Chocolate agar is an enriched, non-selective growth medium derived from blood agar. It is composed of red blood cells that have been lysed by gentle heating, releasing nutrients such as NAD (Nicotinamide adenine dinucleotide) and hemin, which are often required by fastidious bacteria. These nutrients facilitate the growth of organisms that may not thrive on standard agar, like Neisseria and Haemophilus species.