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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company recorded no income tax expense during the years ended December 31, 2024, 2023, and 2022.
 

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,
202420232022
Book income (loss) before income taxes of the TRS$2,905 $(7,309)$(12,935)
Statutory rate of 21%$610 $(1,535)$(2,716)
Effect of state and local income taxes, net of federal tax benefit— (245)(450)
Permanent adjustments21 13 10 
Change in valuation allowance(1,051)1,579 2,971 
Valuation allowance release— — — 
Other420 188 185 
   Total income tax (benefit) expense$— $— $— 
   Effective tax rate— %— %— %
At December 31, 2024 and 2023, the Company had valuation allowances against certain deferred tax assets totaling $19.3 million and $19.7 million, respectively. The decrease in the valuation allowance was primarily from the net operating income 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, 2024 and 2023 are as follows (in thousands):
For the year ended
December 31,
20242023
Gross deferred tax assets:
Allowance for doubtful accounts$74 $71 
Accrued compensation375 179 
Net operating loss18,893 19,495 
Gross deferred tax assets$19,342 $19,745 
Less: Valuation Allowance$(19,342)$(19,745)
Total deferred tax assets net of valuation allowance$— $— 
Gross deferred tax liabilities:
Total book/tax difference in partnership$— $— 
Gross deferred tax liabilities:$— $— 
Net, deferred tax assets:$— $— 
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 continues to have cumulative three-year taxable losses. As of December 31, 2024, 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 $73.6 million and $64.5 million, respectively. The loss carryforwards begin to expire starting in 2038 for Federal tax purposes and in 2031 and thereafter for state tax purposes.