First True Leaves Didn't Develop

Is the seedling a goner?

Two seedlings popped out Saturday. They are currently a bit leggy at 2 inches high. The cotyledons on both are a healthy green, at about half and inch long on each side. The first true leaves on one plant are also about half an inch.

On the other seedling, the first true leaves started to form, but are tiny, curled up, and have a brown burn around the outside (they are about 1/8 an inch tall and half that wide).

Ive just been misting them with distilled water, and they are not under a super-powerful light (40w tube, but Im moving them today).

Its probably the soil (2/3rd dirt with .15-.05-.1 mixed 1/3rd with pearlite).

Anyway, is this thing toast? Or can the cotyledons support it until it forms its next leaf set?

I just don't want to invest time into it if it has no chance without a full span of first true leaves. Thanks
 
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