That's not even close to bad! You've got to be kidding about it being bad.
It's not even close to horrible. It's deep in the very good zone, really.
It looks so adorable and cute, and that dragon... Perhaps a Siamese-like face, thin long muzzle and stuff, only this time smell eyes. And small spikes on its head. But that's my idea for it's head really.
Your choice on what you'd like to make the face as. It's wonderful.