Equity

3 Months Ended

Jun. 30, 2011

Equity

Stockholders' Equity Note Disclosure [Text Block]

COMMON STOCK, WARRANTS AND PREFERRED STOCK:

Registered Direct Offering

In February 2011, the Company initiated a registered direct offering of the Company’s common stock to institutional investors in the United States.  The Company entered into securities purchase agreements to sell 5,263,158 shares of common stock at a price of $0.95 per share for gross proceeds of $5,000,000, and the offering closed on March 2, 2011.  The Company incurred $431,013 in expenses with respect to the offering, resulting in net proceeds of $4,568,987. 

Stock Issued for Services

During the three and nine months ended June 30, 2011, zero and 36,300 shares of common stock, respectively, were issued to employees of the Company as incentive bonuses under the Company’s Amended 2005 Equity Incentive Plan. The common stock issued during the nine months ended June 30, 2011 was valued at the closing price of the Company’s stock on the date of issue of $1.08 per share, for a total cost of $39,204 classified under salaries and benefits expense.   

During the three and nine months ended June 30, 2010, zero and 36,500 shares of common stock, respectively, were issued to employees of the Company as incentive bonuses under the Company’s Amended 2005 Equity Incentive Plan. The common stock issued during the nine months ended June 30, 2010 was valued at the closing price of the Company’s stock on the date of issue of $1.15 per share, for a total cost of $41,975 classified under salaries and benefits expense.

Warrants

The following is a summary of the Company’s warrants outstanding:

	Warrants		Weighted Average Exercise Price
Outstanding at September 30, 2010	8,050,375	$	3.00
Issued	-		-
Exercised	-		-
Expired	-		-
Outstanding at June 30, 2011	8,050,375	$	3.00

 The warrants outstanding at June 30, 2011 expire as follows:

Warrants	Price	Expiration Date
1,697,938	$1.75	November 15, 2011
2,485,488	$3.34	July 4, 2011
1,744,500	$3.34	July 18, 2011
1,362,857	$3.34	August 9, 2011
759,592	$3.34	August 16, 2011
8,050,375

Subsequent to June 30, 2011, 4,229,988 warrants dated July 4 and July 18, 2011 expired unexercised.

Preferred Stock

Timberline is authorized to issue up to 10,000,000 shares of preferred stock, $0.01 par value. The Board of Directors of Timberline is authorized to issue the preferred stock from time to time in series, and is further authorized to establish such series, to fix and determine the variations in the relative rights and preferences as between series, to fix voting rights, if any, for each series, and to allow for the conversion of preferred stock into common stock.