FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

(Mark One)

|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE
ACT OF 1934

For the quarterly period ended March 31, 1998

                                       OR

|_| TRANSITION REPORT PURSUANT TO 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.
             (Exact name of Registrant as specified in its charter)

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

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

                                  650-340-1880
               (Registrant's telephone number including area code)

Not applicable (Former name, former address,  and former fiscal year, if changed
since last report)

Check  whether  the issuer  (1) has 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 ____

              APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY
                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Check whether the registrant has filed all documents and reports  required to be
filed  by  Section  12,  13 or  15(d)  of the  Securities  Exchange  Act of 1934
subsequent to the  distribution of securities under a plan confirmed by a court.
Yes ____ No ____


                   (APPLICABLE ONLY TO CORPORATE REGISTRANTS)

State the number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practicable date.

Title                                                        Outstanding

Common Stock                                                 243,420


Transitional Small Business Disclosure Format (check one);
Yes___ No X
<PAGE>

Part I.  Financial Information

Item 1.  Financial Statements


                                                 AeroCentury IV, Inc.
                                                    Balance Sheets

                                                        ASSETS
<TABLE>
<CAPTION>

                                                                    March 31,                December 31,
                                                                      1998                       1997
                                                                   (Unaudited)
<S>                                                             <C>                       <C>   
Current assets:
         Cash                                                   $      1,134,575          $      1,944,123
         Rent receivable                                                       -                    32,220
         Accounts receivable                                                   -                     4,619
                                                                ----------------          ---------------- 
Total current assets                                                   1,134,575                 1,980,962

Aircraft under operating lease, net of
         accumulated depreciation of $124,640
         in 1998 and $80,996 in 1997                                   2,490,914                 2,534,558

Debt issue costs, net of accumulated
         amortization of $47,069 in 1998
         and $27,923 in 1997                                             542,451                   561,597


Note receivable                                                          866,667                         -
                                                                ----------------          ---------------- 
Total assets                                                    $      5,034,607          $      5,077,117
                                                                ================          ================

                                            LIABILITIES AND SHAREHOLDER'S EQUITY

Current liabilities:
         Accounts payable - trade                               $          5,000          $          5,000
         Interest payable                                                 81,150                    81,150
         Prepaid rents                                                    31,665                         -
                                                                ----------------          ----------------      
Total current liabilities                                                117,815                    86,150

Medium-term secured notes                                              4,869,000                 4,869,000
                                                                ----------------          ----------------            
Total liabilities                                                      4,986,815                 4,955,150
                                                                ----------------          ----------------
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                   243,420
Accumulated deficit                                                     (195,628)                 (121,453)
                                                                ----------------          ---------------- 
Total shareholder's equity                                                47,792                   121,967
                                                                ----------------          ----------------
Total liabilities and shareholder's equity                      $      5,034,607          $      5,077,117
                                                                ================          ================
</TABLE>

See accompanying notes.


<PAGE>

                                                AeroCentury IV, Inc.
                                                Statement of Operations
                                       For the Three Months Ended March 31, 1998
                                                      (Unaudited)

<TABLE>

<S>                                                                             <C>    

Revenues:

         Rent income                                                            $  109,995
         Interest income                                                            24,954
                                                                                ----------
                                                                                   134,949
                                                                                ----------
Expenses:

         Depreciation expense                                                       43,644
         Amortization expense                                                       19,146
         Interest expense                                                          121,725
         Management fees                                                            24,345
         General and administrative                                                    264
                                                                                ----------
                                                                                   209,124
                                                                                ----------
Net loss                                                                        $  (74,175)
                                                                                ========== 
Weighted average common shares outstanding                                         243,420
                                                                                ==========
Net loss per common share                                                       $    (0.30)
                                                                                ==========






</TABLE>












See accompanying notes.



<PAGE>

                                                AeroCentury IV, Inc.
                                                Statement of Cash Flows
                                       For the Three Months Ended March 31, 1998
                                                      (Unaudited)

<TABLE>
<S>                                                                                  <C>   

Net cash provided by operating activities                                            $       57,119

Investing activity -
     Investment in secured promissory note                                                 (866,667)
                                                                                     --------------
Net decrease in cash                                                                       (809,548)

Cash, beginning of period                                                                 1,944,123
                                                                                     --------------  
Cash, end of period                                                                  $    1,134,575
                                                                                     ==============




</TABLE>




























See accompanying notes.


<PAGE>

                                                 AeroCentury IV, Inc.
                                             Notes to Financial Statements
                                                    March 31, 1998
                                                      (Unaudited)


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").  All of the Company's  outstanding
common  stock  is owned by  JetFleet  Management  Corp.  ("JMC"),  a  California
corporation  formed in  January  1994.  JMC is the  management  company  for the
Company, and also manages AeroCentury Corp., a Delaware corporation ("ACY"), and
JetFleet III, a California corporation,  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 JMC and owns a significant  amount
of the common stock of JMC.

     The accompanying balance sheets at March 31, 1998 and December 31, 1997 and
statements  of  operations  and cash flows for the quarter  ended March 31, 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.  Because  the  Company  had no  operations  until the second
quarter of 1997, no comparative results are presented for the first three months
of  1997.  The  results  of  operations  of the  first  quarter  of 1998 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, 1997.

2.   Organization and Capitalization

     The Company was formed solely for the purpose of acquiring Income Producing
Assets, consisting mainly of aircraft, aircraft engines, aircraft parts or other
transportation  industry  equipment  subject to operating or full payout  leases
with third parties.  The Company raised $4,869,000 in $1,000 Secured  Promissory
Notes  maturing on April 30, 2005 (the "Notes")  pursuant to a prospectus  dated
May 21, 1997 (the "Prospectus").

     Debt issue costs

     Pursuant to the terms of the  Prospectus,  the Company paid an Organization
and  Offering  Expense  Reimbursement  to JMC 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 Company
also  issued  102,620  shares  of  common  stock  to  JMC  as  reimbursement  of
organization  and  offering  costs  JMC  incurred  in  excess  of the 2.0%  cash
reimbursement (collectively, the "Reimbursement").

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


<PAGE>

                                                AeroCentury IV, Inc.
                                             Notes to Financial Statements
                                                    March 31, 1998
                                                      (Unaudited)


3.   Aircraft and Aircraft Engines Under Operating Leases

     Aircraft and aircraft engines

     The Company owns a 100% interest in a Shorts SD3-60-100,  serial number S/N
3606 ("S/N 3606"), a 50% undivided interest  in a Shorts  SD-360,  serial
number S/N 3676 ("S/N  3676") and a Pratt & Whitney  JT8D-9A  aircraft  engine,
serial number 674452B (the "Engine").

     Aircraft and aircraft engines leases

     S/N 3606 and S/N 3676 are subject to similar 48-month leases with a British
regional airline.

     The Engine is used on a  McDonnell  Douglas  DC-9  aircraft  operated  by a
Mexican  regional  passenger  airline serving Mexico and the United States.  The
Engine is subject to a 60 month term  expiring  on  November  4, 2002,  with the
seller which in turn subleases the Engine.  The seller's lease  obligations  are
secured  by an  assignment  of its  rights  under the  sublease,  including  the
guaranty of sublease obligations by the operator's parent corporation.

4.   Medium-term secured Notes

     From May 1997 to October 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.

5.   Secured note receivable

     As provided in the prospectus  for the Offering,  the Company may invest in
Financial Assets,  including indebtedness secured by Equipment. On March 4, 1998
the Company loaned $866,667 to ACY in connection with ACY's purchase of a Shorts
SD-360  aircraft.  ACY issued a secured  promissory note (the "ACY Note") to the
Company in the amount of the loan,  which is secured by a  perfected  first lien
security  interest in the aircraft.  The ACY Note bears  interest at the rate of
12% per annum,  payable  monthly in arrears.  The Note is due on March 31, 1999,
but may be prepaid without penalty at any time.

6.   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.  During the first quarter of 1998,  the Company paid a total of
$24,345 in management fees to JMC.



<PAGE>

                              AeroCentury IV, Inc.
                          Notes to Financial Statements
                                 March 31, 1998
                                   (Unaudited)


6.   Related Party Transactions (continued)

     JMC may  receive a  brokerage  fee for  locating  assets  for the  Company,
provided that such fee is not more than the  customary  and usual  brokerage fee
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  quarter of 1998,  no  brokerage  fees or  Chargeable
Acquisition Expenses were paid to JMC.

     As  discussed  in Note 1, the  Company  reimburses  JMC for  certain  costs
incurred in connection  with the  organization  of the Company and the Offering.
Because the Offering was closed to new  subscriptions  during  October 1997, the
Company did not reimburse JMC for any organization and offering  expenses during
the first quarter of 1998.

     As discussed  in Note 5, the Company  loaned funds to ACY during March 1998
in connection with ACY's purchase of an aircraft. The Company received a secured
promissory note, secured by the aircraft, from ACY.



<PAGE>

Item 2. Management's  Discussion and Analysis of Financial Condition and Results
of Operation


Capital Resources and Liquidity

     On March 31,  1998,  the Company  had cash  balances  of  $1,134,575.  This
balance was held primarily for the interest  payment made to the  Noteholders in
May 1998 and for normally recurring expenses.

     Since  Inception,  the Company's  funds have come in the form of an initial
contribution  from JMC,  proceeds from the Offering and rental  revenue from the
Income Producing Assets purchased using those proceeds.  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  Unitholders.  Excess cash flow,  after payment of interest and operating
expenses is held for investment in additional Income Producing Assets. Since the
Company has  acquired  Income  Producing  Assets which are subject to triple net
leases  (the lessee pays  operating  and  maintenance  expenses,  insurance  and
taxes), the Company does not anticipate that it will incur significant operating
expenses in connection with ownership of its Income  Producing Assets as long as
they remain on lease.

     The Company currently has available adequate reserves to meet its immediate
cash requirements. The leases for the Company's aircraft expire at varying times
between July 2001 and November 2002.

     Cash flows from operations  during the first quarter of 1998 were primarily
from rent received for the Company's aircraft leases, including prepaid rent and
rent accrued as receivable at December 31, 1997.

     Cash flows used in investing  activities consisted of a loan to AeroCentury
Corp.  in connection  with its purchase of an aircraft.  The Company had no cash
flows from financing  activities because the Offering  terminated during October
1997.

     Results of Operations

     The Company  recorded a net loss of  ($74,175) or ($0.30) per share for the
three months ended March 31, 1998. The loss was a result of management  fees and
depreciation,  amortization  and  interest  expense,  which more than offset the
rental income received for the Company's aircraft.

     Factors that May Affect Future Results

     Year  2000  Considerations.   The  Company's  internal  and  administrative
operations are not highly dependent on advanced  technological computer or other
electronic systems,  and,  consequently,  management believes that the Company's
exposure  to loss as a result of Year 2000 issues is not  significant.  Further,
management  believes that the electronic systems used in the equipment leased by
the  Company  to  lessees  will not be  affected  by the Year 2000  issue,  and,
therefore,  this  issue  should not  directly  affect  the  Company's  financial
performance  or the  lessees'  ability  to comply  with their  respective  lease
obligations.  Of course, 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.  Furthermore,  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.
<PAGE>

Part II. Other Information

Item 1.  Legal Proceedings

         None.

Item 2.  Changes in Securities

         No disclosure required.

Item 3.  Defaults Upon Senior Securities

         No disclosure required.

Item 4.  Submission of Matters to a Vote of Security Holders

         No disclosure required.

Item 5.  Other Information

         No disclosure required.

Item 6.  Exhibits and Reports on Form 8-K

         a.    Exhibits

         Exhibit 27.  Financial Data Schedule

         b.    Reports on Form 8-K

         None

<PAGE>

                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.

                                           AeroCentury IV, Inc.

May 14, 1998                     By: /s/ Neal D. Crispin
Date                                -------------------------------------------
                                    Neal D. Crispin,  President and Chairman
                                    of the Board of Directors of the Registrant 
                                    Chief Financial Officer