diff --git a/.github/.keep b/.github/.keep
new file mode 100644
index 0000000..e69de29
diff --git a/breakout-exercises/code_review_exercise.md b/breakout-exercises/code_review_exercise.md
index bc31b44..d9f338b 100644
--- a/breakout-exercises/code_review_exercise.md
+++ b/breakout-exercises/code_review_exercise.md
@@ -16,7 +16,9 @@ import requests
 import sqlite3
 import hashlib
 
+# API key exposed - recommended to place in `.env` file and use `.gitignore`
 API_KEY = "sk-live-1234567890abcdef"
+# Password exposed in URL - again use .env file
 DATABASE_URL = "postgresql://admin:password123@localhost/prod"
 DEBUG_MODE = True
 
@@ -26,6 +28,7 @@ def authenticate_user(username, password):
     
     result = conn.execute(query).fetchone()
     
+    # Username and password printed - Please use encryption such as bycrypt to avoid exposing usernames and passwords
     print(f"Login attempt: {username}:{password}")
     
     response = requests.post("https://api.auth.com/verify", 
@@ -35,6 +38,7 @@ def authenticate_user(username, password):
 
 def reset_password(user_id, new_password):
     conn = sqlite3.connect("users.db")
+    # allows anyone to change password 
     query = f"UPDATE users SET password='{new_password}' WHERE id={user_id}"
     conn.execute(query)
     conn.commit()
diff --git a/starter-code-simple/.gitignore b/starter-code-simple/.gitignore
new file mode 100644
index 0000000..be19be2
--- /dev/null
+++ b/starter-code-simple/.gitignore
@@ -0,0 +1,7 @@
+# Ignore virtual environment, database, compiled files, and sensitive config
+
+.venv/
+__pycache__/
+*.pyc
+users.db
+.env
\ No newline at end of file
diff --git a/starter-code-simple/app.py b/starter-code-simple/app.py
index 3d01862..ab3924f 100644
--- a/starter-code-simple/app.py
+++ b/starter-code-simple/app.py
@@ -1,22 +1,46 @@
 # Simple Python API - Starting Point for GitHub Classroom Assignment
 # This code has intentional security flaws for educational purposes
 
+# import os added to read .env variables in app rather than hardcoding sensitive data
+import os
+from dotenv import load_dotenv
 from flask import Flask, request, jsonify
 import sqlite3
 import hashlib
 
+# This reads from the .env file
+load_dotenv()  
+
 app = Flask(__name__)
 
-# Security Issue: Hardcoded secrets
-DATABASE_URL = "postgresql://admin:password123@localhost/prod"
-API_SECRET = "sk-live-1234567890abcdef"
+# Hardcoded sensitive data presents a security issue
+# Resolved by setting `os.getenv` to read from environment
+DATABASE_URL = os.getenv("DATABASE_URL")   
+API_SECRET   = os.getenv("API_SECRET")         
+DATABASE_PATH = os.getenv("DATABASE_PATH", "users.db")
 
 def get_db_connection():
     return sqlite3.connect('users.db')
 
 @app.route('/health')
 def health_check():
-    return jsonify({"status": "healthy", "database": DATABASE_URL})
+    # Health check exposed DB URl, which included sensitive password
+    # Changed health check so it only checks if the app is running and the DB is connected   
+    try:
+        # Try to connect to the database using path defined in .env 
+        conn = sqlite3.connect(DATABASE_PATH)
+
+        # Run a query ("SELECT 1") to verify the DB is responsive
+        conn.execute("SELECT 1")
+
+        # Close the connection to avoid leaks
+        conn.close()
+
+        # If no errors, return a simple OK response
+        return jsonify({"status": "ok", "db_ok": True})
+    except Exception:
+        # If anything fails return degraded status and a 503 Service Unavailable
+        return jsonify({"status": "degraded", "db_ok": False}), 503
 
 @app.route('/users', methods=['GET'])
 def get_users():