Plz help with these problems

FOR each of the following cases, indicate why management and the auditors determined that control deficiency was a material weakness.

Case1. In our assessment of the effectiveness of internal control over financial reporting as of December 31, 2011, we identified a material weakness over the accounting for and disclosure of derivatives associated with warrant instruments primarily because we lacked technical expertise and adequate procedures to develop and document our common stock warrant analysis on the applicability of ASC 815.