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
	March 31,
	2017		2016
Federal	$	271	$	—
State	46		—
Tax expense (benefit)	$	317	$	—

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 losses in 2017. As of March 31, 2017, the TRS recorded a full valuation allowance equal to 100% of the gross deferred tax asset due to the uncertainty of the TRS's ability to fully utilize these deferred tax assets. As of March 31, 2017, the Company's TRS has a valuation allowance of $1.4 million. Management will continue to monitor the need for a valuation allowance on a quarterly basis.