# LIFESCI CAPITAL X-17A-5 (2020-02-26) — Broker-dealer annual report - Company: LIFESCI CAPITAL - Form: X-17A-5 - Filed: 2020-02-26 - Period: 2019-12-31 - Accession: 0001580446-20-000001 - CIK: 1580446 - File #: 8-69305 - Material weakness: No - Auditor: Alvarez & Associates, Inc. - Auditor location: Northridge, CA - Contact: Steven Bender - Phone: 6462907248 - Signed by: Steven Bender (Financial Principal) Original filing: https://www.sec.gov/Archives/edgar/data/1580446/000158044620000001/LIFE2019.pdf --- {0}------------------------------------------------ #### UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235--0123 Expires: August 31, 2020 Estimated average burden hours per response ... . .. 12.00 # **ANNUAL AUDITED REPORT FORM X-17 A-5 PART Ill** | SEC ALE NUMBER | |----------------| | 8-69305 | FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder | | | REPORT FOR THE PERIOD BEGINNING January 1, 2019
ANO ENDING December 31. 2019 | | | | |------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|---------------------------------------------------------------------------------|--------------------------------------------------------|------------------------------|---------------------------------| | | | MM/DDIYY | | MM/00/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | | NAME 01' BROKER-DEALER: LIFESCI CAPITAL LLC
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | OFFICIAL USE ONLY
FIRM l.D. NO. | | | | | | | | | 250 W 55th Street, Suite 168 | | | | | (No. and Street) | | | | | New York | | NY | | 10019 | | | (City) | | (State) | | (Zip Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Slcvcn C Bander | | | | | 646.290. 7248 | | | | | | | (Area Code: - Telephone Number) | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report*
Alvarez & Associates, Inc. | | | {Name - if individual, slate last. first. middle name) | | | | | 9221 Corbin Avenue, Suite 165 Northridge | | CA | | 91324 | | (Address) | (Cily) | | (State) | | (Zip Code) | | CHECK ONE: | | | | | | | I/' I
certified Public Accountant | | | | | | | a
Public Accountant | | | | | | | | Accountant n ot resident in UnHed States or any of its possessions. | | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | | | | | | | | | | | *\*Claims/or exemption from the requirement that the annual report be covered by the opinion of an independent public accountant must be supported* by *a statement of facts and circumstances relied on as the basis for the exemption. See Section 240. I 7a-5(e)(2)* > Potential persons who are to respond to the collection of Information contained In this form are not required to respond unless the form di splays a currentlyvalld OMB control number. SEC 1410 (11-05) {1}------------------------------------------------ #### OATH OR AFFIRMATION | ____________________
I, _s_tev__e_n_C_ B_e_nd_e_r _ | _ __ , swear (or affirm) that, to the best of | | |--------------------------------------------------------|-----------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------| | UFESCI CAPITAL LLC | | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the finn of
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, as
are true and correct. I further swear (or affirm) that | neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account classified solely as that of a customer, except as follows: | None | | | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------| | This report 0
contains (check all applicable boxes):
0 (a) Facing Page.
0 (b) Statement of Financial Condition.
0 (c) Statement of Income (Loss) or, if there is other comprehensive income in the period(s) presented, a Statement
of Comprehensive Income (as defined in §210.l-02 of Regulation S-X).
, (d) Statement of Changes in Financial Condition.
(e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital.
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(f) Statement of Changes in Liabilities Subordinated to Claims of Creditors.
(g) Computation of Net Capital.
(h) Computation for Detennination of Reserve Requirements Pursuant to Rule l 5c3-3.
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(i) Information Relating to the Possession or Control Requirements Under Rule I 5c3-3.
0 U) A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule 15c3-l and the
Computation for Detennination of the Reserve Requirements Under Exhibit A o
0 (k) A Reconciliation between the audited and unaudited Statements of financial Condition w
consolidation. | Signature
Financial & Operations Principal
Title
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ith respect to met.hods of | | , (I) An Oath or Affirmation.
(m) A copy of t
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" | | | | (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. | | | *\*\*For conditions of confidential treatment of certain portions of this filing, see section 240. 17a-5(e)(3).* {2}------------------------------------------------ | | Page | |------------------------------------------------------------|------| | | | | Facing Page to Form X-17 A-5 | | | Affirmation | 2 | | Table of Contents | 3 | | Report oflndependent Registered Public Accounting Firm | 4 | | Financial Statements | | | Statement of Financial Condition | 5 | | Statement of Income | 6 | | Statement of Changes in Members' Equity | 7 | | Statement of Cash Flows | 8 | | Notes to Financial Statements | 9-13 | | Supplemental Information Required by Rule 17a-5 of | | | the Securities and Exchange Commission
Schedule I - | | | Schedule of Computation of Net Capital for Brokers | | | and Dealers Under SEC Rule !Sc3-1 | 14 | | Schedule II - | | | Schedule of Reconciliation of Net Capital Per FOCUS | | | Report with Audit Report | 15 | | Schedule III - | | | Information Relating to Possession or Control Requirements | | | Under SEC Rule I 5c3-3
Schedule IV - | 16 | | Computation for Determination of the Reserve Requirements | | | Under SEC Rule 15c3-3 | 17 | | Report of Independent Registered Public Accounting Firm | | | on Exemption Report | 18 | | Exemption Report | 19 | {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) ### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To Those Charged with Governance and the Members of LifeSci Capital LLC: #### Opinion on the Financia l Statements We have audited the accompanying statement of financial condition of LifeSci Capital LLC (the "Company") as of December 31, 2019, the related statements of income, changes in members' equity, and cash flows for the year then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fa irly, in all material respects, the financial position of the Company as of December 31, 2019, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States. #### Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting finn registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perfonn the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether duie lO error or fraud. Our audit included performing procedures to assess the risks of material 1nisstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. #### Supplemental Information The information contained in Schedules I, II, III and IV ("Supplemental Information") has been subjected to aud it procedures performed in conjunction with the audit of the Company's financial statements. The Supplemental Information is the responsibility of the Company's management. Our audit procedures included determining whether the Supplemental Information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the Supplemental Information. In forming our opinion on the Supplemental Information, we evaluated whether the Supplemental Information, including its form and content is presented in conformity with 17 C.F.R. § 240. I 7a-5. In our opinion, Schedules I, II, III and CV are fairly stated, in all material respects, in relation to the financial statements taken as a whole. Alvarez & Associates, Inc. We have served as the Company's auditor since 2019. Northridge, California February 25, 2020 ![](_page_3_Picture_14.jpeg) {4}------------------------------------------------ ## LIFESCI CAPITAL LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2019 | ASSETS | | |-----------------------------------------------------------|--------------------------| | Cash and cash equivalents | \$
7,826,640 | | Commission and accounts receivable | 914,72
1 | | Deposit at clearing broker | 250,301 | | Due from affiliate | 175,000 | | Prepaid expenses and other assets | 62,353 | | TOT AL ASSETS | \$
9,229;015 | | LIABILITIES AND MEMBERS' EQUITY | | | Liabilities | | | Accounts payable and accrued expenses
Due to affiliate | \$
737,221
728,306 | | Total liabilities | 1,465,527 | | Members' equity | | | Members' equity | 7,763,488 | | Total members' equity | 7,763;488 | | TOT AL LIABILITIES AND MEMBERS' EQUITY | \$
9,229,015 | The accompanying notes are an integral part of these financial statements. {5}------------------------------------------------ # LIFESCI CAPITAL LLC STATEMENT OF INCOME FOR THE YEAR ENDING DECEMBER 31, 2019 | Revenues | | |------------------------------------|--------------| | Underwriting income | \$ 5,067,450 | | Research services | 1,567,061 | | Investment banking | 1,043,334 | | Other income | ,102
211 | | Commision income | 17,750 | | Total revenues | 7,906,697 | | Expenses | | | Employee compensation and benefits | 3,397,288 | | Syndicate expenses | 280,855 | | Professional fees | 293,091 | | Rent | 245,371 | | Market data & communications | 302,830 | | Clearing fees | 99,631 | | Regulatory and compliance | 48,516 | | Other operating expenses | 497,745 | | Total expenses | 5,165,327 | | | | | Net Income | \$ 2,741,370 | {6}------------------------------------------------ ## LIFESCI CAPITAL LLC STATEMENT OF CHANGES IN MEMBERS' EQUITY FOR THE YEAR ENDING DECEMBER 31, 2019 | | Members'
Equity | |------------------------------|--------------------| | Balance at December 31, 2018 | \$ 4,572,1
18 | | Net Income | 2,741,370 | | Capital contributions | 450,000 | | Balance at December 31, 2019 | \$ 7,763,488 | The accompanying notes are an integral part of these financial statements. -7- {7}------------------------------------------------ # LIFESCI CAPITAL LLC STATEMENT OF CASH FLOWS FOR THE YEAR ENDING DECEMBER 31, 2019 | Cash flows from operating activities: | | |-------------------------------------------------------|-----------------| | Net Income | \$
2,741,370 | | Adjustments to reconcile net income to net cash | | | flows provided by operating activites: | | | (Increase) decrease in operating assets: | | | Commission and accounts receivable | (712,022) | | lntercompany receivable | (175,000) | | Deposit at clearing broker | | | Prepaid expenses and other assets | (3,406) | | Increase (decrease) in operating liabilities: | | | Accounts payable and accrued expenses | 88,212 | | Discretionary compensation | 26,965 | | Payable to member | 185,852 | | Total adjustments | (589,399) | | Net cash provided by Qpcrating a1;:tivities | 2,151,971 | | Cash flows from investing activities: | | | Cash flows from financing activities: | | | Members' contributions | 450,000 | | Net cash provided by financing activities | 450,000 | | Net increase in cash and cash equivalents | 2,601,971 | | Cash and cash equivalents, beginning of year | 5,224,669 | | Cash and cash equivalents, end of year | 7,826,640
\$ | | Supplemental disclosures of cash flow information: | | | Cash paid during the year for: | | | Interest expense | \$ | | Income taxes | \$ | | Noncash investing and financing activities: | | | Expenses paid by member on behalf of Company included | | | as member contributions | 450,000
\$ | The accompanying notes are an integral part of these financial statements. {8}------------------------------------------------ ## **1) NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** ## *Nature of Operations* LifeSci Capital LLC (the "Company") is a broker-dealer registered with the Securities and Exchange Commission (SEC) and became a member of the Financial Industry Regulatory Authority (FINRA) on June 18, 2014. The Company was organized on March 14, 2013 in the State of New York and engages in the investment banking, mergers & acquisitions advisory services, sale of hedge funds and other private funds, and research The Company is exempt from rule 15c3- 3 of the SEC under paragraphs (k)(2)(i) and (k)(2)(i i) of that rule. # *Basis of Accounting* Revenues and expenses are recorded on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States. #### *Cash and Cgsh Eguivqlents* The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. #### *Accounts Receivable* Investment banking income, due but not yet received, that is expected to be collected within one year is recorded at net realizable value. **If** amounts become uncolkctible, they will be charged to operations when that determination is made. #### *Income Taxes* The Company is a multiple member LLC and is treated as a partnership for income tax purposes. The operating results of the Company are passed through to its members. Therefore, no provision or liability for federal or state income taxes has been included in the financial statements. As of December 31, 2019, the members·' tax year for 2016, 2017 and 2018 are subject to examination iby the tax authorities. The Company has evaluated its current tax positions and has concluded that as of December 31, 2019, the Company does not have any significant uncertain tax positions for which a reserve would be necessary. # *Use of E§.timates* The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclose contingent 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. {9}------------------------------------------------ ## **1) NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNT ING POLICIES** #### *Leases* The Company shares its office space with its Affiliate under the terms of an expense sharing agreement, which is cancelable with reasonable notice. This agreement is not subject to ASC 842. l'he Company records shared expenses monthly as billed. #### *Underwriting Income* The Company provides a ful 1 range of capital markets and financial advisory services. Capital markets services include underwriting and private placement agent services in both equity and debt capital markets, including private equity placements, initial public offerings and secondary offerings. Underwriting and placement agent revenues are recognized at a point in time on trade date, as the client obtains the control and benefit of the capital markets offering at that point. ### *Research Services* As described in the Related Party Transactions Note 3, the Company provides an affiliate certain research services to clients of the affiliate. These research services provided by the Company include initiation reports, earnings notes and general corporate update riotes on a per client basis. Revenues are recognized on a monthly basis as clients obtain control and benefit of the research services. ## **2) FAIR VALUE MEASUREMENTS** The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures of investments in equity securities that are classified as available-for-sale on a recurring basis. The Fair Value Measurements Topic of the FASB Accounting Standards Codification defines fair value, establishes a consistent framework for measuring fair value and expands disclosure requirements for fair value measurements. The disclosures required under this Topic have been included in this note. ### *Fair Value Hier:archy* The Fair Value Measurements Topic of the FASB Accounting Standards Codification establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level I measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. {10}------------------------------------------------ ## 2) **FAIR VALUE MEASUREMENTS (CONT'D)** Level 2 inputs are inputs other than quoted prices included within Level **1** that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. # *Determination of FairValue* Under the Fair Value Measurements Topic of the F ASB Accounting Standards Codification, the Company bases its fair value on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It is the Company's policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance m the fair value hierarchy. ### *Cash and Cash Equivalents. Short-Term Financial Instruments. and Accounts Pavab/e* The carrying amounts approximate fair value because of the short maturity of these instruments. ### *Investments in Equitv Securities* Investments in equity securities that are classified *as* available-for-sale are recorded at fair value on a recurring basis. When quoted market prices are unobservable, management uses a market index closely related to the industry of the securities held to estimate the fair value of its investment. Management believes that the valuations used in its financial statements are reasonable and are appropriately classified in the fair value hierarchy. Realized gains and losses, determined using the specific identification method, are included in earnings; unrealized holding gains and losses are reported in other comprehensive income. ## *Assets Measured and Recognized at Fair Value ona Recurring Basis* The table below presents the amounts of assets measured at fair value on a recurring basis as of December 3 1, 20 19: | | Total | Levell | Level
2 | Level3 | |-----------------------------------|---------|--------|------------|--------| | Investments in equity securities | | | | | | classified as avai !able-for-sale | \$ - | | | | | | \$ | | | | | | \$ | | | | | | \$
- | | | | | | | | | | {11}------------------------------------------------ ## 3) RELATED PARTY TRANSACTIONS Pursuant to an expense sharing agreement (the "ESA") dated March 11, 2014, an affiliate of the Company provides certain support services for the Company including, among others, employee compensation, office space, office supplies, and communications in the normal course of business. The Company pays a monthly fee in relation to the ESA. For the year ended December 31, 2019, fees charged by the affiliate totaled \$2,466,246. Pursuant to a research services agreement with LifeSci Advisors (the "Agreement") dated July 10, 2014, the Company provides the affiliate certain research services to clients of the affiliate. These research services provided by the Company include initiation reports, earnings notes and general corporate update notes on a per client basis. The Company receives a monthly fee in relation to the Agreement. For the year ended December 31, 2019, fees received by the Company totaled \$1,548,000. The Company received income from LifeSci Ventures, \$17,750. At December 31, 20 19 the outstanding intercompany receivable from LifeSci Investments was \$1 75,000 and the outstanding intercompany payable was \$728,306. The payable is non-interest bearing and due on demand. During 2019 repayment of \$450,000 of allocated expense sharing agreement expenses had been forgiven by the Members and are reflected as capital contributions. It is possible that the terms of c,ertain of the related party transactions are not the same as those that would result for transactions among wholly unrelated parties. ## 4) CONCENTRATIONS OF RISK The Company maintains its cash balances at a major financial institution. The balances are fully insured by the Federal Deposit Insurance Corporation ("FDIC") up to \$250,000. As of December 31, 2019, the Company maintained \$7,576,640 in excess of the insured balances. l11e Company engages in various investment banking services. In the event customers do not fulfill their obligations, the Company may be exposed to risk. l11e risk of default depends on the creditworthiness of the customers. It is the Company's policy to review, as necessary, the credit standing of each customer. ## 5) NET CAPITAL REQUIREMENTS The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule 15c3-l), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At December 3 l, 20 I 9, the Company had net capital of \$6,611,415 which is \$6,5 11,415 in excess of required net capital of \$100,000. The Company's net capital ratio at December 31, 2019 is 0.22 to 1. {12}------------------------------------------------ ### 6) ANNUAL REPORT ON FORM X-17A-5 The annual report to the Securities and Exchange Commission on Form 17 A-5 is available for examination and copying at the Company's office and at the regional office of the Securities and Exchange Commission. ### 7) COMPENSATED ABSENCES Employees of the Company are entitled to paid vacation, paid sick days and personal days off, depending on job classification, length of service and other factors. It is impracticable to estimate the amount of compensation for future absences, and, accordingly, no liability has been recorded in the accompanying financial statements. The Company's policy is to recognize the costs of compensated absences when actually paid to employees. ### 8) COMMITMENT AND CONTINGENCIES The Company had no commitments, no contingent liabilities and had not been named as a defendant in any lawsuit at December 31, 2019, or during the period then ended. ### 9) RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Effective January 1, 2019, the Company adopted the new FASB accounting standard *ASC 842, Leases,* which governs the accounting and reporting ofleases by lessees. Lessor accounting and reporting is largely unchanged. ASC 842 generally applies to leases that have a lease term greater than 12 months at lease commencement., or that include an option to purchase the underlying asset the Company is reasonably certain to exercise. ASC 842's principal changes are 1) recognizing leases on the Statement of Financial Condition by recording a Right-of-use asset and a Lease liability; 2) changes in lease expense recognition during the lease tenn based on its classification as an Operating lease or Finance lease; and 3) expanded disclosures of lease agreements, costs and other matters. As discussed in Note 3, the Company shares its office space with its affiliate covered under an expense sharing agreement. Therefore, the adoption of ASC 842 does not have a material effect on the Company's financial statements for the year ended December 31, 2019. ### 10) SUBSEQUENT EVENTS The Company has evaluated events and tnmsactions subsequent to the statement of financial condition date for items requiring recording or disclosure in the financial statements. The evaluation was perfom1ed through the date the financial statements were available to be issued. Based upon this review, the Company has determined that there were no events or transactions which took place that would have a material impact on its financial statements. {13}------------------------------------------------ # LIFESCI CAPITAL LLC SCHEDULE I - COMPUTATION OF NET CAPITAL FOR BROKERS AND DEALERS UNDER SEC RULE 15c3-1 DECEMBER 31, 2019 | Total members' equity | | \$ 7,763,488 | |-----------------------------------------------------------------------------------------------------------|--------------------------|--------------| | Non-allowable assets, deductions and charges:
Commission and accounts receivable
Due from affiliate | \$
914,720
175,000 | | | Prepaid expenses | 62,353 | | | Total non-allowable assets, deductions and charges | | 1,152,073 | | Net capital | | \$6,611,415 | | Computation of basic net capital requirements | | | | Minimum net capital required (6 2/3%
of aggregate indebtedness of \$1,465 ,527) | | \$
97,702 | | Minimum dollar net capital requirement | | 100,000 | | Minimum capital required | | 100,000 | | Excess net capital | | \$ 6,511,415 | | Excess net capital at 1000% (net capital less 10%
of total aggregate indebtedness) | | \$ 6,464,862 | | Computation of aggregate indebtedness | | | | Total aggregate indebtedness in the statement
of financial condition | | \$ 1,465,527 | | Percentage of aggregate indebtedness to net capital | | 22% | | Ratio of aggregate indebtedness to net capital | | 0.22 to 1 | There was no material difference between the net capital computation shown here and the net capital computation shown on the Company's unaudited Form X-17 A-5 report dated December 31, 2019 (See Note 5). {14}------------------------------------------------ # LIFESCI CAPITAL LLC SCHEDULE II - RECONCILIATION OF NET CAPITAL PER FOCUS REPORT WITH AUDIT REPORT DECEMBER 31, 2019 | Reconciliation With The Company's Computations: | | |-----------------------------------------------------------------------|--------------| | Net capital, as reported in Company's Part IIA unaudited Focus Report | \$ 6,611,415 | | Adjustment | | | Net capital, per report pursuant to Rule l 7a -
5(d) | \$ 6,611,415 | See the accompanying notes to the financial statements. {15}------------------------------------------------ # LIFESCI CAPITAL LLC SCHEDULE III - INFORMATION RELATING TO POSESSION OR CONTROL REQUIREMENTS UNDER SEC RULE 15c3-3 DECEMBER 31, 2019 The Company is exempt from SEC Rule l 5c3-3 under paragraphs (k)(2)(i) and (k)(2)(ii) of that rule. See the accompanying notes to the financial statements. -16- {16}------------------------------------------------ # LIFESCI CAPITAL LLC SCHEDULE IV - COMPUTATION FOR DETERMINATION OF THE RESERVE REQUIREMENTS UNDER SEC RULE 15c3-3 DECEMBER 31, 2019 The Company is exempt from SEC Rule l 5c3-3 under paragraphs (k)(2)(i) and (k)(2)(ii) of that rule. {17}------------------------------------------------ ![](_page_17_Picture_0.jpeg) ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To Those Charged with Governance and the Members of LifeSci Capital LLC: We have reviewed management's statements, included in the accompanying Assertions Regarding Exemption Provisions, in which (1) LifeSci Capital LLC identified the following provisions of 17 C.F.R. § l 5c3-3(k) under which LifeSci Capital LLC claimed an exemption from 17 C.F.R. § 240.15c3-3: (k)(2)(i) and (k)(2)(ii) (the "exemption provisions") and (2) LifeSci Capital LLC stated that LifeSci Capital LLC met the identified exemption provisions throughout the year ended December 31, 2019 without exception. LifeSci Capital LLC' s management is responsible for compliance with the exemption provisions and its statements. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about LifeSci Capital LLC's compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated. in all materia I respects, based on the provisions set forth in paragraph (k)(2)(i) and (k)(2)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934. ( 1~,~) Alvarez & Associates, Inc. Northridge, California February 25, 2020 ![](_page_17_Picture_10.jpeg) {18}------------------------------------------------ #### LifeSci Capital LLC #### Exemption Report LifeSci Capital LLC (the "Company") is a registered broker-dealer subject to Rule i7a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. § 240.17a-5(d)(1) and (4). To the best of its knowledge and belief, the Company states the following: (1) The Company claims an exemption from 17 C.F.R. § 240.15c3-3 under provisions of (k)(2)(i) and (k)(2)(ii) (the "exemption provisions") and (2) the Company met the exemption provisions throughout the most recent year ending December 31, 2019 without exception. LifeSci Capital LLC Financial Principal Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.