Skegness Town Reserves need to win their three remaining fixtures if they are to avoid relegation after defeat in this double header against high-flying Wyberton.
The seasiders got off to a disastrous start, conceding three poor goals in the first 20 minutes.
But they were thrown a lifeline just before half time when Daniel Reid was fouled and Joe Errington made no mistake from the penalty spot.
After the interval Town upped their game with skipper and man-of-the-match John Jeffery leading by example.
Town were first to the ball, Jamie Turner grew into the game, Jay Verheul looked busy down the left and the home side produced some good attacking football.
With 25 minutes remaining a shock looked on the cards when Tom Watson headed home a corner from the left.
Town were on the front foot for the rest of the game, creating some good opportunities to send the game into extra time and share the league spoils.
However they suffered a body blow with five minutes remaining when a visiting striker pinched the ball from Thompson in Town’s goal and tapped home from close range.
Manager Scott Daley said: “All 14 lads put in a tremendous display today. The first 20 minutes proved costly. They could have folded after that, but they showed what they are all about during the following 70 minutes.
Skegness Town Reserves: Ryan Thompson, Joe Errington, Damian Howland, Tom Watson, Michael Parnham, Jamie Turner, Andy Reeson, John Jeffery, James Bland, Jay Verheul, Daniel Reid, Mason Hazard, Adi Verheul and Rhys Mansell.
Tonight (Wednesday) Skegness Town Reserves travel to Spilsby Town. On Saturday they are at home to Pointon and on the following Wednesday they are travelling to Old Doningtonians.