The New York Times reports that SureBeam Corporation's auditor had recently questioned its method of recognizing revenues.

"SureBeam said Deloitte had questioned the accounting for the sale of equipment to a Brazilian company in 2000, in which the company recognized millions in revenue that was ultimately not recovered. It also questioned the reporting of millions in revenue from the sale of equipment to Texas A&M University, which is not paying for the equipment but is performing research services for the company."