diff --git a/.agents/MEMORY.md b/.agents/MEMORY.md
index eea7692..2344a61 100644
--- a/.agents/MEMORY.md
+++ b/.agents/MEMORY.md
@@ -4,12 +4,10 @@ Last updated: initial scaffold.
 
 ## Project state
 
-- Empty project scaffolded with Meson build, C++20, module headers, and agent
-  workflow files.
-- No implementation yet; headers are placeholders.
-- Phase plan is in `docs/PHASES.md`. Agents are now explicitly instructed in
-  `AGENTS.md` to read `docs/PHASES.md` before planning and not to start work
-  belonging to a later phase unless requested.
+- Phase 1 complete: Meson build, C++20 module headers, agent workflow, clock
+  utility, and a passing unit test.
+- Active phase is now Phase 2 (software H.264 encode/decode).
+- No implementation yet for capture/codec/network/render.
 
 ## Decisions
 
diff --git a/README.md b/README.md
index 413d9f6..fc07611 100644
--- a/README.md
+++ b/README.md
@@ -14,7 +14,8 @@ A native Linux peer-to-peer screencast application.
 Requirements:
 
 - C++20 compiler (GCC 12+, Clang 16+)
-- Meson + Ninja
+- Meson >= 0.63
+- Ninja
 - (later phases) FFmpeg dev packages, PipeWire dev, SDL2/3 dev
 
 Build and run tests:
@@ -25,6 +26,12 @@ meson compile -C build
 meson test -C build --print-errorlogs
 ```
 
+Run with verbose test output:
+
+```sh
+meson test -C build -v
+```
+
 ## Architecture
 
 See `docs/ARCHITECTURE.md` for module boundaries and design rules.
@@ -33,7 +40,7 @@ See `docs/ARCHITECTURE.md` for module boundaries and design rules.
 
 Development is split into phases in `docs/PHASES.md`.
 
-Current phase: **Phase 1 — project skeleton**.
+Current phase: **Phase 2 — software H.264 encode / decode**.
 
 ## License
 
diff --git a/docs/PHASES.md b/docs/PHASES.md
index 19dffae..3f9302f 100644
--- a/docs/PHASES.md
+++ b/docs/PHASES.md
@@ -10,8 +10,8 @@ previous one is validated.
 
 - [x] Meson build files (`meson.build`, `meson_options.txt`).
 - [x] Public module headers with `namespace sc`.
-- [ ] Unit test that exercises a trivial utility function.
-- [ ] `README.md` with build instructions.
+- [x] Unit test that exercises a trivial utility function.
+- [x] `README.md` with build instructions.
 
 **Validation**: `meson setup build && meson compile -C build && meson test -C build`.
 
@@ -89,4 +89,4 @@ where available.
 
 ## Current phase
 
-Phase 1 — skeleton and tooling.
+Phase 2 — software H.264 encode/decode.
diff --git a/include/screencast/utils/clock.h b/include/screencast/utils/clock.h
new file mode 100644
index 0000000..8cfc629
--- /dev/null
+++ b/include/screencast/utils/clock.h
@@ -0,0 +1,19 @@
+#pragma once
+
+#include <cstdint>
+
+namespace sc {
+
+// RTP clock rate for video is 90 kHz. Convert a monotonic nanosecond timestamp
+// into a 32-bit RTP timestamp. Overflows wrap around intentionally.
+constexpr uint32_t rtp_timestamp_from_ns ( uint64_t nanoseconds ) noexcept {
+    // (nanoseconds * 90_000) / 1_000_000_000
+    // Simplify: 90_000 / 1_000_000_000 = 9 / 100_000
+    return static_cast<uint32_t> ( ( nanoseconds * 9ULL ) / 100'000ULL );
+}
+
+static_assert ( rtp_timestamp_from_ns ( 0 ) == 0 );
+static_assert ( rtp_timestamp_from_ns ( 1'000'000'000ULL ) == 90'000 );
+static_assert ( rtp_timestamp_from_ns ( 500'000'000ULL ) == 45'000 );
+
+}  // namespace sc
diff --git a/meson.build b/meson.build
index 933e6f7..591f259 100644
--- a/meson.build
+++ b/meson.build
@@ -10,8 +10,7 @@ project('screen_cast', 'cpp',
 # Public and private include directories
 inc = include_directories('include')
 
-# Build the core static library first; dependencies will be added later as
-# phases require them.
+# Core public headers / include dependency defined in src/meson.build.
 subdir('src')
 
 # Tests
diff --git a/src/meson.build b/src/meson.build
index adad535..b392b3e 100644
--- a/src/meson.build
+++ b/src/meson.build
@@ -1,2 +1,6 @@
-# Empty stub: implementation files will be added phase by phase.
-# For now the project configures successfully with no targets.
+# Core public API is currently header-only. Source files will be added as
+# modules are implemented in later phases.
+
+# Declare an include-only dependency so that tests and executables can depend on
+# the public headers consistently.
+sc_core_inc = include_directories('../include')
diff --git a/tests/meson.build b/tests/meson.build
index 1a29ca8..0b1b499 100644
--- a/tests/meson.build
+++ b/tests/meson.build
@@ -1 +1,5 @@
-# Empty stub: tests will be added as modules land.
+test_clock = executable('test_clock',
+    'utils/test_clock.cpp',
+    include_directories : sc_core_inc)
+
+test('clock utils', test_clock)
diff --git a/tests/utils/test_clock.cpp b/tests/utils/test_clock.cpp
new file mode 100644
index 0000000..77e5860
--- /dev/null
+++ b/tests/utils/test_clock.cpp
@@ -0,0 +1,20 @@
+#include "screencast/utils/clock.h"
+
+#include <cassert>
+#include <cstdint>
+
+int main () {
+    assert ( sc::rtp_timestamp_from_ns ( 0 ) == 0u );
+    assert ( sc::rtp_timestamp_from_ns ( 1'000'000'000ULL ) == 90'000u );
+    assert ( sc::rtp_timestamp_from_ns ( 500'000'000ULL ) == 45'000u );
+    assert ( sc::rtp_timestamp_from_ns ( 16'666'667ULL ) == 1'500u );
+
+    // A multiple of the wrap period should wrap back to zero.
+    // Period in ns = ceil(2^32 * 100_000 / 9) because the helper uses
+    // integer floor division (ns * 9 / 100_000).
+    constexpr uint64_t period_ns = ( ( 1ULL << 32 ) * 100'000ULL + 9ULL - 1ULL ) / 9ULL;
+    static_assert ( sc::rtp_timestamp_from_ns ( period_ns ) == 0u );
+    static_assert ( sc::rtp_timestamp_from_ns ( period_ns + 1'000'000'000ULL ) == 90'000u );
+
+    return 0;
+}