Loss Carryforward

You lost money last year. You paid virtually no taxes. That loss has value to you, going forward, as a tax "hedge," or deduction, that you can take against next year's profits. You essentially "carry forward" those losses into next year, and get to keep more of your operating income.

Why is this even a thing? Well, it's probably smart government policy to encourage companies to invest in new businesses and to take modest amounts of financial risk all the time. Those risks, over time, create jobs and make the world a better place, assuming you believe that modern...stuff...makes the world a better place. If you don't, then there's a Golden Pond and a bunch of old Thoreau books we could link you to.

See: Net Operating Loss - NOL.