In Daylite 3.2.3, you can create an offline database using the following method:

1. Choose File > Database > Go Offline.
If you are going offline for the first time, Daylite opens an alert 'Unable to locate offline database. Create a new one?'
2. Click Yes.
The Authenticate window opens.
3. Enter your Mac OS X admin password. Click OK.
4. When done, Daylite shows an alert 'Successfully transitioned to the offline database.'
5. Click OK.

Note: If you have an existing offline database, you can sync the offline database with the online database. You will not be prompted for authentication.

For more information about going offline, watch this movie.