Tool use cooldown not working as intended?

When the player clicks, it enables a variable bool called "toggle" to true. Then that is supposed to damage the NPC once, but it doesn't. It also doesn't apply the "click to activate toggle". Here's the script.

local weapon = script.Parent.Parent.Handle.HitPart
local dmg = script.Parent.Parent.Interval.Value * 20
local toggle = true

weapon.Touched:Connect(function(part)
	if part.Parent:FindFirstChild("Humanoid") then
		if toggle == true then
			local humanoid = part.Parent:FindFirstChild("Humanoid")
			humanoid:TakeDamage(dmg)
			toggle = false
			wait(1)
			toggle = true
		end
	end
end)

It's a server script inside of another server script inside a tool called "Wooden katana".