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PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)
 6 Months Ended
Jun. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Prepaid and Other Current Assets
Prepaid expenses and other current assets consisted of the following:

June 30, 2024December 31, 2023
Prepaid purchases(1)
$6,821,103 $7,908,087 
Less: prepaid purchases reserve(2)
(1,943,969)(1,999,068)
Prepaid purchases, net4,877,134 5,909,019 
Prepaid insurance464,042 1,283,146 
Other1,561,194 908,997 
Prepaid expenses and other current assets$6,902,370 $8,101,162 

(1) Our prepaid purchases consist of deposits made to our suppliers for non-recurring production parts and engineering costs. As of June 30, 2024 and December 31, 2023, net prepaid purchases primarily consisted of deposits for direct materials associated with our W4 CC and W750 vehicles. The decrease in prepaid purchases as of June 30, 2024 as compared to December 31, 2023 is primarily due to receipts of direct materials associated with our W4 CC and W750 vehicles.
(2) We record reserves on prepaid purchases that are significantly aged and for balances specifically identified as having a carrying value in excess of net realizable value. The reserve represents our best estimate of deposits on orders that we do not expect to recover.