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 June 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 August  16,  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  August  16,  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.

<TABLE>

                               AEROCENTURY IV, INC.
                                  Balance Sheet
                                  June 30, 1999

<CAPTION>

                                     ASSETS
<S>                                                                        <C>

Current assets:
     Cash                                                                  $     960,960
     Deposits                                                                     14,610
     Rent receivable                                                             106,310
                                                                           -------------
Total current assets                                                           1,081,880

Aircraft and aircraft engines under operating leases,
     net of accumulated depreciation of $362,430                               3,251,090
Debt issue costs, net of accumulated
     amortization of $142,790                                                    446,730
Other assets                                                                      26,630
                                                                           -------------

Total assets                                                               $   4,806,330
                                                                           =============


                           LIABILITIES AND SHAREHOLDER'S EQUITY

Current liabilities:
     Accounts payable                                                      $       7,100
     Interest payable                                                             81,150
     Prepaid rent                                                                 24,170
     Maintenance deposits                                                         14,610
                                                                           -------------
Total current liabilities                                                        127,030

Medium-term secured notes                                                      4,869,000

Total liabilities                                                              4,996,030

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                                                            (433,120)
                                                                           -------------
Total shareholder's equity                                                     (189,700)
                                                                           -------------

Total liabilities and shareholder's equity                                 $   4,806,330
                                                                           =============


See accompanying notes.
</TABLE>




<PAGE>

<TABLE>


                                                         AEROCENTURY IV, INC.
                                                       Statements of Operations
<CAPTION>


                                                       For the Six Months                For the Three Months
                                                        Ended June 30,                     Ended June 30,

<S>                                               <C>             <C>              <C>               <C>
                                                      1999              1998            1999              1998
                                                      ----              ----            ----              ----
Revenues:

     Rent income                                 $     330,620    $      251,660    $     137,360    $      141,660
     Interest income                                    18,080            62,000            9,780            37,050
                                                 -------------    --------------    -------------    --------------

                                                       348,700           313,660          147,140           178,710
                                                 -------------    --------------    -------------    --------------

Expenses:

     Depreciation                                      120,260            87,290           60,130            43,640
     Amortization                                       38,290            38,290           19,150            19,150
     Interest                                          243,450           243,450          121,730           121,730
     Management fees                                    48,690            48,690           24,340            24,340
     Professional fees and
        general and administrative                      24,650             3,940           23,040             3,670
                                                 -------------    --------------    -------------    --------------

                                                       475,340           421,660          248,390           212,530
                                                 -------------    --------------    -------------    --------------

Loss before taxes                                $   (126,640)    $    (108,000)    $   (101,250)    $     (33,820)

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

Net loss                                         $   (127,440)    $    (108,000)    $   (102,050)    $     (33,820)
                                                 =============    ==============    =============    ==============

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

Basic loss per common share                      $      (0.52)    $       (0.44)    $      (0.42)    $       (0.14)
                                                 =============    ==============    =============    ==============


See accompanying notes.
</TABLE>




<PAGE>


<TABLE>

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


                                                                    For the Six Months Ended June 30,
<S>                                                               <C>                   <C>

                                                                       1999                  1998

Net cash (used)/provided by operating activities                  $     (27,300)        $      52,140

Investing activity -
     Investment in secured promissory note                                     -            (866,670)
                                                                  --------------        -------------

Net decrease in cash                                                    (27,300)            (814,530)

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

Cash, end of period                                               $      960,960        $   1,129,590
                                                                  ==============        =============

Supplemental  disclosures of cash flow information:  Cash paid during the period
for:
     Interest                                                     $     $243,450        $     243,450
     Income taxes                                                            800                  800


See accompanying notes.
</TABLE>



<PAGE>


                               AEROCENTURY IV, INC.
                          Notes to Financial Statements
                                  June 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 June 30,  1999 and  statements  of
operations  and cash flows for the six months  and three  months  ended June 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 its 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
                                  June 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 June 30,  1999,  the  Company
maintained  $942,160  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")
and a 50% undivided  interest in a Shorts  SD-360,  serial number S/N 3676 ("S/N
3676")

         The Company did not purchase  any aircraft  during the first six months
of 1999. As discussed in Note 6, the Company  purchased an  additional  aircraft
during July 1999.

         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 is in the process of
collecting.

         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.

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>

<TABLE>


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


4.       Income Taxes

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

<S>      <C>                                                      <C>

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

         Deferred tax provision:
                  Federal                                               (43,600)
                  State                                                   17,140
                                                                  --------------
                  Deferred tax provision                                (26,460)
                  Valuation allowance                                     26,460
                                                                  --------------
         Total provision for income taxes                         $          800
                                                                  ==============
</TABLE>

         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:
<TABLE>
<S>                                                               <C>

         Income tax expense at
               statutory federal income tax rate                  $     (43,330)
         State taxes net of federal benefit                                (200)
         Tax rate differences                                             17,340
         California franchise tax                                            530
         Valuation allowance                                              26,460
                                                                  --------------
         Total provision for income taxes                         $          800
                                                                  ==============
</TABLE>

<TABLE>

         Temporary   differences  and   carryforwards   which  gave  rise  to  a
significant  portion of deferred tax assets and  liabilities as of June 30, 1999
are as follows:
<S>      <C>                                                      <C>

         Deferred tax assets:
                  Net operating loss                              $      162,610
                  Prepaid rent                                             8,260
                  Maintenance reserves                                     4,990
                  State franchise taxes                                      270
                                                                  --------------
                           Subtotal                                      176,130
                           Valuation allowance                         (148,230)
                                                                  --------------
                           Net deferred tax assets                        27,900
         Deferred tax liabilities:
                  Amortization of organizational costs                     (210)
                  Depreciation on aircraft                              (27,690)

                                                                  $            -
                                                                  ==============
</TABLE>

         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
                                  June 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 six  months of 1999,  the
Company paid a total of $48,690 in management  fees due JMC. The same amount was
accrued during the first six months of 1998.

         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
six  months of 1999 or 1998,  it did not pay any  brokerage  fees or  Chargeable
Acquisition Expenses to JMC.

         As discussed in Note 2, the Company  owns a 50%  undivided  interest in
S/N 3676.  The remaining  50% undivided  interest is owned by JetFleet III. Each
co-owner of S/N 3676  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 first six months of 1998.

6.       Subsequent Event

         During July 1999, the Company purchased a 67% interest in a deHavilland
DHC-6  aircraft  subject  to a lease with a regional  carrier in  Colombia.  The
remaining interest is owned by JetFleet III.




<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.  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.  Factors  that could cause or
contribute  to such  differences  include those  discussed  below in the section
entitled "Factors that May Affect Future Results."

Capital Resources and Liquidity

At the end of June 1999,  the Company had cash balances of $960,960 and deposits
of $14,610.  The Company's  cash  balances were held  primarily for the interest
payment made to the Noteholders in August 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  April 2001 and November  2002.  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. The Company holds a security deposit equal to
four months of rent and has offset rent  receivable of $68,800 with the security
deposit.  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.

The decrease in cash flow from  operations  was due  primarily to an increase in
accounts  and rent  receivable  in 1999  compared to 1998.  This effect was only
partially  offset by an increase in rent income and  depreciation for S/N AC-647
which was purchased during the third quarter of 1998.

The decrease in cash flow used by investing  activities  was because the Company
invested $866,670 in Income Producing Assets during the first six months of 1998
versus no such  activities  in the same  period of 1999.  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  ($126,640)  and  ($108,000)  or ($0.52) and
($0.44) per share for the six months ended June 30, 1999 and 1998, respectively,
and  ($102,050)  and  ($33,820)  or ($0.42)  and ($0.14) per share for the three
months ended June 30, 1999 and 1998, respectively.

Rental  income  increased by  approximately  $79,000 for the six month period in
1999 due to the  additional  rent  accrued  for S/N  AC-647,  net of the  amount
written off as uncollectable  (discussed in Note 2 to the financial statements).
This aircraft was purchased during the second half of 1998 and,  therefore,  had
no impact on rental  income  during the first six months of 1998.  Rental income
decreased  by  approximately  $5,000 for the three  months  ended June 30,  1999
versus  1998  because of the  write-off  of  uncollectable  rent for S/N AC-647.
Depreciation  also  increased  from 1999 to 1998 by  approximately  $16,000 as a
result of the acquisition of S/N AC-647.  Interest income decreased from year to
year  because the  Company  had lower cash  balances in 1999 as a result of that
purchase.

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 re-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 re-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 or sell 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.

International  Risks. The Company's  portfolio currently consists of leases with
foreign air carriers. Leases with foreign lessees, however, 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
re-lease or re-sell  equipment at acceptable  rates may depend on the demand and
market  values at the time of re-lease or re-sale.  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 re-sale
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,  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 the  Company's  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 (except for
two who have yet to respond) have reported Year 2000  compliance with respect to
the  aircraft  leased by the Company to the lessee.  The Company is following up
with those that have not responded, as well as each new additional lessee.

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 type 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  managment 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 yet made any contingency plans for the extended
loss of these basic services.



<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 August 16, 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 August
16, 1999.

Signature                                  Title

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