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Assets Held for Sale and Sale of Former Hungarian Subsidiary
3 Months Ended
Mar. 31, 2015
Assets Held for Sale [Abstract]  
Assets Held for Sale and Sale of Former Hungarian Subsidiary
Assets Held for Sale and Sale of Former Hungarian Subsidiary
In the fourth quarter of 2013, we announced that we would begin winding down our CodeXyme® cellulase enzyme program. As a result of the termination of this research program, we concluded that certain excess research and development equipment, including assets at our Hungarian subsidiary as well as some assets in the United States, were no longer needed and would be sold.
On March 13, 2014, we entered into an agreement with Intrexon Corporation to sell 100% of our equity interests in our Hungarian subsidiary, Codexis Laboratories Hungary Kft, as well as all assets of such subsidiary that were previously classified as held for sale. On March 15, 2014, the sale transaction closed and we received cash proceeds of $1.5 million from the sale. Assets held for sale was reduced by their carrying value of $0.8 million. We recognized a gain of $0.8 million in connection with the sale which was included in research and development expenses. As part of the purchase, the buyer obtained all the Hungarian assets held for sale and assumed all employment and facility lease related contract obligations. There were no transaction related costs incurred other than legal fees, which were recorded in selling, general and administrative expenses.
Prior to the sale of our former Hungarian subsidiary in the first quarter of 2014, we transferred certain of the subsidiary's equipment to another European subsidiary of Codexis and incurred a VAT liability of approximately $0.4 million. We paid this VAT amount in July 2014 and recorded a receivable, which is reflected in prepaid expenses and other current assets in our condensed consolidated balance sheets at March 31, 2015 and December 31, 2014.
There were no assets classified as held for sale as of December 31, 2014 or as of March 31, 2015.