<PAGE>
 
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549
         
                               AMENDMENT NO. 1 

                                      TO
                               
                                 FORM 10-KSB/A
(Mark One)

   [X]   AMENDED ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) SECURITIES 
         EXCHANGE ACT OF 1934

For the fiscal year ended July 31, 1996

   [_]   TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES
         EXCHANGE ACT OF 1943

     For the transition period from ________________ to _________________
      Commission file number: 000-20759

                       AMERICAN ARTISTS FILM CORPORATION
       (Exact Name of Small Business Issuer as Specified in its Charter)

             MISSOURI                                       43-1717111
    (State or jurisdiction of                             (I.R.S. employer
    incorporation or organization)                        identification No.)

1245 FOWLER ST., N.W. ATLANTA, GEORGIA                         30318
 (Address Principal Executive Offices)                      (Zip code)

Issuers telephone number, including area code (404) 876-7373

Securities registered under to Section 12(b) of the Exchange Act:

                                     NONE

Securities registered under Section 12 (g) of the Exchange Act:

                CLASS A COMMON STOCK, $.001 PAR VALUE PER SHARE

     Check whether the issuer (1) filed all reports required to be filed by 
Section 13 or 15(d) of the Exchange Act 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 is no disclosure of delinquent filers in response to Item 
405 of Regulation S-B is not 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
or any amendments to this Form 10-KSB.[_]

     State issuer's revenues for its most recent fiscal year: $1,711,639

     The aggregate market value of the voting stock held by non-affiliates of
the Registrant amounted to $3,970,010 at the close of business on December 1,
1996: Class A Common Stock, .001 par value, $3,970,010. There is no established
market for Class B Common Stock, $.001 par value.

     State the number of shares outstanding of each of the issuer's classes of
common equity: 732,620 shares of Class A Common Stock, $.001 par value per
share, and 5,502,277 shares of Class B Common Stock, $.001 par value per share,
were outstanding at December 1, 1996.

Documents incorporated by reference:    NONE
<PAGE>
 
                                  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:  December 19, 1996
                                  AMERICAN ARTISTS FILM CORPORATION



                                  By : /s/ Steven D. Brown
                                       -----------------------------------------
                                       Steven D. Brown
                                       Chief Executive Officer


   In accordance with the Exchange Act, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicate.

<TABLE>
<S>                           <C>                                  <C> 
/s/ Rex Hauck                 Director, Co-Chairman of the Board,  December 19, 1996
---------------------------
Rex Hauck                     and Co-President
 
/s/ Vivian Jones              Director, Co-President               December 19, 1996
---------------------------
Vivian Jones
 
/s/ Robert A. Martinez        Vice President/Finance, Treasurer    December 19, 1996
---------------------------
Robert A. Martinez
 
/s/ V. Robert Colton          Director                             December 19, 1996
---------------------------
V. Robert Colton
 
/s/ John W. Boyd              Director                             December 19, 1996
---------------------------
John W. Boyd
 
/s/ Malcolm C. Davenport, V   Director                             December 19, 1996
---------------------------
Malcolm C. Davenport, V
 
/s/ Ron L. Loveless           Director                             December 19, 1996
---------------------------
Ron L. Loveless
 
/s/ Glen Warren               Director                             December 19, 1996
---------------------------
Glen Warren
 
/s/ Dan Holloway              Director                             December 19, 1996
---------------------------
Dan Holloway
 
/s/ Norman Hoskin             Director                             December 19, 1996
---------------------------
Norman Hoskin
</TABLE>

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