INCOME TAXES

The Company’s federal and state income tax provision from continuing operations for the three months ended March 31, 2017 and 2016 is summarized in the following table (in thousands):



	Three Months Ended March 31,
	2017		2016
Current
Federal	$	—	$	—
State	—		—
Total current	—		—
Deferred
Federal	495		17
State	124		6
Total deferred	619		23
Total income tax expense	$	619	$	23

The income tax expense recognized for the three months ended March 31, 2017 is a result of an increase in the deferred tax liability.

The Company’s reconciliation of the statutory rate from continuing operations to the effective income tax rate for the three months ended March 31, 2017 and 2016 is summarized as follows (in thousands):



	Three Months Ended March 31,
	2017			2016
Tax benefit at statutory rate	$	(6,445	)	$	(3,411	)
State tax expense (benefit), net of federal taxes	36			(16		)
Valuation allowance changes affecting income tax provision	6,976			3,388
Non-deductible transaction costs and other	52			62
Income tax expense	$	619		$	23

At March 31, 2017, the Company had Federal net operating loss (“NOL”) carry forwards of approximately $345.7 million, of which $15.0 million is subject to an annual limitation, which will begin expiring in 2026 and later. The Company has post-apportioned state NOL carry forwards of approximately $390.0 million, the majority of which will begin expiring in 2017 and later.