capable of binding gene sequences 1,000 times more effectively than complementary native DNA. ONCOlogues invade a DNA double helix and displace native mutated strands. This prevents the mRNA that antisense binds to from ever being created. It is active higher upstream than traditional antisense approaches as well as potentially more potent and broader in its utility.
In addition, we are exploring the potential of the platform to treat novel coronaviruses, such as COVID-19.
The ONCOlogues platform is currently in development at our partner company, Oncogenuity, Inc.
General Corporate
In May 2020, Fortress announced the pricing of an underwritten public offering of 555,556 shares of its 9.375% Series A Cumulative Redeemable Perpetual Preferred Stock (“Series A Preferred Stock”), (plus a 45-day option to purchase up to an additional 83,333 shares, which was exercised in May 2020) at a price of $18.00 per share for gross proceeds of approximately $11.5 million, before deducting underwriting discounts and commissions and offering expenses of $1.1 million.
Coupled with the February 2020 underwritten offering, Fortress has raised gross proceeds of approximately $25.9 million as of June 30, 2020 through the sale of its Series A Preferred Stock.
On June 28, 2019, Fortress entered into an At Market Issuance Sales Agreement (“2019 Common ATM”), with Cantor Fitzgerald & Co., Oppenheimer & Co., Inc., H.C. Wainwright & Co. Inc., Jones Trading Institutional Services LLC and B. Riley, as selling agents, governing potential sales of the Company’s common stock. From January 1, 2020 through August 5, 2020 the Company issued approximately 11.4 million shares of common stock for gross proceeds of $28.9 million at an average selling price of $2.55.
In June 2020 Fortress was added to the Russell 3000® index. Russell indexes are part of FTSE Russell, a leading global index provider, which determines membership for its indexes primarily by objective, market-capitalization rankings and style attributes.
Critical Accounting Policies and Use of Estimates
See Note 2 to the Condensed Consolidated Financial Statements.
Results of Operations
General
For the three and six months ended June 30, 2020, we generated $9.5 million and $22.4 million, respectively, of net revenue, of which $9.4 million and $21.4 million, respectively, relates primarily to the sale of Journey branded and generic products and approximately $42,000 and $1.0 million, respectively, relates to Checkpoint’s collaborative agreements with TG Therapeutics Inc. (“TGTX”), including a milestone of $1.0 million upon the 12th patient dosed in a phase 1 clinical trial for cosibelimab achieved during March 2020. As of June 30, 2020, we had an accumulated deficit of $461.9 million. While we may in the future generate revenue from a variety of sources, including license fees, milestone payments, research and development payments in connection with strategic partnerships and/or product sales, our and our subsidiaries’ current product candidates are at an early stage of development and may never be successfully developed or commercialized. Accordingly, we expect to continue to incur substantial losses from operations for the foreseeable future, and there can be no assurance that we will ever generate significant revenues.
For the three and six months ended June 30, 2020, we had $3.1 million and $6.9 million, respectively, of costs of goods sold in connection with the sale of Journey’s marketed products, compared to $2.4 million and $4.3 million, respectively, for the three and six months ended June 30, 2019. The increase is attributed to a growth in sales primarily attributed to the expansion of the marketed product portfolio with the addition of Ximino in the second half of 2019.
Research and Development Expenses
Research and development costs primarily consist of personnel related expenses, including salaries, benefits, travel, and other related expenses, stock-based compensation, payments made to third parties for license and milestone costs related to in-licensed products and technology, payments made to third party contract research organizations for preclinical and clinical studies, investigative sites for clinical trials, consultants, the cost of acquiring and manufacturing clinical trial materials, costs associated with regulatory filings and patents, laboratory costs and other supplies.