That's what I was afraid you'd find in there.
double check the cylender walls make sure there's no damage to them,
If you want to keep the original head, you can normally have new seats installed, and depending on the depth of the gouges in the head either sand them smooth, or have them filled with weld.
new piston and valve should set you straight after that.
If you have to buy a new piston, may as well go for all 4 pistons and rebore it to the next oversize.
Otherwise pick up a known good head and piston and install them
whichever way you go be sure to clean out the oil pan and change filter and oil
Of course if you can pick up a wrecked bike cheap you could always swap engines, unless you live in a state that keeps track of them.
Personaly, I'd take the first route with new pistons/gaskets/bearings, it will almost be a new bike.
ken