diff --git a/INDEX.md b/INDEX.md
index 43495a9..a43944a 100644
--- a/INDEX.md
+++ b/INDEX.md
@@ -25,13 +25,13 @@
 - 09 - MVP Scope
 - 10 - Pricing Strategy
 - 11 - Technical Architecture
-- 12-14 - Reserved for future strategic docs
+- 12 - Current Tech State
 
 **Released from numbering:**
 - ~~04~~ - Moved to discussions/ with date-based naming
 - ~~05~~ - Never created, number freed
 
-**Next to assign:** 12 (or 15 if keeping 12-14 reserved)
+**Next to assign:** 13
 
 ---
 
@@ -104,10 +104,15 @@ Tiers:
 
 ### Technical Appendices
 
-**[Appendix 1](execution/appendex1.md)** - SDK code examples  
+**[12 - Current Tech State](execution/12-the-current-tech-state.md)** (v1.0, Nov 1)
+*Business-focused overview of platform capabilities and market readiness*
+Status: 📝 Working Document (updates as features complete)
+Key insight: Platform mostly production-ready with core features operational. Gaps: DB integration, transformations, CDN, VPS deployment, marketing landing.
+
+**[Appendix 1](execution/appendex1.md)** - SDK code examples
 Flow-based generation, on-demand URL generation patterns
 
-**[Appendix 2](execution/appendex2.md)** - Use cases & conversion strategy  
+**[Appendix 2](execution/appendex2.md)** - Use cases & conversion strategy
 Target scenarios, UI proposal, MVP requirements
 
 ---
@@ -183,6 +188,12 @@ ROADMAP.md → 02-reality-check.md → 07-validated-icp.md → [relevant executi
 - MVP Scope (09) - which features matter most
 - Pricing Strategy (10) - willingness to pay validation
 
+**Technical Architecture (11) + Current Tech State (12) define:**
+- What the platform can do (architecture + implementation status)
+- MVP Scope (09) - what MUST be built vs. what's already done
+- Validation Plan (08) - which features to showcase in interviews
+- Launch readiness - gap analysis between current state and market needs
+
 **Discussion Framework (05) guides:**
 - All future strategic sessions
 - Documentation creation process
diff --git a/execution/09-mvp-scope.md b/execution/09-mvp-scope.md
index 57c78a1..2d4bd5b 100644
--- a/execution/09-mvp-scope.md
+++ b/execution/09-mvp-scope.md
@@ -4,6 +4,7 @@
 **Target ICP:** AI-powered developers (Claude Code, Cursor users)
 **Development Timeline:** 4-6 weeks
 **Launch Goal:** First 5-10 beta users by end of November 2025
+**Current Status:** See [12-the-current-tech-state.md](12-the-current-tech-state.md) for implementation progress
 
 ---
 
diff --git a/execution/12-the-current-tech-state.md b/execution/12-the-current-tech-state.md
new file mode 100644
index 0000000..3933ed9
--- /dev/null
+++ b/execution/12-the-current-tech-state.md
@@ -0,0 +1,631 @@
+# Banatie Platform - Current Technical State
+
+**Date:** November 1, 2025
+**Purpose:** Business-focused overview of platform capabilities and readiness for strategic planning
+**Status:** Working Document
+**Related docs:** [09-mvp-scope.md](09-mvp-scope.md), [11-technical-architecture.md](../strategy/11-technical-architecture.md), [INDEX.md](../INDEX.md)
+
+---
+
+## Executive Summary
+
+Banatie is a production-ready AI image generation platform featuring a REST API, interactive web interface, and enterprise-grade infrastructure. The platform enables developers to integrate AI image generation into their applications without AI expertise, supported by intelligent prompt enhancement, secure storage, and comprehensive developer tools.
+
+**Current State**: Mostly fully functional development environment with all core features operational. Ready for production deployment.
+
+**Target Market hypothesis**: SaaS developers, marketing agencies, e-commerce platforms, content creators
+
+**Key Differentiator**: AI-powered prompt enhancement that transforms simple descriptions into professional results, eliminating the need for prompt engineering expertise.
+
+---
+
+## 1. API Endpoints - User Features
+
+### 1.1 Text-to-Image Generation
+
+**Endpoint**: `/api/text-to-image`
+
+**Purpose**: Generate professional AI images from natural language descriptions
+
+**Core Functionality**:
+- Converts text prompts into high-quality images using Google Gemini AI
+- Supports six aspect ratios (square, portrait, landscape, widescreen, ultrawide, vertical)
+- Optional AI-powered prompt enhancement improves simple prompts automatically
+- Returns generated image with public URL and metadata
+
+**Key Features**:
+- **Intelligent Enhancement**: Seven template styles (Photorealistic, Illustration, Minimalist, Sticker, Product, Comic, General) automatically improve prompt quality
+- **Multilingual Support**: Detects and works with prompts in any language (translate prompts from any native language to English)
+- **Quality Assurance**: AI enhancement adds professional details (lighting, composition, technical specifications)
+- **Rate Protection**: 100 requests per hour prevents cost overruns
+- **Multiple Formats**: PNG, JPEG, WebP output options
+
+**Client Benefits**:
+- **No Expertise Required**: Simple prompts produce professional results through auto-enhancement
+- **Predictable Costs**: Rate limiting and per-request pricing prevent budget surprises
+- **Fast Integration**: REST API works with any programming language or platform
+- **Consistent Quality**: AI enhancement ensures professional-grade outputs every time
+- **Rapid Prototyping**: Quick turnaround enables fast iteration on creative concepts
+
+---
+
+### 1.2 File Upload Service
+
+**Endpoint**: `/api/upload`
+
+**Purpose**: Secure image upload to project-specific storage
+
+**Core Functionality**:
+- Upload single images with automatic validation
+- Organized storage by organization and project hierarchy
+- Returns public URL for immediate use
+- Tracks metadata (size, dimensions, format, upload time)
+
+**Key Features**:
+- **Security First**: File type validation, size limits (5MB), path protection
+- **Smart Organization**: Automatic file structure (org/project/category/filename)
+- **Multi-Tenant**: Complete isolation between organizations and projects
+- **Fast Access**: Direct URLs with optional temporary access tokens
+
+**Client Benefits**:
+- **Enterprise Security**: Production-grade file handling prevents vulnerabilities
+- **Team Collaboration**: Multi-tenant architecture supports multiple teams and clients
+- **Scalability**: Cloud storage grows with business needs
+- **Simple Integration**: Standard REST API, works with existing tools and frameworks
+
+---
+
+### 1.3 Image Listing & Access
+
+**Endpoints**: `/api/images/generated` (list), `/api/images/{path}` (serve)
+
+**Purpose**: Browse and retrieve generated images
+
+**Core Functionality**:
+- Paginated image listings (up to 100 per request)
+- Efficient image serving with streaming
+- Browser caching for performance (24-hour cache)
+- Search and filtering capabilities
+
+**Key Features**:
+- **Performance Optimized**: Direct streaming saves server resources
+- **Smart Caching**: Reduces bandwidth costs and improves load times
+- **Flexible Access**: Both direct URLs and temporary presigned URLs
+- **Complete Metadata**: Filename, size, dimensions, timestamp for every image
+
+**Client Benefits**:
+- **Fast User Experience**: Optimized delivery ensures quick page loads
+- **Cost Efficient**: Caching reduces data transfer expenses
+- **Easy Asset Management**: Simple browsing and retrieval of generated content
+- **Scalable**: Handles thousands of images without performance degradation
+
+---
+
+## 2. API Endpoints - Admin Features
+
+### 2.1 API Key Management
+
+**Endpoints**: `/api/admin/keys` (create, list), `/api/admin/keys/{id}` (revoke)
+
+**Purpose**: Secure access control and project organization
+
+**Core Functionality**:
+- Create two key types: Master (admin, permanent) and Project (90-day expiration)
+- List all keys with usage tracking
+- Revoke keys with audit trail (soft delete)
+- Monitor last usage timestamp
+
+**Key Features**:
+- **Two-Tier Security**: Master keys for administration, project keys for applications
+- **Automatic Expiration**: Project keys expire after 90 days, forcing security rotation
+- **Usage Tracking**: Monitor when each key was last used
+- **Audit Trail**: Full history of key creation, usage, and revocation
+- **Multi-Project Support**: Organize keys by organization and project
+
+**Business Benefits**:
+- **Enterprise Ready**: Security model supports SaaS and multi-tenant businesses
+- **Compliance**: Complete audit trail meets regulatory requirements
+- **Team Management**: Separate keys for different teams, projects, or environments
+- **Self-Service**: Users manage their own keys without support intervention
+- **Security Control**: Easy revocation limits damage from compromised keys
+
+---
+
+## 3. Image Generation Service
+
+### 3.1 AI Technology
+
+**Model**: Google Gemini 2.5 Flash Image
+
+**How It Works**:
+The platform sends user prompts to Google's latest Gemini AI model, which generates high-quality images based on natural language descriptions. The service handles all API communication, error handling, and image retrieval automatically.
+
+**Capabilities**:
+- State-of-the-art image quality from Google's latest AI model
+- Multiple aspect ratios and output formats
+- Fast generation times (typically under 10 seconds)
+- Reliable performance with automatic retry logic
+
+---
+
+### 3.2 Prompt Enhancement System
+
+**Purpose**: Transform amateur prompts into professional AI instructions
+
+**How It Works**:
+A secondary AI agent analyzes user prompts and enhances them with professional details (lighting, composition, style specifics, quality parameters). The system detects the prompt language and applies template-based improvements while preserving user intent.
+
+**Enhancement Templates**:
+- **Photorealistic**: Professional photography with lighting and camera details
+- **Illustration**: Artistic style with medium and technique specifications
+- **Minimalist**: Clean, simple designs with emphasis on negative space
+- **Sticker**: Fun, vibrant designs suitable for messaging apps
+- **Product**: Commercial product photography standards
+- **Comic**: Cartoon and comic book styles
+- **General**: Balanced enhancement for any subject
+
+**Business Value**:
+- **Democratizes AI Art**: Anyone can create professional images without training
+- **Reduces Customer Support**: Users get good results immediately
+- **Increases Satisfaction**: Better outputs lead to happier customers
+- **Competitive Advantage**: Unique feature not available in basic AI APIs
+- **Faster Time-to-Value**: Customers see quality results from first request
+
+---
+
+## 4. Image Storage Service
+
+### 4.1 Technology & Architecture
+
+**Storage System**: MinIO (S3-compatible object storage)
+
+**Organization Structure**:
+```
+{organization-slug}/
+  └── {project-slug}/
+      ├── generated/     (AI-created images)
+      ├── uploads/       (user-uploaded files)
+      └── references/    (reference images for generation)
+```
+
+**Key Capabilities**:
+- **Unlimited Scalability**: Grows from megabytes to terabytes seamlessly
+- **S3 Compatibility**: Standard API enables easy cloud migration (AWS, Azure, Google Cloud)
+- **Data Reliability**: Erasure coding prevents data loss
+- **Fast Access**: Optimized for image serving with caching support
+- **Security**: Temporary access URLs, project-based isolation
+
+### 4.2 Business Benefits
+
+**For Platform**:
+- **Cost-Effective**: Self-hosted storage is cheaper than cloud at scale
+- **Vendor Independence**: S3 compatibility means no lock-in
+- **Easy Migration**: Can move to AWS/Azure when needed
+
+**For Clients**:
+- **Data Organization**: Automatic file management by project
+- **Fast Performance**: Optimized delivery for web and mobile
+- **Secure Access**: Enterprise-grade security and access control
+- **Reliable Storage**: Data protected against hardware failures
+
+---
+
+## 5. User Interface - Landing App
+
+### 5.1 Text-to-Image Workbench
+
+**Location**: `/demo/tti`
+
+**Purpose**: Interactive testing environment for image generation
+
+**Core Features**:
+- **Side-by-Side Comparison**: Generates with and without enhancement simultaneously
+- **Visual Proof**: Shows the value of prompt enhancement in real-time
+- **Style Templates**: Select from seven professional enhancement templates
+- **Aspect Ratio Control**: Choose from six common image dimensions
+- **Performance Metrics**: Display generation time for each request
+
+**Developer Tools**:
+- **Request Inspector**: View exact JSON sent to API
+- **Response Explorer**: Examine complete API response
+- **Enhancement Details**: See original vs. enhanced prompt comparison
+- **Code Generator**: Auto-generate integration code (cURL, JavaScript)
+
+**Business Value**:
+- **Try Before Buy**: Potential customers test API without writing code
+- **Immediate Proof**: Visual comparison demonstrates enhancement value
+- **Sales Tool**: Show prospects the platform's unique capabilities
+- **Faster Onboarding**: New users understand features quickly
+- **Reduced Support**: Self-service testing answers common questions
+
+---
+
+### 5.2 Image Gallery
+
+**Location**: `/demo/gallery`
+
+**Purpose**: Browse all generated images for a project
+
+**Features**:
+- Responsive grid layout with image thumbnails
+- Pagination (30 images per page)
+- Image metadata display (size, dimensions, type, timestamp)
+- Performance tracking (load time measurement)
+
+**Business Value**:
+- **Asset Management**: Easy browsing of generated content
+- **Portfolio Building**: Show clients their collection
+- **Performance Visibility**: Track delivery speed
+- **User Confidence**: Professional interface builds trust
+
+---
+
+### 5.3 File Upload Workbench
+
+**Location**: `/demo/upload`
+
+**Purpose**: Test and demonstrate upload functionality
+
+**Features**:
+- Drag-and-drop file selection
+- Real-time image preview
+- Metadata display (dimensions, size, aspect ratio)
+- Upload history tracking
+- Performance metrics (upload and download time)
+- Auto-generated code snippets
+
+**Business Value**:
+- **User-Friendly Testing**: Non-technical users can test uploads
+- **Integration Examples**: Developers get working code immediately
+- **Quality Assurance**: Preview prevents upload errors
+- **Performance Transparency**: Show actual upload speeds
+
+---
+
+### 5.4 Response Inspection Tools
+
+**Purpose**: Transparency and debugging for developers
+
+**Features**:
+- **Full Request Visibility**: See exact API request JSON
+- **Complete Response Data**: All metadata and parameters
+- **Enhancement Breakdown**: Detailed list of improvements made to prompts
+- **Gemini Parameters**: View AI model configuration
+- **Code Examples**: Context-specific integration code
+
+**Business Value**:
+- **Developer Trust**: Full transparency builds confidence
+- **Faster Integration**: Clear examples reduce development time
+- **Self-Service Debugging**: Developers solve issues independently
+- **Educational**: Learn how to optimize prompts and requests
+
+---
+
+### 5.5 Admin Interface
+
+**Pages**:
+- **Master Key Creation** (`/admin/master`): Bootstrap initial access
+- **API Key Management** (`/admin/apikeys`): Create and revoke keys
+
+**Purpose**: Self-service platform administration
+
+**Business Value**:
+- **Reduced Support Costs**: Users manage keys independently
+- **Security Control**: Easy key lifecycle management
+- **Team Enablement**: Non-technical staff can manage access
+
+---
+
+### 5.6 Documentation Section
+
+**Status**: In Progress
+
+**Current State**:
+- Documentation framework and styling complete
+- Content structure defined
+- Ready for content population
+
+**Planned Content**:
+- API reference documentation
+- Authentication and security guide
+- Integration tutorials
+- Best practices and examples
+
+**Business Value**:
+- **Faster Customer Onboarding**: Self-service learning
+- **Reduced Support Burden**: Documentation answers common questions
+- **Professional Image**: Complete docs signal production-ready platform
+- **Developer Satisfaction**: Good documentation attracts technical users
+
+---
+
+## 6. Database Architecture
+
+### 6.1 Technology
+
+**Database**: PostgreSQL 15 with Drizzle ORM (type-safe SQL)
+
+### 6.2 Core Structure
+
+**Multi-Tenant Hierarchy**:
+- **Organizations**: Top-level entity for companies or teams
+- **Projects**: Organize work within organizations
+- **API Keys**: Access control tied to organizations and projects
+- **Images**: Metadata for all generated and uploaded images
+- **Generations**: Track each image generation request
+- **Prompt Cache**: Optimize repeated prompt requests
+
+**Relationships**:
+Organizations contain Projects, which have API Keys and Images. All operations tracked for audit and analytics.
+
+### 6.3 Integration Role
+
+**Connects All Services**:
+- API authentication validates keys against database
+- Storage service uses organization/project structure for file paths
+- Image generation records metadata for reporting
+- Admin interface manages keys and projects
+
+**Business Benefits**:
+- **Multi-Tenant Foundation**: Supports SaaS business model
+- **Complete Audit Trail**: Track all platform activity
+- **Analytics Ready**: Rich metadata enables reporting and insights
+- **Data Integrity**: Relational structure prevents inconsistencies
+- **Scalable**: Optimized for thousands of organizations and millions of images
+
+---
+
+## 7. Environment & Deployment Readiness
+
+### 7.1 Development Environment
+
+**Configuration**: Docker Compose with local development
+
+**How It Works**:
+- Infrastructure (PostgreSQL, MinIO) runs in Docker containers
+- API service runs locally with hot reload for rapid development
+- Connects to Docker services via localhost port forwarding
+
+**Benefits**:
+- Fast iteration and debugging
+- Lower resource usage during development
+- Easy testing of infrastructure changes
+
+---
+
+### 7.2 Production Environment
+
+**Configuration**: Full Docker Compose orchestration
+
+**Services**:
+- API Service (REST API backend)
+- Landing Page (Next.js web interface)
+- PostgreSQL (database)
+- MinIO (object storage)
+
+**Network Architecture**:
+- Internal Docker network for service communication
+- External ports for user access (API: 3000, Landing: 3001)
+- Persistent volumes for data storage
+
+**Benefits**:
+- Production replica for accurate testing
+- Easy deployment to any Docker-compatible host
+- Service isolation and security
+- Simple scaling and updates
+
+---
+
+### 7.3 VPS Deployment Plan
+
+**Target**: Existing VPS with multi-domain infrastructure
+
+**Current VPS Setup**:
+- Running family Nextcloud instance
+- Multi-domain reverse proxy configured
+- SSL/TLS certificates automated
+
+**Deployment Approach**:
+- Add Banatie services to existing Docker Compose stack
+- Configure reverse proxy for new domains
+- Separate network for service isolation
+- Shared data volumes with proper permissions
+
+**Advantages**:
+- Leverage existing infrastructure investment
+- Proven hosting environment
+- Cost-effective (no new server required)
+- Familiar operations and maintenance
+
+---
+
+## 8. Upcoming Development Steps
+
+### 8.1 Database-Integrated API (Not Started)
+
+**Objective**: Full database persistence for all operations
+
+**Planned Functionality**:
+- Store generation history for analytics
+- User session management
+- Usage tracking and quota enforcement
+- Billing data collection
+- Advanced search and filtering
+
+**Business Impact**:
+- **Usage-Based Billing**: Foundation for revenue model
+- **Customer Analytics**: Understand usage patterns
+- **Quota Management**: Enforce plan limits automatically
+- **Historical Data**: Customer dashboards showing their activity
+
+---
+
+### 8.2 Image Transformation Service (Not Started)
+
+**Objective**: On-the-fly image manipulation and optimization
+
+**Planned Features** (service specified in separate documentation):
+- Resize and crop images
+- Format conversion
+- Compression and optimization
+- Watermarking
+- Thumbnail generation
+
+**Business Impact**:
+- **Bandwidth Savings**: Serve optimized images for faster loading
+- **Better UX**: Responsive images for mobile and desktop
+- **Additional Revenue**: Premium feature for transformation API
+- **Competitive Edge**: Complete image workflow solution
+
+---
+
+### 8.3 CDN Integration via Cloudflare (Not Started)
+
+**Objective**: Global content delivery for fast image access
+
+**Planned Implementation**:
+- Cloudflare CDN integration
+- Edge caching for generated images
+- DDoS protection
+- SSL/TLS management
+
+**Business Impact**:
+- **Global Performance**: Fast image delivery worldwide
+- **Reduced Costs**: Lower bandwidth usage on origin server
+- **Better UX**: Faster page loads increase customer satisfaction
+- **Security**: DDoS protection prevents outages
+- **Professional Service**: Enterprise-grade infrastructure
+
+---
+
+### 8.4 Production VPS Deployment (Not Started)
+
+**Objective**: Move from development to live production
+
+**Steps**:
+- Configure production environment variables
+- Set up domain and SSL certificates
+- Deploy Docker Compose stack to VPS
+- Configure monitoring and backups
+- Test all services under production load
+
+**Business Impact**:
+- **Market Entry**: Platform becomes publicly available
+- **Revenue Generation**: Begin accepting paying customers
+- **Real-World Testing**: Validate architecture under actual use
+- **Customer Feedback**: Learn from real user behavior
+
+---
+
+### 8.5 Marketing Landing Page (Not Started)
+
+**Objective**: Convert visitors into customers
+
+**Planned Updates**:
+- Marketing copy focused on benefits
+- Clear value proposition
+- Pricing page
+- Case studies and testimonials
+- SEO optimization
+- Call-to-action optimization
+
+**Business Impact**:
+- **Lead Generation**: Convert traffic to signups
+- **Brand Building**: Professional presence builds trust
+- **SEO Traffic**: Organic search visitors
+- **Sales Tool**: Share with prospects
+- **Credibility**: Complete website signals legitimate business
+
+---
+
+### 8.6 Email Collection Service (Not Started)
+
+**Objective**: Build email list for marketing and communication
+
+**Service**: To be determined (Mailchimp, ConvertKit, SendGrid, or other)
+
+**Planned Features**:
+- Newsletter signup forms
+- Lead magnet delivery
+- Welcome email sequence
+- Product update announcements
+- Re-engagement campaigns
+
+**Business Impact**:
+- **Build Audience**: Email list is owned asset
+- **Customer Communication**: Direct channel to users
+- **Marketing Automation**: Nurture leads automatically
+- **Revenue Driver**: Email marketing ROI is high
+- **Launch Momentum**: Pre-launch list for initial traction
+
+---
+
+## Current Strengths
+
+### Technical Excellence
+- Production-ready code and infrastructure
+- Enterprise-grade security and multi-tenancy
+- Comprehensive error handling and monitoring
+- Developer-friendly API and documentation tools
+
+### Unique Value Proposition
+- AI prompt enhancement democratizes professional image generation
+- Interactive workbenches provide immediate value demonstration
+- Full transparency builds developer trust
+- Complete solution (not just an API)
+
+### Business Readiness
+- Multi-tenant architecture supports SaaS model
+- Usage tracking enables flexible pricing
+- Self-service tools reduce support costs
+- Scalable infrastructure grows with business
+
+---
+
+## Key Risks & Considerations
+
+### External Dependencies
+- **Gemini AI Availability**: Platform depends on Google's API uptime and pricing
+- **Mitigation**: Monitor Google Cloud status, consider multi-provider strategy
+
+### Market Competition
+- **Large Players**: OpenAI, Midjourney, Stability AI have brand recognition
+- **Differentiation**: Prompt enhancement and developer tools create unique value
+
+### Technical Scalability
+- **Current State**: Designed for scalability but untested at high volume
+- **Plan**: Start small, monitor performance, scale infrastructure as needed
+
+---
+
+## Success Metrics (Post-Launch)
+
+### Customer Acquisition
+- API key signups per week
+- Conversion rate (visitor to signup)
+- Cost per acquisition
+
+### Usage & Engagement
+- Images generated per day/week
+- Average images per customer
+- API error rate
+- Customer retention (90-day)
+
+### Revenue
+- Monthly recurring revenue (MRR)
+- Average revenue per user (ARPU)
+- Churn rate
+- Customer lifetime value (CLV)
+
+### Product Quality
+- API response time
+- Success rate of generations
+- Customer support tickets
+- Net Promoter Score (NPS)
+
+---
+
+**Document Owner**: Technical Lead (Oleg)
+**Next Review**: After production deployment
+**Last Updated**: November 1, 2025
+**Status**: Current as of development completion, pending production deployment
diff --git a/strategy/11-technical-architecture.md b/strategy/11-technical-architecture.md
index 0669eff..f7db9a5 100644
--- a/strategy/11-technical-architecture.md
+++ b/strategy/11-technical-architecture.md
@@ -3,7 +3,7 @@
 **Date:** 2025-11-01
 **Version:** 1.0
 **Status:** ✅ Validated (current technical architecture)
-**Related docs:** `strategy/07-validated-icp-ai-developers.md`, `execution/09-mvp-scope.md`
+**Related docs:** `strategy/07-validated-icp-ai-developers.md`, `execution/09-mvp-scope.md`, `execution/12-the-current-tech-state.md`
 
 ---