This equation computes the Apparent Specific Gravity (SGApparent) from the weight of you sample of wort and the weight of water -- of equal volumes.
Since SG = ρsample/ ρH2O = (msampleV) / (mH2OV), the equal volumes cancel out and ratio of the weights can be used to compute the Apparent Specific Gravity. To obtain more precise values for SGTrue, you must measure the density of the wort at standard temperature and pressure. However, since the wort constitutes a relatively highly incompressible liquid solution, the variation in density due to pressure can be neglected and the weights of the equal-volume samples of wort and water can be measured in open air.
The wort is the liquid extracted from the mashing process during the brewing of beer which contains the sugars that will be fermented by the yeast to produce alcohol.
The Apparent Specific Gravity is often computed by home-brewing enthusiasts to determine sugar content of the wort. The SG can be translated to degrees Brix through an equation or looked up in a table of SG-to-degrees Brix.