Troubled mobile application developer Viggle Inc. (OTCMKTS: VGGL) plans to raise additional cash through debt and equity offerings in order to continue operating.

The New York-based company provides a downloadable application that audio matches a television show rewards its users with points that can be redeemed for various prizes, such as electronics, trips and gift cards. Recently, Viggle's accountant expressed substantial doubt about the company's ability to continue as a going concern, or without the threat of liquidation.

In a Feb. 10 filing with the U.S. Securities and Exchange Commission, Viggle cited a history of recurring losses and working capital deficiencies. The company's future depends on obtaining the necessary debt and equity financing to continue developing the business. Viggle's management plans to raise additional capital through equity and debt offerings. The company is unlikely to generate significant revenue or earnings in the foreseeable future, according to the SEC filing.

Although it's still not profitable, VIggle was able to increase its numbers in 2013.

The company generated about $5 million in revenue for the quarter ended Dec. 31, a 30 percent increase over the company's revenue for the quarter ended Sept. 30. Viggle generates its revenue primarily through display and video advertising.

For the quarter ended Dec. 31, Viggle had a $12,619 operating loss, a decrease from the $36,192 operating loss that it experiencing during that time in 2012.

The company also increased its users. Viggle had about 3.7 million users registered for its app at the end of 2013, which represents an increase of 127 percent when compared to the end of 2012.

In 2013, Viggle bought Wetpaint, an entertainment media and technology company that supplies coverage of TV shows, starts, entertainment news and fashion. The company plans to integrate Wetpaint to incorporate news into its offerings. Last year, the company also developed Viggle Music, a product that audio matches music and allows users to earn "Viggle Points" that can be redeemed for real rewards.

In September and December, the company—in connection with lender Deutsche Bank Trust Company Americas—restructured its debt. Viggle originally had a $10,000 loan with Deutsche Bank, then increased the loan to $30,000 in December, and moved the maturity date from December to April 30, 2014.

For last week's edition of Turnaround Tuesday, see " Explores Strategic Alternatives." 

For more struggling companies see Mergers & Acquisitions Distressed Company Watch List. 

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