<PAGE>   1
                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  FORM 10-KSB/A
                                  AMENDMENT TO
                   ANNUAL REPORT UNDER SECTION 13 OR 15(D) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                      For the Year Ended December 31, 1996

                            ZAXIS INTERNATIONAL INC.
                 (Name of Small Business Issuer In Its Charter)
<TABLE>
<S>                           <C>                            <C>
       Delaware                      0-15476                           68-0080601
(State of Incorporation)     (Commission File Number)       (IRS Employer Identification No.)
</TABLE>

                    1890 Georgetown Road, Hudson, Ohio 44236
                     (Address of principal executive office)

                                 (216) 650-0444
                (Issuer's telephone number, including area code)

Securities registered under Section 12(b) of the Exchange Act:  None.

Securities registered under Section 12(g) of the Exchange Act: Common Stock,
$.01 par value.

Check whether the registrant (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months and (2) has
been subject to such filings for the past 90 days. Yes [X] No [ ]

Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B contained in this form, 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/A or any
further amendment to Form 10-KSB. [X]

Issuer's revenues for its most recent fiscal year:  $450,566

The aggregate market value of the voting stock held by non-affiliates was
$13,661,000 based on the average of the bid and asked prices on April 7, 1997
($3.3125). Officers and directors are considered affiliates for purposes of this
calculation. The bid and asked prices are based on a small volume of infrequent
trading in the stock, as 90% of the shares are restricted as to transfer.


As of April 7, 1997, there were 5,444,437 shares of common stock outstanding.

Transitional Small Business Disclosure Format.   Yes  [X]     No  [  ]

                                   Page 1 of 5
<PAGE>   2

                                    PART III

ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS, COMPLIANCE
        WITH SECTION 16(a) OF THE EXCHANGE ACT

<TABLE>
<CAPTION>

Name, Age and Positions
  With the Company                       Occupation and Other Information
------------------------                 --------------------------------
<S>                                      <C>
Conaly Bedell,  60,                      Mr. Bedell was elected Chairman in February 1997 and is President
Chairman of the Board                    of  Bedell Corporation, a business consulting firm, and was
                                         president and a Director of The InferGene Company from 1990 to
                                         1995.

Leonard A. Duval,  75,                   Mr. Duval served as Chairman of Zaxis International Inc. (the
Director                                 "Company") and Zaxis Inc. ("Zaxis") fom August 1995 to February
                                        1997 and has been a Director of Zaxis since 1990. During the past
                                        five years, Mr. Duval has also been Chairman of the Board of a
                                        privately held company engaged in resource recovery from steel
                                        by-products.

Craig Jones,  42,                       Mr. Jones was elected to the Board in February 1997 and is
Director                                Chairman of Fraser Range Granite NL and of  Sensational
                                        Foods/Sushi King. He is also a Director of MML Management Ltd.,
                                        an Australian based manager of mutual funds.

Alan Scott, 49,                         Mr. Scott was elected to the Board in February 1997 and has been
Director                                Managing Director and Chairman of the Board of Progen Industries
                                        Ltd., of Darra, Queensland, Australia, a producer of medical
                                        research products, since 1994. Prior to that he served as
                                        Financial Director and Board member of Progen. Mr. Scott is also
                                        Managing Director of MML Management Ltd.

Calvin D. Wible, 69,                    Mr. Wible has been a Director of the Company since August 1995
Director                                and has been a Director of Zaxis since 1993. Mr. Wible was
                                        formerly owner of automobile dealerships in Medina, Ohio, and has
                                        served as a director and trustee on corporate and civic boards.
</TABLE>


                                        2
<PAGE>   3

<TABLE>
<CAPTION>

EXECUTIVE OFFICERS
<S>                                     <C>
John V. Danis,  53,                     Mr. Danis has been President of the Company and Zaxis since
President                               January 1997 and was Vice President of Finance from October 1995
                                        to January 1997. Prior to that, Mr. Danis was Corporate
                                        Controller of General Computer Corporation, a publicly held data
                                        communication and processing company for health care
                                        organizations.

                                        
Gregory S. Bambeck, Ph.D.,              Dr. Bambeck has been Executive Vice President of the Company and
47, Executive Vice President of         Zaxis since August 1995 and of Zaxis since December 1990. 
Research and Development                

Melvin Weisblatt, 55,                   Mr. Weisblatt has been Vice President of Sales and Marketing
Vice President of Sales and             since July 1996. Prior to that, he was Executive Vice President
Marketing                               of Amersham Inc. from 1993 and of United States Biochemical
                                        Corporation from 1978 to 1993.

SIGNIFICANT EMPLOYEES

Heinz A. Rode,  64,                     Mr. Rode has been in charge of production for Zaxis since July
Manufacturing Director                  1996 and was Manager of Process Engineering from February 1995 to
                                        July 1996. Prior to that, Mr. Rode held executive positions in
                                        the steel industry in operations and engineering.
</TABLE>

ITEM 10.   EXECUTIVE COMPENSATION

The following table sets forth compensation paid to Charles E. Leffler, the
Company's president during 1996 who resigned in January 1997. No other executive
officer received compensation during 1996 which exceeded $100,000.
<TABLE>
<CAPTION>
NAME AND POSITION                     YEAR                       SALARY
-----------------                     ----                       ------
<S>                                   <C>                        <C>
Charles E. Leffler, President         1996                       $75,000
</TABLE>

There were no bonuses, other compensation or long-term compensation awards or
payouts in 1996.

                                        3


<PAGE>   4

ITEM 11.   SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table sers forth asof April 28, 1996, the number of shares of
Common Stock owned by each Director and by all Directors and executive officers
of the Company as a group, and the persons or groups of persons known to the
Company to be the beneficial owners of more than 5% of the Common Stock of the
Company.
<TABLE>
<CAPTION>
Name and Address                             Amount and Nature of                    Percentage
of Beneficial Owner                         Beneficial Ownership                     Ownership
-------------------                         ---------------------                    ----------
<S>                                         <C>                                      <C>
Leonard A. Duval                                    512,694                             8.9%
207 Harmon Road
Aurora, Ohio 44202

Calvin D. Wible                                     227,803                             3.7%
441 Crestwood Lane
Naples, Florida 33962

Gregory S. Bambeck                                  366,096                             6.3%
Zaxis International Inc.
                                                                                        18.9%

All Directors and Executive Officers
as a Group
(Eight Persons)

Patricia Gesinski                                   551,926                             9.5%
2692 Woodward Road
Cuyahoga Falls, Ohio 44221

Progen Industries Ltd.                              351,904                             6.1%
2806 Ipswich Road
Darra Qld 4076, Australia

</TABLE>

ITEM 12.   CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

None.

                                        4
<PAGE>   5

                                   SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

  Date:  April 29, 1997             Zaxis International, Inc.

                                    By: /s/John V. Danis
                                       ---------------------------------
                                       John V. Danis, President and Chief
                                       Executive Officer

                                        5