diff --git a/README.md b/README.md
index 37204e6..0bbb52b 100644
--- a/README.md
+++ b/README.md
@@ -2,7 +2,9 @@
 
 Velody is a private music ecosystem for personal use across `macOS`, `iPhone`, and a VPS backend.
 
-This repository currently contains the execution foundation for Phase 1:
+The repository now includes a working backend plus Apple clients for local library upload, remote playback, iPhone sync, offline resilience, account foundation work, and early billing groundwork.
+
+## Repository Layout
 
 - `apps/apple` for the native Apple apps workspace
 - `packages/apple` for shared Swift packages
@@ -19,12 +21,12 @@ This repository currently contains the execution foundation for Phase 1:
 - npm 10+
 - Docker Desktop
 
-## Local Development
+## Local Backend Setup
 
 1. Copy the example environment file:
 
 ```bash
-cp .env.example .env
+cp backend/.env.example backend/.env
 ```
 
 2. Start Postgres and the API:
@@ -33,26 +35,32 @@ cp .env.example .env
 docker compose -f infra/docker/compose.local.yml up --build
 ```
 
-3. Open the Apple workspace:
+3. Check backend health:
+
+```bash
+curl -i http://localhost:3007/api/v1/health
+```
+
+4. Open the Apple workspace:
 
 ```bash
 open apps/apple/Velody.xcworkspace
 ```
 
-## Current Scope
+The local backend runs on `http://localhost:3007`.
 
-This phase intentionally provides:
+## Current Implemented Areas
 
-- backend contracts and scaffolding
-- database schema and initial migration
-- local filesystem storage readiness checks
-- placeholder Apple apps and shared packages
+- upload ingest and transfer flow
+- Apple playback experience
+- iPhone library sync and offline playback resilience
+- account and device-linking foundation
+- billing and entitlement foundation work
 
-This phase intentionally does not yet implement:
+## Not Yet Exposed Public Areas
 
-- folder watching
-- upload chunk transfer
-- background downloads
-- audio playback
-
-The local backend now defaults to `http://localhost:3007`.
+- public login and signup APIs
+- public account authentication APIs
+- Paddle checkout
+- Paddle webhooks
+- public billing APIs