Jeff,
What the auctioneer is saying by he is out of money is that the house proxy bids, those placed online, are expended, meaning there is no more money on the books. The guy she is indicating watches and announces the bids placed in proxy, when opposing bids are placed. When she says he is out of money, she means that from that point on the winner will be an HA/Live bid, a phone bid, or an audience bid.