What would you have done?

Ok here is a situation I got into a couple of years ago. I was on vacation with my Wife, Dog, Sister in law, and another female friend of ours. We had stopped for a couple of days in Cape Cod. We rolled into Provincetown Looking for some good lobster, which was easy to find their. After a good meal we were walking around town looking at the shops and just enjoying a beautiful Fall night with good friends and family. Well as we were strolling along I noticed a seedy looking character lurking in between buildings and staying in the shadows. He disappeared when he noticed I was keeping an eye on him.
After a while my wife and I decided to go get the dog out of the truck and let her and us visit the rest room. We left our travel companions on one end of town and told them we would just drive down and pick them up. So we get to the truck, let the dog out and the wife is holding her while I visit the public rest room. I come out and we switch duties. Now this rest room was near a parking area away from the main flow of traffic and was not a well lit area. As I was waiting for my wife, mister seedy reappears from the shadows. The dog and I spot him about the same time. Now I am not what most would consider a typical easy target. I am 6’ 2” tall, at that time about 250 lbs and I hold a black belt in Karate. My dog is a Siberian husky and Wolf mix. Not the combination I would look for if I were after some easy cash. However mister seedy begins to look around to make sure no one is close by and begins to come towards us. We are separated by about 30 yards at this point so I have the ability to retreat and leave the area. However he is now between me and where my wife is shortly going to come out of. So leaving is not an option. He doesn’t look like a pan handler but more the, I need drugs so I need money type. Well as he approaches my dog is on full alert pulling against her leash and emitting a low growl that would scare most people. I am making eye contact with him trying to let him know this is a bad idea. Now to make matters worse I am not armed. So with fleeing not an option I decide it is time to meet problem head on. I feel very confident that if he is armed with anything less then a gun, the dog and I can handle it. He starts to approach us across the parking lot. So I start across the parking lot towards him. Now my mind is going a hundred miles an hour. I am scanning the area to make sure he has no buddies waiting to help. I am loosening my grip on the dog so she can do her thing. As we close to about 20 yards he starts to reach inside his coat. So figuring I have nothing to loose at this point I smile real big and slide my hand under my coat hoping to bluff him into thinking I have a gun also. Well as soon as he saw my hand move he freezes. I do the same, keeping my eyes scanning all around. So now we are both standing there hands reaching back on our hips and just waiting. About that time a bus comes around the corner and hits us with its head lights. Well mister seedy turns and runs off. About that time my wife comes out of the rest room. I relate the story to her as we head over to the truck and get in. We picked up our traveling companions and head to our trailers for a quiet nights sleep. Now tell me, what would you have done?
Mike