The timeout Bit is a settable timer. Try it after a button and follow it with a light. Press and release the button to start the countdown. In "on-off" mode, the light will go on as soon as you release the button and the timer will start counting down to turn-off time. In "off-on" mode, the light will go out when you release the button and will turn back on after the timer reaches the allotted time. Use the included screwdriver to set the timer. Try it with a motion sensor and buzzer to create an intruder alarm!