The Pace lost 2-0 away to Leith Athletic in East of Scotland Football League first division conference A, missing a spot kick in the first half whilst on top at 0-0.
Smith said: “It’s frustrating because I don’t think any team has blown us away.
“We’ve just had a mix of mistakes or missing things like penalties. That’s a good few now we haven’t scored from.
“I’m proud of the season so far, and to be sitting in third is real progress, but we could be even further up there.”
Smith’s side face fourth-placed Kirkcaldy and Dysart on Saturday.