This is because a Quest Software account is required in order to use Toad Edge. If you do not have a Quest account yet, you can create one after launching the application.
Toad Edge also requires you to perform online authentication by signing in to your Quest account at least once per every 30 days. If you are signed in to your account and Toad Edge is able to reach the authentication servers, the process is done automatically on each application launch.
For users with restricted or no access to the Internet Quest offers an alternative pathway of offline licensing.