SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
(Mark One) [ X ] Annual Report Under Section 13 or 15(d) of the Securities
Exchange Act of 1934 For the quarterly period ended March 31, 1999
[ ] Transition Report Under Section 13 or 15(d) of the Securities Exchange Act
of 1934 For the transition period from to
Commission File Number: 333-22239
AeroCentury IV, Inc.
(Name of small business issuer in its charter)
California 94-3260392
State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
1440 Chapin Avenue, Suite 310
Burlingame, California 94010
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code: (650) 340-1880
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: None
Check whether the Issuer: (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or
for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days. Yes X
No
On May 14, 1999 the aggregate market value of the voting and non voting Common
equity held by non-affiliates (computed by reference to the price at which the
common equity was sold) was $0.
As of May 14, 1999 the Issuer has 243,420 Shares of Common Stock outstanding.
Transitional Small Business Disclosure Format (check one):
Yes No X
<PAGE>
Part I. Financial Information
Item 1. Financial Statements.
<TABLE>
<CAPTION>
AEROCENTURY IV, INC.
Balance Sheet
March 31, 1999
<S> <C>
ASSETS
Current assets:
Cash $ 1,038,210
Deposits 14,610
Rent receivable 80,620
Accounts receivable 18,390
-------------
Total current assets 1,151,830
Aircraft and aircraft engines under operating leases,
net of accumulated depreciation of $302,300 3,311,220
Debt issue costs, net of accumulated
amortization of $123,650 465,870
-------------
Total assets $ 4,928,920
=============
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities:
Accounts payable $ 9,250
Interest payable 81,150
Prepaid rent 24,170
Maintenance deposits 33,000
-------------
Total current liabilities 147,570
Medium-term secured notes 4,869,000
Total liabilities 5,016,570
Preferred stock, no par value, 100,000 shares authorized,
no shares issued and outstanding -
Common stock, no par value, 500,000 shares authorized,
243,420 shares issued and outstanding 243,420
Accumulated deficit (331,070)
-------------
Total shareholder's equity (87,650)
-------------
Total liabilities and shareholder's equity $ 4,928,920
=============
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AEROCENTURY IV, INC.
Statements of Operations
For the Three Months Ended March 31,
<S> <C> <C>
1999 1998
---- ----
Revenues:
Rent income $ 193,260 $ 110,000
Interest income 8,300 24,950
-------------- -------------
201,560 134,950
-------------- -------------
Expenses:
Depreciation 60,130 43,640
Amortization 19,150 19,150
Interest 121,730 121,730
Management fees 24,340 24,340
Professional fees and general and administrative 1,600 260
-------------- -------------
226,950 209,120
-------------- -------------
Net loss $ (25,390) $ (74,170)
============== =============
Weighted average common shares outstanding 243,420 243,420
============== =============
Basic loss per common share $ (0.10) $ (0.30)
============== =============
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AEROCENTURY IV, INC.
Statements of Cash Flows
For the Three Months Ended March 31,
<S> <C> <C>
1999 1998
---- ----
Net cash provided by operating activities $ 49,950 $ 57,120
Investing activity -
Investment in secured promissory note - (866,670)
-------------- -------------
Net increase/(decrease) in cash 49,950 (809,550)
Cash, beginning of period 988,260 1,944,120
-------------- -------------
Cash, end of period $ 1,038,210 $ 1,134,570
============== =============
Supplemental disclosures of cash flow information: Cash paid during the period
for:
Interest $ 121,730 $ 121,730
Income taxes - -
See accompanying notes.
</TABLE>
<PAGE>
AEROCENTURY IV, INC.
Notes to Financial Statements
March 31, 1999
1. Basis of Presentation
AeroCentury IV, Inc. (the "Company") was incorporated in the state of
California on February 7, 1997 ("Inception"). The Company was formed solely for
the purpose of acquiring Income Producing Assets. The Company offered up to
$10,000,000 in $1,000 Secured Promissory Notes maturing on April 30, 2005 (the
"Notes") pursuant to a prospectus dated May 21, 1997 (the "Prospectus").
The accompanying balance sheet at March 31, 1999 and statements of
operations and cash flows for the three months ended March 31, 1999 and 1998
reflect all adjustments (consisting of only normal recurring accruals) which
are, in the opinion of the Company, necessary for a fair presentation of the
financial results. The results of operations of such periods are not necessarily
indicative of results of operations for a full year. The statements should be
read in conjunction with the Summary of Significant Account Policies and other
notes to financial statements included in the Company's Annual Report on Form
10-KSB for the year ended December 31, 1998.
Organization and Capitalization
All of the Company's outstanding common stock is owned by JetFleet Holding
Corp. ("JHC"), a California corporation formed in January 1994. In May 1998,
JetFleet Management Corp., the sole shareholder of the Company was renamed
JetFleet Holding Corp. The rights and obligations under the management agreement
between the Company and JHC were assigned by JHC to a newly-created wholly-owned
subsidiary named "JetFleet Management Corp." ("JMC"). JMC also manages
AeroCentury Corp. ("ACY"), a Delaware corporation, and JetFleet III, a
California corporation ("JetFleet III"), which are affiliates of the Company and
which have objectives similar to the Company's. Neal D. Crispin, the President
of the Company, holds the same position with JHC and JMC and owns a significant
amount of the common stock of JHC.
Aircraft and Aircraft Engines Under Operating Leases
The Company's interests in aircraft are recorded at cost, which include
acquisition costs (see Note 2). Depreciation is computed using the straight-line
method over each aircraft's estimated economic life (generally assumed to be
twelve years) to its estimated residual value.
Debt Issue Costs
Pursuant to the terms of the Prospectus, the Company paid an Organization
and Offering Expense Reimbursement to JHC in cash in an amount up to 2.0% of
Aggregate Gross Offering Proceeds for reimbursement of certain costs incurred in
connection with the organization of the Company and the Offering (the
"Reimbursement").
To the extent that JHC incurred expenses in excess of the 2.0% cash limit,
such excess expenses were repaid to JHC in the form of Common Stock issued by
the Company at a price of $1.00 per share (the "Excess Stock"). The amount of
Excess Stock that the Company issued was limited according to the amount of
Aggregate Gross Offering Proceeds raised by the Company.
The Company capitalized the Reimbursement paid by the Company and amortizes
such costs over the life of the Notes (approximately eight years).
Assets Subject to Lien
The Company's obligations under the Notes are secured by a security
interest in all of the Company's right, title and interest in the Income
Producing Assets acquired by the Company.
<PAGE>
AEROCENTURY IV, INC.
Notes to Financial Statements
March 31, 1999
1. Basis of Presentation (continued)
Income Taxes
The Company follows the liability method of accounting for income taxes as
required by the provisions of Statement of Financial Accounting Standards No.
109 - Accounting for Income Taxes.
Cash and Cash Equivalents/Deposits
The Company considers highly liquid investments readily convertible into
known amounts of cash, with original maturities of 90 days or less, as cash
equivalents. Deposits represent cash balances held related to maintenance and
are subject to withdrawal restrictions. As of March 31, 1999, the Company
maintained $1,048,380 of its cash balances in a money market fund held by a
regional brokerage firm, which is not federally insured.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect certain reported amounts and disclosures. Accordingly,
actual results could differ from those estimates.
2. Aircraft and Aircraft Engines Under Operating Leases
Aircraft and Aircraft Engines
The Company owns a Shorts SD3-60-100, serial number S/N 3606 ("S/N 3606"),
a Pratt & Whitney JT8D-9A aircraft engine, serial number 674452B (the "Engine"),
a Fairchild Metro III aircraft, serial number AC-647 ("S/N AC-647") and a 50%
undivided interest in a Shorts SD-360, serial number S/N 3676 ("S/N 3676")
The Company did not purchase any aircraft during the first quarter of 1999.
Aircraft and Aircraft Engines Leases
S/N 3606 and S/N 3676 are subject to similar 48-month leases, expiring
on July 27, 2001, with a British regional airline.
S/N AC-647 is subject to a 36-month lease, expiring on April 13, 2001,
with a regional carrier in Uruguay. Management has ordered the lessee to cease
flying the aircraft due to non-payment of rent. Management is negotiating with
the lessee regarding its continued use of the aircraft.
The Engine is used on a McDonnell Douglas DC-9 aircraft and is subject
to a 60-month lease with the seller, expiring on November 4, 2002. The Engine is
subleased by the seller to a Mexican-based regional carrier.
3. Medium-term secured Notes
As mentioned above, the Company raised funds through the Offering from
May 1997 to August 1997. During 1997, the Company accepted subscriptions for
4,869 Notes aggregating $4,869,000 in Gross Offering Proceeds. Pursuant to the
Prospectus, the Company subsequently issued $4,869,000 in Notes due April 30,
2005. The Notes bear interest at an annual rate of 10.00% which is due and
payable on a quarterly basis, in arrears, on the first business day of February,
May, August and November. The carrying amount of the Notes payable approximates
fair value.
<PAGE>
AEROCENTURY IV, INC.
Notes to Financial Statements
March 31, 1999
4. Income Taxes
The items comprising income tax expense are as follows:
Current tax provision:
Federal $ -
State -
--------------
Current tax provision -
--------------
Deferred tax provision:
Federal (8,904)
State 17,303
--------------
Deferred tax provision 8,399
Valuation Allowance (8,399)
--------------
Total provision for income taxes $ -
==============
Total income tax expense differs from the amount which would be
provided by applying the statutory federal income tax rate to pretax earnings as
illustrated below:
Income tax expense at
statutory federal income tax rate $ (8,631)
State taxes net of federal benefit (41)
Tax rate differences 17,343
California franchise tax (272)
Valuation allowance (8,399)
--------------
Total provision for income taxes $ -
==============
Temporary differences and carryforwards which gave rise to a
significant portion of deferred tax assets and liabilities as of March 31, 1999
are as follows:
Deferred tax assets:
Net operating loss $ (116,576)
Prepaid rent (8,255)
Maintenance reserves (11,274)
--------------
Subtotal (136,105)
Valuation allowance 113,368
--------------
Net deferred tax assets (22,737)
Deferred tax liabilities:
Amortization of organizational costs 225
Depreciation on aircraft 22,512
$ -
==============
The Company anticipates that deferred tax liabilities will be offset by
deferred tax assets and has recorded a valuation allowance for the remaining
portion of deferred tax assets as the Company does not anticipates generating
adequate future taxable income to realize the benefits of the remaining deferred
tax assets on the balance sheet. The Company's net operating losses may be
carried forward for fifteen to twenty years depending upon when they were
created and begin to expire in 2012.
<PAGE>
AEROCENTURY IV, INC.
Notes to Financial Statements
March 31, 1999
5. Related Party Transactions
The Company's Income Producing Asset portfolio is managed and
administered under the terms of a management agreement with JMC. Under this
agreement, on the last day of each calendar quarter, JMC receives a quarterly
management fee equal to 0.5% of the Company's Aggregate Gross Proceeds received
through the last day of such quarter. In the first three months of 1999, the
Company paid a total of $24,340 in management fees due JMC. The same amount was
accrued during the first three months of 1998.
JMC may receive a brokerage fee for locating assets for the Company and
a remarketing fee in connection with the sale of the Company's assets, provided
that such fees are not more than the customary and usual fees that would be paid
to an unaffiliated party for such a transaction. The total of the Aggregate
Purchase Price plus the brokerage fee cannot exceed the fair market value of the
asset based on appraisal. JMC may also receive reimbursement of Chargeable
Acquisition Expenses incurred in connection with a transaction which are payable
to third parties. Because the Company did not purchase aircraft during the first
quarters of 1999 or 1998, it did not pay any brokerage fees or Chargeable
Acquisition Expenses to JMC.
As discussed in Note 2, the Company owns a 50% undivided interest in
S/N 3676. The remaining 50% undivided interest is owned by JetFleet III. Each
co-owner of S/N 3676 receives its pro-rata share of rent income received from
the lessee.
As provided in the prospectus for the Offering, the Company may invest
in Financial Assets, including indebtedness secured by Equipment. During March
1998, the Company loaned $866,670 to ACY in connection with ACY's purchase of a
Shorts SD-360 aircraft. ACY issued a secured promissory note to the Company in
the amount of the loan, which was secured by a perfected first lien security
interest in the aircraft. Pursuant to the note's provision for prepayment at any
time without penalty, ACY repaid the note in full during August 1998. ACY paid
the Company $8,090 of interest during the first quarter of 1998.
<PAGE>
Item 2. Management's Discussion and Analysis or Plan of Operation.
Capital Resources and Liquidity
At the end of March 1999, the Company had cash balances of $1,038,210 and
deposits of $14,610. The Company's cash balances were held for the interest
payment made to the Noteholders in May 1999, for normally recurring expenses and
for investment in additional Income Producing Assets.
The primary source of the Company's funds is rental revenue from the Income
Producing Assets. The Company's liquidity will vary in the future, increasing to
the extent cash flows from operations exceed expenses, and decreasing as
interest payments are made to the Noteholders and to the extent expenses exceed
cash flows from leases.
The Company's primary use of its operating cash flow is interest payments to its
Noteholders. Excess cash flow, after payment of interest and operating expenses
is held for investment in additional Income Producing Assets. Since the Company
has acquired Income Producing Assets which are subject to triple net leases (the
lessee pays operating and maintenance expenses, insurance and taxes), the
Company does not anticipate that it will incur significant operating expenses in
connection with ownership of its Income Producing Assets as long as they remain
on lease.
The Company currently has available adequate reserves to meet its immediate cash
requirements. The leases for the Company's aircraft expire at varying times
between April 2001 and November 2002. As mentioned in Note 2, management has
ordered the lessee of S/N AC-647 to cease flying the aircraft due to non-payment
of rent. Management is negotiating with the lessee regarding its continued use
of the aircraft. The Company holds a security deposit equal to four months of
rent and may offset rent receivable with the security deposit. Management
believes that the Company will have adequate cash flow to meeting any on-going
operational needs, even if it must seek a new lessee for S/N AC-647.
Although the Company had a decreased net loss in the first quarter of 1999
versus the same period in 1998 (see "Results of Operations", below), cash flow
from operations was approximately the same in the first three months of 1999 and
1998. The decrease in cash flow used by investing activities was because the
Company invested $866,670 in Income Producing Assets during the first quarter of
1998 versus no such activities in the same period of 1999. There was no cash
flow from financing activities in 1999 or 1998 because the Offering terminated
in August 1997.
Although the Company has positive cash flow from operations, the Company
operates at a net loss due to depreciation and interest expense.
Results of Operations
The Company recorded a net loss of ($25,390) or ($0.10) per share and ($74,170)
or ($0.30) per share for the three months ended March 31, 1999, respectively.
Rental income increased by approximately $83,000, primarily because of the
additional rent accrued for S/N AC-647 which was purchased during the second
half of 1998. Depreciation also increased from year to year by approximately
$16,000 as a result of this acquisition.
Factors that May Affect Future Results
General Economic Conditions. The market for used aircraft has been cyclical, and
usually reflects economic conditions and the strength of the travel and
transportation industry. At any time, the market for used aircraft may be
adversely affected by such factors as airline financial difficulties, higher
fuel costs, and improved availability and economics of new replacement aircraft.
An adverse change in the global air travel industry, however, could result in
reduced carrier revenue and excess capacity and increase the risk of failure of
some weaker regional air carriers. While the Company believes that with proper
asset and lessee selection the impact of such changes on the Company can be
reduced, there is no assurance that the Company's business will escape the
effects of such a global downturn, or a regional downturn in an area where the
Company has placed a significant amount of its assets.
<PAGE>
Reliance on JMC. All management of the Company is performed by JMC pursuant to a
management agreement between JMC and the Company. The Board of Directors does,
however, have ultimate control and supervisory responsibility over all aspects
of the Company and does owe fiduciary duties to the Company and its
stockholders. In addition, while JMC may not owe any fiduciary duties to the
Company by virtue of the management agreement, the officers of the Company are
also officers or employees of JMC, and in that capacity owe fiduciary duties to
the Company and the stockholders by virtue of holding such offices. Although the
Company has taken steps to prevent such conflicts, such conflicts of interest
arising from such dual roles may still occur.
Ownership Risks. The Company's portfolio is leased under operating leases, where
the terms of the leases do not take up the entire useful life of an asset. The
Company's ability to recover its purchase investment in an asset subject to an
operating lease is dependent upon the Company's ability to profitably re-lease
or re-sell the asset after the expiration of the initial lease term. Some of the
factors that have an impact on the Company's ability to re-lease or re-sell
include worldwide economic conditions, general aircraft market conditions,
regulatory changes that may make an asset's use more expensive or preclude use
unless the asset is modified, changes in the supply or cost of aircraft
equipment and technological developments which cause the asset to become
obsolete. In addition, a successful investment in an asset subject to an
operating lease depends in part upon having the asset returned by the lessee in
serviceable condition as required under the lease. If the Company is unable to
remarket or sell its aircraft equipment on favorable terms when the operating
lease for such equipment expires, the Company's business, financial condition,
cash flow, ability to service debt and results of operation could be adversely
affected.
International Risks. The Company's portfolio currently consists of leases with
foreign air carriers. Leases with foreign lessees, however, may present somewhat
different credit risks than those with domestic lessees.
Foreign laws, regulations and judicial procedures may be more or less protective
of lessor rights as those which apply in the United States. The Company could
experience collection problems related to the enforcement of its lease
agreements under foreign local laws and the attendant remedies in foreign
jurisdictions. The protections potentially offered by Section 1110 of the
Bankruptcy Code would not apply to non-U.S. carriers, and applicable local law
may not offer similar protections. Certain countries do not have a central
registration or recording system with which to locally establish the Company's
interest in equipment, and related leases. This could add difficulty in
recovering an engine in the event that a foreign lessee defaults.
Leases with foreign lessees are subject to risks related to the economy of the
country or region that such lessee is located even if the U.S. economy remains
strong. On the other hand, a foreign economy may remain strong even though the
domestic U.S. economy is not. A foreign economic downturn may occur and impact a
foreign lessee's ability to make lease payments, even though the U.S. and other
economies remain stable. Furthermore, foreign lessees are subject to risks
related currency conversion fluctuations. Although the Company's current leases
are all payable in U.S. dollars, in the future, the Company may agree to leases
that permit payment in foreign currency, which would subject such lease revenue
to monetary risk due to currency fluctuations. Even with dollar-denominated
lease payment provisions, the Company could still be affected by a devaluation
of the lessee's local currency which makes it more difficult for a lessee to
meet its dollar-denominated lease payments, increasing the risk of default of
that lessee, particularly if that carrier's revenue is primarily derived in the
local currency.
Competition. The Company has many competitors in the aircraft leasing industry,
including leasing companies, banks and other financial institutions and aircraft
leasing partnerships. The market is highly competitive. Most of the Company's
competitors have substantially greater financial and other resources than the
Company.
Casualties, Insurance Coverage. The Company, as owner of transportation
equipment, could be held liable for injuries or damage to property caused by its
assets. Though some protection may be provided by the United States Aviation Act
with respect to its aircraft assets, it is not clear to what extent such
statutory protection would be available to the Company and such act may not
apply to aircraft operated in foreign countries. Though the Company may carry
insurance or require a lessee to insure against a risk, some risks of loss may
not be insurable. An uninsured loss with respect to the Equipment or an insured
loss for which insurance proceeds are inadequate, would result in a possible
loss of invested capital in and any profits anticipated from such equipment.
Leasing Risks. The Company's successful negotiation of lease extensions,
re-leases and sales may be critical to its ability to achieve its financial
objectives, and will involve a number of substantial risks. Demand for lease or
purchase of the assets depends on the economic condition of the airline industry
which is in turn highly sensitive to general economic conditions. Ability to
re-lease or re-sell equipment at acceptable rates may depend on the demand and
market values at the time of re-lease or re-sale. The market for used aircraft
is cyclical, and generally, but not always, reflects economic conditions and the
strength of the travel and transportation industry. The demand for and re-sale
value of many types of older aircraft in the recent past has been depressed by
such factors as airline financial difficulties, increased fuel costs, the number
of new aircraft on order and the number of older aircraft coming off lease. The
Company's concentration in a limited number of airframe and aircraft engine
types (generally, turboprop equipment) subjects the Company to economic risks if
those aircraft engine types should decline in value. The recent introduction of
"regional jets" to serve on short routes previously thought to be economical
only for turboprop aircraft operation could decrease the demand for turboprop
aircraft, while at the same increasing the supply of used turboprop aircraft.
This could result in lower lease rates and values for the Company's turboprop
aircraft.
Risks Related to Regional Air Carriers. Because the Company has concentrated its
existing leases on leases to regional air carriers, it will be subject to
certain risks. First, lessees in the regional air carrier market include a
number of companies that are start-up, low capital, low margin operations.
Often, the success of such carriers is dependent upon arrangements with major
trunk carriers, which may be subject to termination or cancellation by such
major carrier. This market segment is also characterized by low entry costs, and
thus, there is strong competition in this industry segment from start-ups as
well as major airlines. Thus, leasing transactions with these types of lessees
results in a generally higher lease rate on aircraft, but may entail higher risk
of default or lessee bankruptcy.
Year 2000 Considerations. Management of the Company has directed its information
technology ("IT") manager to require any software or hardware purchased for use
by the Company to have a warranty of Year 2000 compliance. It has also directed
its IT manager to study any systems that may require Year 2000 remediation. The
IT manager has determined that, because the Company's IT system is based on a
"MacOS" system, the Company's internal technology systems are ready for Year
2000, and there should not be any material costs associated with such
remediation. Furthermore, the phone and internet systems have been warranted by
their vendors for Year 2000 compliance. The Company's internal and
administrative operations are not highly dependent on any other advanced
technology system, and, consequently, management believes that the Company's
exposure to loss as a result of Year 2000 issues in its internal and
administrative operations is not significant.
Management believes that the electronic systems used in the equipment leased by
the Company to lessees will not be materially affected by the Year 2000 and that
any remediation of the technology systems embedded in the aircraft that it
leases will not be a material expense to the Company. The Company has notified
all lessees of the Year 2000 problem and has requested information on the status
of each lessee's study and remediation plans. The Company believes that there
should not be any material costs in connection with such a study. The Company
has been consulting with all the manufacturers of its leased equipment to
confirm Year 2000 compliance. Since the Company's leases generally place all
maintenance and repair obligations on the lessees, to the extent that the
aircraft are on lease when the Year 2000 problem is identified, it would
generally be the lessee's and not the Company's responsibility to remediate any
Year 2000 problem with the leased aircraft.
To the extent that a lessee has Year 2000 problems that significantly adversely
affect its overall financial status, such material problems may affect the
lessee's operations and increase the risk of default by a lessee under its lease
with the Company. Furthermore, Year 2000 issues may have a material impact on
FAA operations and the operations of certain air carriers, which in turn would
negatively affect the aircraft industry in general.
The Company's essential functions are not dependent upon any key third party
vendors or service providers related to the leasing or finance business, and
consequently, the interruption of goods and services from any such
industry-specific third party vendor or service provider to the Company is not
likely to cause a material loss to the Company. Of course, the Company's
ordinary business operation is dependent upon vendors that provide basic
services to businesses generally, such as utility companies, phone and long
distance companies, courier services, banking institutions. The Company is
monitoring the Year 2000 readiness of such providers. Management believes that a
temporary interruption in services to the Company by these types of service
providers caused by Year 2000 problems would not cause material losses to the
Company. An extended loss of these services, however, could adversely affect the
Company's business and financial performance. The Company has not yet made any
contingency plans for the extended loss of these basic services.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized on May 14, 1999.
AEROCENTURY IV, INC.
By: /s/ Neal D. Crispin
Neal D. Crispin
Title: President
Pursuant to the requirements of the Securities Act of 1934, this report has been
signed below by the following persons in the capacities indicated on May 14,
1999.
Signature Title
/s/ Neal D. Crispin President and Chairman of the
Neal D. Crispin Board of Directors of the Registrant
Chief Financial Officer
<TABLE> <S> <C>
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<NAME> AeroCentury IV, Inc.
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<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
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