Keys

Z - Toggle the alive/dead state
X - Show/hide the logic

Code

Below is an implementation of the code in the above explanation. For it to be useful, you need two different sprites in #001 and #002.

function _init()
 a=true --alive?
 b=1    --sprite:alive
 c=2    --sprite:dead
 x,y=60,60
end

function _update()
 if (btnp(4)) a=not a --flip/flop a
end

function _draw()
 spr(a and b or c,x,y)
end