CitroTech Provides Q2 2026 Business Update in Letter to Shareholders

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joint venture financial

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Highlights Growing Engagement from Customers, Partners and Strategic Stakeholders

Hexion Joint Venture Gaining Momentum Toward Commercialization

DENVER--(BUSINESS WIRE)-- CitroTech Inc. (NYSE AM: CITR), a leading specialty chemical company delivering environmentally safe fire inhibitor solutions, today provided a business update in a letter to shareholders issued by CEO Wes Bolsen, highlighting continued progress toward broad commercialization.

Dear Shareholders,

With fires across the Western United States and around the world right now, we want to express our deepest sympathy to the families of the First Responders and community members who have lost their lives and many who have lost their property in the ongoing disasters. CitroTech stands alongside our firefighters and those in the community working to prevent fires and protect homes and assets from the devastating effects of ignitions. We are hopeful that in the days and years ahead we can be part of a solution that sees less fires needing to be suppressed and more fires prevented through dedicated planning and funding.

CitroTech® continues to build momentum as we execute our commercialization strategy and expand opportunities across multiple markets. Over the past several months, we have made meaningful progress across our core markets, expanded our partner ecosystem, advanced strategic relationships and strengthened the foundation for commercialization.

Expansion of our Partner Network

Our partner network remains a cornerstone of our commercialization strategy, enabling us to scale deployment through CitroTech trained and certified operators across the Western United States, while creating recurring product demand as partners grow their businesses. As of the end of the second quarter, our network had grown to 13 partners, and subsequent to quarter end, that network has expanded to more than 20 partners. This continued growth reflects increasing demand from qualified wildfire mitigation providers transitioning from phosphate-based solutions to the only environmentally safe fire retardant to help protect customers, communities and critical assets.

Importantly, our partner model is designed to create a scalable and recurring revenue opportunity. Each partner purchases CitroTech product to launch their operations, and as the product is deployed in the field and customer demand increases, partners return to purchase additional product. These relationships create a natural expansion cycle as our partners build their businesses around CitroTech and installed CitroSafe® systems and as the importance of proactive wildfire prevention becomes more widely recognized.

These same Certified Partners are coordinating with CitroTech to work with government and commercial entities on wildfire prevention and asset protection. These relationships include partners that are already working with utility companies, railroads, insurance carriers and even providing application services to local and county fire agencies. CitroTech is attracting the best in the industry and will continue to expand our partner network to deliver the only fire retardant that can be repeatedly applied to prevent ignitions.

Demonstrated Success in San Diego Driving Regional Expansion Opportunities

The successful deployment of our technology in San Diego has provided important validation of the CitroTech product in real-world applications and our wildfire mitigation approach is helping drive opportunities for broader adoption throughout Southern California. Building on the results demonstrated in San Diego, we are actively engaging with additional counties in California and stakeholders seeking a proven solution to reduce wildfire risk and protect communities in high-risk areas.

As wildfire preparedness continues to become a greater priority for municipalities, property owners and infrastructure stakeholders, we believe the success achieved in San Diego provides a strong foundation for expanding our presence across other fire-prone regions. The growing interest from communities throughout Southern California reinforces the need for scalable, proactive wildfire prevention solutions and highlights the substantial opportunity ahead.

Expanding Opportunities Within the Insurance Industry

The insurance industry represents a significant opportunity for the company, as carriers increasingly focus on proactive risk reduction and loss prevention. By reducing wildfire exposure around homes and communities through the treatment of surrounding brush and vegetation, our technology has the potential to become an important component of broader wildfire mitigation strategies.

As insurers continue to evaluate new approaches to managing wildfire risk, verified mitigation measures may provide homeowners with improved insurability and potential premium discounts. We are encouraged that one multi-billion-dollar global insurance company is actively developing an actuarial model around CitroTech to evaluate the impact of wildfire mitigation solutions. This work reflects a broader shift within the insurance industry toward recognizing prevention as a critical tool for protecting homes, reducing losses and improving resilience in fire-prone areas. This includes insurance companies moving away from external water-based sprinkler systems that take water from the firefighting community and adopting CitroSafe defense systems, working with one application in a matter of minutes and staying effective until the fire risk has passed.

Advancing a Transformational Joint Venture with Hexion

Our strategic joint venture with Hexion continues to advance rapidly and represents a transformational opportunity for CitroTech. Together, we are working toward establishing a new standard for fire-protected wood products by enabling lumber and engineered wood products to achieve Class A fire ratings. We expect to identify a commercial partner by year-end, with revenue opportunities anticipated beginning in early 2027.

This initiative has the potential to create a major shift in the construction materials industry by transforming conventional lumber into a higher-performing, fire-resistant building material, particularly as wildfire risk, building codes and insurance requirements continue to evolve.

To support this effort, burn testing is underway on full-size panels to confirm efficacy and validate performance at commercial scale. These tests represent an important step toward commercialization and demonstrate our commitment to rigorous technical validation as we bring this technology to market.

Supporting Wildfire Resilience Through Industry Collaboration

We recently strengthened our engagement with key stakeholders in wildfire resilience by joining the Federal Alliance for Safe Homes (FLASH) as a Corporate Member. FLASH is the nation's leading nonprofit organization dedicated to advancing disaster preparedness and home resilience through collaboration among government agencies, insurers, builders, emergency management organizations and private industry.

Through our participation in FLASH and its WildfireStrong – No Fuel. No Fire.® initiative, we will work alongside more than 100 public- and private-sector organizations focused on advancing practical, proactive approaches to wildfire mitigation and community resilience. We believe this relationship enhances awareness of our technology among corporate member organizations such as State Farm, USAA, Huber Engineered Woods, Home Depot and many others that influence wildfire prevention strategies, building practices and risk management, while reinforcing our commitment to helping communities reduce wildfire risk before disasters occur.

Strengthening Corporate Governance and Leadership

As we continue to grow, maintaining a strong governance framework is essential to providing appropriate oversight, accountability and guidance for our operations and strategic direction. During the quarter, we achieved an important milestone as we transitioned from a controlled to a non-controlled company following changes to our ownership and voting structure.

We also strengthened our Board of Directors with the appointment of Michael Feigin. Mr. Feigin brings more than 35 years of leadership experience across the construction and real estate industries, including expertise in enterprise risk management, insurance and corporate governance.

Building on Momentum Across Multiple Markets

As we look ahead, we remain focused on execution by expanding our partner network, accelerating commercial adoption, developing new market opportunities and advancing our strategic relationship with Hexion. We believe CitroTech is uniquely positioned at the intersection of wildfire resilience, infrastructure protection, insurance innovation and next-generation building materials. We remain focused on converting these opportunities before us into commercial results.

We appreciate the continued support of our shareholders and look forward to sharing additional progress via press releases as we execute on the significant opportunities ahead.

Sincerely,

Wes Bolsen
Chief Executive Officer
CitroTech Inc.

The Company filed its Form 10-Q for the quarter ended June 30, 2026 with the U.S. Securities and Exchange Commission today. For all financial information related to Q2 2026, please refer to the Edgar filing available on SEC.gov.

Management plans to host a conference call following the release of its third quarter financial results to provide shareholders and investors with further updates on the Company’s operational progress, commercial initiatives and strategic opportunities. Additional details regarding the date, time and participation information for the conference call will be provided in connection with the earnings release in November.

About CitroTech Inc.

CitroTech Inc. (NYSE AM: CITR) is manufacturing and deploying the CitroTech family of innovative, environmentally safe fire prevention solutions for homes, wood products, and wildfire prevention and asset protection. CitroTech is the only long-term fire inhibitor recognized by the EPA Safer Choice program and tested to UL Greenguard Gold standards, providing effective and scientifically validated wildfire mitigation while safeguarding human and environmental health. The company’s growing patent portfolio, recurring-revenue model, and scalable approach support its long-term growth and market expansion. For more information, visit www.citrotech.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to be materially different from any future results, performances, or achievements expressed or implied by the forward-looking statements. CitroTech undertakes no obligation to publicly update or revise any forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260810090288/en/

Media & Investor Contact:
CitroTech Inc.
Isabella Sarlo
Antenna Group
CitroTech@antennagroup.com
(516) 526-9227

Investor Relations Contact:
Brett Maas, Managing Principal
Hayden IR, LLC
CITR@haydenir.com
(480) 861-2425

Source: CitroTech Inc.