If year 1 had below reportable income in 1099, could business expenses from year 1 be added into the equation for year 2's calendar year?

If you are asking in the context of a Schedule C sole proprietorship using cash basis accounting, each year is its own separate entity.  

You report all income in the year it is received and expenses in the year they are paid.  You cannot carry expenses over from one year to the next.  The only exception to that is for assets that are being depreciated over multiple years.