XM25 CDTE The XM25 Counter Defilade Target Engagement ( CDTE ) System , also known as the Punisher and Individual Semiautomatic Air Burst System is an air burst grenade launcher derived from the XM29 OICW . It was fielded to soldiers serving in the War in Afghanistan and was projected to enter full - rate procurement in 2013 . However , the Senate Armed Services Committee eliminated all funding for the XM25 in its revision of the Pentagon ' s budget in June 2013 . Design . The XM25 CDTE fires 25 mm grenade s that are set to explode in mid - air at or near the target . A laser rangefinder in the weapon is used to determine the distance to the target . The user can manually adjust the detonating distance by up to shorter or longer ; the XM25 automatically transmits the detonating distance to the grenade in the firing chamber . The grenade tracks the distance it has traveled by the number of spiral rotations after it is fired , then detonates at the proper distance to produce an air burst effect . These features make the XM25 more effective than traditional grenade launchers at the task of hitting targets that are behind cover or dug into the ground ( i . e . in defilade . ) One of the weapon ' s developers , Richard Audette , believes that the XM25 is a big leap forward because it is the first small arms weapon to use smart technology . The system has been developed by Alliant Techsystems and Heckler & Koch , while the target acquisition / fire control is developed by L - 3 IOS Brashear . The M203 grenade launcher has an effective range for point targets of 150 meters , and a maximum range for area targets of 350 meters . The XM25 has an effective range for point targets of 600 meters , and a maximum range for area targets of 700 meters . Studies indicate that the XM25 with air burst rounds is 300 percent more effective at engaging the enemy than other squad - level grenade launchers . Alliant Techsystems has indicated that the rifle may later use bullets with smaller explosive charges which will stun opponents rather than killing them . History . The XM25 began as an offshoot of the Objective Individual Combat Weapon program that began in the late 1990s . The XM29 was intended to be an individual combat weapon that combined a rifle and airburst grenade launcher . The XM29 weighed , far more than an individual rifle or grenade launcher . Its 20 mm airbursting grenades weighed half as much as 40mm grenade s . Even though the grenades were lighter , as a grenade round it was less effective at suppressing the enemy or putting them out of action . In August 2003 , the XM29 roles were separated into specific weapons , with the rifle pursued as the XM8 , and the airburst grenade launcher as the XM25 . The XM25 was part of OICW Increment 2 as the stand - alone airburst component . As a standalone launcher , it was intended to be a special applications and support weapon . It was able to fire larger 25 mm grenade rounds , which would generate 50 percent more , and heavier , fragments compared to the experimental 20 mm grenades . In 2005 , six weapons underwent limited field trials and combat testing . Two years later , they were sent overseas for testing in combat situations . The XM25 was planned to be sent into theater in 2008 , but minor suggestions from users and tests revealed things that need to be refined . In the summer of 2010 , the United States Army began field testing the XM25 in Afghanistan , with an initial per unit cost of the early models range from to $ 35 , 000 . The Army planned to purchase 12 , 500 XM25s in 2011 at a cost of $ 25 , 000 each and have them fielded by 2012 , enough for one XM25 system in each infantry squad and special forces team . According to U . S . Army project manager for new weapons , Colonel Douglas Tamilio , the rounds for the XM25 were expected to cost about $ 24 each ( as of 2010 ) . Five of the weapons were deployed with the 101st Airborne Division in Afghanistan in October 2010 , along with 1 , 000 hand - made air - burst rounds . The soldiers reported that the weapon was extremely effective at killing or neutralizing enemy combatants firing on US troops from covered positions . The US troops have nicknamed the weapon , " The Punisher . " First contact was 3 December 2010 . As of February 2011 , the weapon had been fired 55 times in nine engagements by two units in different locations . It had disrupted two insurgent attacks on observation posts , taken out two PKM machine gun positions , and destroyed four ambush sites . In one engagement , an enemy machine gunner was wounded by or so frightened of the XM25 that he dropped his weapon and ran away . The units with the XM25s had no casualties during the nine engagements . The weapon was called " revolutionary " and " a game - changer . " One platoon leader commented that engagements that would normally take 15 to 20 minutes were over in just a few minutes . They performed flawlessly with no maintenance issues . Soldiers were so pleased that they carried it as their primary weapon without carrying an M4 carbine as a secondary . There were no complaints about its weight , but improvements to the battery life and a range increase to 1 , 000 meters are being sought . Each round was hand built at a cost of $ 1 , 000 each , but the cost is expected to be $ 35 per shot when in full production , scheduled from 2012 . The US Army ordered 36 more of the rifles in January 2012 . On September 12 , 2012 , Alliant Techsystems received a $ 16 . 8 million engineering and manufacturing development contract modification for the XM25 . The contract funds the continuing design , integration , production , and testing of fully functional systems to ensure the weapon ' s final design meets performance requirements and is production - ready prior to fielding . ATK will be supporting another Army XM25 forward operational assessment scheduled for 2013 with a 36 gun battalion set of new pre - production prototypes . On February 2 , 2013 , an XM25 exploded during a live - fire training event . The primer and propellant ignited as the result of a double feed , although safety mechanisms prevented the round ’ s warhead from detonating . The gun was inoperable after the explosion and the soldier received minor injuries . In response , the Army removed the XM25 from service in Afghanistan . ATK noted that there were nearly 5 , 900 rounds fired between failures . The misfiring caused the Army to delay the decision to move the XM25 into full - rate production , pending changes to the design of the weapon and ammunition , operating procedures , and training techniques . Testing continued at Aberdeen Proving Grounds , where developers incorporated 130 design improvements . Despite the incident , Pentagon budget proposals included $ 69 million for 1 , 400 XM25 systems . The Army planned on a total of 10 , 876 units , two per infantry squad and one per special forces team . The post - Afghanistan strategy emphasizes the effectiveness of " the soldier and the squad . " In June 2013 , the Senate Armed Services Committee eliminated all funding for the 1 , 400 XM25 systems the Army wanted to purchase from the 2014 budget . The malfunction in February raised concerns about the safety and effectiveness of the weapon . The " unreliable performance " of the weapon led to funding being cut , as well as the recommendation to review alternative air - burst weapon systems . In August 2013 , the Army revealed that the XM25 may move to low - rate initial production ( LRIP ) by August 2014 . The weapon is currently in the engineering and manufacturing development ( EMD ) phase and not yet ready for fielding . By August 2014 , it is expected to reach milestone C , starting LRIP for 1 , 100 weapons and needed ammunition . Low - rate production would lead to type - classification , resulting in removing the " X " from its designation . Improvements are being made concerning the fire control system , battery life , weight , and magazine size . Following milestone C in 2014 , the system will go through initial operational tests and live - fire tests in 2015 . The XM25 is expected to be combat - ready by the end of 2015 , and be fielded with all brigade combat teams , as well as the Army Special Operations Command , Special Forces detachments , and Ranger Regiments . Automated production will reduce the price of the system to $ 35 , 000 for the weapon and fire control system , and $ 55 per round .