diff --git a/.npmrc b/.npmrc
new file mode 100644
index 0000000..b6f27f1
--- /dev/null
+++ b/.npmrc
@@ -0,0 +1 @@
+engine-strict=true
diff --git a/.nycrc b/.nycrc
new file mode 100644
index 0000000..22d8df7
--- /dev/null
+++ b/.nycrc
@@ -0,0 +1,8 @@
+{
+  "extends": "@istanbuljs/nyc-config-typescript",
+  "check-coverage": true,
+  "all": true,
+  "include": ["src/**/*.[tj]s?(x)"],
+  "reporter": ["html", "lcov", "text", "text-summary"],
+  "report-dir": "coverage"
+}
diff --git a/extension/src/activateAvmDebug.ts b/extension/src/activateAvmDebug.ts
index fc206b4..af3a379 100644
--- a/extension/src/activateAvmDebug.ts
+++ b/extension/src/activateAvmDebug.ts
@@ -1,5 +1,3 @@
-'use strict';
-
 import * as vscode from 'vscode';
 import { AvmDebugConfigProvider } from './configuration';
 
diff --git a/extension/src/configuration.ts b/extension/src/configuration.ts
index 415b606..89319f1 100644
--- a/extension/src/configuration.ts
+++ b/extension/src/configuration.ts
@@ -1,5 +1,3 @@
-'use strict';
-
 import * as vscode from 'vscode';
 import {
   WorkspaceFolder,
diff --git a/extension/src/extension.ts b/extension/src/extension.ts
index 3ba50b3..9c42ec3 100644
--- a/extension/src/extension.ts
+++ b/extension/src/extension.ts
@@ -1,5 +1,3 @@
-'use strict';
-
 import * as vscode from 'vscode';
 import { activateAvmDebug } from './activateAvmDebug';
 import { ServerDebugAdapterFactory } from './serverDescriptorFactory';
diff --git a/extension/src/fileAccessor.ts b/extension/src/fileAccessor.ts
index 26e0998..6d199f8 100644
--- a/extension/src/fileAccessor.ts
+++ b/extension/src/fileAccessor.ts
@@ -1,7 +1,5 @@
-'use strict';
-
 import * as vscode from 'vscode';
-import { FileAccessor } from '../../src';
+import { FileAccessor } from '../../src/common';
 
 export const workspaceFileAccessor: FileAccessor = {
   isWindows: typeof process !== 'undefined' && process.platform === 'win32',
diff --git a/extension/src/internalDescriptorFactory.ts b/extension/src/internalDescriptorFactory.ts
index 68e8640..97971f8 100644
--- a/extension/src/internalDescriptorFactory.ts
+++ b/extension/src/internalDescriptorFactory.ts
@@ -1,8 +1,6 @@
-'use strict';
-
 import * as vscode from 'vscode';
 import { ProviderResult } from 'vscode';
-import { AvmDebugSession } from '../../src';
+import { AvmDebugSession } from '../../src/common';
 import { workspaceFileAccessor } from './fileAccessor';
 
 export class InlineDebugAdapterFactory
diff --git a/extension/src/serverDescriptorFactory.ts b/extension/src/serverDescriptorFactory.ts
index 4db1fde..094bbc8 100644
--- a/extension/src/serverDescriptorFactory.ts
+++ b/extension/src/serverDescriptorFactory.ts
@@ -1,9 +1,7 @@
-'use strict';
-
 import * as Net from 'net';
 import * as vscode from 'vscode';
 import { ProviderResult } from 'vscode';
-import { AvmDebugSession } from '../../src';
+import { AvmDebugSession } from '../../src/common';
 import { workspaceFileAccessor } from './fileAccessor';
 
 export class ServerDebugAdapterFactory
diff --git a/package.json b/package.json
index ee68210..dbac4a9 100644
--- a/package.json
+++ b/package.json
@@ -1,5 +1,5 @@
 {
-  "name": "avm-debug",
+  "name": "avm-debug-adapter",
   "version": "0.1.0",
   "description": "Algorand AVM transaction and smart contract debugger using the Debugger Adapter Protocol",
   "author": {
@@ -16,25 +16,40 @@
   "bugs": {
     "url": "https://github.com/algorand/avm-debugger/issues"
   },
+  "exports": {
+    ".": {
+      "types": "./dist/common/index.d.ts",
+      "default": "./dist/common/index.js"
+    },
+    "./node": {
+      "types": "./dist/node/index.d.ts",
+      "default": "./dist/node/index.js"
+    }
+  },
+  "bin": {
+    "avm-debug": "./dist/cli.js"
+  },
+  "files": [
+    "dist"
+  ],
   "scripts": {
-    "compile": "tsc -p ./",
+    "compile": "rimraf out && rimraf dist && tsc -p ./ && cp -R out/src dist",
     "lint": "eslint src --ext ts",
     "typecheck": "tsc -p tsconfig.json --noEmit",
     "check-format": "prettier . --check",
     "format": "prettier . --write",
-    "esbuild-base": "esbuild ./extension/src/extension.ts --bundle --tsconfig=./tsconfig.json --external:vscode --format=cjs --platform=node --outfile=extension/dist/extension.js",
-    "watch": "npm run -S esbuild-base -- --sourcemap --sources-content=false --watch",
-    "esbuild-web": "esbuild ./extension/src/web-extension.ts --bundle --tsconfig=./tsconfig.json --external:vscode --format=cjs --platform=browser --outfile=extension/dist/web-extension.js",
-    "watch-web": "npm run -S esbuild-web -- --sourcemap --sources-content=false --watch",
-    "build": "npm run -S esbuild-base -- --sourcemap --sources-content=false && npm run -S esbuild-web -- --sourcemap --sources-content=false",
+    "extension:esbuild-base": "esbuild ./extension/src/extension.ts --bundle --tsconfig=./tsconfig.json --external:vscode --format=cjs --platform=node --outfile=extension/dist/extension.js",
+    "extension:watch": "npm run -S extension:esbuild-base -- --sourcemap --sources-content=false --watch",
+    "extension:esbuild-web": "esbuild ./extension/src/web-extension.ts --bundle --tsconfig=./tsconfig.json --external:vscode --format=cjs --platform=browser --outfile=extension/dist/web-extension.js",
+    "extension:watch-web": "npm run -S extension:esbuild-web -- --sourcemap --sources-content=false --watch",
+    "extension:build": "npm run -S extension:esbuild-base -- --sourcemap --sources-content=false && npm run -S extension:esbuild-web -- --sourcemap --sources-content=false",
     "package": "vsce package",
     "publish": "vsce publish",
     "publish-pre-release": "vsce publish --pre-release",
-    "vscode:prepublish": "rimraf dist && npm run -S esbuild-base -- --minify && npm run -S esbuild-web -- --minify",
+    "vscode:prepublish": "rimraf extension/dist && npm run -S esbuild-base -- --minify && npm run -S esbuild-web -- --minify",
     "test": "ts-mocha -p tsconfig.json tests/*test.ts --timeout 30s --diff false",
     "test:coverage": "nyc npm run test"
   },
-  "main": "./dist/debugAdapter/index.js",
   "dependencies": {
     "@vscode/debugadapter": "^1.64.0",
     "algosdk": "github:jasonpaulos/js-algorand-sdk#teal-source-map-improvements",
@@ -64,23 +79,5 @@
     "ts-mocha": "^10.0.0",
     "typescript": "^4.6.3",
     "url": "^0.11.3"
-  },
-  "nyc": {
-    "extends": "@istanbuljs/nyc-config-typescript",
-    "check-coverage": true,
-    "all": true,
-    "include": [
-      "src/**/!(*.test.*).[tj]s?(x)"
-    ],
-    "exclude": [
-      "src/_tests_/**/*.*"
-    ],
-    "reporter": [
-      "html",
-      "lcov",
-      "text",
-      "text-summary"
-    ],
-    "report-dir": "coverage"
   }
 }
diff --git a/src/basicServer.ts b/src/basicServer.ts
deleted file mode 100644
index 076a2d4..0000000
--- a/src/basicServer.ts
+++ /dev/null
@@ -1,31 +0,0 @@
-import * as Net from 'net';
-import { AvmDebugSession } from './debugSession';
-import { FileAccessor } from './fileAccessor';
-
-export class BasicServer {
-  private server: Net.Server;
-
-  constructor(fileAccessor: FileAccessor) {
-    this.server = Net.createServer((socket) => {
-      const session = new AvmDebugSession(fileAccessor);
-      session.setRunAsServer(true);
-      session.start(socket as NodeJS.ReadableStream, socket);
-      socket.on('error', (err) => {
-        throw err;
-      });
-    }).listen(0);
-    this.server.on('error', (err) => {
-      throw err;
-    });
-  }
-
-  port(): number {
-    return (this.server.address() as Net.AddressInfo).port;
-  }
-
-  dispose() {
-    if (this.server) {
-      this.server.close();
-    }
-  }
-}
diff --git a/src/cli.ts b/src/cli.ts
index 4c0c59f..a8544e4 100644
--- a/src/cli.ts
+++ b/src/cli.ts
@@ -1,29 +1,16 @@
-import * as fs from 'fs/promises';
-import { basename } from 'path';
-import * as Net from 'net';
-import { FileAccessor } from './fileAccessor';
-import { AvmDebugSession } from './debugSession';
+#!/usr/bin/env node
 
-/*
- * cli.js is the entrypoint of the debug adapter when it runs as a separate process.
- */
+import { AvmDebugSession } from './common';
+import { Server, nodeFileAccessor } from './node';
+
+function handleError(err: Error) {
+  console.error(err);
+  process.exit(1);
+}
 
 /*
- * Since here we run the debug adapter as a separate ("external") process, it has no access to VS Code API.
- * So we can only use node.js API for accessing files.
+ * cli.js is the entrypoint of the debug adapter when it runs as a separate process.
  */
-const fsAccessor: FileAccessor = {
-  isWindows: process.platform === 'win32',
-  readFile(path: string): Promise<Uint8Array> {
-    return fs.readFile(path);
-  },
-  writeFile(path: string, contents: Uint8Array): Promise<void> {
-    return fs.writeFile(path, contents);
-  },
-  basename(path: string): string {
-    return basename(path);
-  },
-};
 
 async function run() {
   /*
@@ -37,37 +24,39 @@ async function run() {
    */
 
   // first parse command line arguments to see whether the debug adapter should run as a server
-  let port = 0;
+  let port: number | undefined;
 
   const args = process.argv.slice(2);
-  args.forEach(function (val, index, array) {
-    const portMatch = /^--server=(\d{4,5})$/.exec(val);
+  args.forEach(function (val) {
+    const portMatch = /^--port=(\d+)$/.exec(val);
     if (portMatch) {
       port = parseInt(portMatch[1], 10);
     }
   });
 
-  if (port > 0) {
+  if (typeof port !== 'undefined') {
+    console.log('>> running as a server with port ' + port);
+
     // start a server that creates a new session for every connection request
-    console.error(`waiting for debug protocol on port ${port}`);
-    const server = Net.createServer((socket) => {
-      console.log('>> accepted connection from client');
-      socket.on('error', (err) => {
-        throw err;
-      });
-      socket.on('end', () => {
-        console.error('>> client connection closed\n');
-      });
-      const session = new AvmDebugSession(fsAccessor);
-      session.setRunAsServer(true);
-      session.start(socket, socket);
-    }).listen(port);
-    server.on('error', (err) => {
-      throw err;
+
+    const server = new Server({
+      fileAccessor: nodeFileAccessor,
+      port,
+      ready: () => {
+        console.log(`Waiting for debug protocol on ${server.address()}`);
+      },
+      onSocketError: (err) => {
+        console.error('>> client connection error: ', err);
+      },
+      onServerError: handleError,
+    });
+
+    process.on('SIGTERM', () => {
+      server.close();
     });
   } else {
     // start a single session that communicates via stdin/stdout
-    const session = new AvmDebugSession(fsAccessor);
+    const session = new AvmDebugSession(nodeFileAccessor);
     process.on('SIGTERM', () => {
       session.shutdown();
     });
@@ -75,7 +64,4 @@ async function run() {
   }
 }
 
-run().catch((err) => {
-  console.error(err);
-  process.exit(1);
-});
+run().catch(handleError);
diff --git a/src/appState.ts b/src/common/appState.ts
similarity index 100%
rename from src/appState.ts
rename to src/common/appState.ts
diff --git a/src/debugSession.ts b/src/common/debugSession.ts
similarity index 100%
rename from src/debugSession.ts
rename to src/common/debugSession.ts
diff --git a/src/fileAccessor.ts b/src/common/fileAccessor.ts
similarity index 100%
rename from src/fileAccessor.ts
rename to src/common/fileAccessor.ts
diff --git a/src/index.ts b/src/common/index.ts
similarity index 100%
rename from src/index.ts
rename to src/common/index.ts
diff --git a/src/runtime.ts b/src/common/runtime.ts
similarity index 100%
rename from src/runtime.ts
rename to src/common/runtime.ts
diff --git a/src/traceReplayEngine.ts b/src/common/traceReplayEngine.ts
similarity index 100%
rename from src/traceReplayEngine.ts
rename to src/common/traceReplayEngine.ts
diff --git a/src/utils.ts b/src/common/utils.ts
similarity index 100%
rename from src/utils.ts
rename to src/common/utils.ts
diff --git a/src/node/fileAccessor.ts b/src/node/fileAccessor.ts
new file mode 100644
index 0000000..2e01888
--- /dev/null
+++ b/src/node/fileAccessor.ts
@@ -0,0 +1,16 @@
+import { readFile, writeFile } from 'fs/promises';
+import { basename } from 'path';
+import { FileAccessor } from '../common';
+
+export const nodeFileAccessor: FileAccessor = {
+  isWindows: process.platform === 'win32',
+  readFile(path: string): Promise<Uint8Array> {
+    return readFile(path);
+  },
+  writeFile(path: string, contents: Uint8Array): Promise<void> {
+    return writeFile(path, contents);
+  },
+  basename(path: string): string {
+    return basename(path);
+  },
+};
diff --git a/src/node/index.ts b/src/node/index.ts
new file mode 100644
index 0000000..5bcfcf0
--- /dev/null
+++ b/src/node/index.ts
@@ -0,0 +1,2 @@
+export { Server } from './server';
+export { nodeFileAccessor } from './fileAccessor';
diff --git a/src/node/server.ts b/src/node/server.ts
new file mode 100644
index 0000000..8f82443
--- /dev/null
+++ b/src/node/server.ts
@@ -0,0 +1,43 @@
+import * as Net from 'net';
+import { AvmDebugSession, FileAccessor } from '../common';
+
+export class Server {
+  private readonly server: Net.Server;
+
+  constructor({
+    fileAccessor,
+    port,
+    ready,
+    onSocketError,
+    onServerError,
+  }: {
+    fileAccessor: FileAccessor;
+    port: number;
+    ready?: () => void;
+    onSocketError: (err: Error) => void;
+    onServerError: (err: Error) => void;
+  }) {
+    this.server = Net.createServer((socket) => {
+      const session = new AvmDebugSession(fileAccessor);
+      session.setRunAsServer(true);
+      session.start(socket, socket);
+      socket.on('error', onSocketError);
+      if (ready) {
+        ready();
+      }
+    }).listen(port);
+    this.server.on('error', onServerError);
+  }
+
+  address(): Net.AddressInfo {
+    return this.server.address() as Net.AddressInfo;
+  }
+
+  port(): number {
+    return this.address().port;
+  }
+
+  close() {
+    this.server.close();
+  }
+}
diff --git a/tests/adapter.test.ts b/tests/adapter.test.ts
index 2e2a352..94652d1 100644
--- a/tests/adapter.test.ts
+++ b/tests/adapter.test.ts
@@ -2,7 +2,7 @@ import * as assert from 'assert';
 import * as path from 'path';
 import * as algosdk from 'algosdk';
 import { DebugProtocol } from '@vscode/debugprotocol';
-import { ByteArrayMap } from '../src/utils';
+import { ByteArrayMap } from '../src/common/utils';
 import { TestFixture, assertVariables, advanceTo, DATA_ROOT } from './testing';
 
 describe('Debug Adapter Tests', () => {
diff --git a/tests/client.ts b/tests/client.ts
index e884f8b..43234f2 100644
--- a/tests/client.ts
+++ b/tests/client.ts
@@ -2,7 +2,7 @@ import * as assert from 'assert';
 import { SpawnOptions } from 'child_process';
 import { DebugClient as DebugClientBase } from '@vscode/debugadapter-testsupport';
 import { DebugProtocol } from '@vscode/debugprotocol';
-import { ILaunchRequestArguments } from '../src/debugSession';
+import { ILaunchRequestArguments } from '../src/common/debugSession';
 import {
   ILocation,
   IPartialLocation,
diff --git a/tests/testing.ts b/tests/testing.ts
index 9a73b71..9f3724e 100644
--- a/tests/testing.ts
+++ b/tests/testing.ts
@@ -1,10 +1,8 @@
 import * as assert from 'assert';
 import * as path from 'path';
-import * as fs from 'fs/promises';
 import { DebugClient } from './client';
-import { BasicServer } from '../src/basicServer';
-import { FileAccessor } from '../src/fileAccessor';
-import { ByteArrayMap } from '../src/utils';
+import { Server, nodeFileAccessor } from '../src/node';
+import { ByteArrayMap } from '../src/common/utils';
 
 export const PROJECT_ROOT = path.join(__dirname, '../');
 const DEBUG_CLIENT_PATH = path.join(
@@ -13,22 +11,9 @@ const DEBUG_CLIENT_PATH = path.join(
 );
 export const DATA_ROOT = path.join(PROJECT_ROOT, 'sampleWorkspace/');
 
-export const testFileAccessor: FileAccessor = {
-  isWindows: typeof process !== 'undefined' && process.platform === 'win32',
-  async readFile(path: string): Promise<Uint8Array> {
-    return await fs.readFile(path);
-  },
-  async writeFile(path: string, contents: Uint8Array) {
-    return await fs.writeFile(path, contents);
-  },
-  basename(p: string): string {
-    return path.basename(p);
-  },
-};
-
 export class TestFixture {
   private _client: DebugClient | undefined;
-  private _server: BasicServer | undefined;
+  private _server: Server | undefined;
 
   public get client(): DebugClient {
     if (!this._client) {
@@ -37,7 +22,7 @@ export class TestFixture {
     return this._client;
   }
 
-  private get server(): BasicServer {
+  private get server(): Server {
     if (!this._server) {
       throw new Error('Not initialized');
     }
@@ -45,7 +30,16 @@ export class TestFixture {
   }
 
   public async init() {
-    this._server = new BasicServer(testFileAccessor);
+    this._server = new Server({
+      fileAccessor: nodeFileAccessor,
+      port: 0,
+      onServerError(err) {
+        throw err;
+      },
+      onSocketError(err) {
+        throw err;
+      },
+    });
 
     this._client = new DebugClient('node', DEBUG_CLIENT_PATH, 'avm');
     await this._client.start(this._server.port());
@@ -68,7 +62,7 @@ export class TestFixture {
 
   public async stop() {
     await this.client.stop();
-    this.server.dispose();
+    this.server.close();
     this._client = undefined;
     this._server = undefined;
   }
diff --git a/tsconfig.json b/tsconfig.json
index c67ee81..5749b2b 100644
--- a/tsconfig.json
+++ b/tsconfig.json
@@ -5,6 +5,7 @@
     "outDir": "out",
     "lib": ["WebWorker", "ES2020"],
     "sourceMap": true,
+    "declaration": true,
     "rootDir": ".",
     "strict": true /* enable all strict type-checking options */,
     /* Additional Checks */