It does. May I add a couple of thoughts here…
a) In my local browser, I received the message “GOALS: RAN OUT OF TIME”, but the level allowed me to complete the challenge, awarded experience points and coins and allowed me to advance to the next level.
b) (Perhaps I overlooked it), but I’m not seeing any “alert” or message indicating either a time-limit or time-warning or consequence.
c) Although I fully agree with the benefit of a time-limit “principal” to encourage some quick-thinking as players build experience and skill, 60 seconds seems a bit “narrow”. Especially in the lowest levels.
Admittedly, this is a FREE game focused on enabling emerging coders to build their syntax experience, but I’ll offer that the learning-goal may be a little handicapped if the beginner feels they cannot achieve a “momentum” in the 1st levels.
In the end I’m finding the gaming experience to be VERY valuable for code-practice/enhancement, but since the question opened a little back-and-forth here I thought I’d offer these thoughts for what they’re worth.
Continued thanks to all for the input!
Now back to the campaign!! 
postScript:
At the risk of seeming suborn, but sincerely to offer some constructive example to the discussion thread here… 
I just now completed the Kithard level “Known Enemy” that offers the introductory discussion of variables.
As mentioned above, I took the time to review the initial screens, then the hints to more fully understand the examples of the variable-syntax (none of which the player can access unless they click the “BEGIN/START” button on the initial screen.)
In this case, that meant that before I began to actually work toward the challenge goals, the level was already returning the “ran out of time” message.
However, it also appears that I was able to still receive experience points and gems for completing the goals correctly.
So, (again at the risk of seeming argumentative) I wanted just to offer this user-experience here. (see screen captures below)
Of course, I am still open to explanations that I am overlooking or misunderstanding something about the game-play, but for the moment it feels like either a bug or something that is available for improvement in an upcoming update.
Continued thanks,
- Kithard.KnownEnemy Start
- Kithard.KnownEnemy Finish