diff --git a/.gitignore b/.gitignore
index 32c57f2..2d3dc70 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,4 +1,5 @@
 .idea
+coverage
 node_modules
 server/datasources.local.json
 server/model-config.local.json
\ No newline at end of file
diff --git a/README.md b/README.md
index c9209fe..461d94c 100644
--- a/README.md
+++ b/README.md
@@ -1,9 +1,9 @@
 Learning Management System for Neukinnis
 ========================================
 
+[![Build Status](https://img.shields.io/travis/startersacademy/fullstack-project-01/master.svg)](https://travis-ci.org/startersacademy/fullstack-project-01)
+[![Coverage Status](https://img.shields.io/coveralls/startersacademy/fullstack-project-01/master.svg)](https://coveralls.io/r/startersacademy/fullstack-project-01)
 [![Stories in Ready](https://badge.waffle.io/startersacademy/fullstack-project-01.svg?label=ready&title=Ready)](http://waffle.io/startersacademy/fullstack-project-01)
-[![Build Status](https://travis-ci.org/startersacademy/fullstack-project-01.svg?branch=master)](https://travis-ci.org/startersacademy/fullstack-project-01)
-[![Coverage Status](https://coveralls.io/repos/startersacademy/fullstack-project-01/badge.svg)](https://coveralls.io/r/startersacademy/fullstack-project-01)
 
 Requirements
 ------------
diff --git a/gulpfile.js b/gulpfile.js
index 0b30b6d..e6ec277 100644
--- a/gulpfile.js
+++ b/gulpfile.js
@@ -96,8 +96,7 @@ gulp.task('test:unit', function (done) {
   karma.start({
     configFile: __dirname + '/karma.conf.js',
     singleRun: true,
-    autoWatch: false,
-    reporters: ['dots']
+    autoWatch: false
   }, done);
 });
 
@@ -106,8 +105,7 @@ gulp.task('test:unit:tdd', function (done) {
   karma.start({
     configFile: __dirname + '/karma.conf.js',
     singleRun: false,
-    autoWatch: true,
-    reporters: ['dots']
+    autoWatch: true
   }, done);
 });
 
diff --git a/karma.conf.js b/karma.conf.js
index 6db143d..2af6058 100644
--- a/karma.conf.js
+++ b/karma.conf.js
@@ -1,6 +1,8 @@
 // Karma configuration
 // Generated on Sun Jan 18 2015 21:07:20 GMT-0800 (PST)
 
+var istanbul = require('browserify-istanbul');
+
 module.exports = function(config) {
   config.set({
 
@@ -32,7 +34,9 @@ module.exports = function(config) {
 
     browserify: {
       debug: true,
-      transform: ['brfs'],
+      transform: ['brfs', istanbul({
+        ignore: ['**/node_modules/**', '**/spec/**'],
+      })],
       bundleDelay: 1000
     },
 
@@ -40,7 +44,15 @@ module.exports = function(config) {
     // test results reporter to use
     // possible values: 'dots', 'progress'
     // available reporters: https://npmjs.org/browse/keyword/karma-reporter
-    reporters: ['dots'],
+    reporters: ['coverage', 'coveralls', 'dots'],
+
+
+    coverageReporter: {
+      reporters: [
+        {type: 'html'},
+        {type: 'lcov'},
+      ],
+    },
 
 
     // web server port
diff --git a/package.json b/package.json
index 48f4df2..de248d6 100644
--- a/package.json
+++ b/package.json
@@ -39,6 +39,7 @@
     "loopback-explorer": "^1.1.0"
   },
   "devDependencies": {
+    "browserify-istanbul": "^0.1.5",
     "frisby": "git+https://github.com/vlucas/frisby.git",
     "gulp": "^3.8.10",
     "gulp-develop-server": "^0.2.5",
@@ -52,6 +53,8 @@
     "karma": "^0.12.31",
     "karma-browserify": "^2.0.0",
     "karma-chrome-launcher": "^0.1.7",
+    "karma-coverage": "^0.2.6",
+    "karma-coveralls": "^0.1.5",
     "karma-jasmine": "^0.3.5",
     "strongloop": "^2.10.2"
   }