The encounter happened back on November 20 at approximately 5 p.m.
Grainy video shows a school bus traveling on West Newport Pike.
It stops in the intersection in front of the car for about 50 seconds.
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That's when a man allegedly taunts the driver and the students by flashing a weapon and then followed them down Maryland Avenue.
One couple says their 12-year-old daughter witnessed the incident, and she is terrified.
"He's still out there. It's a pretty decent neighborhood," said mom Kim Christmas. "He's still out there and hopefully they are looking for him."
The bus was carrying students from Stanton Middle School.
The driver contacted dispatch immediately after finishing the route.
The school says they will continue to work with the Delaware state police.
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