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+# Dashy Project Refactor: Progress Report
+
+**Objective:** Transition Dashy from a browser-based SQLite (local storage) application to a Client-Server architecture using a Python FastAPI backend with a persistent database.
+
+---
+
+## ✅ Completed Tasks
+
+### 1. Backend Infrastructure Setup
+- Created `backend/` directory structure.
+- Configured `requirements.txt` with essential libraries (`fastapi`, `sqlalchemy`, `pydantic`, `jose`, etc.).
+- **Fix:** Pinned `bcrypt==4.0.1` to resolve compatibility issues with `passlib`.
+
+### 2. Database Modeling
+- **Schema Design:** Translated the original `db.js` schema into SQLAlchemy models in `models.py`.
+- **Relationships:** Established Many-to-Many relationships for Task Tags and One-to-Many for User Tasks and Notes.
+- **Audit Logging:** Implemented a robust Audit Log system to track all user actions.
+
+### 3. API Development
+- **Main App (`main.py`):** Set up FastAPI with CORS middleware enabled for frontend communication.
+- **Authentication:** Built JWT-based login flow in `auth.py`.
+- **Endpoints:** Created initial endpoints for:
+    - User retrieval
+    - Task CRUD (Create, Read, Update)
+    - Audit log retrieval/creation
+
+### 4. Data Migration & Environment Handling
+- **Seeding:** Created `seed.py` to migrate initial prototype data into the new database.
+- **CIFS/NAS Fix:** 
+    - Implemented `DASHY_DB_PATH` environment variable support to allow the database file to reside on a local disk while code stays on the NAS.
+    - Added a 30-second connection timeout to mitigate network latency.
+
+---
+
+## 🚧 Current Status
+- **Backend:** Feature-complete for the first phase. Ready for testing and integration.
+- **Database:** Schema is stabilized and seeding logic is verified.
+- **Frontend:** Currently still using the old `db.js` (WASM SQLite) layer.
+
+---
+
+## ⏭️ Upcoming Steps
+
+### Phase 2: Frontend Refactor
+1. **API Service:** Create `src/api.js` to handle all network requests to the FastAPI backend.
+2. **Authentication Hook:** Update the Login screen to use real JWT tokens.
+3. **Component Updates:** 
+    - Swap `DashyDB` calls for `async` API calls.
+    - Implement "Loading" states for UI responsiveness during network calls.
+4. **Cleanup:** Remove `db.js`, `data.jsx`, and the `sql.js` WASM dependency.
+
+### Phase 3: Advanced Features
+- **Real-time Notifications:** Explore WebSockets for task assignments.
+- **iMessage Integration:** Develop the "Molty" bridge for phone-to-task creation.
+- **File Uploads:** Support for attaching photos/documents to tasks.
+
+---
+
+**Last Updated:** Monday, May 11, 2026
+**Status:** Backend Operational / Awaiting Frontend Integration