To be able to maintain carry forward losses, you have to have capital. The boys didn’t have capital. They paid themselves what came in. If they had been maintaining losses, they wouldn’t have a house because they would have had to sell it.

Because of the losses, right?

How do you think money works?

Where do you think the Dwarf Fortress guys got all this extra hypothetical money to pay themselves in excess of receipts?

You seem to be confusing between loss and expenses. Salaries are expenses of the business, while loss is the fiscal bottom line every period X.