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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of income tax expense for the following periods are as follows (in thousands):
 
For the year ended
 December 31,
 202220212020
Current:
Federal$— $— $(29)
State— — — 
Current tax expense (benefit)$— $— $(29)
Deferred:
Federal— — 29 
State— — — 
Deferred tax expense (benefit)— — 29 
Total income tax expense (benefit)$— $— $— 

The difference between income tax expense and the amount computed by applying the statutory federal income tax rate to the combined income of the Company's TRS before taxes were as follows (dollars in thousands):
For the year ended
December 31,
202220212020
Book loss before income taxes of the TRS$(12,935)$(24,391)$(4,838)
Statutory rate of 21% for 2018 and after$(2,716)$(5,122)$(1,016)
Effect of state and local income taxes, net of federal tax benefit(450)(1,049)(253)
Permanent adjustments10 8 4 
Change in valuation allowance2,971 5,977 1,445 
Valuation allowance release— — — 
Other185 186 (180)
   Total income tax (benefit) expense$— $— $— 
   Effective tax rate— %— %— %
At December 31, 2022 and 2021, the Company had valuation allowances against certain deferred tax assets totaling $17.7 million and $13.0 million, respectively. The increase in valuation allowance was primarily from the increase in the net operating losses incurred during the year. The tax effect of each type of temporary difference and carry forward that gives rise to the deferred tax asset as of December 31, 2022 and 2021 are as follows (in thousands):
For the year ended
December 31,
20222021
Gross deferred tax assets:
Allowance for doubtful accounts$88 $99 
Accrued compensation429 521 
Net operating loss17,218 12,427 
Gross deferred tax assets$17,735 $13,047 
Less: Valuation Allowance$(17,735)$(13,047)
Total deferred tax assets net of valuation allowance$— $— 
Gross deferred tax liabilities:
Total book/tax difference in partnership$— $— 
Gross deferred tax liabilities:$— $— 
Net, deferred tax assets:$— $— 
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 net deferred tax assets. The Company's TRS is expecting continued taxable losses in 2022. As of December 31, 2022, the TRS continues to recognize a full valuation allowance equal to 100% of the net deferred tax assets. Management will continue to monitor the need for a valuation allowance.
The TRS has income tax NOL carryforwards for Federal and various states of approximately $69.1 million and $50.0 million, respectively. The loss carryforwards begin to expire starting in 2039 for Federal tax purposes and in 2032 and thereafter for state tax purposes.