Chips Challenge 2 Wiki

The arrow points from the data input to the output. As long as the latch input is TRUE, the output will be the same as the data input. When the latch input is FALSE, the output will stay the same as it was when the latch input was last TRUE. This is a combination data flow valve and one bit memory. It's like the statement "As long as I can see you, I will follow your lead. When I can't see you, I'll do the last thing I saw you do."

The second latch is a mirror image of the first latch, used to keep the game elements symmetrical.

More information on logic circuits