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 March 31, 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 May 14, 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 May 14, 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>
<CAPTION>

                                                         AEROCENTURY IV, INC.
                                  Balance Sheet
                                 March 31, 1999


<S>                                                                       <C>
                                                                ASSETS

Current assets:
     Cash                                                                  $   1,038,210
     Deposits                                                                     14,610
     Rent receivable                                                              80,620
     Accounts receivable                                                          18,390
                                                                           -------------
Total current assets                                                           1,151,830

Aircraft and aircraft engines under operating leases,
     net of accumulated depreciation of $302,300                               3,311,220
Debt issue costs, net of accumulated
     amortization of $123,650                                                    465,870
                                                                           -------------

Total assets                                                               $   4,928,920
                                                                           =============


                                                 LIABILITIES AND SHAREHOLDER'S EQUITY

Current liabilities:
     Accounts payable                                                      $       9,250
     Interest payable                                                             81,150
     Prepaid rent                                                                 24,170
     Maintenance deposits                                                         33,000
                                                                           -------------
Total current liabilities                                                        147,570

Medium-term secured notes                                                      4,869,000

Total liabilities                                                              5,016,570

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                                                            (331,070)
                                                                           -------------
Total shareholder's equity                                                      (87,650)
                                                                           -------------

Total liabilities and shareholder's equity                                 $   4,928,920
                                                                           =============


See accompanying notes.

</TABLE>



<PAGE>


<TABLE>
<CAPTION>

                                                         AEROCENTURY IV, INC.
                                                       Statements of Operations


                                                                  For the Three Months Ended March 31,
<S>                                                              <C>                   <C>


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

     Rent income                                                  $      193,260        $     110,000
     Interest income                                                       8,300               24,950
                                                                  --------------        -------------

                                                                         201,560              134,950
                                                                  --------------        -------------

Expenses:

     Depreciation                                                         60,130               43,640
     Amortization                                                         19,150               19,150
     Interest                                                            121,730              121,730
     Management fees                                                      24,340               24,340
     Professional fees and general and administrative                      1,600                  260
                                                                  --------------        -------------

                                                                         226,950              209,120
                                                                  --------------        -------------

Net loss                                                          $     (25,390)        $    (74,170)
                                                                  ==============        =============

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

Basic loss per common share                                       $       (0.10)        $      (0.30)
                                                                  ==============        =============


See accompanying notes.
</TABLE>




<PAGE>


<TABLE>
<CAPTION>

                              AEROCENTURY IV, INC.
                                                       Statements of Cash Flows


                                                                  For the Three Months Ended March 31,
<S>                                                             <C>                     <C>

                                                                       1999                  1998
                                                                       ----                  ----

Net cash provided by operating activities                         $       49,950        $      57,120

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

Net increase/(decrease) in cash                                           49,950            (809,550)

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

Cash, end of period                                               $    1,038,210        $   1,134,570
                                                                  ==============        =============

Supplemental  disclosures of cash flow information:  Cash paid during the period
for:
     Interest                                                     $      121,730        $     121,730
     Income taxes                                                              -                    -


See accompanying notes.

</TABLE>


<PAGE>



                          AEROCENTURY IV, INC.
                    Notes to Financial Statements
                            March 31, 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 March  31,  1999  and  statements  of
operations  and cash flows for the three  months  ended  March 31, 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
                             March 31, 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 March 31,  1999,  the  Company
maintained  $1,048,380  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 quarter of 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 is subject to a 36-month lease,  expiring on April 13, 2001,
with a regional  carrier in Uruguay.  Management has ordered the lessee to cease
flying the aircraft due to non-payment of rent.  Management is negotiating  with
the lessee regarding its continued use of the aircraft.

         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>



                                                         AEROCENTURY IV, INC.
                          Notes to Financial Statements
                                 March 31, 1999

4.       Income Taxes

         The items comprising income tax expense are as follows:


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

         Deferred tax provision:
                  Federal                                                (8,904)
                  State                                                  17,303 
                                                                  --------------
                  Deferred tax provision                                  8,399
                  Valuation Allowance                                    (8,399)
                                                                  --------------
         Total provision for income taxes                         $            -
                                                                  ==============

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

         Income tax expense at
               statutory federal income tax rate                  $      (8,631)
         State taxes net of federal benefit                                 (41)
         Tax rate differences                                             17,343
         California franchise tax                                          (272)
         Valuation allowance                                             (8,399)
                                                                  --------------
         Total provision for income taxes                         $            -
                                                                  ==============


         Temporary   differences  and   carryforwards   which  gave  rise  to  a
significant  portion of deferred tax assets and liabilities as of March 31, 1999
are as follows:

         Deferred tax assets:
                  Net operating loss                              $    (116,576)
                  Prepaid rent                                           (8,255)
                  Maintenance reserves                                  (11,274)
                                                                  --------------
                           Subtotal                                    (136,105)
                           Valuation allowance                          113,368 
                                                                  --------------
                           Net deferred tax assets                      (22,737)
         Deferred tax liabilities:
                  Amortization of organizational costs                      225
                  Depreciation on aircraft                               22,512 

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

         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  anticipates  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
                                 March 31, 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 three  months of 1999,  the
Company paid a total of $24,340 in management  fees due JMC. The same amount was
accrued during the first three 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
quarters  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 $8,090 of interest during the first quarter of 1998.



<PAGE>



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

Capital Resources and Liquidity

At the end of March  1999,  the  Company had cash  balances  of  $1,038,210  and
deposits of $14,610.  The  Company's  cash  balances  were held for the interest
payment made to the Noteholders in May 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,  management  has
ordered the lessee of S/N AC-647 to cease flying the aircraft due to non-payment
of rent.  Management is negotiating  with the lessee regarding its continued use
of the aircraft.  The Company  holds a security  deposit equal to four months of
rent and may  offset  rent  receivable  with the  security  deposit.  Management
believes  that the Company will have  adequate cash flow to meeting any on-going
operational needs, even if it must seek a new lessee for S/N AC-647.

Although  the  Company  had a  decreased  net loss in the first  quarter of 1999
versus the same period in 1998 (see "Results of Operations",  below),  cash flow
from operations was approximately the same in the first three months of 1999 and
1998.  The  decrease in cash flow used by investing  activities  was because the
Company invested $866,670 in Income Producing Assets during the first quarter 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.

Although  the  Company  has  positive  cash flow from  operations,  the  Company
operates at a net loss due to depreciation and interest expense.

Results of Operations

The Company  recorded a net loss of ($25,390) or ($0.10) per share and ($74,170)
or ($0.30) per share for the three months ended March 31, 1999, respectively.

Rental  income  increased by  approximately  $83,000,  primarily  because of the
additional  rent  accrued for S/N AC-647 which was  purchased  during the second
half of 1998.  Depreciation  also increased  from year to year by  approximately
$16,000 as a result of this acquisition.

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.


<PAGE>



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  attendant  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 that 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 aircraft 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. Management of the Company has directed its information
technology ("IT") manager to require any software or hardware  purchased for use
by the Company 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 the Company's IT system is based on a
"MacOS" system,  the Company'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.  The Company  believes that there
should not be any material  costs in connection  with such a study.  The Company
has been  consulting  with all the  manufacturers  of its  leased  equipment  to
confirm Year 2000  compliance.  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.

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.

The Company's  essential  functions  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 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,  banking  institutions.  The Company 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 May 14, 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 May 14,
1999.

Signature                                         Title

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