Do I have to pay a 25% penalty for early distribution for a 1099R SIMPLE IRA?

I have a 1099R with Box 7 (code) marked S for SIMPLE and the IRA/SEP/SIMPLE box also marked.

Page two of the 1040 showes an extra penalty tax of $934 (25%) for the $3,737 1099R distribution. Yes I did take it early because I was out of that job and cashed it in to live on. Not for medical or mortgage or house down payment. Is there any way to avoid paying the penalty? I know I pay any income tax due on the $3,737 as well. I am 31 years old and file Head of Household with two 12 yr old dependants.Thank You so much.