It happened at "Discovering Basics" daycare in Northeast Georgia.
Megan Seabolt says daycare instructors told her, her 18-month-old son had an adverse reaction to "bug bites." However, doctors at an Augusta hospital told Seabolt it was more serious.
Damon Gaddis suffered second and third degree burns on June 13.
"At this point, Bright From The Start is actively investigating this incident," said Reg Griffin the state agency investigating the incident.
The daycare has informed the Georgia Department of Early Care and Learning that it will not appeal its license revocation.
Owner Minnie Dupree, her daughter Tara Miller and another employee were charged with child cruelty.