SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                                   FORM 10-KSB
(Mark One)
[ X ] Annual Report Under Section 13 or 15(d) of the Securities  Exchange Act of
1934 For the fiscal year ended December 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


Check if there no  disclosure  of  delinquent  filers in response to Item 405 of
Regulation S-B is not contained herein, and no disclosure will be contained,  to
the  best  of  registrant's   knowledge,  in  definitive  proxy  or  information
statements  incorporated  by  reference  in Part III of this Form  10-KSB or any
amendment to this Form 10-KSB. [X]

Revenues for the issuer's most recent fiscal year:  $729,120

On March 10, 2000 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 March 10, 2000 the Issuer has 243,420 Shares of Common Stock outstanding.

Documents Incorporated by Reference:  None

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


<PAGE>



                                     PART I

Item 1.           Business.

Business of the Company

AeroCentury IV, Inc. (the "Company") was incorporated in the state of California
on February  27,  1997  ("Inception").  The  Company  was formed  solely for the
purpose of offering up to $10,000,000 in 10% Secured Promissory Notes, due April
30, 2005 ("Notes") (the "Offering").  The Offering commenced in May 1997 and was
terminated in August 1997,  after $4,869,000 in Notes were sold. The proceeds of
the Offering were used to purchase income  producing  assets ("Income  Producing
Assets")  consisting  of turboprop  aircraft and  aircraft  engines,  subject to
operating or full payout leases with third parties.

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 its  newly-created  wholly-owned
subsidiary  named  "JetFleet   Management  Corp."  ("JMC").   JMC  also  manages
AeroCentury  Corp.  ("ACY"),  a  Delaware  corporation,   and  JetFleet  III,  a
California  corporation,  which are affiliates of JHC and which have  objectives
similar to the Company's.  Neal D. Crispin, the President of the Company,  holds
the same position  with JHC and JMC and owns a significant  amount of the common
stock of JHC.

The sole director of the Company is Neal D. Crispin. The officers of the Company
are Neal D. Crispin,  President and  Secretary,  Marc J.  Anderson,  Senior Vice
President and Chief Operating Officer and Frank Duckstein, Vice President.

The revenue  generated from the Income Producing Assets is used to fund interest
payments on the Notes,  reinvestment in additional  Income Producing Assets and,
after May 1, 2003,  deposits to a sinking fund account established to facilitate
repayment of  principal of the Notes on their  maturity (or such earlier time if
the Company decides to make  prepayments on the principal of the Notes).  At the
maturity date of the Notes,  the Company will pay off the outstanding  principal
using proceeds of the resale of the Company's Income Producing Assets, the funds
in the Sinking Fund Account and/or proceeds of third-party lender refinancing.

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"),  a 50%
undivided interest in a Shorts SD-360, serial number S/N 3676 ("S/N 3676") and a
67%  undivided  interest in a  deHavilland  DHC-6,  serial  number S/N 668 ("S/N
668").

During  1999,  the Company  purchased  its  interest in S/N 668;  the  remaining
interest is owned by JetFleet III.

S/N 3606 and S/N 3676 are subject to similar 48-month  leases,  expiring in July
2001, with a British regional airline.

S/N AC-647 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 and is seeking  re-lease  opportunities.
In  connection  with the  repossession,  the  Company  recorded a  write-off  of
approximately $4,300 which represents rent receivable in excess of the letter of
credit held by the Company, which the Company collected during August 1999.

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.

S/N 668 is subject to a 60-month  lease,  expiring in July 2004, with a regional
carrier in Colombia.

Financial Assets

As  provided  in the  prospectus  for the  Offering,  the  Company may invest in
Financial Assets,  including indebtedness secured by Equipment. On March 4, 1998
the  Company  loaned  $866,670 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 $43,910 of interest during the term of the loan.

Factors that May Affect Future Results

Ability  to Repay  Notes.  The  Company's  ability  to repay  the Notes at their
maturity  date is  dependent in part upon  reinvestment  of excess cash flows in
additional Income Producing Assets. To the extent that the Company realizes less
than anticipated lease rentals due to lessee rental defaults,  early termination
of leases,  or lower than expected  remarketing  proceeds during the term of the
Notes,  this may result in lower than  expected  excess cash flow  available for
reinvestment in additional  Assets. As a result,  the Company's ability to repay
the Notes in full at maturity may be negatively  affected by such events even if
the Company is able to meet its scheduled interest payments.

The  Company's  ability  to  repay  the  Notes at  their  maturity  date is also
dependent in part upon its ability to  refinance  the Notes or sell its aircraft
portfolio at a price sufficient to retire the outstanding Note principal. If due
to the risks described below in the risk factors entitled  "Ownership Risks" and
"Leasing  Risks",  the  values  of the  Company's  aircraft  portfolio  are in a
depressed state at the maturity date of the Notes,  the Company may be unable to
repay the entire Note indebtedness on the maturity date.

Concentration  of Leases.  The  Company  owns 100% of one,  and 50% of a second,
aircraft leased to a British regional carrier, which in the aggregate represents
52% of the  Company's  monthly  revenue.  The  lessee  has  recently  filed  for
reorganization.   The  lessee  is   continuing   to   operate,   and  under  the
reorganization  plan, an agreement will be reached regarding the status of those
aircraft.

General Economic Conditions. The market for used aircraft has been cyclical, and
usually  reflects  economic  conditions  and  the  strength  of the  travel  and
transportation  industry.  At any time,  the  market  for used  aircraft  may be
adversely  affected by such factors as airline  financial  difficulties,  higher
fuel costs, and improved availability and economics of new replacement aircraft.

An adverse change in the global air travel  industry,  however,  could result in
reduced  carrier revenue and excess capacity and increase the risk of failure of
some weaker regional air carriers.  While the Company  believes that with proper
asset and lessee  selection  the impact of such  changes on the  Company  can be
reduced,  there is no  assurance  that the  Company's  business  will escape the
effects of such a global downturn,  or a regional  downturn in an area where the
Company has placed a significant amount of its assets.

Reliance on JMC. All management of the Company is performed by JMC pursuant to a
management  agreement between JMC and the Company.  The Board of Directors does,
however,  have ultimate control and supervisory  responsibility over all aspects
of  the  Company  and  does  owe  fiduciary   duties  to  the  Company  and  its
stockholders.  In addition,  while JMC may not owe any  fiduciary  duties to the
Company by virtue of the management  agreement,  the officers of the Company are
also officers or employees of JMC, and in that capacity owe fiduciary  duties to
the Company and the stockholders by virtue of holding such offices. Although the
Company has taken steps to prevent such  conflicts,  such  conflicts of interest
arising from such dual roles may still occur.

Ownership Risks. The Company's portfolio is leased under operating leases, where
the terms of the leases do not take up the entire  useful life of an asset.  The
Company's  ability to recover its purchase  investment in an asset subject to an
operating lease is dependent upon the Company's  ability to profitably  re-lease
or 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. Most of 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 consists of leases with
foreign air carriers. 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.

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 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. The demand for and value of
many types of older  aircraft  in the  recent  past has been  depressed  by such
factors as airline financial  difficulties,  increased fuel costs, the number of
new  aircraft on order and the number of older  aircraft  coming off lease.  The
Company's  concentration  in a limited  number of airframe and  aircraft  engine
types (generally, turboprop equipment) subjects the Company to economic risks if
those airframe or engine types should decline in value. The recent  introduction
of "regional jets" to serve on short routes previously  thought to be economical
only for turboprop  aircraft  operation  could decrease the demand for turboprop
aircraft,  while at the same  increasing the supply of used turboprop  aircraft.
This could  result in lower lease rates and values for the  Company's  turboprop
aircraft.

Risks Related to Regional Air Carriers. Because the Company has concentrated its
existing  leases on leases to  regional  air  carriers,  it will be  subject  to
certain  risks.  First,  lessees in the  regional air carrier  market  include a
number of companies that are start-up,  low capital,  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.

Year 2000 Considerations. Because all administrative and management functions of
the Company are carried out by its management company,  JMC, JMC's readiness for
Year 2000 has determined the Company's  status.  JMC has reported to the Company
that it did not experience  any problems with the Year 2000 event,  and does not
anticipate  any in the coming year.  Lessees of the Company have not appeared to
be materially  affected by the Year 2000,  and to date,  the Company's  business
with all lessees  appears  unaffected by Year 2000. The Company has not incurred
and does not anticipate any costs related to the Year 2000 issue.

Item 2.           Properties.

The  Company  does  not own or  lease  any real  property,  plant or  materially
important physical  properties other than equipment under operating lease as set
forth in Item 1.

The Company  maintains its principal  office at 1440 Chapin  Avenue,  Suite 310,
Burlingame, California, 94010. All office facilities are provided by JMC without
reimbursement by the Company.

Item 3.           Legal Proceedings.

The Company is not involved in any legal proceedings.

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

None.

                                     PART II

Item 5.           Market for the Common Equity and Related Stockholder Matters.

General

There is no  established  trading  market  for the  Notes  and the Notes are not
listed on any securities exchange.

Number of Security Holders

         Approximate number of holders of Notes ("Noteholders") as of March 10,
2000:  350

Dividends

The Company has not declared a dividend on Common Stock since its formation. The
Company  intends to retain  earnings,  if any, to pay interest on the Notes,  to
acquire additional  aircraft assets, and to fund repayment of the Note principal
upon the maturity date of the Notes.  Under the Indenture  under which the Notes
were issued, dividends may not be paid until the Notes are repaid in full.

Item 6.              Management's Discussion and Analysis or Plan of Operation.

Capital Resources and Liquidity

At the end of 1999,  the Company had cash  balances of $369,330  and deposits of
$63,000.  The Company's cash balances were held for the interest payment made to
the  Noteholders  in February  2000,  for  normally  recurring  expenses and for
investment in additional Income Producing Assets.

Since  its  formation,  the  Company's  capital  has come in the form of  equity
contributions  from JHC,  proceeds from the Offering and rental revenue from the
Income Producing Assets purchased using those proceeds.  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.

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 July 2001 and July 2004.

         1999 versus 1998

The  decrease in cash flow from  operations  was due  primarily  to increases in
receivable  from  affiliates,  accounts  receivable  and  deposits  during  1999
compared to 1998. The effect of these increases was only partially  offset by an
increase in prepaid rent and maintenance  reserves collected from lessees during
1999.

The decrease in cash flow used by investing  activities  was because the Company
invested approximately $382,000 less in Income Producing Assets during 1999 than
in 1998.  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  ($126,920)  or  ($0.52)  per  share  and
($184,230)  or ($0.76) per share for the year ended  December 31, 1999 and 1998,
respectively.

         1999 versus 1998

Rental income increased by approximately $76,000 in 1999 due to the purchases of
S/N  AC-647  in July  1998 and S/N 668  during  July  1999.  This  increase  was
partially  offset by the lack of rent  collected  for S/N AC-647  following  its
repossession  in June 1999  (discussed in Note 2 to the  financial  statements).
Depreciation  also  increased  from 1998 to 1999 by  approximately  $44,000 as a
result  of the  acquisitions  noted  above.  Maintenance  expense  increased  by
approximately  $88,000 in 1999 as a result of  maintenance  work performed on an
off-lease aircraft. Interest income decreased by approximately $61,000 from year
to year because the Company had lower cash balances in 1999 as a result of those
acquisitions.  Professional  fees  increased  by  approximately  $48,000 in 1999
primarily due to legal expenses  incurred in connection with the repossession of
S/N AC-647.

The  Company  recognized  a tax benefit  during 1999 as a result of  recording a
receivable from  affiliates to reflect the tax benefits of net operating  losses
of the Company used by other members of the group with which the Company files a
consolidated tax return.  Under the terms of a tax sharing agreement between the
members of the  consolidated  group,  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.




<PAGE>



Item 7.  Financial Statements.

(a)               Financial Statements and Schedules

         (1)      Financial statements for AeroCentury IV, Inc.:

                           Report of Independent Auditors,  Vocker Kristofferson
                           and  Co.  Balance  Sheet  as  of  December  31,  1999
                           Statements of Operations for the Years Ended December
                           31,   1999  and  1998   Statements   of   Changes  in
                           Shareholder's Equity for the Years Ended
                              December 31, 1999 and 1998
                           Statements of Cash Flows for the Years Ended
                              December 31, 1999 and 1998
                           Notes to Financial Statements

         (2)      Schedules:

                           All schedules  have been  omitted  since the required
                            information is presented in the financial statements
                            or is not applicable.



<PAGE>

                         REPORT OF INDEPENDENT AUDITORS



To the Board of Directors and Stockholders of AeroCentury IV, Inc.


We have  audited  the  accompanying  balance  sheet  of  AeroCentury  IV,  Inc.,
California  corporation,  as of December 31, 1999 and the related  statements of
operations, shareholder's equity and cash flows for the years ended December 31,
1999 and December 31, 1998. These financial statements are the responsibility of
the Company's  management.  Our responsibility is to express an opinion on these
financial statements based on our audits.

We  conducted  our  audits  in  accordance  with  generally   accepted  auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the  financial  position of  AeroCentury  IV, Inc.,  at
December 31, 1999 and the related statements of operations, shareholder's equity
and cash flows for the years ended  December  31, 1999 and 1998,  in  conformity
with generally accepted accounting principles.



VOCKER KRISTOFFERSON AND CO.



February 29, 2000
San Mateo, California




<PAGE>


<TABLE>

                              AEROCENTURY IV, INC.
                                  Balance Sheet
                                December 31, 1999

<CAPTION>

                                     ASSETS
<S>                                                                        <C>

Current assets:
     Cash                                                                  $     369,330
     Deposits                                                                     63,000
     Rent receivable                                                              67,680
     Accounts receivable                                                         151,050
                                                                           -------------
Total current assets                                                             651,060

Receivable from affiliates                                                       231,980
Aircraft and aircraft engines under operating leases,
     net of accumulated depreciation of $491,630                               3,781,830
Debt issue costs, net of accumulated
     amortization of $181,090                                                    408,430
Other assets                                                                      14,170
                                                                           -------------

Total assets                                                               $   5,087,470
                                                                           =============

<CAPTION>

                      LIABILITIES AND SHAREHOLDER'S EQUITY
<S>                                                                        <C>
Current liabilities:
     Accounts payable                                                      $     102,820
     Interest payable                                                             81,150
     Prepaid rent                                                                 33,160
     Security deposits                                                            40,200
     Maintenance deposits                                                        143,050
     Deferred taxes                                                                7,270
                                                                           -------------
Total current liabilities                                                        407,650

Medium-term secured notes                                                      4,869,000

Total liabilities                                                              5,276,650

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                                                            (432,600)
                                                                           -------------
Total shareholder's equity                                                     (189,180)
                                                                           -------------

Total liabilities and shareholder's equity                                 $   5,087,470
                                                                           =============

</TABLE>

See accompanying notes.




<PAGE>


<TABLE>

                              AEROCENTURY IV, INC.
                            Statements of Operations

<CAPTION>

                                                                     For the year ended December 31,
<S>                                                               <C>                   <C>
                                                                       1999                  1998
Revenues:

     Rent income                                                  $      700,620        $     625,280
     Interest income                                                      28,500               89,720
                                                                  --------------        -------------

                                                                         729,120              715,000
                                                                  --------------        -------------

Expenses:

     Depreciation                                                        249,470              204,810
     Amortization                                                         76,580               76,580
     Maintenance                                                          88,470                    -
     Interest                                                            486,900              486,900
     Management fees                                                      97,380               97,380
     Professional fees and general and administrative                     81,170               32,760
                                                                  --------------        -------------

                                                                       1,079,970              898,430
                                                                  --------------        -------------

Loss before taxes                                                      (350,850)            (183,430)

Tax (benefit)/provision                                                (223,930)                  800
                                                                  --------------        -------------

Net loss                                                          $    (126,920)        $   (184,230)
                                                                  ==============        =============

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

Basic loss per common share                                       $       (0.52)        $      (0.76)
                                                                  ==============        =============

</TABLE>

See accompanying notes.




<PAGE>

<TABLE>


                              AEROCENTURY IV, INC.
                       Statements of Shareholder's Equity
                 For the years ended December 31, 1999 and 1998

<S>                                              <C>              <C>               <C>

                                                                                        Total
                                                    Common          Accumulated     Shareholder's
                                                     Stock            Deficit          Equity

Balance, December 31, 1997                       $     243,420    $    (121,450)    $     121,970

Net loss for the period                                      -         (184,230)        (184,230)
                                                 -------------    --------------    -------------

Balance, December 31, 1998                             243,420         (305,680)         (62,260)

Net loss for the period                                      -         (126,920)        (126,920)
                                                 -------------    --------------    -------------

Balance, December 31, 1999                       $     243,420    $    (432,600)    $   (189,180)
                                                 =============    ==============    =============

</TABLE>

See accompanying notes.



<PAGE>

<TABLE>


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


                                                                     For the year ended December 31,
<S>                                                               <C>                   <C>

                                                                       1999                  1998
Operating activities:
     Net loss                                                     $    (126,920)        $   (184,230)
     Adjustments to reconcile net loss to
       net cash provided by operating activities:
         Depreciation                                                    249,470              204,810
         Amortization                                                     76,580               76,580
         Change in operating assets and liabilities:
           Deposits                                                     (48,390)             (14,610)
           Accounts receivable                                         (144,640)              (1,780)
           Rent receivable                                              (13,420)             (22,040)
           Receivable from affiliates                                  (231,980)                    -
           Other assets                                                 (14,170)                    -
           Accounts payable                                               91,820                6,000
           Prepaid rent                                                   33,160                    -
           Security deposits                                              40,200                    -
           Maintenance deposits                                          122,030               21,020
           Deferred taxes                                                  7,270                    -
                                                                  --------------        -------------
Net cash provided by operating activities                                 41,010               85,750
                                                                  --------------        -------------

Investing activities:
     Investment in secured promissory note                                     -            (866,670)
     Repayment of secured promissory note                                      -              866,670
     Purchase of interests in aircraft                                 (659,940)          (1,041,610)
                                                                  --------------        -------------
Net cash used in invested activities                                   (659,940)          (1,041,610)
                                                                  -------------         -------------

Net decrease in cash                                                   (618,930)            (955,860)

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

Cash, end of period                                               $      369,330        $     988,260
                                                                  ==============        =============

Supplemental  disclosures of cash flow information:  Cash paid during the period
for:
                                                                            1999                 1998
                                                                            ----                 ----
     Interest (net of amount capitalized)                         $      486,900        $     486,900
     Income taxes                                                            800                  800

</TABLE>

See accompanying notes.



<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
December 31, 1999,  the Company  maintained  $430,590 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 cost, 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.

         As the Company has  substantial  amounts of long-lived  assets that are
potentially  subject to impairment,  FAS 121,  "Accounting for the Impairment of
Long-Lived  Assets and for Long-Lived Assets to be Disposed of" has been applied
for the year ending  December  31,  1999.  Long-lived  assets are  reviewed  for
impairment  whenever  events  or  changes  in  circumstances  indicate  that the
carrying  amount  may  not be  recoverable.  If the sum of the  expected  future
undiscounted cash flows is less than the carrying amount of the asset, a loss is
recognized for the  difference  between the fair value and the carrying value of
the asset. There were no write-downs required during 1999.

         Debt Issue Costs

         Pursuant  to  the  terms  of  the  Prospectus,   the  Company  paid  an
Organization and Offering  Expense  Reimbursement to JHC in cash in an amount up
to 2.0% of Aggregate Gross Offering  Proceeds for reimbursement of certain costs
incurred in  connection  with the  organization  of the Company and the Offering
(the "Reimbursement").

         To the extent  that JHC  incurred  expenses  in excess of the 2.0% cash
limit,  such  excess  expenses  were  repaid to JHC in the form of Common  Stock
issued by the Company at a price of $1.00 per share (the  "Excess  Stock").  The
amount of Excess  Stock that the Company can issue was limited  according to the
amount of Aggregate Gross Offering  Proceeds raised by the Company.  The Company
capitalized the Reimbursement paid and amortizes such costs over the life of the
Notes (approximately eight years).


<PAGE>



                              AEROCENTURY IV, INC.
                          Notes to Financial Statements


1.       Summary of Significant Accounting Policies (continued)

         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.

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"),
a 50% undivided interest in a Shorts SD-360, serial number S/N 3676 ("S/N 3676")
and a 67% undivided interest in a deHavilland DHC-6, serial number S/N 668 ("S/N
668").

         During  1999,  the  Company  purchased  its  interest  in S/N 668;  the
remaining interest is owned by JetFleet III.

         Aircraft and Aircraft Engines Leases

         S/N 3606 and S/N 3676 are  subject to  similar  48-month  leases,
expiring  in July 2001,  with a British regional airline.

         S/N AC-647 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 and is seeking  re-lease
opportunities.  In  connection  with the  repossession,  the Company  recorded a
write-off of approximately  $4,300 which represents rent receivable in excess of
the letter of credit held by the  Company,  which the Company  collected  during
August 1999.

         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.

         S/N 668 is subject to a 60-month  lease,  expiring in July 2004, with a
regional carrier in Colombia.


<PAGE>



                              AEROCENTURY IV, INC.
                          Notes to Financial Statements

2.       Aircraft and Aircraft Engines Under Operating Leases (continued)

         Detail of Investment

         The following schedule provides an analysis of the Company's investment
in aircraft under operating leases and the related accumulated  depreciation for
the years ended December 31, 1999 and 1998:
<TABLE>
<S>                                              <C>                   <C>                  <C>

                                                                        Accumulated
                                                     Cost              Depreciation               Net

Balance, December 31, 1997                       $   2,571,910         $    (37,350)         $   2,534,560

Additions                                            1,041,610             (204,810)               836,800
                                                 -------------         -------------         -------------
Balance, December 31, 1998                           3,613,520             (242,160)             3,371,360

Additions                                              659,940             (249,470)               410,470
                                                 -------------         -------------         -------------
Balance, December 31, 1999                       $   4,273,460         $   (491,630)         $   3,781,830
                                                 =============         =============         =============
</TABLE>

3.       Operating Segments

         The Company operates in one business  segment,  aircraft  leasing,  and
therefore does not present separate segment information for lines of business.

         Approximately 40% and 32% of the Company's  operating lease revenue was
derived  from  lessees  domiciled  in the United  States  during  1999 and 1998,
respectively.   All  leases   relating   to   aircraft   leased   and   operated
internationally are denominated and payable in U.S. dollars.

         The table below sets forth geographic  information  about the Company's
operating leased aircraft equipment grouped by domicile of the lessee:
<TABLE>
<CAPTION>

                                        Operating Lease Revenue            Net Book Value of Operating Leased Assets
                                    For the Year Ended December 31,                      December 31,
<S>      <C>                        <C>              <C>                        <C>              <C>

         Country                         1999              1998                     1999              1998
         -------                         ----              ----                     ----              ----

         United Kingdom             $     386,640    $     362,480              $   1,392,190    $   1,516,520
         Mexico                           180,000          172,500                    793,220          843,470
         Colombia                          86,680                -                    651,020                -
         Other                             47,300           90,300                    945,400        1,011,370
                                    -------------    -------------              -------------    -------------
                                    $     700,620    $     625,280              $   3,781,830    $   3,371,360
                                    =============    =============              =============    =============
</TABLE>

         For the year ended December 31, 1999, the Company had three significant
customers,  which accounted for 55%, 26% and 12%, respectively of lease revenue.
For the year  ended  December  31,  1998,  the  Company  had  three  significant
customers, which accounted for 58%, 28% and 14%, respectively, of lease revenue.


<PAGE>



                              AEROCENTURY IV, INC.
                          Notes to Financial Statements

3.       Operating Segments (continued)

         As of December 31, 1999, minimum future lease rent payments  receivable
under noncancelable leases were as follows:
<TABLE>
<S>               <C>               <C>
                  Year                   Amount

                  2000              $     822,690
                  2001                    597,180
                  2002                    330,900
                  2003                    180,900
                  2004                     90,450
                                    -------------
                                    $   2,022,120
                                    =============
</TABLE>

4.       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.

5.       Income Taxes

         The items comprising income tax expense are as follows:
<TABLE>
<S>      <C>                                                                        <C>              <C>

                                                                                             1999              1998
                                                                                             ----              ----
         Current tax provision
              Federal                                                               $           -    $            -
              State                                                                           800               800
                                                                                    -------------    --------------
              Current tax provision                                                           800               800
                                                                                    -------------    --------------

         Deferred tax provision
              Federal                                                                   (119,830)          (62,640)
              State                                                                        16,880          (10,750)
                                                                                    -------------    --------------
              Deferred tax provision                                                    (102,950)          (73,390)
              Valuation allowance                                                       (121,770)            73,390
                                                                                    -------------    --------------
         Total provision for income taxes                                           $   (223,920)    $          800
                                                                                    =============    ==============


</TABLE>


<PAGE>



                              AEROCENTURY IV, INC.
                          Notes to Financial Statements


5.       Income Taxes (continued)

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

                                                                                             1999              1998
                                                                                             ----              ----

         Income tax expense at statutory federal income tax rate                    $   (119,290)    $     (62,640)
         State taxes net of federal benefit                                                 (510)          (10,750)
         Tax rate differences                                                              17,370                 -
         State franchise taxes                                                                270               800
         Change in valuation allowance                                                  (121,770)            73,390
                                                                                    -------------    --------------
         Total provision for income taxes                                           $   (223,930)    $          800
                                                                                    =============    ==============
</TABLE>
         Temporary   differences  and   carryforwards   which  gave  rise  to  a
significant  portion of deferred tax assets and  liabilities  as of December 31,
1999 are as follows:
<TABLE>
<S>      <C>                                                                        <C>

         Deferred tax assets:
              Prepaid rent                                                          $      11,320
              Maintenance deposits                                                         25,700
              State franchise taxes                                                           270
                                                                                    -------------
                  Subtotal                                                                 37,290
                  Valuation allowance                                                           -
                                                                                    -------------
                  Net deferred tax assets                                                  37,290
         Deferred tax liabilities:
              Amortization of organizational costs                                          (200)
              Depreciation of aircraft                                                   (44,360)

                                                                                    $     (7,270)
                                                                                    =============
</TABLE>

         The Company  anticipates  generating  adequate future taxable income to
realize the benefits of the remaining  deferred tax assets on the balance sheet.
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.

6.       Related Party Transactions

         The  Company's   Income   Producing  Asset  portfolio  is  managed  and
administered  under the terms of a  management  agreement  with JMC.  Under this
agreement,  on the last day of each calendar  quarter,  JMC receives a quarterly
management fee equal to 0.5% of the Company's  Aggregate Gross Proceeds received
through the last day of such quarter.  In 1999 and 1998,  the Company  accrued a
total of $97,380 and $97,380, respectively, in management fees due JMC.




<PAGE>



                              AEROCENTURY IV, INC.
                          Notes to Financial Statements


6.       Related Party Transactions (continued)

         JMC may receive a 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 1999 and 1998, the Company paid JMC a total
of $36,280 and $58,500, respectively, in acquisition fees and reimbursed JMC for
$6,620  and  $8,110,  respectively,  for  Chargeable  Acquisition  Expenses.  No
remarketing fees were paid during 1999 or 1998.

         As provided in the prospectus for the Offering,  the Company may invest
in Financial Assets,  including  indebtedness secured by Equipment.  On March 4,
1998 the Company loaned  $866,670 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 $43,910 of interest during the term of the loan.

         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 1999 or 1998.

         The  Company  is a member  of a group  that  files a  consolidated  tax
return. The Company has recorded a receivable from affiliates to reflect the tax
benefits of net  operating  losses of the Company used in the  consolidated  tax
return.  Under the terms of a tax sharing  agreement  between the members of the
consolidated  group,  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.

7.       Subsequent Event

         On  February  24,  2000,  the  lessee of two of the  Company's  30-seat
aircraft  filed for  reorganization.  The two aircraft are owned 100% and 50% by
the Company. The lessee is continuing to operate,  and, under the reorganization
plan, an agreement will be reached regarding the status of those aircraft.



Item 8.           Changes in and Disagreements With Accountants
                  on Accounting and Financial Disclosure.

None.


                                    PART III

Item 9.           Directors, Executive Officers, Promoters and Control Persons;
                  Compliance With Section 16(a) of the Exchange Act.

General

Pursuant  to a  Management  Agreement  between  the  Company  and  JMC,  JMC  is
responsible for most management  decisions,  has  responsibility for supervising
the  Company's  day-to-day  operations,  including  compliance  with  legal  and
regulatory   requirements,   and  is   responsible   for  cash   management  and
communications  between the Company  and the  holders of Notes.  The  Management
Agreement  authorizes JMC, in its sole  discretion,  to acquire,  hold title to,
sell,  lease,  re-lease or otherwise  dispose of Income  Producing Assets or any
interest  therein,  on behalf  of the  Company  when and upon such  terms as JMC
determines  to be in the best  interests  of the  Company,  subject  to  certain
limitations set forth in the Prospectus.

Directors and Officers

The directors, executive officers and key employees of the Company and JMC, each
of whom serves until his successor is elected and qualified, are as follows:

              Name                 Position Held

Neal D. Crispin                    President, Chairman of the Board of Directors
                                   and Chief Financial Officer of the Company

Marc J. Anderson                   Senior Vice President of the Company

Frank Duckstein                    Vice President of the Company

Sidney F. Gage                     Member of JMC Credit Committee

<PAGE>

Neal D. Crispin,  age 54. Mr.  Crispin is Chairman of the Board of Directors and
President of the Company.  He is also  President and a Director of ACY, JHC, JMC
and CMA Consolidated,  Inc.  ("CMA").  Prior to forming CMA in 1983, Mr. Crispin
was vice  president-finance of an oil and gas company.  Previously,  Mr. Crispin
was a manager with Arthur Young & Co., Certified Public Accountants. Mr. Crispin
is the husband of Toni M.  Perazzo,  a Director and Officer of JHC, JMC and ACY.
He received a Bachelors degree in Economics from the University of California at
Santa Barbara and a Masters degree in Business  Administration  (specializing in
Finance) from the University of California at Berkeley. Mr. Crispin, a certified
public  accountant,  is a member of the American  Institute of Certified  Public
Accountants and the California Society of Certified Public Accountants.


Marc J. Anderson,  age 63. Mr.  Anderson is the Company's  Senior Vice President
and is also Senior  Vice  President  of JHC,  JMC and ACY and a Director of ACY.
Prior to joining JMC in 1994, Mr. Anderson was an aviation  consultant  (1992 to
1994)  and  prior to that  spent  seven  years  (1985 to  1992) as  Senior  Vice
President-Marketing  for PLM International,  a transportation  equipment leasing
company.  He was  responsible  for the  acquisition,  modification,  leasing and
remarketing   of  all   aircraft.   Prior  to  PLM,  Mr.   Anderson   served  as
Director-Contracts  for Fairchild Aircraft Corp., Director of Aircraft Sales for
Fairchild SAAB Joint Venture, and Vice President,  Contracts for SHORTS Aircraft
USA,  Inc.  Prior to that,  Mr.  Anderson  was  employed by several  airlines in
various roles of increasing responsibility beginning in 1959.

Frank  Duckstein,  age  45.  Mr.  Duckstein  is the  Company's  Vice  President,
Remarketing. He holds the same position with JMC and ACY. Mr. Duckstein has been
in charge of market  development  for JMC since  joining JMC 1995.  From 1989 to
1995, Mr.  Duckstein  served as Director of Marketing for PLM  International,  a
transportation  equipment leasing company.  While at PLM, he was responsible for
sales and remarketing,  market research and development,  both  domestically and
internationally,  of PLM's  corporate  and commuter  aircraft,  as well as their
helicopter  fleet.  Previously,  he was with  the  following  international  and
regional airlines  operating within Europe and the U.S. with  responsibility for
operation,  market  development  and sales:  Direct Air (Berlin,  Germany);  Air
Berlin (Berlin,  Germany),  and Aeroamerica  (Berlin,  Germany).  Mr.  Duckstein
attended the Technical University of Berlin, majoring in Economics.

Sidney F. Gage,  age 56,  Member of JMC Credit  Committee.  Mr.  Gage has been a
partner of Gage &  Baumgarten,  a management  consulting  firm  specializing  in
strategic  business  planning,  since 1990.  Previously,  he was Executive  Vice
President and Director of Mission Resources,  Inc., the managing general partner
of Mission  Resource  Partners,  an oil and gas company  listed on the  American
Stock   Exchange,   and  President  of  Mission   Securities,   Inc.,  its  NASD
broker-dealer  affiliate.  He is a certified public accountant with degrees from
the  University  of Notre Dame and the Stanford  University  Graduate  School of
Business.  Mr.  Gage has served as a  consultant  to the CMA Group of  companies
since 1990.

Item 10.          Executive Compensation.

The Company has no employees. The following is a summary of the compensation and
reimbursements  paid to the parent of the  Company  and  related  parties by the
Company for the years ended December 31, 1999 and 1998.

Compensation

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
0.50% of the Company's Aggregate Gross Proceeds received through the last day of
such  quarter.  During 1999 and 1998,  the  Company  paid a total of $97,380 and
$97,380, respectively, in management fees due 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 1999 and 1998, the Company paid JMC a total of $36,280
and $58,500, respectively, in acquisition fees and reimbursed JMC for $6,620 and
$8,110,  respectively,  for Chargeable Acquisition Expenses. No remarketing fees
were paid during 1999 or 1998.

The Company  reimburses  JHC for certain costs  incurred in connection  with the
organization of the Company and the Offering.  The Company made no such payments
during 1999 or 1998.



<PAGE>



Item 11.        Security Ownership of Certain Beneficial Owners and Management.

No person is known to the Company to be the beneficial  owner of more than 5% of
the Units.  No officer or director  of JHC or JMC or any of its related  parties
beneficially owns any Units.

JHC owns 100% of the issued and  outstanding  common stock of the  Company.  Mr.
Crispin,  President of JHC, and Toni M. Perazzo, Vice  President-Finance of JHC,
collectively own the majority of the issued and outstanding common stock of JHC,
including shares owned by CMA Consolidated,  an affiliated company controlled by
Mr. Crispin.  Marc J. Anderson,  Senior Vice President of JMC owns approximately
1% of JHC's common stock.

Item 12.          Certain Relationships and Related Transactions.

See Item 10, above.

Item 13.          Exhibits and Reports on Form 8-K.

         (a)      Exhibits

                  None.

         (b)      Reports on Form 8-K Filed in Last Quarter

                  None.


<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 March 10, 2000.

                                    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 March 10,
2000.

Signature                                  Title

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