First note, the feedback node will "default" to what is passed into the bottom on the first execution - and will reset memory only on a stop. This means that if Run continuous or a calling VI is used, the value will be retained from run to run, but if the run button is pressed, the input values are changed, and the run button is pressed again, it will return to the state passed in (False in the picture that was posted).
It looks like you are trying to assemble a JK latch (a variant of the SR flip flop). If this is the case, I would suggest you look at 3937's memory library released on FRC LabVIEW Tutorials.com at
http://frclabviewtutorials.com/memory-library/ . If you install the library, you can look at the flip flop to see how they did it (albeit using shift registers instead of feed back nodes - this will retain memory between executions of the calling vi's, only resetting at a power cycle - of on the rio)