Upgraded Item
The Upgrade Items screen allows you to take an existing item that you have aquired, stolen, looted or crafted and turn it into a "bought item" this means you gain the benefit of it not being stealable, and also the ability for it to be level adjusted. This means you can adjust its stats as you level up via the Inventory > Bonuses screen the same as you can do with all bought extras.

As with all of the Buy Extra screens these extras cost real money and can be paid for with Hope Credits.