looking at that i'd be willing to bet its a clone. if it is a clone i's personally let the roots grow a little more even though you can see them poking through. the bigger the root system in early stages the better the chance of survival and it will grow faster. if it is from seed then get it strait into soil (if your going to use soil). as Wobster said it looks healthy and i 100% agree, its still young and looks in perfect condition to me. ive seen a lot worse than that and still gave a good crop. what ever your doing i'd say ya doing great :thumbsup: