Is he happy at this daycare? Does he come home happy? If he does, I would ignore the report cards and the complaints that he doesn't socialize with other kids and just let him have fun. The reason he doesn't make friends is because he doesn't have anything in common with the kids. When my dd was 3, she went to a preschool where almost half her class was still in diapers. None of them knew their letters or numbers and my dd could read by then. My dd asked my why she was in a class with babies! The school wouldn't let her move "up" because of some kind of state licensing issue. I'm still mad at myself that I didn't pull her out of that preschool, but the fact is, it didn't hurt her. She liked going in and playing with the toys and painting and playing on the playground. She didn't make any friends among the "babies," and even I could see why, but since the school was play based, she just went there to have a good time. And it was fine. My advice-- look for a different school, but don't freak out over this one if your son likes it. Ignore the report cards.