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, 2002

[ ] 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 13, 2002 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 13, 2002 the Issuer has 243,420 Shares of Common Stock outstanding.


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



<PAGE>



                              AEROCENTURY IV, INC.
                                  Balance Sheet
                                  June 30, 2002
                                    Unaudited


                                     ASSETS

Cash $                                                                       100
Prepaid expenses                                                          10,500
                                                                   -------------

Total assets                                                       $      10,600
                                                                   =============


                      LIABILITIES AND SHAREHOLDER'S EQUITY

Accounts payable                                                   $         590
                                                                   -------------

Total liabilities                                                            590
                                                                   -------------

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                                                    (233,410)
                                                                   -------------
Total shareholder's equity (net assets available for liquidation)         10,010
                                                                   -------------

Total liabilities and shareholder's equity                         $      10,600
                                                                   =============


The accompanying notes are an integral part of these statements.




<PAGE>



                              AEROCENTURY IV, INC.
                            Statements of Operations
<table>
<caption>

                                              For the Six Months                      For the Three Months
                                                Ended June 30,                           Ended June 30,
                                             2002             2001                   2002             2001
                                             ----             ----                   ----             ----
                                                  Unaudited                                Unaudited
<S>                                     <C>              <C>                    <C>             <C>


Revenues:

     Rent income                        $     133,330     $     158,950                58,330           83,950
     Gain on sale of aircraft                       -           113,000                     -           77,020
     Interest income                            3,250            32,560                   300           14,670
                                        -------------     -------------         -------------    -------------

                                              136,580           304,510                58,630          175,640
                                        -------------     -------------         -------------    -------------

Expenses:

     Depreciation                              51,650            58,110                22,600           29,050
     Amortization                             255,270            38,290               236,130           19,150
     Interest                                 185,290           243,450                75,230          121,730
     Management fees                                -            48,690                     -           24,340
     Professional fees and
        general and administrative             72,030             9,630                37,310            4,680
                                        -------------     -------------         -------------    -------------

                                              564,240           398,170               371,270          198,950
                                        -------------     -------------         -------------    -------------

Loss before taxes                           (427,660)          (93,660)             (312,640)         (23,310)

Tax provision                                     800               800                     -              800
                                        -------------     -------------         -------------    -------------

Loss before extraordinary item              (428,460)          (94,460)             (312,640)         (24,110)

Extraordinary item, less applicable
  income taxes of $0                        2,765,280                 -             2,765,280                -
                                        -------------     -------------         -------------    -------------

Net income/(loss)                       $   2,336,820     $    (94,460)         $   2,452,640    $    (24,110)
                                        =============     =============         =============    =============

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

Basic income/(loss) per common share:
Loss from continuing operations         $      (1.76)     $      (0.39)         $      (1.28)    $      (0.10)
Extraordinary item                              11.36                 -                 11.36                -
                                        -------------     -------------         -------------    -------------
                                        $        9.60     $      (0.39)         $       10.08    $      (0.10)
                                        =============     =============         =============    =============



The accompanying notes are an integral part of these statements.

</table>


<PAGE>



                              AEROCENTURY IV, INC.
                            Statements of Cash Flows
<table>
<caption>


                                                                    For the Six Months Ended June 30,
                                                                       2002                  2001
                                                                       ----                  ----
                                                                                Unaudited

<S>                                                               <C>                   <C>


Net cash used by operating activities                             $    (114,320)        $    (75,960)
                                                                  --------------        -------------

Investing activity -
     Proceeds from disposal of assets                                          -              283,000
                                                                  --------------        -------------
Net cash provided by investing activities                                      -              283,000
                                                                  --------------        -------------

Financing activity -
     Repayment on medium-term secured notes                          (1,000,000)                    -
                                                                  --------------        -------------
Net cash used by financing activities                                (1,000,000)                    -
                                                                  --------------        -------------

Net (decrease)/increase in cash                                      (1,114,320)              207,040

Cash, beginning of period                                              1,114,420            1,193,140
                                                                  --------------        -------------

Cash, end of period                                               $          100        $   1,400,180
                                                                  ==============        =============

Supplemental disclosures of cash flow information: Cash paid during the period
for:
                                                                            2002                 2001
                                                                            ----                 ----
     Interest (net of amount capitalized)                         $            -        $     121,730
     Income taxes                                                            800                  800


The accompanying notes are an integral part of these statements.

</table>

<PAGE>




                              AEROCENTURY IV, INC.
                          Notes to Financial Statements

1.       Summary of Significant Accounting Policies

         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").

         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, which are affiliates of JHC 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.

         The Company did not have sufficient cash from rent income to fund the
required interest payment of approximately $122,000 on February 1, 2002. The
Company was, therefore, in default under the Trust Indenture. The Company had 90
days to cure such default, but, as discussed in Notes 3, 6 and 7, it did not
have sufficient cash to do so. Under the provisions of the Trust Indenture, the
Company and the Trustee, Wells Fargo Bank Northwest, National Association (the
"Trustee") executed a transfer of collateral in lieu of foreclosure, which
transfer was completed during June 2002. Management of the Company's assets and
extinguishment of the Company's liabilities are now the responsibility of the
Trustee.

         Because it is highly likely that the Company can continue as a going
concern, liquidation accounting has been applied to these financial statements.
The Company's bank account was closed and the money transferred to the Trustee
in July 2002. The Company expects to dissolve immediately following a final
audit during the third quarter of 2002.

         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.

         Aircraft and Aircraft Engines Under Operating Leases

         The Company's interests in aircraft are recorded at the lower of cost
or market value, which includes acquisition costs (see Note 2). Depreciation is
computed using the straight-line method over each aircraft's estimated economic
life to its estimated residual value.

         Impairment of Long-lived Assets

In accordance with Statement of Financial Accounting Standards ("SFAS") No. 144,
"Accounting for the Impairment or Disposal of Long-lived Assets", assets are
reviewed for impairment whenever events or changes in circumstances indicate
that the book value of the asset may not be recoverable. Periodically, the
Company reviews its long-lived assets for impairment based on estimated future
nondiscounted cash flows attributable to the assets. In the event such cash
flows are not expected to be sufficient to recover the recorded value of the
assets, the assets are written down to their estimated realizable value.

<page>
                              AEROCENTURY IV, INC.
                          Notes to Financial Statements

1.       Summary of Significant Accounting Policies (continued)

         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 can issue was limited according to the
amount of Aggregate Gross Offering Proceeds raised by the Company. The Company
capitalized the Reimbursement paid and amortizes such costs over the life of the
Notes (approximately eight years). In connection with the transfer of the
Company's assets to the Trustee during June 2002, the Company expensed the
unamortized Reimbursement of approximately $223,360.

         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. As discussed above and in Notes 3, 6
and 7, the Company transferred title to its assets to the Trustee during June
2002.

         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.

         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.

         The most significant estimates with regards to these financial
statements are the residual values of the aircraft, the useful lives of the
aircraft, and the estimated amount and timing of cash flow associated with each
aircraft that are used to evaluate impairment, if any.

         Recent Accounting Pronouncements

     In August 2001, the Financial  Accounting  Standards  Board issued SFAS No.
144,  "Accounting  for the  Impairment or Disposal of Long-lived  Assets," which
supercedes SFAS No. 121, "Accounting for the Impairment of Long-lived Assets and
Long-lived  Assets to Be Disposed  of." SFAS No. 144 is effective  for financial
statements  issued for fiscal years  beginning  after  December  15,  2001,  and
interim  periods within those fiscal years.  The Company adopted SFAS No. 144 on
January 1, 2002. Because SFAS No. 144 retains the fundamental provisions of SFAS
No. 121 for (a)  recognition  and  measurement  of the  impairment of long-lived
assets  to be held and used  and (b)  measurement  of  long-lived  assets  to be
disposed of by sale, the adoption of SFAS No. 144 has not had a material  effect
on the Company's results of operations or financial position.




<PAGE>



                              AEROCENTURY IV, INC.
                          Notes to Financial Statements

2.       Aircraft and Aircraft Engines Under Operating Leases

         Aircraft and Aircraft Engines

         On June 10, 2002, the Company and the Trustee executed a transfer of
collateral as a result of an Event of Default under the Trust Indenture. As a
result, the Company owned no aircraft as of June 30, 2002. The Trustee has
assumed ownership of the aircraft and aircraft engine which the Company had
owned and responsibility for administering the terms of the leases.

         Aircraft and Aircraft Engines Leases

         When S/N AC-647 was acquired, it was subject to a 36-month lease,
expiring in April 2001, with a regional carrier in Uruguay. During June 1999,
however, management repossessed the aircraft due to non-payment of rent. In June
2000, S/N AC-647 was re-leased to a U.S. carrier for a two-year term, expiring
in June 2002. Because the Trustee is now responsible for administering the lease
for the aircraft, the Company has no knowledge of the status of that aircraft.

         The Engine is used on a McDonnell Douglas DC-9 aircraft and is subject
to a 60-month lease with the seller, expiring in November 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. As discussed in Note 6, the Company prepaid $1,000,000 of principal to the
Noteholders during the first quarter of 2002. 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 Company did not have sufficient cash from rent income to fund the
required interest payment of approximately $122,000 on February 1, 2002. The
Company was, therefore, in default under the Trust Indenture. The Company had 90
days to cure such default, but, as discussed in Notes 1, 6 and 7, it did not
have sufficient cash to do so. Under the provisions of the Trust Indenture, the
Company and the Trustee executed a transfer of collateral in lieu of
foreclosure, and the transfer of such collateral was completed during June 2002.
Management of the Company's assets and extinguishment of the Company's Note
liabilities are now the responsibility of the Trustee.

         In connection with the transfer of the Company's assets to the Trustee,
the Company removed the Notes obligation from its books during June 2002 and
recorded an extraordinary gain of $2,765,280, net of taxes of $0. The Company
expects to dissolve during the third quarter of 2002.




<PAGE>



                              AEROCENTURY IV, INC.
                          Notes to Financial Statements

4.       Income Taxes

         The items comprising income tax expense are as follows:

                                                   2002             2001
                                                   ----             ----
         Current tax provision
              Federal                       $           -    $            -
              State                                   800               800
                                            -------------    --------------
              Current tax provision                   800               800
                                            -------------    --------------

         Deferred tax provision
              Federal                             409,090          (43,250)
              State                                 1,020             (640)
                                            -------------    --------------
              Deferred benefit                    410,110          (43,890)
              Change in valuation allowance     (410,110)            43,890
                                            -------------    --------------
         Total provision for income taxes   $         800    $          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:

<table>
<caption>
         <S>                                                                       <C>              <C>
                                                                                           2002             2001
                                                                                           ----             ----




         Income tax benefit at statutory federal income tax rate                    $     794,790    $     (15,290)
         State taxes net of federal benefit                                                   870              (40)
         Prior year adjustment                                                                  -          (27,760)
         Discharge of indebtedness excluded from taxable income                         (384,750)                 -
         Change in valuation allowance                                                  (410,110)            43,890
                                                                                    -------------    --------------
         Total provision for income taxes                                           $         800    $          800
                                                                                    =============    ==============

</table>


<PAGE>



                              AEROCENTURY IV, INC.
                          Notes to Financial Statements

4.       Income Taxes (continued)

         Temporary differences and carryforwards, which gave rise to a
significant portion of deferred tax assets and liabilities as of June 30, 2002
are as follows:

         Deferred tax assets:
              State franchise taxes                      $         270
              Valuation allowance                                (270)
                                                         -------------
              Net deferred tax assets                    $           -
                                                         =============

         The Company does not anticipate generating adequate future taxable
income to realize the benefits of the remaining deferred tax assets on the
balance sheet. Therefore, the Company has recognized a valuation allowance equal
to the net deferred tax asset.

         As discussed in Note 1 the Company is a subsidiary of JHC. JHC files a
consolidated tax return that includes the Company as a member of the
consolidated group. The current and deferred taxes of the consolidated group are
allocated to members of the group in their separately issued financial
statements. Current and deferred income taxes are allocated to members of the
group by applying FAS 109 as if it were a separate taxpayer. In addition, the
members of the group record inter-company receivables and payables to reflect
the tax benefits of net operating losses used in the consolidated tax return.
However, under the terms of the tax sharing agreement with other members of the
consolidated group, the Company does not expect its inter-company receivable to
be collected because it does not expect to generate adequate future taxable
income.

         As discussed in Notes 1, 3, 6 and 7 the Company transferred all its
assets and liabilities to the Trustee under the provisions of the Trust
Indenture. The transfer resulted in the recognition of an extraordinary gain of
$2,765,280 by the Company. For tax purposes, the extraordinary gain is treated
as discharge of indebtedness income and is excluded from the Company's taxable
income. In addition, the amount of excluded discharge of indebtedness income
must be applied to reduce the Company's net operating loss carryovers. As a
result, the Company's net operating loss carryovers were completely applied.

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 was entitled to a
quarterly management fee equal to 0.5% of the Company's Aggregate Gross Proceeds
received through the last day of such quarter. Due to the default discussed in
Notes 1, 3, 6 and 7, no management fees were accrued during the first six months
of 2002. In the first six months of 2001, the Company accrued a total of $48,690
in management fees to JMC.

         JMC was also entitled to an acquisition 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 were 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 acquisition fee could not exceed the fair
market value of the asset based on appraisal. JMC could also receive
reimbursement of Chargeable Acquisition Expenses incurred in connection with a
transaction which were payable to third parties. During the first six months of
2002 and 2001, no acquisition fees or reimbursements for Chargeable Acquisition
Expenses were paid as the Company did not acquire additional assets. No
remarketing fees were paid to JMC during the first six months of 2002. During
the first six months of 2001, remarketing fees of $2,550 were paid to JMC in
connection with the sale of aircraft.


<PAGE>



                              AEROCENTURY IV, INC.
                          Notes to Financial Statements

5.       Related Party Transactions (continued)

         As discussed in Note 1, the Company reimbursed JHC for certain costs
incurred in connection with the organization of the Company and the Offering.
The Company made no such payments during 2001 and 2000.

6.       Extraordinary Item

         In connection with the transfer of assets to the Trustee and the
restructuring of the Company's debt, the Company recorded an extraordinary gain,
net of taxes of $0, of $2,765,280 or $11.36 per share. Management of the
Company's assets and extinguishment of the Company's liabilities are now the
responsibility of the Trustee.

7.       Going Concern

         The Company sold several of its aircraft, which were returned from
defaulted lessees, during 2000 and 2001. Such sales were earlier than
anticipated, but were determined by the Company to be more beneficial to the
Noteholders than incurring the necessary maintenance expense to re-lease the
aircraft to new lessees. As a result, the proceeds received from the sales were
less than was expected had the aircraft not been sold "as-is", and the proceeds
were insufficient to purchase additional Income Producing Assets. Since the
Trust Indenture precluded the Company from using sales proceeds to fund interest
payments, after consultation with, and with the consent of, the Trustee, on
December 15, 2001, the Company's Board of Directors approved a resolution
authorizing a prepayment of $1,000,000 of principal to the Noteholders during
the first quarter of 2002. The Company made such prepayment during February
2002.

         The Company did not have sufficient cash from rent income to fund the
required interest payment of approximately $122,000 on February 1, 2002. The
Company was, therefore, in default under the Trust Indenture. The Company had 90
days to cure such default, but it did not have sufficient cash to do so.
Therefore, in May 2002, the Trustee declared an "Event of Default" under the
Trust Indenture. Under the provisions of the Trust Indenture, the Company and
the Trustee executed a transfer of collateral, including the Company's cash
balances, in lieu of foreclosure, and the transfer of such collateral was
completed on June 10, 2002. The Company retained $100 in order to keep its
checking account open; that account was closed and the balance was transferred
to the Trustee during July 2002. Management of the Company's assets and
extinguishment of the Company's Note liabilities are now the responsibility of
the Trustee.

         Because it is highly unlikely that the Company can continue as a going
concern, liquidation accounting has been applied to these financial statements.
The Company's bank account was closed and the money transferred to the Trustee
in July 2002. The Company expects to dissolve immediately following a final
audit during the third quarter of 2002.



<PAGE>



Item 6.  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: collection of intercompany tax receivables under its tax sharing
agreement, and the anticipated dissolution of the Company in the third quarter
of 2002 are forward looking statements. While the company believes that such
statements are accurate, actual results may differ due to future trends and
results that 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.

Critical Accounting Policies

In response to the Securities and Exchange Commission's Release No. 33-8040,
"Cautionary Advice Regarding Disclosure About Critical Accounting Policies", the
Company has identified the most critical accounting policies upon which its
financial status depends. It determined the critical principles by considering
accounting policies that involve the most complex or subjective decisions or
assessments. The Company identified its most critical accounting policies to be
those related to lease rental revenue recognition, depreciation policies and
valuation of aircraft.

Revenue Recognition

Revenue from leasing of aircraft assets was recognized as operating lease
revenue on a straight-line basis over the terms of the applicable lease
agreements.

Depreciation Policies

The Company's interests in aircraft and aircraft engines were recorded at cost,
which includes acquisition costs. Depreciation was computed using the
straight-line method over the aircraft's estimated economic life (generally
assumed to be twelve years), to an estimated residual value based on appraisal.

Valuation of Aircraft

In accordance with Statement of Financial Accounting Standards ("SFAS") No. 144,
"Accounting for the Impairment or Disposal of Long-lived Assets," assets were
reviewed for impairment whenever events or changes in circumstances indicated
that the book value of the asset may not be recoverable. Periodically, the
Company reviewed its long-lived assets for impairment based on estimated future
nondiscounted cash flows attributable to the assets. In the event such cash
flows were not expected to be sufficient to recover the recorded value of the
assets, the assets were written down to their estimated realizable value.

Results of Operations

The Company recorded net income of $2,336,820 or $9.60 per share, including an
extraordinary gain of $2,765,280 or $11.36 per share, and net loss of ($94,460)
or ($0.39) per share for the six months ended June 30, 2002 and 2001,
respectively, and net income of $2,452,640 or $10.08 per share and net loss of
($24,110) or ($0.10) per share for the three months ended June 30, 2002 and
2001, respectively.

Rental income was approximately $26,000 lower in the six months and three months
ended June 30, 2002 versus the same periods in the prior year primarily because
ownership of the Company's assets and the related revenues were transferred to
the Trustee on June 10, 2002. Gain on sale of aircraft was approximately
$113,000 and $77,000 lower in the six month and three month periods,
respectively, of 2002 because there were no asset sales during 2002, versus one
such sale during the first quarter of 2001 and the recording of additional gain
during the second quarter of 2001 associated with reserves retained related to
that aircraft. Interest income was approximately $29,000 and $4,000 lower in the
six month and three month periods, respectively, of 2002 due to lower cash
balances and lower interest rates.

As a result of the transfer of the Company's assets to the Trustee on June 10,
2002, depreciation expense was approximately $6,000 lower in the six months and
three months ended June 30, 2002 versus the same periods in the prior year.
Amortization expense was higher by approximately $217,000 in the six month and
three month periods of 2002 due to the Company recording expense for the
remaining organization costs at the time of the asset transfer. Interest expense
was approximately $58,000 and $47,000 lower in the six month and three month
periods, respectively, of 2002 due to the principal repayment made on the
Company's secured notes during February 2002 and the cessation of interest
expense upon the asset transfer. Management fees were approximately $49,000 and
$24,000 lower in the six month and three month periods of 2002 because JMC
stopped charging a management fee to the Company as of January 1, 2002 due to
the Company's Event of Default under the Trust Indenture. Professional fees and
general and administrative expenses were approximately $62,000 and $33,000
higher in the six months and three months ended June 30, 2002, respectively,
than in the same periods of 2001 as a result of legal and administrative costs
incurred by the Trustee in connection with the Event of Default.

Under the terms of a tax sharing arrangement between the members of the
consolidated group with which the Company files a consolidated tax return, in
the event that the Company has taxable income, the Company will be credited for
the tax benefits provided by the use of the Company's prior year net operating
losses. However, under this agreement, the Company does not expect its
inter-company receivable to be collected because it does not expect to generate
adequate future taxable income.

Capital Resources and Liquidity

The Company's current financial condition is a result of several factors,
primarily the default on lease obligations by four of its original five lessees.
As a result of such defaults, the aircraft were repossessed by the Company or
returned early by the lessees, which meant that the Company had to sell the
aircraft earlier than anticipated or negotiate lease terms with new lessees. See
"Factors that May Affect Future Results," below, for a complete discussion of
factors affecting the Company's cash flow.

Since its formation, the Company's capital has come in the form of equity
contributions from JHC, proceeds from the Offering, rental revenue from the
Income Producing Assets purchased using those proceeds, and, most recently,
proceeds from the sale of assets. The Company's liquidity has varied, increasing
to the extent cash flows from operations exceeded expenses, and decreasing as
interest payments were made to the Noteholders and to the extent expenses
exceeded cash flows from leases.

The Company did not have sufficient cash from rent income to fund the required
interest payment of approximately $122,000 on February 1, 2002. The Company was,
therefore, in default under the Trust Indenture. The Company had 90 days to cure
such default, but it did not have sufficient cash to do so. At June 10, 2002,
the Company had cash balances of $329,970, consisting of rent and sales proceeds
of $77,900 and $134,390 respectively, and deposits of $117,680. Under the
provisions of the Trust Indenture, the Company and the Trustee executed a
transfer of collateral, including the Company's cash balances, in lieu of
foreclosure, and the transfer of such collateral was completed on June 10, 2002.
The Company retained $100 in order to keep its checking account open; that
account was closed and the balance was transferred to the Trustee during July
2002. In connection with the transfer of assets to the Trustee and the
restructuring of the Company's debt, the Company recorded an extraordinary gain,
net of taxes of $0, of $2,765,280 or $11.36 per share. Management of the
Company's assets and extinguishment of the Company's Note liabilities are now
the responsibility of the Trustee.

Prior to the transfer of assets to the Trustee on June 10, 2002, the Company had
Notes outstanding with an aggregate principal face value of $3,869,000. The fair
value of the Notes, based upon the net book values of the aircraft and the net
working capital of the Company as of that date, was estimated to be
approximately $1,104,000, which was approximately 29% of the outstanding
principal of the Notes.

Since the Company had acquired Income Producing Assets, which were subject to
triple net leases (the lessee pays operating and maintenance expenses, insurance
and taxes), the Company typically did not incur significant operating expenses
in connection with ownership of its Income Producing Assets as long as they
remained on lease. The Company did, however, incur significant maintenance
expense for aircraft which were off lease prior to being re-leased or sold. The
Trustee could incur additional expenses for its two remaining assets if they are
returned by the lessees when the leases expire and remain off lease prior to
disposition.

The Company sold several of its aircraft, which were returned from defaulted
lessees, during 2000 and 2001. Such sales were earlier than anticipated, but
were determined by the Company to be more beneficial to the Noteholders than
incurring the necessary maintenance expense to re-lease the aircraft to new
lessees. The proceeds received from the sales, however, were less than was
expected and insufficient to purchase additional Income Producing Assets. Since
the Trust Indenture precludes the Company from using sales proceeds to fund
interest payments, after consultation with, and with the consent of, the
Trustee, on December 15, 2001, the Company's Board of Directors approved a
resolution authorizing a prepayment of $1,000,000 of principal to the
Noteholders during the first quarter of 2002. The Company made such prepayment
during February 2002. After the principal prepayment made during February 2002,
the Company has Notes outstanding with an aggregate principal face value of
$3,869,000. Including the February 2002 principal prepayment and all interest
paid to date, the Company has paid to Noteholders an aggregate of approximately
63% of the face value of the Notes.

The Company's decrease in cash flow from operations from 2001 to 2002 was due
primarily to the effect of the change in rent receivable, interest payable,
prepaid expenses, payable to affiliates, interest payable, maintenance deposits,
and security deposits, which effects were only partially offset by increased net
income and the effect of the change in cash classified as deposits, accounts
receivable, and prepaid expenses.

Specifically, the Company's cash flow from operations for the six months ended
June 30, 2002 consisted of net income of $2,336,820 and adjustments consisting
primarily of depreciation, amortization and an extraordinary gain of $51,650,
$255,270 and $2,716,860, respectively, and decreases in cash classified as
deposits, accounts receivable, prepaid expenses, interest payable, maintenance
deposits, and security deposits of $95,780, $128,510, $55,750, $81,150,
$204,300, and $20,000, respectively.

Specifically, the Company's cash flow from operations for the six months ended
June 30, 2001 consisted of a net loss of ($94,460) and adjustments consisting
primarily of depreciation, amortization and gain on sale of $58,110, $38,290 and
$113,000, respectively, and decreases in accounts receivable, rent receivable,
and maintenance deposits of $71,160, $48,040, and $83,920, respectively.

The decrease in cash flow provided by investing activities was because the
Company did not sell any aircraft during the first six months of 2002, versus
one such sale during the same period in 2001. There were no cash inflows from
financing activities in 2002 or 2001 because the Offering terminated in August
1997. The only cash outflow was for the principal prepayment of $1,000,000 which
was made during the first quarter of 2002.

Outlook

As discussed above, in May 2002, the Trustee declared an "Event of Default"
under the Trust Indenture. During June 2002, the Company's cash balances and
title to the Company's aircraft were transferred to the Trustee, all of which
are collateral for the notes obligation. Management of the Company's assets and
extinguishment of the Company's Note liabilities is now the responsibility of
the Trustee, and the Trustee has discretion as to the timing of the disposition
of each asset. The Trustee could choose to sell an asset to a third party and
immediately distribute the proceeds of such sale to the Noteholders. In order to
achieve an immediate liquidation of the asset, however, the Trustee may have to
accept a price that is substantially less than the net book value of the asset
or lower than it would receive in a normal market sale. Alternatively, the
Trustee could decide to continue to hold an asset for the benefit of Noteholders
and collect rent for such asset until the underlying user lease expires, or
until the Trustee determines that the asset can be sold at an acceptable price.

The lease for one asset expired during June 2002. Because the Trustee is now
responsible for administering the lease for the aircraft, the Company has no
knowledge of the status of that aircraft. The lease for the other asset expires
during November 2002. If the Trustee were to retain the second asset until lease
end, a total of approximately $60,000 could be collected under the lease;
however, the amount of rental income received would nonetheless be insufficient
to permit the Trustee to make net cash distributions to Noteholders at a rate of
10% per annum (the stated interest rate under the Notes) on unpaid Note
principal.

Any distributions to Noteholders of sales and/or rent proceeds would be net of
legal and administrative expenses incurred by the Trustee. Under the terms of
the Trust Indenture, any final distribution to Noteholders upon sale of the last
asset would consist first of accrued, but unpaid, interest on the Notes, and
then principal.

Factors that May Affect Future Results

Event of Default; Ability to Maximize Returns. As discussed above, on May 2,
2002, the Trustee, Wells Fargo Bank Northwest, National Association, declared an
Event of Default under the Trust Indenture. The Company transferred all of its
assets to the Trustee for the benefit of the Noteholders in lieu of a
foreclosure proceeding. The Company's assets securing the Indenture consist of
the aircraft portfolio and leases and all remaining cash held by the Company.
The Trustee will have the power to direct the disposition of the collateral with
the goal of maximizing value to the Noteholders. This could entail an immediate
or staged disposition of all the assets or retention of the assets on lease for
the benefit of the Noteholders, or a combination thereof. While the Trustee is
unlikely to realize sufficient proceeds to enable repayment of the entire Note
Indebtedness, its ability to maximize repayment to Noteholders will depend on
the risk factors described below, particularly those that affect asset values of
the Company's portfolio.

Re-lease of Assets or Sale. The ability to maximize return to the Noteholders on
the remaining assets will depend upon general economic conditions and the speed
of recovery of the air transport industry. The industry is currently
experiencing a cyclical downturn which has been exacerbated greatly by the
terrorist attacks of September 11, 2001 and their aftermath. As a result, there
has been a severe reduction in air travel and less revenue and less demand for
aircraft capacity by the major air carriers, particularly those that serve U.S.
markets.

One of the assets is a regional aircraft leased to a U.S. regional freight
carrier. The second is a jet engine leased to a Mexican regional air carrier. It
is not clear whether and to what extent the current downturn will have on these
lessees. If the lessees experience a corresponding downturn in their own
businesses, they may be at risk of failure, and default under their respective
leases. See "Risks Related to Regional Air Carriers", below.

Even if the lessees remain in compliance with their lease through expiration,
the industry downturn may result in the lessees deciding not to renew the leases
for an additional term. Any attempt to lease such aircraft to a new lessee,
however, could also be impacted by the financial condition of the air travel
industry. An unimproved or worsened industry financial condition would also tend
to result in lower amounts realizable if assets if are sold upon return from the
lessee (See "Leasing Risks" and "Ownership Risks", below).

Reporting Obligations. Since all of the assets were transferred to the Trustee
for the benefit of the Noteholders, the Company has ceased doing business and
intends to dissolve immediately following a final audit of its accounts. As the
Trustee has assumed responsibility for remarketing the assets and distribution
of the cash to the Noteholders, the Trustee will be the party reporting the
status of such efforts to the Noteholders. Once the Company is dissolved, the
Company intends to terminate its reporting obligations under the Securities Act
and the Securities Exchange Act, including its periodic reports on Forms 10-QSB
and 10-KSB. The Trustee will not be required to make similar filings; however,
it has indicated its intent to keep the Noteholders apprised of developments
with respect to its disposition of the assets that are collateral for the Notes.

Leasing Risks. The successful negotiation of lease extensions, re-leases and
sales for its two assets as directed by the Trustee under the going-forward
agreement may be critical to its ability to achieve a maximum return of
principal to its Noteholders, and will involve a number of risks. Demand for
lease or purchase of the assets depends on the economic condition of the airline
industry, which is in turn sensitive to general economic conditions. The 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. As discussed above, the demand for and value
of many types of older aircraft has been depressed by current airline financial
difficulties, increased fuel costs, the number of new aircraft on order and the
number of older aircraft coming off lease. The limited portfolio of two assets
subjects the Noteholders to economic risks if those particular airframe or
engine types should decline in value.

Risks Related to Regional Air Carriers. Because the leases are with 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 result in a generally higher lease rate on aircraft, but may
entail higher risk of default or lessee bankruptcy.

Ownership Risks. The portfolio is leased under operating leases, where the terms
of the leases do not take up the entire useful life of an asset. The ability to
recover its purchase investment in an asset subject to an operating lease is
dependent upon the 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 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.

Lessee Credit Risk. If a lessee defaults upon its obligations under a lease, the
owner may be limited in its ability to enforce remedies. The lessees are a small
domestic and a foreign regional passenger airline, which may be even more
sensitive to airline industry market conditions than the major airlines. As a
result, the inability to collect rent under either lease or to repossess
equipment in the event of a default by a lessee could have a material adverse
effect on the amount realizable from the asset. 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 owner 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 owner would have the right
to repossess the equipment. This procedure under the Bankruptcy Code has been
subject to significant litigation, however, and it is possible that the owner's
enforcement rights may still be further adversely affected by a declaration of
bankruptcy by a defaulting lessee.

International Risks. The portfolio currently includes a lease with a foreign air
carrier. 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 owner 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 owner's interest in equipment and
related leases. This could add difficulty in recovering an aircraft 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 is
strong. On the other hand, a foreign economy may remain strong even though the
domestic U.S. economy does 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. Even with dollar-denominated lease
payment provisions, lease revenue could still be affected by a devaluation of
the lessee's local currency which would make 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.

Casualties, Insurance Coverage. An 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 Equipment owner and such act may not apply to aircraft
operated in foreign countries. Though the lease for the asset may 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, as well as a
potential claim against the owner.

Item 6.  Exhibits and Reports on Form 8-K.

(a)      Exhibits.

None

 (b)     Reports on Form 8-K.

The Company filed a Report on Form 8-K on June 12, 2002 disclosing the Event of
Default under the Trust Indenture for the 10% Secured Promissory Notes and the
transfer of all assets of the Company to the Indenture Trustee, Wells Fargo Bank
Northwest, National Association.






<PAGE>



                                   SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                    AEROCENTURY IV, INC.


Date:    August 13, 2002            By:    /s/ Neal D. Crispin
                                           -------------------------------
                                           Neal D. Crispin

                                   Title: President, Chief Financial Officer