will issue the Investor 90 million shares of restricted common stock to settle the principal amount of the Non-Negotiable Note, excluding shares that will be issued to Investor in satisfaction of accrued interest. As the Non-Negotiable Note matures in less than twelve months, it has been treated as a current liability in the accompanying financial statements. Convertible Consolidated Promissory Note Interest accrues on the Consolidated Note at 12% per annum and is required to be paid semi-annually in arrears on each six-month anniversary of the Issuance Date (September 30, 2011). The Consolidated Note provides for a default rate of interest of 13% per annum upon the occurrence and during the continuation of an event of default, as defined in the Consolidated Note, which shall be payable in cash upon demand. The unpaid principal amount of the Consolidated Note, and any accrued but unpaid interest thereon, is due and payable on September 30, 2016. As of the date of this report, none of the semi-annual payments have been made on the date they were due. The failure to make the semi-annual payments 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 December 31, 2015 and September 30, 2015. 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 $450. During the first fiscal quarter 2016, 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. As of the date of this report, none of the repayment installments have been made by the Company and the principal and accrued interest is currently due and payable in full. The Balykshi Loan Agreement provides that if the Balykshi fails to pay when due any amount payable by it under the Balykshi 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 December 31, 2015, the outstanding balance of the MOBY Loan was $6,402, 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. As of December 31, 2015 and September 30, 2015, MOBY had made no 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 4 - COMMITMENTS AND CONTIN

NOTE 4 - COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
NOTE 4 - 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.

NOTE 5 - RELATED PARTY TRANSACT

NOTE 5 - RELATED PARTY TRANSACTIONS	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
NOTE 5 - RELATED PARTY TRANSACTIONS	Revenues and expenses from transactions with related parties for the three months ended December 31, 2015 and 2014, consisted of the following: For the period ended December 31, Related Party's Name Description 2015 2014 Kazmortransflot Marine base revenue $ - $ 10 Sayat Media Revenue from agent for marine base services 64 - Sayat Media Equipment and vehicles lease expenses (10) (9) Others Other services - (6) TOTAL $ 54 $ (5) Related Party's Name Description December 31, 2015 September 30, 2015 Sequa Petroleum Seismic services $ - $ 33 Demeu Energy Advance given for vehicles delivery 147 185 Sayat Media Receivable from agent for marine base services 92 104 Bolz LLP Long term advances given 54 - Caspian Geo Consulting Advance given for equipment delivery 73 185 Allowance for doubtful accounts (147) (296) TOTAL $ 219 $ 211 Accounts payable to related parties as of December 31, 2015 and September 30, 2015, consisted of the following: Related Party's Name Description December 31, 2015 September 30, 2015 Sayat Media Other services $ 7 $ 10 Others Others 40 49 TOTAL $ 47 $ 59 Short-term notes from related parties as of December 31, 2015 and September 30, 2015, consisted of the following: Related Party's Name Description December 31, 2015 September 30, 2015 Caspian Geo Consulting Notes Receivable $ 1,601 $ 2,195 TOTAL $ 1,601 $ 2,195 Caspian Geo-Consulting Services LLP –

NOTE 6 - FAIR VALUE MEASUREMENT

NOTE 6 - FAIR VALUE MEASUREMENTS	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
NOTE 6 - 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 the 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 December 31, 2015 and September 30, 2014, the Company had two liabilities measured at fair value on a recurring basis. The put option liability is a Level 3 measurement, which is fair valued at the put option price plus accrued interest at a rate of 20% annually. The $499 change during the three months ended December 31, 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 assets. 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 three months ended December 31, 2015. Fair Value Measurements at Reporting Date Using Description December 31, 2015 Level 1 Level 2 Level 3 Property held for sale $ 24 $ - $ - $ 24 Put option liability 24,143 - - 24,143 Total $ 24,167 $ - $ - $ 24,167 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

NOTE 7 - SEGMENT INFORMATION

NOTE 7 - SEGMENT INFORMATION	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
NOTE 7 - SEGMENT INFORMATION	US GAAP requires disclosures related to components of a company for which separate financial information is available and evaluated regularly by a company’s chief operating decision makers in deciding how to allocate resources and in assessing performance. They also require segment disclosures about products and services as well as geographic area. The Company has operations in three segments of its business, namely: Vessel Operations, Geophysical Services and Marine Base Services. All of these operations are located in the Republic of Kazakhstan. Corporate administration is located in the United States of America and the Republic of Kazakhstan. Further information regarding the operations and assets of these reportable business segments follows: For the Three Months Ended December 31, 2015 2014 Capital Expenditures Vessel Operations $ 885 $ 124 Geophysical Services - 1,707 Marine Base Services - - Total segments 885 1,831 Corporate assets - - Less intersegment investments - (109) Total consolidated $ 885 $ 1,722 For the Three Months Ended December 31, 2015 2014 Revenues Vessel Operations $ 3,737 $ 5,137 Geophysical Services - 1,002 Marine Base Services 1,427 414 Total segments 5,164 6,553 Corporate revenue - - Less intersegment revenues (1,509) (456) Total consolidated $ 3,655 $ 6,097 Depreciation and Amortization Vessel Operations $ (270) $ (446) Geophysical Services (249) (384) Marine Base Services (244) (389) Total segments (763) (1,219) Corporate depreciation and amortization - - Total consolidated $ (763) $ (1,219) Interest expense Vessel Operations $ - $ - Geophysical Services - - Marine Base Services (2,021) (1,654) Total segments (2,021) (1,654) Corporate interest expense (654) (584) Total consolidated $ (2,675) $ (2,238) Income/(Loss) Before Income Tax Vessel Operations $ 1,134 $ 910 Geophysical Services (920) (693) Marine Base Services (15,943) (2,376) Total segments (15,729) (2,159) Corporate loss (1,047) (713) Total consolidated $ (16,776) $ (2,872) For the Three Months Ended December 31, 2015 2014 Benefit from (Provision for) Income Tax Vessel Operations $ (1) $ (131) Geophysical Services (32) 154 Marine Base Services - - Total segments (33) 23 Corporate provision for income tax - - Total consolidated $ (33) $ 23 Loss from discontinued operations Vessel Operations $ - $ - Geophysical Services - - Marine Base Services - - Total segments - - Corporate - (14) Total consolidated $ - $ (14) Loss attributable to Noncontrolling Interests Vessel Operations $ - $ - Geophysical Services - - Marine Base Services 3,434 519 Total segments 3,434 519 Corporate noncontrolling interest - - Total consolidated $ 3,434 $ 519 Net (Loss)/ Income attributable to Caspian Services Inc. Vessel Operations $ 1,133 $ 779 Geophysical Services (952) (539) Marine Base Services (12,509) (1,857) Total segments (12,328) (1,617) Corporate loss (1,047) (727) Total consolidated $ (13,375) $ (2,344) December 31, September 30, Segment Assets 2015 2015 Vessel Operations $ 15,160 $ 16,430 Geophysical Services 7,669 10,611 Marine Base Services 50,623 55,726 Total segments 73,452 82,767 Corporate assets 663 673 Less intersegment investments (40,356) (40,348) Total consolidated $ 33,759 $ 43,092

NOTE 8 - SUBSEQUENT EVENTS

NOTE 8 - SUBSEQUENT EVENTS	3 Months Ended
	Dec. 31, 2015
Subsequent Events [Abstract]
NOTE 8. SUBSEQUENT EVENTS	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 agreed to consolidate the previously provided financial assistance loans into a single US dollar denominated outstanding amount of $2,195. 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. The financial assistance loans have been used by Caspian Geo to explore for gold ore within the Shoymibai Deposit located in the Karaganda Oblast of the Republic of Kazakhstan (the “Deposit”) and to prove the reserves of the Deposit to allow Caspian Geo and the holders of the exploration license to the Deposit to prepare the required submission to apply for a subsoil use contract for the production of gold ore from the Deposit. The application for the Subsoil Use Contract has been submitted to the competent authority of the Republic of Kazakhstan and the parties to that contract are in the process of reviewing and finalizing it. Upon successful grant of the Subsoil Use Contract, Caspian Geo plans to pursue commercial production of gold ore from the Deposit. 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 the Company’s 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 BASI15

NOTE 1 - THE COMPANY AND BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Policies)	3 Months Ended
	Dec. 31, 2015
Note 1 - Company And Basis Of Presentation And Accounting Policies Policies
Interim Financial Information	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Accordingly, they are condensed and do not include all of the information and notes required by US GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair and comparable presentation have been included and are of a normal recurring nature. The accompanying financial statements should be read in conjunction with the Caspian Services, Inc. (the “Company” or “CSI”) most recent annual financial statements included in its annual report on Form 10-K filed with the SEC on January 13, 2016. Operating results for the three-month period ended December 31, 2015, are not necessarily indicative of the results that may be expected for the year ending September 30, 2016.
Principles of Consolidation	The accompanying condensed consolidated financial statements are presented in conformity with US GAAP and include operations and balances of Caspian Services, Inc. and its wholly-owned subsidiaries: Caspian Services Group Limited (“CSGL”), Caspian Services Group LLP (“Caspian LLP”), Caspian Services Group B.V. (“Caspian B.V.”), Caspian 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. As of the date of this report, none of the required repayment installments have been made and the principal and accrued interest is due and payable in full. The Company has included the Balykshi Loan and all accrued interest as a current liability at December 31, 2015 and September 30, 2015. 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 would be obligated to repay the initial investment plus a 20% annual rate of return. The balance of the accelerated put option liability was $24,143 and $23,644 as of December 31, 2015 and September 30, 2015, 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. 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, 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 repayment 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. The maturity date of the Non-Negotiable Note is 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. The maturity date of the Consolidated Note is 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 repayments required under the Consolidated Note have been made when due. The Company has, however, made partial payments to Investor totaling $2,850 in reduction of Consolidated Note balance due as of the date of this report. The failure to make the semi-annual repayments 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 December 31, 2015 and September 30, 2015. 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 with EBRD (the “MOBY Loan”). 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 $6,402 and $6,314 as of December 31, 2015 and September 30, 2015, 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 from August 2011. As of December 31, 2015 and September 30, 2015, 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 a default 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 the MOBY Loan or its portion of the Guarantee. Should EBRD or Investor determine 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 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 December 31, 2015, the book value of collateralized assets was approximately $16,569. 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, and (iv) a return to higher world oil prices. Uncertainty as to the outcome of these factors raises substantial doubt about the Company’s ability to continue as a going concern. The accompanying condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. The Company intends to continue its efforts to restructure its financial obligations to EBRD and Investor.
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.
Correction to Previously Issued Financial Statements	In the current period, the Company identified a mathematical rounding error in the calculation of basic and diluted loss per share for the three-month period ended December 31, 2014. The Company has assessed the impact of the mathematical rounding error on each 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 unaudited condensed consolidated financial statements. The Company has elected to revise its previously issued unaudited condensed consolidated financial statements to facilitate comparisons across periods. The Company has corrected the basic and diluted loss per share for the three-month period ended December 31, 2014, as follows: For The Three Months Ended December 31, 2014 Previously reported Revised Difference Basic and Diluted Loss per Share $ (0.05) $ (0.04) $ (0.01)
Basic and Diluted Loss Per Share	Basic loss per common share is calculated by dividing net loss attributable to Caspian Services by the weighted-average number of common shares outstanding. Diluted loss per common share is calculated by dividing net loss attributable to Caspian Services by the weighted-average number of common shares outstanding giving effect to potentially dilutive issuable common shares. For the three months ended December 31, 2015, the Company had 469,710,000 potential shares related to convertible debt that were not included in the computation of diluted loss per common share because they would be anti-dilutive. For the three months ended December 31, 2014, the Company had 800,000 options outstanding and 427,056,667 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.
Fair Value of Financial Instruments	The carrying amounts reported in the accompanying condensed consolidated financial statements for other receivables, accounts receivable from related parties, accounts payable to related parties and accrued expenses approximate fair values because of the immediate nature or short-term maturities of these financial instruments. The carrying amount of long-term debts approximates fair value due to the stated interest rates approximating prevailing market rates.
Accelerated Put Option Liability	In connection with EBRD’s $10,000 equity investment to purchase a 22% equity interest in Balykshi, the Company entered into a Put Option Agreement granting EBRD the right to require the Company to repurchase the 22% equity interest. The put option is exercisable between June 2013 and June 2017. The put price is determined based on the fair market value of Balykshi as mutually agreed by the parties. If the parties are unable to agree upon a fair market valuation, the parties agree to hire a third party expert to determine the put price on the basis of the fair market value of Balykshi, as set forth in the Put Option Agreement. In the event there is a change in control of the Company, EBRD has the right to require the repurchase of the equity interest at its fair market value. The Put Option Agreement also contains an acceleration feature. Should Balykshi: (i) default on $1,000 or more of debt; (ii) fail to meet the obligations of any of the agreements between Balykshi, the Company and EBRD; (iii) be found to have made false representations to EBRD; or (iv) be declared insolvent, EBRD has the right to accelerate the put option. If the put option is accelerated, EBRD can require the Company to repurchase the $10,000 equity investment plus a 20% per annum rate of return, taking into account any dividend or other distribution received by EBRD, at any time following one of the events mentioned above. Due to the fact that certain events of default under the EBRD Loan Agreement may have occurred and that such could trigger EBRD’s accelerated put right, we have reflected an accelerated put option liability of $24,143, although, as of the date of this quarterly report on Form 10-Q, to the Company’s knowledge, EBRD has not sought to accelerate the put option.
Revenue Recognition	Vessel revenues are usually derived from time charter contracts on a rate-per-day of service basis; therefore, vessel revenues are recognized on a daily basis throughout the contract period. These time charter contracts are generally on a term basis. The base rate of hire for a contract is generally a fixed rate; however, these contracts often include clauses to recover mobilization and demobilization costs and specific additional costs which are billed on a monthly basis. Geophysical service revenue is recognized when services are rendered, accepted by the customer and collectability is reasonably assured. Direct costs are charged to each contract as incurred along with allocated indirect costs for the specific period of service. Losses on contracts are recognized during the period in which the loss first becomes probable and reasonably estimated. Due to the nature of some of the geophysical services provided, certain customers have prepaid their contract services. These prepayments have been deferred and are recognized as revenue as the services are provided. At December 31, 2015 and September 30, 2015, the Company had $195 and $336, respectively, of deferred revenue related to these prepaid services. Marine base service revenue is recognized when services are rendered, accepted by the customer and collectability is reasonably assured.
Receivables	In the normal course of business the Company extends credit to its customers on a short-term basis. The principal customers for the Company’s marine vessels are major oil and natural gas exploration, development and production companies and their contractors. Credit risks associated with these customers are considered minimal. Dealings with smaller, local companies pose the greatest risks. For new geophysical services customers the Company typically requires an advance payment and the Company retains the seismic data generated from these services until payment is made in full. The Company routinely reviews accounts receivable balances and makes provisions for doubtful accounts as necessary. Accounts are reviewed on a case-by-case basis and losses are recognized in the period the Company determines it is likely that receivables will not be fully collected. The Company may also provide a general provision for accounts receivable based on existing economic conditions.
Impairment of Long-Lived Assets and Long-Lived Assets for Disposal	Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount that the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.
Income Taxes	Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences in assets and liabilities and their respective tax bases and attributable to operating loss carry forwards. Differences generally result from the calculation of income under 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 December 31, 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; or (b) Undistributed earnings of a domestic subsidiary or a domestic corporate joint venture that is essentially permanent in duration.
Dry-docking Costs	The Company’s vessels must be periodically drydocked and undergo certain inspections to maintain their operating classification, as mandated by certain maritime regulations. Costs incurred to drydock the vessels for certification are capitalized and amortized over the period until the next drydocking, which is generally 24 months. Drydocking costs comprise painting the vessels’ hulls and sides, recoating cargo and fuel tanks, and performing other engine and equipment maintenance activities to bring the vessels into compliance with classification standards.
Foreign Currency Transactions	Caspian Services, Inc., the parent company of the subsidiaries, makes its principal investing and financing transactions in United States dollars (USD), which is also its functional currency. Transactions and balances denominated in other currencies have been translated into USD using historical exchange rates. Exchange gains and losses from holding foreign currencies and having liabilities payable in foreign currencies are included in the results of operations. USD is also the functional currency of CSGL, CGEO and CRE. The Kazakh tenge (KZT) is the functional currency of Caspian LLP, TatArka, Balykshi, Kyran and MOBY; the Euro is the functional currency of Caspian B.V. 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. The translation of KZT denominated assets and liabilities into USD for the purpose of these condensed 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 National Bank of the Republic of Kazakhstan elected to change its currency policy to make the KZT free floating, which has caused the KZT to fall sharply against the USD. As a result of this devaluation, during the first fiscal quarter 2016, the Company recorded a foreign exchange transaction loss of $13,142 mostly as a result of the remeasurement of the Balykshi Loan and MOBY Loan which are denominated in U.S. Dollars. No such events occurred during the first fiscal quarter 2015.
Use of Estimates	The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Comprehensive Loss	Total comprehensive loss consists of net loss and changes in accumulated other comprehensive loss. Accumulated other comprehensive loss is presented in the condensed consolidated statements of comprehensive income (loss) and consists of foreign currency translation adjustments.
Concentration of Revenue	During the three months ended December 31, 2015, vessel revenue from three customers represented approximately 90% of total vessel revenue as follows, Customer A – 40%; Customer B – 25%; and Customer C – 25%. During the three months ended December 31, 2015, we realized no revenue from geophysical services. During the three months ended December 31, 2015, marine base revenue from four customers represented 82% of total marine base revenue as follows, Customer A – 30%; Customer B – 18%; Customer C – 17%; and Customer D – 17%.
Reclassification	Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations.
Recent Accounting Pronouncements	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 Accounting Standards Update No. 2015- 11, Inventory (Topic 330): Simplifying the Measurement of Inventory, which requires entities who value inventory using the first-in, first-out or average cost method to measure inventory at the lower of cost and net realizable value. For public business entities, the amended guidance is effective for fiscal years beginning after December 15, 2016, and for interim periods within those years. The amended guidance must be applied on a prospective basis. The Company is evaluating the impact of this update on its financial statements. 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 (Topic 606). The amendments in this update defer the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. All other entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. The Company is evaluating the effect of adopting this new ASU. 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. This ASU adds SEC paragraphs pursuant to the SEC Staff Announcement at the June 18, 2015, Emerging Issues Task Force meeting about the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. This ASU is not expected to have a significant impact on the Company’s financial statements. 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.
Subsequent Events	The Company’s management has evaluated subsequent events through the date the financial statements were issued and has found no subsequent events to report.

NOTE 3 - NOTES PAYABLE (Tables)

NOTE 3 - NOTES PAYABLE (Tables)	3 Months Ended
	Dec. 31, 2015
Note 3 - Notes Payable Tables
NOTES PAYABLE	December 31, September 30, 2015 2015 Secured non-negotiable promissory note payable to Investor; interest at 0.26% $ 10,920 $ 10,913 due June 30, 2016 Secured convertible consolidated promissory note payable to Investor; interest at 12% 37,871 36,777 (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 28,639 27,968 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 ) 6,402 6,314 Total Long-term Debt 83,832 81,972 Less: Current Portion (83,832) (81,972) Long-term Debt - Net of Current Portion $ - $ -

NOTE 5 - RELATED PARTY TRANSA17

NOTE 5 - RELATED PARTY TRANSACTIONS (Tables)	3 Months Ended
	Dec. 31, 2015
Note 5 - Related Party Transactions Tables
Revenues and expenses from related parties	For the period ended December 31, Related Party's Name Description 2015 2014 Kazmortransflot Marine base revenue $ - $ 10 Sayat Media Revenue from agent for marine base services 64 - Sayat Media Equipment and vehicles lease expenses (10) (9) Others Other services - (6) TOTAL $ 54 $ (5)
Accounts receivable from related parties	Related Party's Name Description December 31, 2015 September 30, 2015 Sequa Petroleum Seismic services $ - $ 33 Demeu Energy Advance given for vehicles delivery 147 185 Sayat Media Receivable from agent for marine base services 92 104 Bolz LLP Long term advances given 54 - Caspian Geo Consulting Advance given for equipment delivery 73 185 Allowance for doubtful accounts (147) (296) TOTAL $ 219 $ 211
Accounts payable to related parties	Related Party's Name Description December 31, 2015 September 30, 2015 Sayat Media Other services $ 7 $ 10 Others Others 40 49 TOTAL $ 47 $ 59
Short-term notes from related parties	Related Party's Name Description December 31, 2015 September 30, 2015 Caspian Geo Consulting Notes Receivable $ 1,601 $ 2,195 TOTAL $ 1,601 $ 2,195

NOTE 6 - FAIR VALUE MEASUREME18

NOTE 6 - FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Dec. 31, 2015
Note 6 - Fair Value Measurements Tables
Schedule of fair value measurements	Fair Value Measurements at Reporting Date Using Description December 31, 2015 Level 1 Level 2 Level 3 Property held for sale $ 24 $ - $ - $ 24 Put option liability 24,143 - - 24,143 Total $ 24,167 $ - $ - $ 24,167 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

NOTE 7 - SEGMENT INFORMATION (T

NOTE 7 - SEGMENT INFORMATION (Tables)	3 Months Ended
	Dec. 31, 2015
Note 7 - Segment Information Tables
Operations and assets of reportable business segments schedule	For the Three Months Ended December 31, 2015 2014 Capital Expenditures Vessel Operations $ 885 $ 124 Geophysical Services - 1,707 Marine Base Services - - Total segments 885 1,831 Corporate assets - - Less intersegment investments - (109) Total consolidated $ 885 $ 1,722 For the Three Months Ended December 31, 2015 2014 Revenues Vessel Operations $ 3,737 $ 5,137 Geophysical Services - 1,002 Marine Base Services 1,427 414 Total segments 5,164 6,553 Corporate revenue - - Less intersegment revenues (1,509) (456) Total consolidated $ 3,655 $ 6,097 Depreciation and Amortization Vessel Operations $ (270) $ (446) Geophysical Services (249) (384) Marine Base Services (244) (389) Total segments (763) (1,219) Corporate depreciation and amortization - - Total consolidated $ (763) $ (1,219) Interest expense Vessel Operations $ - $ - Geophysical Services - - Marine Base Services (2,021) (1,654) Total segments (2,021) (1,654) Corporate interest expense (654) (584) Total consolidated $ (2,675) $ (2,238) Income/(Loss) Before Income Tax Vessel Operations $ 1,134 $ 910 Geophysical Services (920) (693) Marine Base Services (15,943) (2,376) Total segments (15,729) (2,159) Corporate loss (1,047) (713) Total consolidated $ (16,776) $ (2,872) For the Three Months Ended December 31, 2015 2014 Benefit from (Provision for) Income Tax Vessel Operations $ (1) $ (131) Geophysical Services (32) 154 Marine Base Services - - Total segments (33) 23 Corporate provision for income tax - - Total consolidated $ (33) $ 23 Loss from discontinued operations Vessel Operations $ - $ - Geophysical Services - - Marine Base Services - - Total segments - - Corporate - (14) Total consolidated $ - $ (14) Loss attributable to Noncontrolling Interests Vessel Operations $ - $ - Geophysical Services - - Marine Base Services 3,434 519 Total segments 3,434 519 Corporate noncontrolling interest - - Total consolidated $ 3,434 $ 519 Net (Loss)/ Income attributable to Caspian Services Inc. Vessel Operations $ 1,133 $ 779 Geophysical Services (952) (539) Marine Base Services (12,509) (1,857) Total segments (12,328) (1,617) Corporate loss (1,047) (727) Total consolidated $ (13,375) $ (2,344) December 31, September 30, Segment Assets 2015 2015 Vessel Operations $ 15,160 $ 16,430 Geophysical Services 7,669 10,611 Marine Base Services 50,623 55,726 Total segments 73,452 82,767 Corporate assets 663 673 Less intersegment investments (40,356) (40,348) Total consolidated $ 33,759 $ 43,092

NOTE 1. THE COMPANY AND BASIS O

NOTE 1. THE COMPANY AND BASIS OF PRESENTATION (Details) - $ / shares	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Basic and Diluted Loss per Share	$ (0.25)	$ (0.04)
Previously reported
Basic and Diluted Loss per Share		(0.05)
Revised
Basic and Diluted Loss per Share		(0.04)
Difference
Basic and Diluted Loss per Share		$ (0.01)

NOTE 3 - NOTES PAYABLE (Details

NOTE 3 - NOTES PAYABLE (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Total Long-term Debt	$ 83,832	$ 81,972
Less: Current Portion	(83,832)	(81,972)
Long-term Debt - Net of Current Portion	0	0
Non Negotiable Promissory Note [Member]
Total Long-term Debt	10,920	10,913
Convertible Consolidated Promissory Note [Member]
Total Long-term Debt	37,871	36,777
Balykshi- EBRD Loan And Accrued Interest [Member]
Total Long-term Debt	28,639	27,968
MOBY- EBRD loan and accrued interest
Total Long-term Debt	$ 6,402	$ 6,314

NOTE 5 - RELATED PARTY TRANSA22

NOTE 5 - RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Total	$ 54	$ (5)
Sayat Media [Member]
Revenue from agent for marine base services	64	0
Equipment and vehicles lease expenses	(10)	(9)
Kazmortansflot
Marine base services revenue	0	10
Others [Member]
Other services	$ 0	$ (6)

NOTE 5 - RELATED PARTY TRANSA23

NOTE 5 - RELATED PARTY TRANSACTIONS (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Sep. 30, 2015
Accounts receivable from related parties	$ 219	$ 211
Sequa Petroleum
Related Party, description	Seismic services
Accounts receivable from related parties	$ 0	33
Demeu Energy [Member]
Related Party, description	Advance given for vehicles delivery
Accounts receivable from related parties	$ 147	185
Sayat Media [Member]
Related Party, description	Receivable from agent for marine base services
Accounts receivable from related parties	$ 92	104
Bolz Media [Member]
Related Party, description	Long term advances given
Accounts receivable from related parties	$ 54	0
Caspian Geo Consulting [Member]
Related Party, description	Advance given for equipment delivery
Accounts receivable from related parties	$ 73	185
AllowanceForDoubtfulAccounts [Member]
Accounts receivable from related parties	$ (147)	$ (296)

NOTE 5 - RELATED PARTY TRANSA24

NOTE 5 - RELATED PARTY TRANSACTIONS (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Sep. 30, 2015
Accounts payable to related parties	$ 47	$ 59
Sayat Media [Member]
Related Party, description	Other services
Accounts payable to related parties	$ 7	10
Other
Related Party, description	Others
Accounts payable to related parties	$ 40	$ 49

Note 5 - RELATED PARTY TRANSA25

Note 5 - RELATED PARTY TRANSACTIONS (Details 3) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Short-term notes from related parties	$ 1,601	$ 2,195
Caspian Geo Consulting [Member]
Short-term notes from related parties	$ 1,601	$ 2,195

NOTE 6 - FAIR VALUE MEASUREME26

NOTE 6 - FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Property held for sale	$ 24	$ 30
Put option liability	24,143	23,644
Total	24,167	23,674
Level 1
Property held for sale	0	0
Put option liability	0	0
Level 2
Property held for sale	0	0
Put option liability	0	0
Level 3
Property held for sale	24	30
Put option liability	$ 24,143	$ 23,644

NOTE 7 - SEGMENT INFORMATION (D

NOTE 7 - SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Capital Expenditures
Total Segments Capital Expenditures	$ 885	$ 1,831
Corporate assets	0	0
Less intersegment investments	0	(109)
Total consolidated	885	1,722
Revenues
Total segments Revenues	5,164	6,553
Corporate revenue	0	0
Less intersegment revenues	(1,509)	(456)
Total consolidated	3,655	6,097
Depreciation and Amortization
Total segments Depreciation and Amortization	(763)	(1,219)
Corporate depreciation and amortization	0	0
Total consolidated	(763)	(1,219)
Interest expense
Total segments Interest expense	(2,021)	(1,654)
Corporate interest expense	(654)	(584)
Total consolidated	(2,675)	(2,238)
Income/(Loss) Before Income Tax
Total segments Income/(Loss) Before Income Tax	(15,729)	(2,159)
Corporate loss	(1,047)	(713)
Total consolidated	(16,776)	(2,872)
Benefit from (Provision for) Income Tax
Total segments Benefit from (Provision for) Income Tax	(33)	23
Corporate provision for income tax	0	0
Total consolidated	(33)	23
Loss from discontinued operations
Total segments	0	0
Corporate	0	(14)
Total consolidated	0	(14)
Loss attributable to Noncontrolling Interests
Total segments Loss attributable to Noncontrolling Interests	3,434	519
Corporate noncontrolling interest	0	0
Total consolidated	3,434	519
Net (Loss)/Income attributable to Caspian Services Inc.
Total segments Net (Loss)/Income attributable to Caspian Services Inc.	(12,328)	(1,617)
Corporate loss	(1,047)	(727)
Total consolidated	(13,375)	(2,344)
Vessel Operations [Member]
Capital Expenditures
Total Segments Capital Expenditures	885	124
Revenues
Total segments Revenues	3,737	5,137
Depreciation and Amortization
Total segments Depreciation and Amortization	(270)	(446)
Interest expense
Total segments Interest expense	0	0
Income/(Loss) Before Income Tax
Total segments Income/(Loss) Before Income Tax	1,134	910
Benefit from (Provision for) Income Tax
Total segments Benefit from (Provision for) Income Tax	(1)	(131)
Loss from discontinued operations
Total segments	0	0
Loss attributable to Noncontrolling Interests
Total segments Loss attributable to Noncontrolling Interests	0	0
Net (Loss)/Income attributable to Caspian Services Inc.
Total segments Net (Loss)/Income attributable to Caspian Services Inc.	1,133	779
Geophysical Services [Member]
Capital Expenditures
Total Segments Capital Expenditures	0	1,707
Revenues
Total segments Revenues	0	1,002
Depreciation and Amortization
Total segments Depreciation and Amortization	(249)	(384)
Interest expense
Total segments Interest expense	0	0
Income/(Loss) Before Income Tax
Total segments Income/(Loss) Before Income Tax	(920)	(693)
Benefit from (Provision for) Income Tax
Total segments Benefit from (Provision for) Income Tax	(32)	154
Loss from discontinued operations
Total segments	0	0
Loss attributable to Noncontrolling Interests
Total segments Loss attributable to Noncontrolling Interests	0	0
Net (Loss)/Income attributable to Caspian Services Inc.
Total segments Net (Loss)/Income attributable to Caspian Services Inc.	(952)	(539)
Marine Base Services [Member]
Capital Expenditures
Total Segments Capital Expenditures	0	0
Revenues
Total segments Revenues	1,427	414
Depreciation and Amortization
Total segments Depreciation and Amortization	(244)	(389)
Interest expense
Total segments Interest expense	(2,021)	(1,654)
Income/(Loss) Before Income Tax
Total segments Income/(Loss) Before Income Tax	(15,943)	(2,376)
Benefit from (Provision for) Income Tax
Total segments Benefit from (Provision for) Income Tax	0	0
Loss from discontinued operations
Total segments	0	0
Loss attributable to Noncontrolling Interests
Total segments Loss attributable to Noncontrolling Interests	3,434	519
Net (Loss)/Income attributable to Caspian Services Inc.
Total segments Net (Loss)/Income attributable to Caspian Services Inc.	$ (12,509)	$ (1,857)

NOTE 7 - SEGMENT INFORMATION 28

NOTE 7 - SEGMENT INFORMATION (Details 1) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Total segments Assets	$ 73,452	$ 82,767
Corporate assets	663	673
Less intersegment investments	(40,356)	(40,348)
Total consolidated	33,759	43,092
Vessel Operations [Member]
Total segments Assets	15,160	16,430
Geophysical Services [Member]
Total segments Assets	7,669	10,611
Marine Base Services [Member]
Total segments Assets	$ 50,623	$ 55,726