SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                   FORM 10-QSB

(Mark One)
[ X ] Annual Report Under Section 13 or 15(d) of the Securities Exchange Act of
1934 For the quarterly period ended September 30, 2001

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

Commission File Number:  333-22239


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

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

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

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

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

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


On November 14, 2001 the aggregate market value of the voting and non-voting
Common equity held by non-affiliates (computed by reference to the price at
which the common equity was sold) was $0.


As of November 14, 2001 the Issuer has 243,420 Shares of Common Stock
outstanding.


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




<PAGE>



Part I.           Financial Information

Item 1.           Financial Statements

                               AEROCENTURY IV, INC.
                                  Balance Sheet
                               September 30, 2001


                                     ASSETS
<TABLE>
<S>                                                                        <C>
Current assets:
     Cash                                                                  $   1,280,550
     Deposits                                                                     86,130
     Accounts receivable                                                         125,310
     Rent receivable                                                               5,000
                                                                           -------------
Total current assets                                                           1,496,990

Aircraft and aircraft engines under operating leases,
     net of accumulated depreciation of $406,350                               1,232,840
Debt issue costs, net of accumulated
     amortization of $315,100                                                    274,420
Other assets                                                                      10,000
                                                                           -------------

Total assets                                                               $   3,014,250
                                                                           =============


                      LIABILITIES AND SHAREHOLDER'S DEFICIT

Current liabilities:
     Accounts payable                                                      $       1,300
     Interest payable                                                             81,150
     Prepaid rent                                                                  7,500
     Security deposits                                                            20,000
     Maintenance deposits                                                        191,430
                                                                           -------------
Total current liabilities                                                        301,380
                                                                           -------------

Medium-term secured notes                                                      4,869,000
                                                                           -------------

Total liabilities                                                              5,170,380
                                                                           -------------

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                                                           (2,399,550)
                                                                           -------------
Total shareholder's deficit                                                   (2,156,130)
                                                                           -------------

Total liabilities and shareholder's deficit                                $   3,014,250
                                                                           =============
</TABLE>

See accompanying summary of accounting policies and notes to financial
statements.
<PAGE>


                               AEROCENTURY IV, INC.
                            Statements of Operations

<TABLE>
<CAPTION>

                                             For the Nine Months                      For the Three Months
                                              Ended September 30,                      Ended September 30,
<S>                                     <C>               <C>                   <C>              <C>
                                             2001             2000                   2001             2000
                                             ----             ----                   ----             ----
Revenues:

     Rent income                        $     233,950     $     414,890         $      75,000    $      84,450
     Gain on sale of aircraft                 113,000                 -                     -                -
     Interest income                           44,700            13,190                12,140            4,240
                                        -------------     -------------         -------------    -------------

                                              391,650           428,080                87,140           88,690
                                        -------------     -------------         -------------    -------------

Expenses:

     Depreciation                              87,160           194,030                29,050           64,840
     Provision for impairment in
       value of aircraft                            -           623,940                     -          623,940
     Amortization                              57,440            57,440                19,150           19,150
     Maintenance                                8,260           204,620                 8,260          154,280
     Interest                                 365,180           365,180               121,730          121,730
     Management fees                           73,030            73,030                24,340           24,340
     Professional fees and
       general and administrative              14,960            44,200                 5,330           21,530
                                        -------------     -------------         -------------    -------------

                                              606,030         1,562,440               207,860        1,029,810
                                        -------------     -------------         -------------    -------------

Loss before taxes                            (214,380)       (1,134,360)             (120,720)        (941,120)

Tax provision                                     800           225,520                     -          196,710
                                        -------------     -------------         -------------    -------------

Net loss                                $    (215,180)     $ (1,359,880)         $   (120,720)    $ (1,137,830)
                                        =============     =============         =============    =============

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

Basic loss per common share             $       (0.88)     $      (5.59)         $      (0.50)    $      (4.67)
                                        =============     =============         =============    =============

</TABLE>

See accompanying summary of accounting policies and notes to financial
statements.



<PAGE>



                               AEROCENTURY IV, INC.
                            Statements of Cash Flows

<TABLE>
<CAPTION>

                                                                 For the Nine Months Ended September 30,
<S>                                                               <C>                   <C>
                                                                       2001                  2000
                                                                       ----                  ----

Net cash (used)/provided by operating activities                  $     (195,590)       $      40,120
                                                                  --------------        -------------

Investing activities:
     Purchase of interest in aircraft                                          -             (659,950)
     Proceeds from disposal of assets                                    283,000                    -
                                                                  --------------        -------------
Net cash provided by investing activities                                283,000             (659,950)
                                                                  --------------        -------------

Net increase/(decrease) in cash                                           87,410             (619,830)

Cash, beginning of period                                              1,193,140              988,260
                                                                  --------------        -------------

Cash, end of period                                               $    1,280,550        $     368,430
                                                                  ==============        =============

Supplemental disclosures of cash flow information: Cash paid during the period
for:
                                                                            2001                 2000
                                                                            ----                 ----
     Interest (net of amount capitalized)                         $      365,180        $     365,180
     Income taxes                                                            800                  800

</TABLE>


See accompanying summary of accounting policies and notes to financial
statements.


<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.

         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
reserves and security deposits and are subject to withdrawal restrictions. As of
September 30, 2001, the Company maintained $1,340,120 of its cash balances in a
money market fund held by a regional brokerage firm, which is not federally
insured.

         Aircraft and Aircraft Engines Under Operating Leases

         The Company's interests in aircraft are recorded at the lower of cost
or market value, which include 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 SFAS No. 121, "Accounting for the Impairment of
Long-lived Assets and Long-lived Assets to Be Disposed Of," 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
non-discounted cash flows attributable to the assets or appraisals. 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.

         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").




<PAGE>




                                AEROCENTURY IV, INC.
                          Notes to Financial Statements

1.       Summary of Significant Accounting Policies (continued)

         Debt Issue Costs (continued)

         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).

         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.

         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.

         Recent Accounting Pronouncements

         SFAS No. 137, which amended the effective date of SFAS No. 133,
Accounting for Derivative Instruments and Hedging Activities, was issued in June
1999. The Company adopted SFAS No. 133 on January 1, 2001. This statement
establishes accounting and reporting standards requiring that all derivative
instruments are recorded on the balance sheet as either an asset or a liability,
measured at fair value. The statement requires that changes in the derivative's
fair value be recognized currently in earnings unless specific hedge accounting
criteria are met and such hedge accounting treatment is elected. Because the
Company does not hold any derivatives as defined in SFAS No. 133, its adoption
did not have a material impact on its results of operations or financial
position.

          In December 1999, the Securities and Exchange Commission ("SEC")
issued Staff Accounting Bulletin No. 101, Revenue Recognition in Financial
Statements ("SAB 101"). SAB 101, as amended, summarizes certain of the SEC's
views in applying generally accepted accounting principles to revenue
recognition in financial statements. SAB 101 was adopted by the Company in 2000.
The adoption of the provisions of SAB 101 did not have a material effect on the
Company's consolidated operating results, statement of financial position or
cash flow.


<PAGE>






                                AEROCENTURY IV, INC.
                          Notes to Financial Statements

2.       Aircraft and Aircraft Engines Under Operating Leases

         Aircraft and Aircraft Engines

         At September 30, 2001, the Company owned a Fairchild Metro III
aircraft, serial number AC-647 ("S/N AC-647"), and a Pratt & Whitney JT8D-9A
aircraft engine, serial number 674452B (the "Engine"). In January 2001, the
Company sold its 50% interest in a Shorts SD3-60-100, serial number S/N 3676
("S/N 3676"). The Company did not purchase any aircraft during the first nine
months of 2001.

         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.

         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.

         At the time of purchase, S/N 3676 (owned 50% by the Company) was
subject to a 48-month lease, expiring in July 2001, with a British regional
airline. The original lease, entered into in 1997, did not require that the
lessee pay maintenance reserves based on usage because, at the time, the lessee
was considered creditworthy. It had recently been named Airline of the Year by
the European Regions Airline Association and had its own facility, which was
certified to perform any required maintenance. Subsequently, the airline
experienced financial difficulties and, on February 24, 2000, filed for
reorganization.

         The lessee continued to operate, and, under the reorganization plan,
the lessee paid rentals on a month to month basis at the same rent as under the
original lease on S/N 3676. Under the plan, the lessee also began paying monthly
maintenance reserves based on the hours flown. Under British law, the owners
were precluded from repossessing the aircraft so long as the lessee was
operating it and agreed to pay rent and maintenance reserves under its
reorganization plan. The lessee notified the owners that the aircraft would be
returned to them during the fourth quarter of 2000. The owners agreed that they
would realize a greater benefit if they sold the aircraft "as is" rather than
fund the maintenance work necessary to return the aircraft to a condition which
would allow it to possibly be re-leased to a new lessee. Therefore, the Company
reduced the carrying value of the aircraft to $170,000 and recognized a
provision for impairment estimated to be $245,350 during 2000. The aircraft was
returned to the Company and, in January 2001 it was sold. The Company received
net proceeds of $167,450 and recognized a gain of $35,980. During the second
quarter of 2001, the lessee paid all amounts owed to the Company and, since the
aircraft had been sold, the Company recognized an additional gain of $77,020,
representing maintenance reserves retained. The lessee also paid two months of
rent, which the Company had accrued during 2000, for a second plane it had
leased and which was sold during 2000.

         As of September 30, 2001, minimum future lease rent payments receivable
under noncancelable leases were as follows:

                  Year                   Amount

                  2001              $      85,000
                  2002                    192,500
                                    -------------

                                    $     277,500
                                    =============



<PAGE>



                               AEROCENTURY IV, INC.
                          Notes to Financial Statements

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. As described in Note 6 to the financial statements,
there is substantial doubt as to the Company's ability to continue as a going
concern. Therefore, the fair value of the Notes is estimated to be approximately
$2,428,000, which is $2,441,000 less than the carrying value. The fair value of
the notes payable is estimated based upon the net book values of the aircraft
and the current net working capital of the Company.

4.       Income Taxes
<TABLE>
<CAPTION>

         The items comprising income tax expense are as follows:
                                                                                        For the Nine Months Ended
                                                                                              September 30,
<S>                                                                                 <C>              <C>

                                                                                           2001             2000
                                                                                           ----             ----
         Current tax provision
              Federal                                                               $           -    $            -
              State                                                                           800               800
                                                                                    -------------    --------------
              Current tax provision                                                           800               800
                                                                                    -------------    --------------

         Deferred tax provision
              Federal                                                                     (76,010)           14,080
              State                                                                          (720)              810
                                                                                    -------------    --------------
              Deferred tax (benefit)/provision                                            (76,730)           14,890
              Valuation allowance                                                          76,730           209,830
                                                                                    -------------    --------------
         Total provision for income taxes                                           $         800    $      225,520
                                                                                    =============    ==============

         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:
                                                                                        For the Nine Months Ended
                                                                                              September 30,
                                                                                           2001             2000
                                                                                           ----             ----

         Income tax (benefit)/expense at statutory federal income tax rate          $     (48,060)   $     (352,490)
         State taxes net of federal benefit                                                  (120)             (240)
         Prior year adjustment                                                            (27,750)                -
         Basis differences                                                                      -            21,370
         Inter-company tax expense                                                              -           347,050
         Valuation allowance                                                               76,730           209,830
                                                                                    -------------    --------------
         Total provision for income taxes                                           $         800    $      225,520
                                                                                    =============    ==============


</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 September 30,
2001 are as follows:
<TABLE>
<S>      <C>                                                                        <C>

         Deferred tax assets:
              Depreciation of aircraft                                              $      45,370
              Maintenance deposits                                                         24,350
              Net operating losses                                                        290,090
              Other                                                                         2,830
                                                                                    -------------
                                                                                          362,640
                  Valuation allowance                                                    (362,510)
                                                                                    -------------
                  Net deferred tax assets                                                     130
         Deferred tax liability-
              Amortization of organizational costs                                           (130)
                                                                                    -------------

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

         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 arrangement 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. The Company's current net operating losses may be carried forward for
twenty years and begin to expire in 2020.

5.       Related Party Transactions

         The Company's Income Producing Asset portfolio is managed and
administered under the terms of a management agreement with JMC. Under this
agreement, on the last day of each calendar quarter, JMC receives a quarterly
management fee equal to 0.5% of the Company's Aggregate Gross Proceeds received
through the last day of such quarter. In the first nine months of 2001 and 2000,
the Company accrued a total of $73,030 and $73,030, respectively, in management
fees to JMC.

         JMC may receive 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 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 acquisition 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. During the first nine months of 2001 and 2000, no
acquisition fees or reimbursements for Chargeable Acquisition Expenses were paid
as the Company did not acquire additional assets. During the first nine months
of 2001, remarketing fees of $2,550 were paid to JMC in connection with the sale
of aircraft. No remarketing fees were paid during the first nine months of 2000.


<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.       Going Concern

         As shown in the accompanying financial statements, as of September 30,
2001, the Company's total liabilities exceeded its total assets by $2,156,130.
In addition, although the Company has recently sold several aircraft, it does
not believe that it has sufficient total proceeds to invest in another income
producing asset and, therefore, it anticipates using such proceeds to fund a
principal prepayment to Noteholders during the first quarter of 2002. The
Company's cash flow projections show that it will not have sufficient cash
balances to fund the required interest payment of approximately $122,000 on
February 1, 2002. The Company has informed the Trustee that it will be unable to
make such payment and that it will, therefore, be in default under the Trust
Indenture at that time. Under the Trust Indenture, the Trustee would then have
the right to manage the Company's assets, all of which are collateral for the
notes obligation. Management of the Company's assets and extinguishment of its
liabilities would then become the responsibility of the Trustee.

         These factors create a substantial uncertainty about the Company's
ability to continue as a going concern. The financial statements do not include
any adjustments that might be necessary if the Company is unable to continue as
a going concern.

7.       Subsequent Event

         After consultation, and with the consent of the Trustee, on November 1,
2001, the Company's Board of Directors approved a resolution authorizing a
prepayment of $1,150,000 of principal to the Noteholders during the first
quarter of 2002. As required under the Indenture, the Company, in conjunction
with the Trustee, plans to notify the Noteholders of the prepayment during the
fourth quarter of 2001.


<PAGE>



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

Forward-Looking Statements

Certain statements contained in this report and, in particular, the discussion
regarding: the Company's beliefs, plans, objectives, expectations and intentions
regarding: realization of benefits of its deferred tax assets, collection of
intercompany tax receivables under its tax sharing agreement, using sales
proceeds of certain aircraft to fund a principal prepayment in the first quarter
of 2002, the Company's inability to fund the February 2002 interest payment, the
incurring of significant operating expenses for assets on lease, the
insufficiency of sales proceeds from asset sales to invest in additional assets,
anticipated disposition of the assets by the Trustee, and the Trustee's actions
after a February 2002 default to take control of the Company's assets; are
forward looking statements. While the company believes that such statements are
accurate, actual results may differ due to further defaults by existing lessees,
general economic conditions, particularly those that affect the re-sale value of
turboprop aircraft and engines, including competition for turboprop and other
aircraft, the ability to keep the Company's assets under lease, and 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.

Results of Operations

The Company recorded a net loss of ($215,180) and ($1,359,880) or ($0.88) and
($5.59) per share for the nine months ended September 30, 2001 and 2000,
respectively, and ($120,720) and ($1,137,830) or ($0.50) and ($4.67) per share
for the three months ended September 30, 2001 and 2000, respectively.

Rental income decreased by approximately $182,000 and $9,000 in the nine months
and three months, respectively, of 2001 due to the sale of aircraft during the
fourth quarter of 2000 and January 2001. Gain on sale of aircraft was
approximately $113,000 in the nine month period of 2001 due to the sale of S/N
3676 and the associated reserves retained. There were no asset dispositions
during the first nine months of 2000. Interest income was higher in 2001 by
approximately $32,000 and $8,000 in the nine month and three periods,
respectively, due to higher cash balances in 2001 as a result of asset sales.
Depreciation decreased approximately $107,000 and $36,000 in the same periods
due to the asset sales noted above. Maintenance expense was approximately
$196,000 and $146,000 lower in the nine months and three months, respectively,
ended September 30, 2001 than in 2000 as a result of maintenance work performed
on an aircraft upon its return during 2000.

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 the original lessees of four of
the Company's five aircraft. 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.

At September 30, 2001, the Company had cash balances of $1,280,550 and deposits
of $86,130. Approximately $122,000 of the Company's cash balances were held for
the interest payment made to the Noteholders in November 2001. The remaining
cash, which was the result of aircraft sales during the fourth quarter 2000 and
first quarter of 2001, is being held for transmittal to the Trustee as required
under the terms of the Trust Indenture.

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 varies, 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.

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.

Excess cash flow from operations, after interest payments on the Notes, has been
held as cash because it was, in the aggregate, insufficient to purchase
additional Income Producing Assets. In addition, although the Company has
recently sold several aircraft that were returned after lessee defaults, it does
not believe that the total proceeds of such sales are sufficient to invest in a
desirable Income Producing Asset. The Company anticipates that it will use these
proceeds to make a principal prepayment to Noteholders in the first quarter of
2002.

During the second quarter of 2001, the Company received payment of the past due
rent and reserves from the previous lessee of S/N 3606 and S/N 3676. The receipt
of such funds enabled the Company to make the required interest payments of
approximately $122,000 on August 1, 2001 and November 1, 2001. However, the
Company's cash flow projections show that it will not have sufficient cash
balances to fund the required interest payment of approximately $122,000 on
February 1, 2002.

The Company's decrease in cash flow from operations was due primarily to a
larger net loss, excluding the gain on sale of aircraft, during 2001 versus 2000
and the effect of the change in deposits and accounts receivable, which effects
were only partially offset by a change in payable to affiliate and maintenance
deposits from year to year.

The increase in cash flow provided by investing activities was the result of the
Company's sale of an aircraft in January 2001. There was no cash flow from
financing activities in 2001 or 2000 because the Offering terminated in August
1997.

Outlook

The Company currently has Notes outstanding with an aggregate principal face
value of $4,869,000. As discussed in Note 3, the fair value of the Notes, based
upon the net book values of the aircraft and the current net working capital of
the Company, is estimated to be approximately $2,428,000, which is approximately
50% of the face value of the Notes. Through November 1, 2001, the Company has
paid to Noteholders an aggregate of approximately $2,069,300 in interest on the
Notes, or approximately 42% of the face value of the Notes. After consultation,
and with the consent of the Trustee, on November 1, 2001, the Company's Board of
Directors approved a resolution authorizing a prepayment of $1,150,000 of
principal to the Noteholders during the first quarter of 2002. As required under
the Indenture, the Company, in conjunction with the Trustee, plans to notify the
Noteholders of the prepayment during the fourth quarter of 2001.

Upon the Company's anticipated default in its interest payment on February 1,
2002, the Trustee will likely immediately repossess the Company's assets and
assume responsibility for their administration. The Company's two assets are
each currently on lease until June 2002 and November 2002, at a monthly lease
rate of $10,000 and $15,000, respectively.

Upon repossession by the Trustee, the Trustee would have discretion as to the
disposition of each asset. It 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.
Alternatively, the Trustee may 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.
 While the Trustee holds such assets, rental income received by the Trustee
would be held and distributed to Noteholders by the Trustee. If the Trustee were
to retain both assets until lease end, from February 2002 until the assets'
lease expirations, a total of approximately $165,000 could be collected under
the leases; 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 on unpaid Note principal (the stated interest rate
under the Notes). In either case, any distributions to Noteholders of sales
and/or rent proceeds would be net of legal and administrative expenses incurred
by the Trustee.

Factors that May Affect Future Results

Anticipated Default; Trustee's Ability to Maximize Returns. As discussed above,
due to cash flow problems created by lessee rental defaults, early termination
of leases, and lower than expected remarketing proceeds described above, it is
anticipated that the Company will be in default under its Indenture upon its
failure to make the February 1, 2002 interest payment. At that time, it is
believed that the Trustee, Wells Fargo Bank Northwest (formerly known as First
Security Bank, N.A.), will take control of the Company's assets securing the
Indenture, namely the aircraft portfolio and leases and any remaining cash held
by the Company. At that point, the Trustee will have the power to direct
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 of the Company 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 Company's 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 Company's 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 Company's 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. In that case the assets would likely be
re-leased to another lessee; however, if the financial condition of the air
travel industry does not improve within the next year, it may be very difficult
to find a new lessee for the Company's assets. An unimproved or worse industry
financial condition would also tend to result in lower amounts realizable on the
assets if they are sold upon return from the lessee (See "Leasing Risks" and
"Ownership Risks", below).

Leasing Risks. The Company's successful negotiation of lease extensions,
re-leases and sales for its two assets 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. 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 Company's limited portfolio of two assets subjects the Company to
economic risks if those particular airframe or engine types should decline in
value.

Risks Related to Regional Air Carriers. Because the Company's 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 results in a generally higher lease
rate on aircraft, but may entail higher risk of default or lessee bankruptcy.

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

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

International Risks. The Company's portfolio currently 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 Company could
experience collection problems related to the enforcement of its lease
agreements under foreign local laws and the remedies in foreign jurisdictions.
The protections potentially offered by Section 1110 of the Bankruptcy Code would
not apply to non-U.S. carriers, and applicable local law may not offer similar
protections. Certain countries do not have a central registration or recording
system with which to locally establish the Company's interest in equipment and
related leases. This could add difficulty in recovering an 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
remains 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. 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 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.

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.

As a result of the terrorist attacks of September 11, 2001, certain insurance
carriers have instituted a new $50 million limitation on war risk liability
coverage. To the extent that the $50 million coverage is not sufficient to
comply with lease obligations, the Company will require that its lessees acquire
additional insurance, to bring coverage up to the required limits. To date, the
Company believes that all of its lessees who have received notices of the new
limitation have either obtained the additional coverage required or will do so
before the limitation takes effect. If the additional insurance or government
indemnity is not acquired in time, then the Company may ground any aircraft
until it is adequately insured.

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.



<PAGE>



                                   SIGNATURES


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

                                   AEROCENTURY IV, INC.
                                   (Registrant)


Date: November 14, 2001        By: /s/ Neal D. Crispin
                                   -------------------------------
                                   Neal D. Crispin
                           Title:  President