SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, DC 20549

                                 FORM 10-QSB

(Mark One)
[ X ] Annual Report Under Section 13 or 15(d) of the Securities  Exchange Act of
1934 For the quarterly period ended September 30, 1999

[   ]    Transition Report Under Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the transition period from                            to

Commission File Number:  333-22239


                                AeroCentury IV, Inc.
                   (Name of small business issuer in its charter)

        California                                     94-3260392
(State or other jurisdiction               (I.R.S. Employer Identification No.)
 of incorporation or organization)

 1440 Chapin Avenue, Suite 310
 Burlingame, California                        94010
(Address of principal executive offices)     (Zip Code)

Issuer's telephone number, including area code:              (650) 340-1880
Securities registered pursuant to Section 12(b) of the Act:   None

Securities registered pursuant to Section 12(g) of the Act:   None

Check whether the Issuer:  (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or
for such shorter  period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.
Yes X     No
   ---      ---

On November 15,  1999 the aggregate  market value of the voting and non-voting
Common  equity held by  non-affiliates  (computed  by  reference to the price at
which the common equity was sold) was $0.


As of  November  15,  1999 the  Issuer  has  243,420  Shares of  Common  Stock
outstanding.


Transitional Small Business Disclosure Format (check one):  Yes      No  X
                                                               ----    ----

<PAGE>



Part I.           Financial Information

Item 1.           Financial Statements.


                               AEROCENTURY IV, INC.
                                  Balance Sheet
                               September 30, 1999
<TABLE>


                                              ASSETS
<S>                                                                        <C>

Current assets:
     Cash                                                                  $     368,430
     Deposits                                                                     54,810
     Accounts receivable                                                         119,610
     Rent receivable                                                              15,400
                                                                           -------------
Total current assets                                                             558,250

Aircraft and aircraft engines under operating leases,
     net of accumulated depreciation of $427,030                               3,846,440
Debt issue costs, net of accumulated
     amortization of $161,940                                                    427,580
Other assets                                                                      24,700
                                                                           -------------

Total assets                                                               $   4,856,970
                                                                           =============


                                                 LIABILITIES AND SHAREHOLDER'S EQUITY

Current liabilities:
     Accounts payable                                                      $       7,810
     Interest payable                                                             81,150
     Prepaid rent                                                                 10,990
     Security deposits                                                            40,200
     Maintenance deposits                                                        111,410
                                                                           -------------
Total current liabilities                                                        251,560

Medium-term secured notes                                                      4,869,000
Total liabilities                                                              5,120,560

Preferred stock, no par value, 100,000 shares authorized,
     no shares issued and outstanding                                                  -
Common stock, no par value, 500,000 shares authorized,
     243,420 shares issued and outstanding                                       243,420
Accumulated deficit                                                            (507,010)
                                                                           -------------
Total shareholder's equity                                                     (263,590)
                                                                           -------------

Total liabilities and shareholder's equity                                 $   4,856,970
                                                                           =============
</TABLE>


See accompanying notes.




<PAGE>

<TABLE>


                                                         AEROCENTURY IV, INC.
                                                       Statements of Operations

<S>                                                    <C>                               <C>

                                                       For the Nine Months               For the Three Months
                                                       Ended September 30,                Ended September 30,
</TABLE>
<TABLE>
<S>                                              <C>              <C>               <C>              <C>

                                                      1999              1998            1999              1998
                                                      ----              ----            ----              ----
Revenues:

     Rent income                                 $     513,740    $      432,020    $     183,110    $      180,360
     Interest income                                    23,360            79,860            5,290            17,860
                                                 -------------    --------------    -------------    --------------

                                                       537,100           511,880          188,400           198,220
                                                 -------------    --------------    -------------    --------------

Expenses:

     Depreciation                                      184,870           144,700           64,600            57,420
     Amortization                                       57,440            57,440           19,140            19,140
     Interest                                          365,180           365,180          121,730           121,730
     Management fees                                    73,030            73,030           24,340            24,340
     Professional fees and
        general and administrative                      57,100            21,090           32,480            17,150
                                                 -------------    --------------    -------------    --------------

                                                       737,620           661,440          262,290           239,780
                                                 -------------    --------------    -------------    --------------

Loss before taxes                                $   (200,520)    $    (149,560)    $    (73,890)    $     (41,560)

Provision for income taxes                                 800                 -                -                 -
                                                 -------------    --------------    -------------    --------------

Net loss                                         $   (201,320)    $    (149,560)    $    (73,890)    $     (41,560)
                                                 =============    ==============    =============    ==============

Weighted average common shares outstanding             243,420           243,420          243,420           243,420
                                                 =============    ==============    =============    ==============

Basic loss per common share                      $      (0.83)    $       (0.61)    $      (0.30)    $       (0.17)
                                                 =============    ==============    =============    ==============

</TABLE>

See accompanying notes.




<PAGE>



                              AEROCENTURY IV, INC.
                            Statements of Cash Flows
<TABLE>

                                                                For the Nine Months Ended September 30,
<S>                                                               <C>                  <C>

                                                                       1999                  1998

Net cash provided by operating activities                         $       40,120        $      86,120

Investing activities:
     Investment in secured promissory note                                     -            (866,670)
     Repayment of secured promissory note                                      -              866,670
     Purchase of interest in aircraft                                  (659,950)          (1,041,610)
                                                                  --------------        -------------
Net cash used by investing activities                                  (659,950)          (1,041,610)
                                                                  --------------        -------------

Net decrease in cash                                                   (619,830)            (955,490)

Cash, beginning of period                                                988,260            1,944,120
                                                                  --------------        -------------

Cash, end of period                                               $      368,430        $     988,630
                                                                  ==============        =============

Supplemental  disclosures of cash flow information:  Cash paid during the period
for:
     Interest                                                     $      365,180        $     365,180
     Income taxes                                                            800                  800

</TABLE>

See accompanying notes.



<PAGE>



                               AEROCENTURY IV, INC.
                          Notes to Financial Statements
                               September 30, 1999


1.       Basis of Presentation

         AeroCentury IV, Inc. (the  "Company") was  incorporated in the state of
California on February 7, 1997 ("Inception").  The Company was formed solely for
the purpose of acquiring  Income  Producing  Assets.  The Company  offered up to
$10,000,000 in $1,000 Secured  Promissory  Notes maturing on April 30, 2005 (the
"Notes") pursuant to a prospectus dated May 21, 1997 (the "Prospectus").

         The accompanying  balance sheet at September 30, 1999 and statements of
operations  and cash flows for the nine months and three months ended  September
30, 1999 and 1998 reflect all adjustments  (consisting of only normal  recurring
accruals)  which  are,  in the  opinion  of the  Company,  necessary  for a fair
presentation of the financial results. The results of operations of such periods
are not  necessarily  indicative of results of operations  for a full year.  The
statements should be read in conjunction with the Summary of Significant Account
Policies  and other notes to  financial  statements  included  in the  Company's
Annual Report on Form 10-KSB for the year ended December 31, 1998.

         Organization and Capitalization

         All of the  Company's  outstanding  common  stock is owned by  JetFleet
Holding Corp.  ("JHC"), a California  corporation formed in January 1994. In May
1998, JetFleet Management Corp., the sole shareholder of the Company was renamed
JetFleet Holding Corp. The rights and obligations under the management agreement
between the Company and JHC were assigned by JHC to a newly-created wholly-owned
subsidiary  named  "JetFleet   Management  Corp."  ("JMC").   JMC  also  manages
AeroCentury  Corp.  ("ACY"),  a  Delaware  corporation,   and  JetFleet  III,  a
California corporation ("JetFleet III"), which are affiliates of the Company and
which have objectives similar to the Company's.  Neal D. Crispin,  the President
of the Company,  holds the same position with JHC and JMC and owns a significant
amount of the common stock of JHC.

         Aircraft and Aircraft Engines Under Operating Leases

         The Company's interests in aircraft are recorded at cost, which include
acquisition costs (see Note 2). Depreciation is computed using the straight-line
method over each aircraft's  estimated  economic life  (generally  assumed to be
twelve years) to an estimated residual value.

         Debt Issue Costs

         Pursuant  to  the  terms  of  the  Prospectus,   the  Company  paid  an
Organization and Offering  Expense  Reimbursement to JHC in cash in an amount up
to 2.0% of Aggregate Gross Offering  Proceeds for reimbursement of certain costs
incurred in  connection  with the  organization  of the Company and the Offering
(the "Reimbursement").

         To the extent  that JHC  incurred  expenses  in excess of the 2.0% cash
limit,  such  excess  expenses  were  repaid to JHC in the form of Common  Stock
issued by the Company at a price of $1.00 per share (the  "Excess  Stock").  The
amount of Excess  Stock that the  Company  issued was limited  according  to the
amount of Aggregate Gross Offering Proceeds raised by the Company.

         The  Company  capitalized  the  Reimbursement  paid by the  Company and
amortizes such costs over the life of the Notes (approximately eight years).

         Assets Subject to Lien

         The  Company's  obligations  under the Notes are  secured by a security
interest  in all of the  Company's  right,  title  and  interest  in the  Income
Producing Assets acquired by the Company.




<PAGE>



                              AEROCENTURY IV, INC.
                          Notes to Financial Statements
                               September 30, 1999


1.       Basis of Presentation (continued)

         Income Taxes

         The Company follows the liability method of accounting for income taxes
as required by the provisions of Statement of Financial Accounting Standards No.
109 - Accounting for Income Taxes.

         Cash and Cash Equivalents/Deposits

         The Company  considers highly liquid  investments  readily  convertible
into known amounts of cash, with original maturities of 90 days or less, as cash
equivalents.  Deposits  represent cash balances held related to maintenance  and
are subject to withdrawal  restrictions.  As of September 30, 1999,  the Company
maintained  $422,440  of its cash  balances  in a money  market  fund  held by a
regional brokerage firm, which is not federally insured.

         Use of Estimates

         The  preparation of financial  statements in conformity  with generally
accepted  accounting  principles  requires  management  to  make  estimates  and
assumptions that affect certain  reported amounts and disclosures.  Accordingly,
actual results could differ from those estimates.

2.       Aircraft and Aircraft Engines Under Operating Leases

         Aircraft and Aircraft Engines

         The  Company  owns a Shorts  SD3-60-100,  serial  number S/N 3606 ("S/N
3606"), a Pratt & Whitney JT8D-9A  aircraft  engine,  serial number 674452B (the
"Engine"), a Fairchild Metro III aircraft,  serial number AC-647 ("S/N AC-647"),
a 50% undivided interest in a Shorts SD-360, serial number S/N 3676 ("S/N 3676")
and a 67% undivided interest in a deHavilland DHC-6, serial number S/N 668 ("S/N
668").  The Company  purchased  its  interest  in S/N 668 during July 1999;  the
remaining interest is owned by JetFleet III.

         Aircraft and Aircraft Engines Leases

         S/N 3606 and S/N 3676 are subject to similar 48-month leases,  expiring
on July 27, 2001, with a British regional airline.

         S/N AC-647 was subject to a 36-month lease, expiring on April 13, 2001,
with a regional  carrier in  Uruguay.  During  June  1999,  however,  management
repossessed  the aircraft  due to  non-payment  of rent and is seeking  re-lease
opportunities.  In  connection  with the  repossession,  the Company  recorded a
write-off of approximately  $4,300 which represents rent receivable in excess of
the letter of credit held by the  Company,  which the Company  collected  during
August 1999.

         The Engine is used on a McDonnell  Douglas DC-9 aircraft and is subject
to a 60-month lease with the seller, expiring on November 4, 2002. The Engine is
subleased by the seller to a Mexican-based regional carrier.

         S/N 668 is  subject to a  60-month  lease  with a  regional  carrier in
Colombia.

3.       Medium-term secured Notes

         As mentioned  above, the Company raised funds through the Offering from
May 1997 to August 1997.  During 1997, the Company  accepted  subscriptions  for
4,869 Notes aggregating  $4,869,000 in Gross Offering Proceeds.  Pursuant to the
Prospectus,  the Company  subsequently  issued $4,869,000 in Notes due April 30,
2005.  The Notes  bear  interest  at an annual  rate of 10.00%  which is due and
payable on a quarterly basis, in arrears, on the first business day of February,
May, August and November.  The carrying amount of the Notes payable approximates
fair value.



<PAGE>



                              AEROCENTURY IV, INC.
                          Notes to Financial Statements
                               September 30, 1999


4.       Income Taxes

         The items  comprising  income tax  expense  for the nine  months  ended
September 30, 1999 are as follows:


         Current tax provision:
                  Federal                                         $           -
                  State                                                     800
                                                                  --------------

                  Current tax provision                                     800

         Deferred tax provision:
                  Federal                                               (68,722)
                  State                                                  17,022

                  Deferred tax provision                                (51,700)
                  Valuation allowance                                    51,700

         Total provision for income taxes                         $         800
                                                                  ==============

         Total  income  tax  expense  differs  from the  amount  which  would be
provided by applying the statutory federal income tax rate to pretax earnings as
illustrated below:

         Income tax expense at
               statutory federal income tax rate                  $     (68,178)
         State taxes net of federal benefit                                (321)
         Tax rate differences                                            17,343
         California franchise tax                                           256
         Valuation allowance                                             51,700
                                                                  --------------
         Total provision for income taxes                         $         800
                                                                  ==============


         Temporary   differences  and   carryforwards   which  gave  rise  to  a
significant  portion of deferred tax assets and  liabilities as of September 30,
1999 are as follows:

         Deferred tax assets:
                  Net operating loss                              $     193,121
                  Prepaid rent                                            3,753
                  Maintenance reserves                                   14,908
                  State franchise taxes                                     272
                                                                  --------------
                           Subtotal                                     212,054
                           Valuation allowance                         (173,467)
                                                                  --------------
                           Net deferred tax assets                       38,587
         Deferred tax liabilities:
                  Amortization of organizational costs                      207
                  Depreciation on aircraft                               38,380

                                                                  $           -
                                                                  ==============

         The Company anticipates that deferred tax liabilities will be offset by
deferred tax assets and has  recorded a valuation  allowance  for the  remaining
portion of deferred  tax assets as the Company  does not  anticipate  generating
adequate future taxable income to realize the benefits of the remaining deferred
tax assets on the balance  sheet.  The  Company's  net  operating  losses may be
carried  forward  for  fifteen  to twenty  years  depending  upon when they were
created and begin to expire in 2012.



<PAGE>



                              AEROCENTURY IV, INC.
                          Notes to Financial Statements
                               September 30, 1999


5.       Related Party Transactions

         The  Company's   Income   Producing  Asset  portfolio  is  managed  and
administered  under the terms of a  management  agreement  with JMC.  Under this
agreement,  on the last day of each calendar  quarter,  JMC receives a quarterly
management fee equal to 0.5% of the Company's  Aggregate Gross Proceeds received
through  the last day of such  quarter.  In the first nine  months of 1999,  the
Company paid a total of $73,030 in management fees to JMC.

         JMC may receive a brokerage fee for locating assets for the Company and
a remarketing fee in connection with the sale of the Company's assets,  provided
that such fees are not more than the customary and usual fees that would be paid
to an  unaffiliated  party for such a  transaction.  The total of the  Aggregate
Purchase Price plus the brokerage fee cannot exceed the fair market value of the
asset based on  appraisal.  JMC may also  receive  reimbursement  of  Chargeable
Acquisition Expenses incurred in connection with a transaction which are payable
to third parties. Because the Company did not purchase aircraft during the first
nine months of 1998, it did not pay any brokerage fees or Chargeable Acquisition
Expenses to JMC. During the first nine months of 1999, the company purchased its
undivided interest in S/N 668 and paid a brokerage fee of $36,280.

         As  discussed  in Note  2,  the  Company  owns  50%  and 67%  undivided
interests  in S/N 3676  and S/N 668,  respectively.  The  remaining  50% and 33%
undivided interests are owned by JetFleet III. Each co-owner of S/N 3676 and S/N
668 receives its pro-rata share of rent income received from the lessee.

         As provided in the prospectus for the Offering,  the Company may invest
in Financial Assets,  including indebtedness secured by Equipment.  During March
1998, the Company loaned  $866,670 to ACY in connection with ACY's purchase of a
Shorts SD-360 aircraft.  ACY issued a secured  promissory note to the Company in
the amount of the loan,  which was  secured by a perfected  first lien  security
interest in the aircraft. Pursuant to the note's provision for prepayment at any
time without  penalty,  ACY repaid the note in full during August 1998. ACY paid
the Company $34,090 of interest during the term of the note.




<PAGE>



Item 2.           Management's Discussion and Analysis or Plan of Operation.

Forward-Looking Statements

Certain statements  contained in this report and, in particular,  the discussion
regarding the Company's beliefs, plans, objectives,  expectations and intentions
regarding:  the Company's lack of significant  operating  expenses in connection
with assets that remain on lease;  the Company's  cash flow,  even if S/N AC-647
remains off lease for the remainder of 1999; and the Company's  exposure to loss
as a result  of Year 2000  issues  are  forward  looking  statements.  While the
Company  believes that such statements are accurate,  the Company's  business is
dependent upon general economic  conditions,  particularly those that affect the
demand for turboprop aircraft and engines,  including  competition for turboprop
and other  aircraft,  and future  trends and results  cannot be  predicted  with
certainty.  The  Company's  actual  results could differ  materially  from those
discussed  in such  forward  looking  statements.  Factors  that could  cause or
contribute  to such  differences  include those  discussed  below in the section
entitled  "Factors that May Affect Future  Results." The  cautionary  statements
made  in  this  Report  should  be  read  as  being  applicable  to all  related
forward-looking statements wherever they appear in this Report.

Capital Resources and Liquidity

At the end of September  1999,  the Company had cash  balances of $423,240.  The
Company's cash balances were held primarily for the interest payment made to the
Noteholders in November 1999, for normally recurring expenses and for investment
in additional Income Producing Assets.

The primary  source of the  Company's  funds is rental  revenue  from the Income
Producing Assets. The Company's liquidity will vary in the future, increasing to
the  extent  cash flows from  operations  exceed  expenses,  and  decreasing  as
interest  payments are made to the Noteholders and to the extent expenses exceed
cash flows from leases.

The Company's primary use of its operating cash flow is interest payments to its
Noteholders.  Excess cash flow, after payment of interest and operating expenses
is held for investment in additional Income Producing Assets.  Since the Company
has acquired Income Producing Assets which are subject to triple net leases (the
lessee pays  operating  and  maintenance  expenses,  insurance  and taxes),  the
Company does not anticipate that it will incur significant operating expenses in
connection with ownership of its Income  Producing Assets as long as they remain
on lease.

The Company currently has available adequate reserves to meet its immediate cash
requirements.  The leases for the  Company's  aircraft  expire at varying  times
between  July  2001 and  July  2004.  As  mentioned  in Note 2 to the  financial
statements, management has repossessed S/N AC-647 due to non-payment of rent and
is seeking  re-lease  opportunities.  Management  believes that the Company will
have  adequate  cash flow to meet any on-going  operational  needs,  even if S/N
AC-647  remains  off-lease for the remainder of 1999.  If,  however,  S/N AC-647
remains off-lease for an extended period of time, the Company's ability to repay
the Notes at the maturity date may be adversely affected.

The decrease in cash flow from  operations  was due  primarily to an increase in
accounts receivable and cash classified as deposits and a decrease in collection
of prepaid  rent during 1999  compared to 1998.  This effect was only  partially
offset by an  maintenance  reserves  collected  from  lessees  during 1999 and a
decrease in rent receivable.

The decrease in cash flow used by investing  activities  was because the Company
invested  $381,660 more in Income  Producing Assets during the first nine months
of 1999  versus the same period of 1998.  There was no cash flow from  financing
activities in 1999 or 1998 because the Offering terminated in August 1997.

Results of Operations

The Company  recorded a net loss of  ($201,320)  and  ($149,560)  or ($0.83) and
($0.61)  per  share  for the nine  months  ended  September  30,  1999 and 1998,
respectively,  and  ($73,890) and ($41,560) or ($0.30) and ($0.17) per share for
the three months ended September 30, 1999 and 1998, respectively.

Rental income  increased by  approximately  $82,000 for the nine month period in
1999 due to the  purchases  of S/N AC-647 in July 1998 and S/N 668  during  July
1999.  This increase was partially  offset by the lack of rent collected for S/N
AC-647  following  its  repossession  in June 1999  (discussed  in Note 2 to the
financial  statements).  Rental income increased by approximately $3,000 for the
three months ended September 30, 1999 versus 1998 because of the purchase of S/N
668. This increase was partially offset by the effect of the repossession of S/N
AC-647  mentioned  above.  Depreciation  also  increased  from  1998  to 1999 by
approximately $40,000 as a result of the acquisitions of S/N AC-647 and S/N 668.
Interest  income  decreased from year to year because the Company had lower cash
balances in 1999 as a result of those purchases.  Professional fees increased in
1999 due to legal expenses  incurred in connection with the  repossession of S/N
AC-647.

Factors that May Affect Future Results

General Economic Conditions. The market for used aircraft has been cyclical, and
usually  reflects  economic  conditions  and  the  strength  of the  travel  and
transportation  industry.  At any time,  the  market  for used  aircraft  may be
adversely  affected by such factors as airline  financial  difficulties,  higher
fuel costs, and improved availability and economics of new replacement aircraft.

An adverse change in the global air travel  industry,  however,  could result in
reduced  carrier revenue and excess capacity and increase the risk of failure of
some weaker regional air carriers.  While the Company  believes that with proper
asset and lessee  selection  the impact of such  changes on the  Company  can be
reduced,  there is no  assurance  that the  Company's  business  will escape the
effects of such a global downturn,  or a regional  downturn in an area where the
Company has placed a significant amount of its assets.

Reliance on JMC. All management of the Company is performed by JMC pursuant to a
management  agreement between JMC and the Company.  The Board of Directors does,
however,  have ultimate control and supervisory  responsibility over all aspects
of  the  Company  and  does  owe  fiduciary   duties  to  the  Company  and  its
stockholders.  In addition,  while JMC may not owe any  fiduciary  duties to the
Company by virtue of the management  agreement,  the officers of the Company are
also officers or employees of JMC, and in that capacity owe fiduciary  duties to
the Company and the stockholders by virtue of holding such offices. Although the
Company has taken steps to prevent such  conflicts,  such  conflicts of interest
arising from such dual roles may still occur.

Ownership Risks. The Company's portfolio is leased under operating leases, where
the terms of the leases do not take up the entire  useful life of an asset.  The
Company's  ability to recover its purchase  investment in an asset subject to an
operating lease is dependent upon the Company's  ability to profitably  re-lease
or sell the asset after the  expiration of the initial  lease term.  Some of the
factors that have an impact on the Company's ability to re-lease or sell include
worldwide economic  conditions,  general aircraft market conditions,  regulatory
changes  that may make an asset's use more  expensive or preclude use unless the
asset is  modified,  changes in the  supply or cost of  aircraft  equipment  and
technological  developments  which  cause  the  asset  to  become  obsolete.  In
addition,  a successful  investment  in an asset  subject to an operating  lease
depends in part upon  having  the asset  returned  by the lessee in  serviceable
condition as required under the lease.  If the Company is unable to remarket its
aircraft  equipment  on  favorable  terms  when  the  operating  lease  for such
equipment  expires,  the Company's  business,  financial  condition,  cash flow,
ability to service debt and results of operation could be adversely affected.

Lessee Credit Risk. If a lessee defaults upon his obligations under a lease, the
Company may be limited in its ability to enforce remedies. Most of the Company's
lessees are small domestic and foreign regional passenger airlines, which may be
even  more  sensitive  to  airline  industry  market  conditions  than the major
airlines.  As a  result,  the  Company's  inability  to  collect  rent  under  a
significant  lease or to  repossess  equipment  in the event of a  default  by a
lessee  could have a material  adverse  effect on the  Company's  revenue.  If a
lessee that is a certified U.S.  airline is in default under the lease and seeks
protection under Chapter 11 of the United States  Bankruptcy Code, under Section
1110 of the Bankruptcy Code, the Company would be  automatically  prevented from
exercising  any  remedies  for a  period  of 60  days.  By the end of the 60 day
period,  the lessee must agree to perform the obligations and cure any defaults,
or the Company would have the right to repossess the  equipment.  This procedure
under the  Bankruptcy  Code has been subject to significant  recent  litigation,
however,  and it is possible that the Company's  enforcement rights may still be
further  adversely  affected by a  declaration  of  bankruptcy  by a  defaulting
lessee.

International  Risks. The Company's  portfolio currently consists of leases with
foreign air carriers. Leases with foreign lessees may present somewhat different
credit risks than those with domestic lessees.

Foreign laws, regulations and judicial procedures may be more or less protective
of lessor  rights as those which apply in the United  States.  The Company could
experience   collection  problems  related  to  the  enforcement  of  its  lease
agreements  under foreign local laws and the remedies in foreign  jurisdictions.
The protections potentially offered by Section 1110 of the Bankruptcy Code would
not apply to non-U.S.  carriers,  and applicable local law may not offer similar
protections.  Certain countries do not have a central  registration or recording
system with which to locally establish the Company's interest in equipment,  and
related  leases.  This could add difficulty in recovering an engine in the event
that a foreign lessee defaults.

Leases with foreign  lessees are subject to risks  related to the economy of the
country  or region in which  such  lessee is  located  even if the U.S.  economy
remains  strong.  On the other hand,  a foreign  economy may remain  strong even
though the domestic U.S. economy is not. A foreign  economic  downturn may occur
and impact a foreign  lessee's  ability to make lease payments,  even though the
U.S. and other economies remain stable. Furthermore, foreign lessees are subject
to risks  related  currency  conversion  fluctuations.  Although  the  Company's
current leases are all payable in U.S. dollars,  in the future,  the Company may
agree to leases that permit  payment in foreign  currency,  which would  subject
such lease  revenue to  monetary  risk due to currency  fluctuations.  Even with
dollar-denominated lease payment provisions, the Company could still be affected
by a devaluation  of the lessee's  local  currency which makes it more difficult
for a lessee to meet its dollar-denominated lease payments,  increasing the risk
of default of that lessee,  particularly if that carrier's  revenue is primarily
derived in the local currency.

Competition.  The Company has many competitors in the aircraft leasing industry,
including leasing companies, banks and other financial institutions and aircraft
leasing  partnerships.  The market is highly competitive.  Most of the Company's
competitors have  substantially  greater  financial and other resources than the
Company.

Casualties,   Insurance  Coverage.  The  Company,  as  owner  of  transportation
equipment, could be held liable for injuries or damage to property caused by its
assets. Though some protection may be provided by the United States Aviation Act
with  respect  to its  aircraft  assets,  it is not  clear to what  extent  such
statutory  protection  would be  available  to the  Company and such act may not
apply to aircraft  operated in foreign  countries.  Though the Company may carry
insurance or require a lessee to insure  against a risk,  some risks of loss may
not be insurable.  An uninsured loss with respect to the Equipment or an insured
loss, for which insurance  proceeds are  inadequate,  would result in a possible
loss of invested capital in and any profits anticipated from such equipment.

Leasing  Risks.  The  Company's  successful  negotiation  of  lease  extensions,
re-leases  and sales may be critical  to its  ability to achieve  its  financial
objectives,  and will involve a number of substantial risks. Demand for lease or
purchase  of  the  assets  depends  on the  economic  condition  of the  airline
industry,  which is in turn highly  sensitive  to general  economic  conditions.
Ability to remarket  equipment at acceptable  rates may depend on the demand and
market  values at the time of  remarketing.  The  market  for used  aircraft  is
cyclical,  and generally,  but not always,  reflects economic conditions and the
strength of the travel and transportation  industry. The demand for and value of
many types of older  aircraft  in the  recent  past has been  depressed  by such
factors as airline financial  difficulties,  increased fuel costs, the number of
new  aircraft on order and the number of older  aircraft  coming off lease.  The
Company's  concentration  in a limited  number of airframe and  aircraft  engine
types (generally, turboprop equipment) subjects the Company to economic risks if
those airframe or engine types should decline in value. The recent  introduction
of "regional jets" to serve on short routes previously  thought to be economical
only for turboprop  aircraft  operation  could decrease the demand for turboprop
aircraft,  while at the same  increasing the supply of used turboprop  aircraft.
This could  result in lower lease rates and values for the  Company's  turboprop
aircraft.

Risks Related to Regional Air Carriers. Because the Company has concentrated its
existing  leases on leases to  regional  air  carriers,  it will be  subject  to
certain  risks.  First,  lessees in the  regional air carrier  market  include a
number of companies that are start-up,  low capital,  and low margin operations.
Often,  the success of such carriers is dependent upon  arrangements  with major
trunk  carriers,  which may be subject to  termination or  cancellation  by such
major carrier. This market segment is also characterized by low entry costs, and
thus,  there is strong  competition  in this industry  segment from start-ups as
well as major airlines.  Thus, leasing  transactions with these types of lessees
results in a generally higher lease rate on aircraft, but may entail higher risk
of default or lessee bankruptcy.

Year 2000 Considerations. Because all administrative and management functions of
the Company are carried out by its management company,  JMC, JMC's readiness for
Year 2000 will determine the Company's  status.  JMC has reported to the Company
that it has directed its  information  technology  ("IT") manager to require any
software or hardware  purchased for use by management to have a warranty of Year
2000  compliance.  It has also directed its IT manager to study any systems that
may require Year 2000 remediation.

The IT  manager  has  determined  that,  because  JMC's IT  system is based on a
"MacOS" system,  JMC's internal  technology systems are ready for Year 2000, and
there  should  not be any  material  costs  associated  with  such  remediation.
Furthermore, the phone and internet systems have been warranted by their vendors
for Year 2000 compliance.  The Company's internal and administrative  operations
are  not  highly  dependent  on  any  other  advanced  technology  system,  and,
consequently,  management  believes  that the  Company's  exposure  to loss as a
result of Year 2000 issues in its internal and administrative  operations is not
significant.

Management  believes that the electronic systems used in the equipment leased by
the Company to lessees will not be materially affected by the Year 2000 and that
any  remediation  of the  technology  systems  embedded in the aircraft  that it
leases will not be a material  expense to the Company.  The Company has notified
all lessees of the Year 2000 problem and has requested information on the status
of each lessee's study and remediation plans. To date, all lessees have reported
Year 2000  compliance  with respect to the aircraft leased by the Company to the
lessee.  The Company will request Year 2000 compliance  information from any new
additional lessees, if any.

The Company has also been  consulting with all the  manufacturers  of its leased
equipment to confirm Year 2000 compliance, who have all indicated that they have
already notified or will shortly notify all lessee operators of their respective
Year 2000 issues.  Generally,  the types of used turboprop aircraft owned by the
Company are not highly  dependent upon  date-sensitive  electronics,  unless the
lessee has added upgraded  electronics to the aircraft.  In any event, since the
Company's leases  generally place all maintenance and repair  obligations on the
lessees, to the extent that the aircraft are on lease when the Year 2000 problem
is  identified,  it  would  generally  be the  lessee's  and not  the  Company's
responsibility  to remediate  any Year 2000 problem with the leased  aircraft or
additional upgraded electronics.

To the extent that a lessee has Year 2000 problems that significantly  adversely
affect its overall  financial  status,  such  material  problems  may affect the
lessee's operations and increase the risk of default by a lessee under its lease
with the Company.  The Company has also inquired with its lessees regarding Year
2000 compliance of its  administrative  and operational  activities.  It appears
responding  lessees are  generally  aware of the Year 2000 issue and have either
completed a plan or are in progress  toward  Year 2000  compliance.  There is no
assurance  that their  compliance  plans will be  successful,  however,  and the
Company is not independently  verifying any information provided by its lessees.
The Company continues to monitor its current lessees and each additional lessee.

Year 2000 issues may have a material impact on FAA operations and the operations
of certain air  carriers,  which in turn would  negatively  affect the  aircraft
industry in general.  This, of course,  may affect the business of the Company's
existing and potential lessees, and in turn, the Company.

The essential  functions of JMC and the Company are not  dependent  upon any key
third  party  vendors or  service  providers  related to the  leasing or finance
business, and consequently, the interruption of goods and services from any such
industry-specific  third party vendor or service  provider to JMC or the Company
is not likely to cause a material loss to the Company.  Of course, the Company's
ordinary  business  operation  is dependent  upon  vendors  that  provide  basic
services to  businesses  generally,  such as utility  companies,  phone and long
distance  companies,  courier  services and banking  institutions.  The Company,
through its  management  and JMC, is monitoring  the Year 2000 readiness of such
providers.  Management believes that a temporary interruption in services to the
Company by these types of service  providers  caused by Year 2000 problems would
not cause material  losses to the Company.  An extended loss of these  services,
however,   could   adversely   affect  the  Company's   business  and  financial
performance.  The Company has not made any  contingency  plans for the  extended
loss of these basic services.

The Company has not  incurred  and does not  anticipate  any  significant  costs
related to the Year 2000 issue.




<PAGE>



                                   SIGNATURES


Pursuant to the  requirements  of Section 13 or 15(d) of the  Securities  Act of
1934,  the  Registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized on November 15, 1999.

                                            AEROCENTURY IV, INC.

                                        By: /s/ Neal D. Crispin
                                            ----------------------
                                            Neal D. Crispin
                                    Title:  President

Pursuant to the requirements of the Securities Act of 1934, this report has been
signed below by the following  persons in the  capacities  indicated on November
15, 1999.

Signature                                            Title

/s/ Neal D. Crispin
---------------------                     President and Chairman of the
Neal D. Crispin                           Board of Directors of the Registrant
                                          Chief Financial Officer