they basically every 3rd quarter of their fiscal year test to see if their assets are worth the same more or less than what they had tested in the previous year.
so to do this they need to compare an asset "value" that was previously computed to the "market value" of the asset as of dec 31.
Now this "market value" is very arbitrary but you have to be able to justify how you came to the number. You have to base that arbitrary number on what you think the future cash flows of the asset in question will be along with other factors you want to include.
so what they are telling us is bc of all the debt, bc they are "getting ready to sell the services side", and bc of how poor the stock price is, they are writing down 7.7mill bc you have to recognize impairment losses in your assets and cash flow. Does that make sense?