Income Taxes

The Company’s TRS is subject to federal and state income taxes.

The components of income tax expense for the following periods are as follows (in thousands):



	For the three months ended					For the nine months ended
	September 30,					September 30,
	2017		2016			2017		2016
Federal	$	—	$	(10	)	$	271	$	142
State	—		(2		)	46		25
Tax expense (benefit)	$	—	$	(12	)	$	317	$	167

As of each reporting date, the Company's management considers new evidence, both positive and negative, that could impact management's view with regard to future realization of deferred tax assets. The Company's TRS is expecting increased taxable losses in 2017. As of September 30, 2017 and during the period, the TRS continues to recognize a full valuation allowance equal to 100% of the gross deferred tax asset due to the uncertainty of the TRS's ability to utilize these deferred tax assets. Management will continue to monitor the need for a valuation allowance on a quarterly basis.