I just got home about 30 minutes ago. I had the iPad in airplane mode as I approached the house to see if the program would still throw the licensing error pop-up if it couldn't see my wifi, it did. As soon as I took it out of airplane mode and it could see my network, the prompt went away. In between my initial post and getting home I did some searching online to see if anyone else was having a similar issue and someone was. They mentioned updating the program fixed the issue, so I checked, and there was indeed an update. Before updating, the sample image I had initially practiced on was still loaded on the active canvas and saved. The mock-up art was still MIA and not saved anywhere even though I had saved it locally the night before and made sure it was there safe and sound. So I update the software. I decided to test the licensing prompt again by disconnecting the iPad from the wireless manually and shutting down the iPad from the system menu option. Once fully shut down I waited about 60 seconds, then turned the system on. I loaded the software, and initially, for like 2 seconds, it showed the practice painting I had done on the active canvas. The program then skipped out to the "local save" selection browser where I could see that painting saved icon before it simply blinked away, and it was gone. I checked the "recently deleted" folder, and it wasn't there. It's like it never existed, the same as the mock-up art piece I'd prepared for my meeting earlier today.
To answer your question, I'm now on version 5.1.1(906). In going to pull that version number for you, I still hadn't reconnected to the wifi and was met with the "You Are In Read-Only Mode" prompt again and it's still asking me to license the software.