That is when someone's breath is harsh and/or B.O. makes you cry.
That boy tried to talk to me and his breath was funktabulous!
That nigga at the party, his breath and his arm pits was funktabulous.
Funktabulous is an exclamation of joy, much like funktastic, only on a higher plane...
<Being told a tale of great joy>
<Listening to an amazing song>
"This song rocks like a quarry! It's funktabulous!"