Yes, you can report a self-employment business even if your profit is less than $400. ($400 is the level at which you are required to file tax return if you have no other income. If you file a return for any reason, you must report all your income.)
You report your gross revenue and deduct your expenses. It's ok to show a loss as long as you are running the business like a business with a motive to eventually make a profit. However, if you show too many losses over too many years, the IRS may eventually decide it is a hobby, not a business, and deny your deductions for expenses. But that's not an issue you have to worry about the first couple of years.
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