The Hogmanay encounter did little to start the New Year party early for the Clyde fans as they watched their side lose further ground in the promotion race.
Barry Ferguson’s side have now taken just one point from the five games they have played since beating Berwick on November 19.
Yet the Bully Wee started the match at a ferocious pace, and were head and shoulders above their opponents in the early stages of play.
Clyde forced six corners within the first six minutes.
The pick of the bunch was Darren Miller’s ambitious shot straight from the corner kick - with the wind causing havoc and diverting his inswinging ball goalwards before Blair Currie was forced to parry it safe.
Clyde’s early promise paid off on 11 minutes, with Peter MacDonald putting his side in front.
The striker collected a wayward pass inside the box, before calmly looping the ball over the keeper and into the back of the net.
Fellow strike partner David Gormley then had a chance to extend Clyde’s lead in the 21st minute.
He found himself one on one with the keeper, but perhaps had too much time to think however, as his weak chipped shot was hit straight at Currie.
The Bully Wee would come to rue their missed chances, as Annan equalised just six minutes into the second half.
David McKenna latched onto a goal kick that evaded the entire Clyde defence before heading the ball over an out of position John Gibson.
Annan then took the lead in the 63rd minute when a free kick from Rabin Omar was hit straight at Gibson, who fumbled the ball before McKenna fired in the rebound to get his and Annan’s second goal of the match.
The visitors didn’t press their advantage however and the Bully Wee were gifted a chance to salvage a point when substitute Scott Ferguson was brought down in the box on 79 minutes.
MacDonald converted the resulting penalty, hitting it straight into the top left hand corner of the net.
Despite Clyde looking the more likelier team to score next, it was Annan who snatched an 87th minute winner courtesy of Smith.
The substitute capitalised on a misplaced backpass before rounding Gibson and slotting the ball into the empty net.