City were undone by second-half strikes at Crawley Town.
George Wickens was the first goalkeeper to be tested as he had to get down quickly to block Ronan Darcy’s effort in just the second minute.
After that, though, the Imps, enjoyed some good early spells - winning the ball back and keeping it well, albeit without testing the home goalkeeper Jojo Woolacott.
He was backpedalling quickly after 11 minutes when Tendayi Darikwa, starting as the left-sided wing-back combined well with Ethan Erhahon before sending in a deep cross which threatened to sneak in at the far post.
Another threat came down the left with 15 minutes on the clock when Dom Jefferies got away. His low ball in found Freddie Draper, who looked to spin into a shooting position but could not get his shot away.
And moments later, after Erik Ring had won the ball back in his own half, a quick ball through from Hamilton threatened to send Ben House away - the ball just got away from him and was too close to Wollacott.
There were 22 minutes on the clock by the time the home side fashioned a shooting opportunity as a loose ball fell to Darcy, but his effort was too high to trouble Wickens.
The Imps continued to look dangerous, with House surprised not to see Carl Brook award a penalty for his side when he looked to have been pulled back trying to get onto Ring’s cross from the right.
Moments later a header from Ring had to be flicked behind with Freddie Draper lurking. The resulting short corner saw Jefferies lay the ball off to Ring, who sent in a quality cross to the far post where both Hamer and Draper were unable to get the ball back across the area.
A nice ball from Erhahon found Ethan Hamilton in the area. His low cross threatened to find Draper, but the centre forward was well shielded from the ball.
City rattled the woodwork shortly before the break. A great block stopped Darikwa finding Draper, at the expense of a corner, and Jefferies’ delivery from the resulting set-piece clipped off the back of the far post.
And, in time added on, Charlie Barker brilliantly flicked away Hamer’s cross with Draper waiting to turn the ball home had it made it to him.
The home side went ahead in the opening minute of the second period when Will Swan was sent through. His powerful effort found a top corner.
City then had to patiently build again as they probed a backline who had something to hold on to. Hamilton was the first to force Wollacott into a save with a low drive which was well hit but too close to the home keeper.
Darikwa went close after 58 minutes when Barker underhit a header aiming to send the ball safely back to Wollacott, but his keeper stood up and saved well with his legs to stop the effort.
A counter-attack after 62 minutes led by Darikwa saw him send Jefferies through. His effort was blocked by the home keeper, and House’s shot from the rebound was blocked behind.
Michael Skubala made changes as he sought to push the game - sending on Reeco Hackett, Bailey Cadamarteri, JJ McKiernan and Jack Moylan.
City were pinning the home side back, but were hit on the counter attack themselves after 73 minutes. A long clearance sent Darcy away and he slotted past Wickens.
That was a decisive strike and the home side reacted by closing up space in the final third, making it even harder for the Imps.
Wollacott pulled off a great save to deny Hackett from close range, with City’s No.7 getting on the end of O’Connor’s hooked delivery back into the area.
That was a key moment as, with six minutes of time added on to follow, there was time for a second.
In the end, though, City’s late pressure was not enough for them to find a way back into the game and they were hit again on the counter deep into time added on through substitute Rushian Hepburn-Murphy.
Imps: George Wickens, Tendayi Darikwa, Ethan Erhahon, Ethan Hamilton (Jack Moylan, 69), Erik Ring (Reeco Hackett, 62), Paudie O’Connor, Dom Jefferies (JJ McKiernan,, 69), Ben House, Tom Hamer, Sean Roughan, Freddie Draper (Bailey Cadamarteri, 68). Subs not used: Jamie Pardington, Lewis Montsma, Conor McGrandles.
Crawley: Jojo Woolacott, Charlie Barker, Max Anderson (Panutche Camara, 64), Will Swann (Rushian Hepburn-Murphy, 64), Ronan Darcy (Gavan Holohan, 77), Armando Quitirna (Harry Forster, 57), Jeremy Kelly, Bradley Ibrahim, Toby Mullarkey, Jay Williams (c) , Josh Flint. Subs not used: Jack Roles, Benjamin Tanimu, Tola Showumni.
Referee: Carl Brook
Attendance: 3,221 (423 away)